Football Season Brings Inflation To Wing Prices; BMO Stays Positive On Buffalo Wild Wings

Football and wings go hand in hand. Now that the season is in full swing, wing prices have remained inflationary, increasing 9–10 percent above year-ago levels, to $1.65.

According to BMO, "The acceleration in wing price inflation likely reflects strong seasonal demand ahead of the football season and lapping of the abnormal seasonal pattern in the year-ago period."

Related Link: 9 Restaurant Stocks Baird Analysts Hunger For

BMO holds an Outperform rating and a $200 price target on Buffalo Wild Wings BWLD, representing a 21 percent increase over current levels.

BMO believes Buffalo Wild Wings is an attractive investment due to several factors, including:

• A compelling long-term growth outlook.
• Likely upward earnings revisions driven by strategic initiatives, favorable wing cost outlook and the potential for a comp recovery.
• A valuation that is misaligned with the company's growth potential (adjusting for accretion of strategic initiatives).

At time of writing, Buffalo Wild Wings was up 0.5 percent on the day, trading at $161.92.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!