Minneapolis-based restaurateur Buffalo Wild Wings Inc. boasting more than 930 restaurants across the United States and Canada, is on the verge of launching restaurants in Philippines. In this regard, the company has entered into a franchise development contract with hospitality company The Bistro Group.
Under the agreement, Buffalo Wild Wings will develop restaurants at two locations – Makati City and Manila – to tap the growth potential of the emerging Philippine markets. The restaurateur, popular for its watch and dine concept among sports fans, is witnessing a huge fondness for American dining brands in that country.
Consumer confidence is on the rise in Philippines due to its emerging economy backed mainly by the growing middle class that heavily contributes to the country’s rising GDP. Increasing disposable income has enabled the residents to spend on branded food items. Hence, we believe that Buffalo Wild Wings will fully capitalize on this trend with the new outlets.
Since 2011, Buffalo Wild Wings has been trying to expand its presence in the international market. Currently, the restaurateur owns 13 company-owned outlets in Canada. Additionally, the company has also inked deals with franchised partners to foray into Mexico and Middle East in 2013 and in Puerto Rico by the end of 2016.
Buffalo Wild Wings’ store opening momentum remains unruffled despite an uncertain economy and plans to achieve the 1,000-unit milestone by the end of 2013. The Zacks Rank #3 (Hold) company also intends to open 1,500 units over the next five to seven years which are expected to boost the company’s sales, going ahead.
Others players in the same industry, which look attractive at current levels include AFC Enterprises Inc. , Domino's Pizza, Inc. and CEC Entertainment Inc. . All these stocks carry a Zacks Rank #2 (Buy).