Buffalo Wild Wings shares are down 7% ahead of earnings. As seen below, the chart is forming a dreaded Hazmat Head and Shoulders.
The company is suspected of causing unbelievably nasty illnesses detailed here by Fly.
I don’t really know Buffalo management but so far their reaction isn’t encouraging (via CNBC.com):
I get that it’s one unit in a large chain. But read those code violations again. Now think about enjoying a nice Super Bowl afternoon dipping your wings in BWLD’s Sauce of Disgruntled Teen Worker. This is potentially a very serious problem for Buffalo Wild Wings. Customers get super freaked out about food making them violently ill. Take my word for it on this; I was a Psych Major.
Even if the illness is contained a Vomit / Diarrhea / Booger (VDB) troika of nasty is a big enough issue to change the entire risk/ reward ahead of earnings. Honestly, flat out poisoning people would be easier to forgive. They better be taking this more seriously by the conference call.
Nothing BWLD reports tonight in terms of financials matters anymore. Guidance is pointless. This is a binary outcome stock. If VDB is chain wide BWLD is going lower by 50%. Chipotle lost 60% of its best customers. Buffalo can’t afford that kind of hit. Super Sunday is already at risk. But an actual outbreak would kill business during the NCAA Tournament.
You might as well cancel a retailer’s Christmas. March Madness is everything to these guys.
Do what you want with the stock ahead of the bell. I wouldn’t touch it with a hazmat suit and salad tongs.Comments »