Ahead of the Bell: Buffalo Wild Wings jumps on 3Q
Buffalo Wild Wings rises in premarket as 3Q results easily beat analysts' expectations
NEW YORK (AP) -- Shares of Buffalo Wild Wings surged in premarket trading on Wednesday after the company posted third-quarter results that easily topped Wall Street's expectations.
After the market closed Tuesday the restaurant operator reported earnings of 95 cents per share on revenue of $315.8 million. Analysts surveyed by FactSet were expecting 85 cents per share on revenue of $312.1 million.
Jefferies' Alexander Slagle said in a note to investors that the quarterly performance was helped by lower costs for chicken wings, solid management of labor costs and better-than-expected sales at stores open at least a year. The analyst maintained a "Hold" rating and increased the stock's price target to $120 from $96.
Nick Setyan of Wedbush said that wing costs are also down for the fourth quarter to date and should be a key factor in the chain's earnings growth in 2014. The analyst kept an "Outperform" rating and boosted his price target to $165 from $150.
Buffalo Wild Wings Inc.'s stock gained $9.24, or 7 percent, to $138.75 before the market open. The shares closed Tuesday up 78 percent since the start of the year.