Kedar Special Situations

Wild Buffalo Don't Fly On Wings: The Short Case For Buffalo Wild Wings

· Short: Buffalo Wild Wings (NASDAQ:BWLD)

· Current share price: 93.33

· Potential Return: $20 -$25 per share. Shares may potentially trade up to $103

· Market Capitalization: $1.74bn; Dividend Yield: 0.00%.

· Cash: 21M; Total Debt: 0.00

· Shares Outstanding: 18.64M

· Gross Margin: 63.46%; Operating Margin: 8.57%

· FCFF (TTM): $(59.49)M

· Trading timeline: 9 -18 months

· Inflection Point: Decline in revenue growth rates

· Main Catalyst: Slowdown in consumer spend, commodity, labor and rent cost inflation, geographic challenges, unfavorable marginal analysis over medium term, fully fundamentally valued

· How might I trade: Buy puts when the stock starts trading between $97 -$100

Thesis

Buffalo Wild Wings...

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