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In the last week a lot of speculation has surrounded Buffalo Wild Wings (NASDAQ:BWLD) due to an increase in chicken wing prices. Buffalo Wild Wings proved critics and short sellers wrong when they beat earnings by $0.06 causing the stock price to shoot up to 52 week highs. But how strong is Buffalo Wild Wings, and how much more can it grow? There are 3 reasons why I believe Buffalo Wild Wings is a strong company.

The first reason is the low debt/equity ratio. The debt/equity ratio of Buffalo Wild Wings is 0.07 which gives the company plenty of room to take on debt and open up new restaurants to reach new consumers.

The second reason BWLD is a strong company is the fact that for the past two years every earnings report has either hit or beat the estimates. So despite increases in the prices of good and in some cases decreases in the amount of people going out to eat, Buffalo Wild Wings still profited.

The third reason I believe Buffalo Wild Wings is strong is due to the quick and current ratios which are both around 1.4. So not only does the company have low debt but it also has the ability to cover it's liabilities if anything negative were to happen.

I feel the best aspect of Buffalo Wild Wings is its growth potential. Buffalo Wild Wings has around 800 locations throughout the United States and Canada (as of October 2011). There is still plenty of room to add more restaurants and Buffalo Wild Wings see this because they are constantly adding more restaurants. The popularity of Buffalo Wild Wings has grown significantly in the past few years. To be honest, I did not know what Buffalo Wild Wings was until about two years ago and once I had it I became addicted to the wings. BWLD is a big name amongst college students and seems to be the place to choice to get rid of a craving for chicken wings. Buffalo Wild Wings also draws a huge sports crowd, in fact, when there is a big game such as a big team rivalry or a championship, you have to show up at least an hour early because the place fills up fast. An increase in the wing prices will not ruin a company like Buffalo Wild Wings since people don't just go there for the wings they go there for the atmosphere. People go to Buffalo Wild Wings to hang out with their friends and have a great time while watching a ball game on TV and enjoying some awesome food.

I believe Buffalo Wild Wings is a strong company and has plenty of room for growth. This is definitely a good long investment and if you don't believe what I have said then take a trip down to your local Buffalo Wild Wings and enjoy a game and some wings and see how you feel about the company once you leave.

Source: The Strength Of Buffalo Wild Wings