Buffalo Wild Wings may receive a bid competing with Roark Capital, says Maxim
Maxim analyst Stephen Anderson notes yesterday's press speculation of a bid for Buffalo Wild Wings from Roark Capital, saying that while the $150/share price is "plausible", there is potential for a competing bid given the company-specific initiatives to cut expenses and an improving food cost climate. Anderson says that despite the industry headwinds and the pending exit of CEO Sally Smith, the company is laying the groundwork for a return to SSS growth, margin expansion, and increased shareholder returns. The analyst also says the recent decline in spot wing costs, already down 15% since summer end, will add to EPS next year. Anderson keeps his Buy rating and $160 price target on Buffalo Wild Wings.