Buffalo Wild Wings: Stock Winners

Collier maintained a neutral rating on Buffalo Wild Wings shares. She said the stock will probably move a little higher on investor enthusiasm over the company's strengthening financials, but that it is unlikely in the near term to reach the $50-per-share price it garnered earlier this year. Buffalo Wild Wings shares last closed above that threshold on April 27.

Buffalo Wild Wings got a boost last quarter from the World Cup, the NHL and the NBA finals when it lured fans with its beer offerings and 3D viewings of certain sporting events.

"We have limited information that comps continued after those events were over," Collier said. "While we're encouraged, we'd like to see more evidence of a sustainable turnaround."

Buffalo Wild Wings seems on track to provide that evidence. It said same-store sales grew 2.2% at company-owned stores so far in July.

Buffalo Wild's earnings grew 31.4% last quarter to $9.2 million, or 50 cents per share, up from $7 million, or 39 cents per share, in the year-earlier period. Revenues increased 12.4% to $145.7 million. The company did not offer specific comps guidance but said it now expects unit growth at the low end of its previously offered outlook, or 13%.

With the economy still very much in recovery mode and the jobs market stubbornly weak, consumers continue to be choosy about how they spend their limited discretionary funds. For fast food and fast-casual restaurant chains, that means competition is stiffer than ever.

>> Consumer Confidence Swoons in Summer

Panera forecast EPS for the third and fourth quarters, and the full year, above Wall Street analysts' consensus call, a strong vote of self-confidence for the bakery-café chain. It also expects comps to grow as much as 6% in the current quarter and again in the fourth, and as much as 8% for 2010. That's higher than its previous outlook for full year comps growth up to 7.5%.

-- Reported by Miriam Marcus Reimer from New York.

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