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Hello, Football Season: Good Time to Buy Buffalo Wild Wings Stock?

Let’s talk about Buffalo Wild Wings (BWLD).

The stock recently took a big hit. (I think the Street just overreacted to management guidance.) Now the dust is beginning to settle, and you can see it’s probably time to start building that position.

This week it got a bump from news that it is entering the taco industry, taking a majority stake in Dallas-based Rusty Taco. It is also going to be in the pizza business, taking a stake in upscale pizza restaurant PizzaRev. With that, I'm much more excited about the start of football season.

Over the years, execution has really been amazing. Technically, I would like to see the stock hold $142, and then begin the climb back to $167.

Now let’s talk about Jamba Juice (JMBA).

It's a small cap name -- and these names can be more volatile than the broader market -- but this company really seems to have found its footing, with respect to message and execution.  

It’s seen back-to-back years of increasing profitability. Management just posted one of its best quarters yet, with EPS of $0.44 (the consensus was $0.37).

This is the number one selling smoothie brand in the nation, and it has very ambitious plans. The company wants 500 franchises in the next five years.  

And Capgemini has just signed on to help the company reduce costs, perhaps as much as 20% on the general and administrative levels. In fact, a fun, engaged capitalist has taken a 7% stake in them. They’re pushing a lot, including the company abandoning New York City. So far, management is balking at that. At least, it is making a big step in the right direction.

In the meantime, it is developing a global footprint, with 26 stores in South Korea, 14 in Canada, 11 in Philippines and one in Mexico. Keep in mind, in 2006 this stock was on fire -- a $60 stock! There have been a lot if missteps since then, and it has comes down a lot. You’ve got some technical resistance right at $16, but a breakout from there, I think takes the stock to $20 -- maybe higher.

 

DISCLOSURES

Buffalo Wild Wings (BWLD

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
MATT Y N N N
DANI N N N N
HITHA N N N N
TRACY N N N N
KATE N N N N

Jamba Juice (JMBA)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
MATT N N N N
DANI N N N N
HITHA N N N N
TRACY N N N N
KATE N N N N

 

 

Making Money with Charles Payne gives viewers an end-of-day wrap and provides an insider’s look at tomorrow’s money makers.