OTR Global Upgrades Buffalo Wild Wings Amid Football Season, Stadia Remodels, Promotions

OTR Global upgraded shares of Buffalo Wild Wings (NASDAQ: BWLD) to a Mixed rating from Negative amid catalysts like the football season, remodeling of stadia, value promotion and FastBreak Lunch.

The brokerage pointed out that the company's same-store sales have either met or exceeded in eight of the last 14 quarters. The company sees SSS flat to modestly up on a year-over-year basis for the third quarter, although it was flat-down modestly in second quarter of the fiscal year.

While transactions remained flat to up on a year-over-year basis for ten of the 12 quarters, OTR Global revealed that ticket improvement was restricted due to promos and lunch.

Related Link: Buffalo Wild Wings Hoping Wing Price Inflation Will Peak In October

As far as the franchise stores are concerned, the brokerage expects flat to up 3 percent compared to flat to down in the second quarter. Of the 18 quarters, franchise SSS has either met or topped in 12 quarters. Similarly, transactions have recorded growth in eleven of the 18 quarters while tickets were up for six of the 18 quarters.

The firm thinks that Buffalo Wild Wings' half price Tuesdays move drove SSS for the third quarter and sees early trends in October suggesting that transactions have either met or topped estimates for most managers.

OTR Global said, "Potential shift from full Stadia remodels to cost-saving hybrid could result in lower-than-expected incremental lift from remodels in 2H16."

At last check, the stock traded up by $2.56, or 1.84 percent, to $141.90.

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