Buffalo Wild Wings Inc. (BWLD) has opened its 700th restaurant in the United States and thus remains on track to attain its target of opening 1,000 restaurants in the United States by 2013. The new restaurant is opened in Tempe, Arizona, which is the seventeenth restaurant in that state.
Minneapolis-based Buffalo Wild Wings was founded in 1982 and it opened its first restaurant near Ohio State University. The company began franchising in 1991. In the last 28 years, the company has expanded across the country in 43 states through company-owned as well as franchised restaurants.
We believe that with the opening of new restaurants, the company will continue to gain market share in the domestic market.
Buffalo Wild Wings is also planning to expand outside U.S. by opening more than 50 company-owned and franchised restaurants in Canada over the next 5 years. Buffalo Wild Wings has limited presence in the international markets, and thus, the first international expansion plan in the Canadian market will provide it with ample scope to broaden its footprint.
We have a Zacks #3 Rank (short-term Hold recommendation) on the shares, given the company’s track record of success, a viable business strategy and a debt-free balance sheet. However, fierce competition from other casual dining operators to woo budge-constrained consumers may weigh upon the company’s results.
Most of the company’s peers such as BJ’s Restaurants Inc. (BJRI), California Pizza Kitchen Inc. (CPKI) and Red Robin Gourmet Burgers Inc. (RRGB) are on a modest expansion mode in fiscal 2010. We believe, going forward, this will intensify the competition for Buffalo Wild Wings.
BUFFALO WLD WNG (BWLD): Free Stock Analysis Report
Zacks Investment Research