Buffalo Wild Wings Draws Activist Investor After Hot Streak Ends
- Chain boosts repurchase plan after drawing activist investor
- Profit tops estimates last quarter, even as sales disappoint
A Buffalo Wild Wings restaurant in San Ramon, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Buffalo Wild Wings Inc., facing pressure from hedge fund Marcato Capital Management LP to shake up the business, is seeking to keep investors happy with cost cuts and increased stock buybacks.
The restaurant chain posted second-quarter earnings of $1.27 a share on Tuesday, beating the $1.25 estimated by analysts. The company credited disciplined budgeting for helping bolster profit at a time when same-store sales are declining. It also expects to buy back about $150 million in stock this year, rewarding shareholders.