1/10/2013 4:45 PM ET|
Buffalo Wild Wings undaunted by McDonald's
The Minnesota chain's stock has greatly outperformed the Golden Arches. It's not intimidated by the 'Mighty Wings' experiment.
"Our growth and success demonstrates the demand and growing popularity of chicken wings among consumers," says Kathy Benning, the company's executive vice president of global brand and business development, in statement to MSN Money. "It's no surprise that others want to tap into something we've known for years: people love wings."
Benning is right of course.
Chicken wings are surging in popularity and McDonald's, which has been struggling lately, could use a hit. The company has begun a month-long test of what it calls "Mighty Wings" at 500 restaurants in the Chicago area following an earlier successful test in Atlanta.
McDonald's posted its first monthly sales drop in October in nine years. The company posted a better-than-expected sales gain in November but analysts aren't sure if the chain is out of the woods.
The National Chicken Council, a trade group, estimated that more than 25 billion wing portions were sold last year. During Super Bowl Sunday alone, more than 1.25 billion portions were consumed. Think of it this way: If all those wings were lined up end-to-end, they would circle the circumference of the earth more than twice. A sports talk radio station in Philadelphia, 94 WIP, has for 21 years sponsored a competitive wing eating contest dubbed Wing Bowl. The event is scheduled for Feb. 1 at the city's Wells Fargo Center and is sold out.
Buffalo Wild Wings, which sells more than 21 million traditional and boneless wings each week, is a Wall Street favorite. Shares of the Minnesota chain have surged more than 12% over the past year compared with an 8.2% decline for McDonald's. The smaller chain's performance is remarkable given that Wall Street was spooked after the company reported weaker-than-expected results in the third quarter.
The casual-dining chain is a favorite among sports fans. It has been steadily raising prices and is expecting 2012 earnings growth of 15%.
And that ain't chicken feed.
--Jonathan Berr owns a McNugget-sized stake in McDonald's. Follow him on Twitter @jdberr
More on Money Now
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The bailed-out carmaker's stock price would have to more than double by next year for Uncle Sam to profit. What are the odds?
- Are hipsters hiking Pabst Blue Ribbon prices?
- Obamacare could bring more Band-Aid coverage
- Will Yahoo ruin Tumblr?
- 8 things about Tumblr's young, rich founder
- Mike Bloomberg: Skip college, become a plumber
- Stephen King's latest book sticks to print
- Why radio refuses to die
- Bernie Madoff earns sweatshop wages in prison
- Motor home sales rise in hopeful economic sign
- June crude oil rose for a fourth consecutive session, gaining support from a weaker dollar index and erasing earlier losses. The energy component lifted off its session low of $95.23 per barrel set moments after floor trade opened and advanced into positive territory by late morning action. It spent afternoon pit trade chopping around near its session high of $97.11 per barrel and eventually settled with a 0.8% gain at $96.76 per barrel.
- June natural gas touched a ... More
More Market News
Stocks retreat this afternoon after hitting yet another life high earlier in the day.