Apr 08, 2016

Zacks Rank 3-Hold Buffalo Wild Wings Inc. (NASD: BWLD)

$144.76 USD ( As of 04/07/16 ) Style:Value: Growth: Momentum: VGM:

Data Overview Summary

52 Week High-Low $205.73 - $139.30 Buffalo Wild Wings’ fourth-quarter earnings of $1.32 per share surged 23.4% year over year but missed the Zacks Consensus Estimate by 10%. Earnings were hurt by 20 Day Average Volume 557,180 lower-than-expected comps in the quarter. While revenues missed the consensus Beta 0.78 mark by 3.7%, it increased year over year. Comps rose 1.9% in the quarter, softer Market Cap 2.71 B than last quarter as well as year-ago quarter due to the unfavorable impact of Dividend / Div Yld $0.00 / 0.00% calendar shifts. Nonetheless, the company enjoys strong fundamentals including strong market standing, new menu items and increased media exposure. Also, the Industry RETAIL-RESTRNTS company’s associations with the NCAA and beverage chains have been increasing Industry Rank 71 / 265 (Top 27%) its brand awareness. However, higher labor costs and other expenses related to the Growth Score company’s initiatives are expected to keep profits under pressure.

Hist. EPS Growth (3-5 yrs) 19.79%

Proj. EPS Growth (F1/F0) 23.38% Elements of the Zacks Rank

Curr. Cash Flow Growth 15.59% Agreement Estimate Revisions (60 days) Hist. Cash Flow Growth (3-5 yrs) 23.46%

Current Ratio 0.75 100% 50% 67% 50% Debt/Capital 9.76%

Net Margin 5.24% Q1 (Current Qtr) Q2 (Next Qtr) F1 (Current Year) F2 (Next Year) Return on Equity 14.95% Revisions: 3 Revisions: 2 Revisions: 3 Revisions: 2 Sales/Assets 1.91 Up: 0 Down: 3 Up: 1 Down: 1 Up: 1 Down: 2 Up: 1 Down: 1 Proj. Sales Growth (F1/F0) 18.62%

Magnitude Consensus Estimate Trend (60 days) Value Score

Cash/Price -9.23

EV/EBITDA 10.41

PEG Ratio 1.34

Price/Book (P/B) 4.21 60 30 7 Current 60 30 7 Current 60 30 7 Current 60 30 7 Current Price/Cash Flow (P/CF) 12.40 Days Days Days Days Days Days Days Days Days Days Days Days Q1 -0.55% Q2 0% F1 0% F2 -0.14% P/E (F1) 23.63

Price/Sales (P/S) 1.50 Upside Zacks Consensus Estimate vs. Most Accurate Estimate Earnings Yield 4.23%

Debt/Equity 0.11

Cash Flow ($/share) 11.69

Momentum Score Most Accurate: 1.72 Most Accurate: 1.42 Most Accurate: 6.16 Most Accurate: 7.57 Daily Price Chg 0.11% Zacks Consensus: 1.81 Zacks Consensus: 1.42 Zacks Consensus: 6.13 Zacks Consensus: 7.35

1 Week Price Chg 0.03% Q1 -4.97% Q2 0.00% F1 0.49% F2 2.99%

4 Week Price Chg -10.28% Surprise Reported Earnings History 12 Week Price Chg -5.37%

52 Week Price Chg -20.99% 20 Day Average Volume 564,495

(F1) EPS Est Wkly Chg -0.08%

(F1) EPS Est Mthly Chg -4.47% Reported: 1.32 Reported: 1.00 Reported: 1.12 Reported: 1.52 Average 4 Qtr Surprise (F1) EPS Est Qtrly Chg 1.42% Estimate: 1.47 Estimate: 1.28 Estimate: 1.26 Estimate: 1.66 Q End 12/15 Q End 09/15 Q End 06/15 Q End 03/15 (Q1) EPS Est Mthly Chg -0.18%

© 2016 Zacks Investment Research, All Rights Reserved 10 S. Riverside Plaza Suite 1600 · Chicago, IL 60606 The data on the front page and all the charts in the report represent market data as of 04/07/16, while the reports text is as of 04/08/2016 Overview Founded in 1982 and headquartered in , MN, Buffalo Wild Wings Inc. was previously known as Buffalo Wild Wings & Weck (BW-3). As of Dec 27, 2015, the company operated 596 company-owned restaurants, including 590 Buffalo Wild Wings, 2 PizzaRev, and 4 R Taco restaurants in the and Canada. Additionally, the company franchised 579 restaurants, including 573 Buffalo Wild Wings restaurants and 6 R Taco restaurants.

Open until 2 am, the restaurant menu features chicken wings, hamburgers, sandwiches, appetizers, salads and other items.

