NEW YORK (TheStreet) -- Buffalo Wild Wings (BWLD) stock is plummeting by 18.10% to $151.02 in early afternoon trading on Thursday, as Wells Fargo downgrades the stock to "market perform" from "outperform," following the company's 2015 third quarter earnings results.
The restaurant owner faces slowing same-store sales, labor cost pressures, high costs from franchise acquisition and lagging commodity favorability, which all weighed on the company's third quarter financial results, the firm said in a note, Barron's reports.
Additionally, Buffalo Wild Wings cut its 2015 net earnings growth to "single-digit" from 13% and introduced "underwhelming" 2016 guidance, Wells Fargo added, according to Barron's.
Even so, the downgrade could be "premature" if wing prices decline or casual dining same-store-sales increase during the next two quarters, according to Wells Fargo, Barron's notes.
On Wednesday, the company reported earnings of $1 a share on revenue of $455.5 million for the quarter. Analysts had expected the company to earn $1.29 a share on revenue of $465 million.
Separately, TheStreet Ratings team rates BUFFALO WILD WINGS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate BUFFALO WILD WINGS INC (BWLD) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: BWLD