BWLD: The Costs Add Up

Buffalo Wild Wings (BWLD) just reported a dismal third quarter for the year, missing consensus estimates and falling more than -11% on the open on Wednesday. We believe the stock can soon trade below $70 as the two pillars to our bear case strengthen: input costs are rising and so is the cost of growth. We expect earnings revisions from the Street, which remains at $3.21 for FY12.

Below is a slide from our January 19th conference call outline on BWLD showing our $3.05 estimate which was ill-timed.

BWLD: The Costs Add Up  - image010