Marcato took a 5% stake in the company last month, and is the restaurant and sports bar franchise's fourth largest investor.
The company needs "the introduction of fresh talent at both the board and management levels," McGuire said in the note.
"The company must improve its experience and sophistication in areas of restaurant operations, franchise system development, corporate finance, and capital markets," McGuire added.
Josh Brown, CEO of Ritholtz Wealth Management, told CNBC's "Halftime Report" on Wednesday afternoon that, "What Marcato is saying is code for CEO Sally Smith needs to go."
Smith has been at the company for 20 years, and Marcato is saying that management decisions are being made "with a gut feeling instead of data and analytics," Brown explained.
Every restaurant eventually has investors say, "You need franchisees, not company-owned stores," even though franchisees are not always a slam-dunk for a company, Brown said.
Since the CEO has been at the company for 20 years with people who helped found the company, Brown said, "You might have situation where management is too comfortable, too entrenched."
In other words, the company is saying, "We have this great thing going so just leave us alone, and obviously shareholders aren't always content with that," Brown explained.
Shares of Buffalo Wild Wings were higher in early-afternoon trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Buffalo Wild Wings as a Buy with a ratings score of B. This is driven by some important positives, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: BWLDBWLD data by YCharts