What Sally Smith Means To The Buffalo Wild Wings/Marcato Story

Buffalo Wild Wings BWLD spiked 10 percent off Friday’s intra-day lows as leadership confirmed three Marcato Capital Management board nominees and announced the impending retirement of CEO Sally Smith at the annual shareholder meeting.

Investors may have interpreted the news as concession to the demands of Marcato, an activist investor that has long pushed for corporate changes including Smith’s resignation. If Marcato continues to get its way, it could increase value for shareholders.

The Marcato–Smith Tale

After taking a stake in the company in July 2016, Marcato requested corporate strategy shifts that went largely unanswered, nominated four candidates to the board and accused management of “over-promising and under-delivering.”

In May, following an initial call for Smith’s departure, Buffalo Wild Wings issued a statement defending its CEO and subsequently accused Marcato of making “misleading claims” about performance.

Marcato responded by raising its stake from 5.1 percent to 9.9 percent and soon issuing a defense of its board candidates while the company thrust support behind its leaders.

Now, the board is alleged to have launched its search process for Smith’s successor.

At the time of publication, shares were trading at $157.15, up nearly 5 percent on the day.

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