Billionaire Steve Cohen Orders More Buffalo Wild Wings

Page 1 of 2

Steven CohenA 13G filed with the SEC has disclosed that SAC Capital Advisors, managed by billionaire Steve Cohen and his team, owns about 930,000 shares of Buffalo Wild Wings (NASDAQ:BWLD). This gives SAC 5% of the outstanding shares of the restaurant, which had 861 locations as of mid-October (the slight majority of which were franchises). SAC had only owned about 4,000 shares at the beginning of October, so the fund has been buying over the last three months. Find Steve Cohen’s favorite stocks.

The most recent 10-Q, for the fiscal quarter ending in September 2012, showed revenue increasing 25% over a year earlier. However, earnings were actually down slightly as costs rose, notably restaurant operating costs; the company noted that the average price per pound for chicken wings was considerably higher than it had been. In addition, revenue growth had been primarily due to the opening of new locations; same-store sales were up only about 6%. Net income was still up for the fiscal year, though the growth rate of 9% was fairly low relative to the fact that Buffalo Wild Wings currently trades at 25 times trailing earnings and of course there is the point that growth on the bottom line is likely slowing.

Chicken prices probably won’t continue increasing as much as they have, and Buffalo Wild Wings likely still has plenty of latitude to add new locations. The same-store sales aren’t particularly high- particularly if the company was making an effort to pass on higher costs- but we can assume that the new locations will tend to add earnings. Still, the forward P/E of 20 makes it hard to call the stock undervalued.

A few new hedge fund positions- including that of SAC- allowed Buffalo Wild Wings to make it onto our list of the most popular restaurant stocks among hedge funds for the third quarter (see the top ten list). The largest position among the funds and other notable investors we track in our database of 13F filings belonged to Tiger Consumer Management. That fund, managed by Tiger Cub Patrick McCormack, reported owning about 850,000 shares (check out more of McCormack’s stock picks). We would note that while Cohen and some other fund managers like the stock, a sizable share of the market apparently thinks it’s overvalued: the most recent data shows that 23% of the outstanding shares are held short.

Does it make sense to buy Buffalo Wild Wings compared to other restaurants?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!