Buffalo Wild Wings (BWLD) Should Benefit from NCAA Football Playoffs

When Buffalo Wild Wings (Nasdaq: BWLD) reports earnings this evening, I expect it will talk about its current quarter benefit from the new NCAA Division 1 Football Playoffs and Championship Game. The event is new, and so what once drew viewers for 1 game, just drew more viewers for 3 games. That means this quarter (Q1) will have an easy comp against the prior year quarter when it’s reported in a few months. I anticipate that the college football championship game drew more viewers this year than in any other year, and that the addition of the extra games and the hype about the finale drove foot traffic into Buffalo Wild Wings and will support its Q1 due for report in 3 months. BWLD was cheap before its last quarterly report, but has risen significantly into this report. I like the stock long-term, but am wary of playing around with it ahead of earnings this quarter due to its position heading into it. That said, I wouldn’t sell it if I owned it, and would buy more if it drifted. I expect it to close toward $190 tomorrow, up $10, taking it back toward its high. The PEG ratio for the stock is 1.5X based on a P/E of 30X this year’s consensus EPS estimate and the 20% long-term growth expected. Growth should exceed 20% this year and estimates should see revision higher. BWLD is a buy in my opinion, but I wouldn’t buy options ahead of the report, only stock, and I would buy this stock on weakness thereafter.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.