Friday, February 16, 2007
Congrats to Nicole Miller Regan, from Piper Jaffray (aka Piker Jackme), for winning the first ever “Asshat of the Week” award. Not only did Ms. Regan get bearish on BWLD, during the “holocaust of chickens” quarter, she attributed her bearishness to “higher chicken prices.” It never dawned on her that BWLD could pass those costs along to the inebriated, fat fuckers–who wolf down their “expensive” chicken wings, while watching their sport of choice. For that, “The Fly” (3rd person format was triggered last night) is thankful, having bought a nice block of shares in the high 40’s. The stock is now trading at $55. Hence, “The Fly” would like to present the “Asshat of the Week” award to the beautiful Nicole Miller Regan aka “calculator-less brain.”
Meanwhile, chicken prices, she wrote in a note to investors, are skyrocketing. After struggling with an oversupply of chickens earlier in the year due to avian flu fears, chicken producers have restricted their production which has led prices to climb, particularly in the last few months.
Regan noted that prices are up 20 percent in the year’s first quarter from the same period last year. The increase, she said, could mean the cost of sales may rise to 32.4 percent of restaurant sales in 2007.
For the current fourth quarter, Regan said she expects the company’s cost of sales to be 30.9 percent of total sales, reflecting lower chicken prices earlier in the winter. She added she expects earnings to miss Wall Street’s estimates by 1 cent at 52 cents per share when the company reports its fourth-quarter earnings after the market closes Thursday.