Zacks Equity Research: BWLD www.zacks.com Page 2 of 9 Reasons To Buy: Leveraging the Power of a Strong Brand: Buffalo Wild Wings is one of the most popular Sales initiatives like menu casual dining restaurant chains in the U.S. The restaurant is famous for its bar concept innovation, promotional and ‘dine and watch game’ facility and offers a full bar and up to 40 television sets per offers, better food outlet. Buffalo Wild Wings is not only famous among sports enthusiasts but also among presentation and families as kids can watch TV or play video games at the restaurants. operational efficiency would continue to aid Apart from sales initiatives, the acquisition of franchised restaurants is contributing to revenues. the revenues. Unlike most of its peers, Buffalo Wild Wings remains focused on company-owned restaurants that allow it to have full control over operations and also keep profits. In 2015, Buffalo Wild Wings purchased several franchises that are expected to deliver sales and earnings growth in 2016. In addition, it continued to build new restaurants, remodel existing locations, and invest in Guest Experience.

Consistent Unit Expansion; Investment in Growing Businesses: Buffalo Wild Wings’ store opening momentum remains unruffled amid an uncertain economy. The company witnessed unit growth of 9.1%, 10.9%, 9% and 21% in 2012, 2013, 2014 and 2015, respectively. Its aggressive unit expansion strategy is expected to continue to accelerate same-store sales, going forward.

In order to expand its business domestically, Buffalo Wild Wings is looking for new investment opportunities in fast-growing small restaurant chains. Therefore, in Mar 2013, the company acquired a minority stake in Los Angeles-based pizza chain, PizzaRev. PizzaRev is a fast-casual pizza restaurant, famous for its ‘Craft Your Own’ fast-casual pizza concept. The brand boasts a solid customer base in Los Angeles with strong unit economics and customized pizza offerings. In 2014, Buffalo Wild Wings also made a majority investment in , Inc. (now known as R Taco) – which owns and operates Rusty Taco restaurants, a fast-casual chain that specializes in “street tacos” served at a modest price.

The company has growth plans for both R Taco as well as PizzaRev. Investments like R Taco and PizzaRev are part its strategy to partner with emerging restaurant concepts that have the potential for significant growth. The company intends to grow R Taco and PizzaRev through both company-owned and franchise development in 2016. We believe that these investments will likely help broaden Buffalo Wild Wings’ reach in the U.S. quick-service restaurant industry and tap the fast casual restaurant segment, which is becoming increasingly popular in the country.

Meanwhile, there are currently 13 international Buffalo Wild Wings in Mexico, the , the Kingdom of , and the and the company is on track to expand its international locations with plans to enter and Panama in 2016.

Innovative Offerings to Aid Sales Ahead: Buffalo Wild Wings remains better positioned than many of its peers on the back of menu innovation, promotional offers, better food presentation and operational efficiency. In fact, in order to offset the impact of rising costs of sales due to price fluctuations in chicken wings, the company adheres to strategies like selling wings by portion, reducing food waste, increasing promotions, and menu additions.

The company regularly introduces new products and makes limited time offers to boost traffic. The company is set to launch a new menu soon. On the limited time menu, the company will bring street tacos and Buffalo Mac & Cheese. The Cocktail menu will feature Touchdown Spike made with Dr. Pepper and Apple Pie flavored moonshine. Sauce Lab will have traditional Mexican mole sauce. Being the title sponsor of the Buffalo Wild Wings Citrus Bowl again this year, the company has created the zesty citrus sauce with the flavor of Mountain Dew and will be available in restaurants beginning Dec 13.

Meanwhile, the company launched B-Dubs Fast Break, a system-wide lunch program in April to boost lunchtime sales, which is performing well. The program is for guests who do not have enough time during lunch hours.

Moreover, with the company’s Stadia restaurant design gaining popularity, the company plans to remodel 70 company-owned restaurants while its franchisees expect to re-model 50 to 60 locations to Stadia in 2016. The design has received great guest feedback and is expected to attract more visitors, thereby improving sales. The design gives the guests a feel of a stadium with an increased number of TV screens and more beers.

The company launched the Blazin' Rewards, loyalty program in September, which is being implemented at 50 restaurants in five pilot markets. With differentiated ways to earn points and deliver meaningful rewards, the program is exceeding the company’s expectation of guest registrations. The company continued to roll out B-Dubs TV to more restaurants and expects full implementation in early 2016 with franchises adding the feature throughout 2016.

Additionally, under its ‘guest experience business model’ introduced in 2013, the company is installing tablets at all its restaurants to provide exclusive social gaming opportunities, and sports content to customers. In October, the company launched an initial in- restaurant test for mobile payment on guest device via paybdubs.me. In approximately 20 locations, several handheld devices are helping servers to be more efficient in taking orders and payment, thereby improving guest satisfaction. Also, these devices are expected to improve kitchen efficiencies.

The company has also upgraded its website and mobile app to create a better takeout ordering experience for guests. The company has started to promote online and mobile ordering for takeout through website and social and digital advertising and the initial results are encouraging with an increase in average check. Currently, 11% of takeout orders are from mobile and the company expects this to increase.

