Buffalo Wild Wings is set to test out small-format stores in the Minneapolis metro area starting this summer. Can this move towards a fast food style help the struggling chicken wing giant?
The Minneapolis-based restaurant chain announced on Wednesday that it is set to open two new small-format locations. Buffalo Wild Wings made the decision to try out small, fast food style stores based on the idea that consumers are gravitating towards to-go and in-home dining experiences.
Buffalo Wild Wings will call the new experiment “B-Dubs Express.” The two locations will be an order and pick up at the counter concept, serving the chain’s chicken wing-filled menu while sports play on TV.
The company is also set to offer a decent portion of its normal menu, which will include burgers, salads, and sides, as well as beer and wine. Buffalo Wild Wings reached an initial partnership with food delivery service DoorDash for customers who don’t want to make the trip to the restaurant.
"With B-Dubs Express, we are excited to deliver on Guest feedback and passionately serve up high-quality wings to satisfy cravings even faster," Buffalo Wild Wings VP of Market Development Todd Kronebusch said in a statement. "These first two locations in Minnesota will provide a great opportunity for us to test an alternative format and gain learnings as we continue to look for ways to meet the changing needs of today's consumers."
The first two locations are set to hold between 35 and 50 guests in roughly 2,500 square foot spaces. However, they will not open until near the end of summer.
Buffalo Wild Wings also announced that it is actively looking for locations around the U.S. to open more fast-casual concept spaces.
Why Now?
The announcement comes just a few weeks after Buffalo Wild Wings’ long time CEO Sally Smith lost a fight against activist investor Marcato Capital Management and was forced to step down.
Marcato began to call for a change at the top after Buffalo Wild Wings suffered same-store sales declines during four of the last five quarters. According to Bloomberg, the activist investor wants the company to try to improve its core chicken wing brand and reevaluate it capital-allocation.
“We are very pleased that our fellow shareholders recognize that additional change on the board is warranted,” Marcato managing partner Mick McGuire said. “We will bring the fresh perspectives, restaurant industry expertise and oversight the board needs to spearhead improvements.”
Can It Help?
The shake up on top and the new business ventures come amid sales declines and stock volatility. However, the chicken wing chain is hardly the only restaurant that has suffered recently.
A May Wall Street Journal article cited an alarming trend for the restaurant industry as a whole. Last year, Americans made 433 million fewer trips to restaurants during lunch, which marked the lowest level of lunch traffic in almost 40 years. The large decline resulted in nearly $3.2 billion in lost revenues.
Still, while dine in lunch crowds are abandoning ship, food delivery services are popping up seemingly every day. So it can hardly hurt to experiment with a new, faster concept during this shift in dining culture.
Shares of Buffalo Wild Wings are down 0.56% on Wednesday afternoon, and its stock is trading well below its 52-week high. Yet the company has a Zacks Rank #3 (Hold) and scored an “A” for Growth, as well as a “B” for Value, in our Zacks Style Score system.
Since the fast casual test is still at least a month away, only time will tell if the order at the counter concept becomes a hit with customers. But at least the company is giving something new a shot.
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Buffalo Wild Wings (BWLD) Goes Fast Food, Will It Help?
Buffalo Wild Wings is set to test out small-format stores in the Minneapolis metro area starting this summer. Can this move towards a fast food style help the struggling chicken wing giant?
The Minneapolis-based restaurant chain announced on Wednesday that it is set to open two new small-format locations. Buffalo Wild Wings made the decision to try out small, fast food style stores based on the idea that consumers are gravitating towards to-go and in-home dining experiences.
Buffalo Wild Wings will call the new experiment “B-Dubs Express.” The two locations will be an order and pick up at the counter concept, serving the chain’s chicken wing-filled menu while sports play on TV.
The company is also set to offer a decent portion of its normal menu, which will include burgers, salads, and sides, as well as beer and wine. Buffalo Wild Wings reached an initial partnership with food delivery service DoorDash for customers who don’t want to make the trip to the restaurant.
"With B-Dubs Express, we are excited to deliver on Guest feedback and passionately serve up high-quality wings to satisfy cravings even faster," Buffalo Wild Wings VP of Market Development Todd Kronebusch said in a statement. "These first two locations in Minnesota will provide a great opportunity for us to test an alternative format and gain learnings as we continue to look for ways to meet the changing needs of today's consumers."
The first two locations are set to hold between 35 and 50 guests in roughly 2,500 square foot spaces. However, they will not open until near the end of summer.
Buffalo Wild Wings also announced that it is actively looking for locations around the U.S. to open more fast-casual concept spaces.
Why Now?
The announcement comes just a few weeks after Buffalo Wild Wings’ long time CEO Sally Smith lost a fight against activist investor Marcato Capital Management and was forced to step down.
Marcato began to call for a change at the top after Buffalo Wild Wings suffered same-store sales declines during four of the last five quarters. According to Bloomberg, the activist investor wants the company to try to improve its core chicken wing brand and reevaluate it capital-allocation.
“We are very pleased that our fellow shareholders recognize that additional change on the board is warranted,” Marcato managing partner Mick McGuire said. “We will bring the fresh perspectives, restaurant industry expertise and oversight the board needs to spearhead improvements.”
Can It Help?
The shake up on top and the new business ventures come amid sales declines and stock volatility. However, the chicken wing chain is hardly the only restaurant that has suffered recently.
A May Wall Street Journal article cited an alarming trend for the restaurant industry as a whole. Last year, Americans made 433 million fewer trips to restaurants during lunch, which marked the lowest level of lunch traffic in almost 40 years. The large decline resulted in nearly $3.2 billion in lost revenues.
Still, while dine in lunch crowds are abandoning ship, food delivery services are popping up seemingly every day. So it can hardly hurt to experiment with a new, faster concept during this shift in dining culture.
Shares of Buffalo Wild Wings are down 0.56% on Wednesday afternoon, and its stock is trading well below its 52-week high. Yet the company has a Zacks Rank #3 (Hold) and scored an “A” for Growth, as well as a “B” for Value, in our Zacks Style Score system.
Since the fast casual test is still at least a month away, only time will tell if the order at the counter concept becomes a hit with customers. But at least the company is giving something new a shot.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>