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 Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

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!