NEW YORK (TheStreet) -- "I think Buffalo Wild Wings is really an amazing story," saidaTheStreet's Jim Cramer Tuesday about one of his favorite companies. The "beer, wings, sports" purveyor beat earnings per share estimatesaand reported in-line revenue, which was up 18.3% year over year. Shares are up 12% Tuesday to $150 but are only up 1.9% for the year to date. Must Read: 12 Stocks Warren Buffett Loves in 2014 Cramer thinks he knows why. DuringaCNBC'sa"Cramer's Mad Dash" he noted investors have doubted whetheraBuffalo Wild Wings still can find areas of growth. But Cramer, the co-manager of the Action Alerts PLUS portfolio, disagreed with Street thinking, praising CEO Sally Smith for detailing plans for increasing the number of restaurant locations.a Smith said the company plans to raise its menu prices by 3%, which goes into effect at the end of November, Cramer noted. The menu price increase is an effort combat the rising cost of chicken wings, which climbed 30% from year-ago prices.a Cramer said with the price increase plusachicken wing prices coming down in 2015 -- which is likely, due to the bountiful grain harvest in 2014 -- Buffalo Wild Wings' "margins will explode." a This company is "not out of gas," he added.a Another company reporting earnings, Coach , is off 5% despite beating revenue and earnings estimates. Shares are off nearly 39% for the year to date. Despite same-store sales down 24% in North America and slowing growth in China and Japan, Cramer sees aa"silver lining" -- which is that the company actually exceeded analysts' expectations.a Coach won't please the Street until it turns around its operations in North America, he concluded. But the fact that it's beating estimates may draw activist investors into the stock. Must Read: Can These 22 New Restaurant Foods and Drinks Feed Investors Too? -- Written by Bret Kenwella Follow @BretKenwell
Click to view a price quote on BWLD. Click to research the Leisure industry.
from Latest TSC Headlines http://ift.tt/1wIErGg
No comments:
Post a Comment