B-Dubs Comment On Marcato Letter Calling For CEO Resignation
"[U]nder current management, shares of Buffalo Wild Wings' common stock [has] underperformed virtually every relevant benchmark on a 1-year, 3-year, and 5-year basis," Marcato founder Mick McGuire wrote in a press release. "Despite declining same-store sales, lackluster margins, a deteriorating guest experience and poor capital deployment decisions, management continues to fight tooth-and-nail to maintain the status quo."
McGuire added that the status quo is “unacceptable” and merits Smith’s replacement.
Marcato owns a 6.1 percent stake in the company, and the two entities have been engaged in a hostile battle since August 2016, when the investor called for management turnover and adjustments to operational focus, drivers, accountability and capital allocation.
Buffalo Wild Wings peaked 3.9 percent on the news and were trading up 2.7 percent at the time of publication.
Buffalo Wild Wings' Response
Upon Benzinga reaching out, the wings restaurant issued the following statement:
"Over the past decade, Buffalo Wild Wings' performance has consistently led the casual dining industry, delivering superior results to our shareholders while providing a differentiated guest experience to our customers. Under CEO Sally Smith's leadership since its IPO in 2003, the Company has generated total returns for shareholders of 1,697 percent. In fact, $10,000 invested in Buffalo Wild Wings stock at the IPO was worth more than $175,000 on March 31, 2017. The Company has continued to innovate and pursue cost savings initiatives amid difficult market conditions for the sector and remains focused on creating sustainable value for our shareholders."
Latest Ratings for BWLD
|Feb 2017||Feltl & Co.||Downgrades||Buy||Hold|
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