A recently amended 13D filing with the Securities and Exchange Commission revealed that Richard McGuire‘s Marcato Capital Management has sent a letter to the Board of Directors of Buffalo Wild Wings Inc (NASDAQ:BWLD) revealing its disappointment with various moves made by the company’s management.
First of all, Marcato Capital is dissatisfied with the company’s choice to hire three new Directors on October 6, without any consultation with its shareholders. The fund finds this move to be an attempt to form a fake impression of important changes happening within the company, and yet another act made without the consent of its shareholders. Marcato Capital was also disappointed with the contents of a long-sought list of the company’s shareholders which was finally delivered to it, but which turned out to be outdated and incomplete. Marcato Capital is of the opinion that Buffalo Wild Wings is intentionally hindering communication between its shareholders, and that if it continues to do so, the fund will have to engage in litigation, though it will wait for a response to its latest letter before resorting to that. Marcato Capital still holds 950,000 shares of the company, which amass 5.2% of the float.
Buffalo Wild Wings is a sports bar and casual dining restaurant franchise, known for serving specially prepared chicken wings and sauces. Since the beginning of the year, the company’s stock is down by 10.68%. For the second quarter of 2016, the company disclosed EPS of $1.27 beating the estimates of $1.26, and revenue of $490.18 million, missing the estimates of $498.32 million. Recently, Wedbush and BMO Capital Markets both reiterated their ‘Outperform’ ratings on Buffalo Wild Wings’ stock, with price targets of $180 and $190 on it, respectively.
Among the hedge funds followed by Insider Monkey, 25 reported having long positions in Buffalo Wild Wings (NASDAQ:BWLD) as of the end of June, down from 29 as of the end of March. Among the bullish investors were Jim Simons’ Renaissance Technologies, which held a position valued at $26.41 million, Bruce Kovner’s Caxton Associates LP, with a position worth $21.32 million. Ken Griffin’s Citadel Investment Group, Dmitry Balyasny’s Balyasny Asset Management, and Larry Foley and Paul Farrel’s Bronson Point Partners.
Some of the investors who lost optimism for investing in Buffalo Wild Wings (NASDAQ:BWLD) included Gabriel Plotkin’s Melvin Capital Management, which sold its position valued at $36.29 million at the end of March, Glenn Russell Dubin’s Highbridge Capital Management, which said goodbye to $16.07 million worth of shares, Richard Chilton’s Chilton Investment Company, and Jacob Gottlieb’s Visium Asset Management.
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You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Marcato Capital Management | 0 | 950,000 | 0 | 950,000 | 950,000 | 5.2% |
| Richard T. McGuire III | 0 | 950,000 | 0 | 950,000 | 950,000 | 5.2% |
| Marcato | 0 | 260,396 | 0 | 260,396 | 260,396 | 1.4% |
| Marcato II | 0 | 26,009 | 0 | 26,009 | 26,009 | 0.1% |
| Marcato International Master Fund, Ltd | 0 | 663,595 | 0 | 663,595 | 663,595 | 3.6% |
| Marcato NY | 0 | 100 | 0 | 100 | 100 | Less than 0.1% |
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Page 1 of 15 – SEC Filing
| Buffalo Wild Wings, Inc. |
| (Name of Issuer) |
| Common Stock, no par value |
| (Title of Class of Securities) |
| 119848109 |
| (CUSIP Number) |
| Richard T. McGuire III Marcato Capital Management LP Four Embarcadero Center, Suite 2100 San Francisco, CA 94111 (415) 796-6350 |
| (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) |
| Copies to: Richard M. Brand Aly El Hamamsy Cadwalader, Wickersham & Taft LLP One World Financial Center New York, NY 10281 (212) 504-6000 |
| October 13, 2016 |
| (Date of Event Which Requires Filing of this Statement) |
