Buffalo Wild Wings (BWLD) posted better-than-expected first quarter 2010 results, but the company witnessed volatility in chicken wing prices, and surprisingly soft comparable-store sales growth is sending an ominous signal.
Moreover, fierce competition from other casual dining operators to woo budge-constrained consumers may weigh upon the company’s results. Also, the uncertain economic environment poses a serious threat to the company.
Thus, we remain apprehensive on the stock and have downgraded our rating from Neutral to Sell.Zacks Investment Research