Zacks Equity Research: BWLD www.zacks.com Page 3 of 9 During 2015, the company completed the implementation of a new point-of-sale (POS) system, bringing all company-owned and franchised locations on a common platform. This enabled it to deliver many of the technology initiatives such as online ordering and menu order on tablet. With this, online ordering is accessible at 94% of system-wide locations, allowing guests to order takeout online or through mobile app.

The company now has guest experience captains at all company-owned restaurants. Guest experience captains the Buffalo Wild Wings experience for guests by engaging them with new technology, games, products, promotions and events. Apart from these initiatives, the company stresses on advertising initiatives, installing point-of-sales programs, and improving supply chain management. Given the aggressive pace of unit expansion as well as ongoing sales and operational initiatives, the company expects net earnings growth in 2016 to exceed 20%, higher than the long-term target of 15%.

Major Sporting Events & Promotional Offers Boost Traffic: The company keeps its guests engaged during major sporting events like the NFL playoffs and Super Bowl, college football bowl games and college basketball through promotional activities.

The company has gained marketing as well as activation rights for all 89 NCAA championships through 2016. This partnership would help the company increase its visibility as a brand and attract customers through digital and social media. The company has also launched the Game Break app, where customers can play fantasy games on their mobile devices, online or on tablets at the restaurant. Such initiatives would drive the company’s reputation of being a sports bar and restaurant and increase traffic at its outlets.

Association with Popular Beverage Chains to Spur Growth: Buffalo Wild Wings has entered into beverage partnerships with Pepsi and Dr Pepper Snapple Group. Per the deals, Buffalo Wild Wings serves their drinks at its restaurants. Buffalo Wild Wings’ deal with Pepsi allows it to capitalize on the latter’s affiliations with major sports organizations like the National Football League and Major League Baseball. In fact, the company has increased the promotion of fantasy draft parties to be held at its restaurants through its partnership with Pepsi and its affiliation with the National Football League. These draft parties allow guests to watch all the games with their friends, thereby increasing footfall at the restaurants.

Additionally, the company remains poised to benefit from the relationships of these beverage makers with celebrity players and entertainers who can make an appearance at its restaurants and attract customers.

Reasons To Sell: Higher Chicken and Other Costs Dampen Profits: Price of chicken – a key ingredient for Higher food costs, the company – has risen sharply over the past year due to widespread drought especially that of chicken, conditions and supply shortage. In fact, profits of the company have been sluggish over labor costs and costs the past three-four quarters owing to higher chicken costs. The outbreak of avian flu in related to the company’s some parts of the U.S would hamper the supply of chicken, which would keep chicken efforts to boost comps are costs high, thereby hurting profitability. hurting profits of the company. Also, the costs related to company’s sales boosting initiatives like unit expansion and higher labor costs due to the competitive labor market and addition of Guest Experience Captains at its restaurants are expected to continue to dent profits in the near-term. Rising costs would make it difficult for the company to meet its earnings growth target in the near term.

Macro Challenging Environment: The restaurant industry has been experiencing low consumption over the last few quarters. Despite moderate improvement in economic growth, consumers are increasing their spending only modestly as an increase in jobs this year is yet to translate into significantly higher wages. Higher health care costs and still-tightened credit availability continue to hurt consumer discretionary spending in the U.S. As a result, Americans are unwilling to dine out, which is pulling down the company’s sales.

Meanwhile, the menu price increases made by the company in the near term would hurt traffic trends, thereby putting comps under pressure.

Limited International Presence: American dining brands are keen on expanding in the fast growing emerging markets outside the U.S. While several other restaurateurs, including Yum! Brands, McDonald’s and Krispy Kreme, have opened their outlets in the emerging markets; Buffalo Wild Wings seems to be slow on this front.

Last Earnings Report Buffalo Wild Wings Q4 Earnings & Sales Miss, Comps Weak Quarter Ending 12/2015

Report Date Feb 03, 2016 Buffalo Wild Wings missed the Zacks Consensus Estimate for both earnings and revenues in the fourth quarter of 2015. Sales Surprise -3.64% EPS Surprise -10.20% Earnings and Revenue Discussion Quarterly EPS 1.32 Annual EPS (TTM) 4.96 Adjusted earnings of $1.32 per share in the fourth quarter rose 23.4% year over year helped by higher revenues and better food/labor cost leverage. However, earnings fell short of the Zacks Consensus Estimate of $1.47 by 10.20%, reflecting lower-than-expected comps in the quarter.

Zacks Equity Research: BWLD www.zacks.com Page 4 of 9 Total revenue increased approximately 19.9% year over year to $490.2 million driven by year-over-year improvement in company- owned restaurant sales. However, revenues missed the consensus mark of $509 million by approximately 3.7%.

Behind the Headline Numbers

During the quarter, company-owned restaurant sales amounted to $466.4 million, up 21.3% year over year, driven by unit expansion and menu price increases. Sales of traditional wings and boneless wings remained flat at 21% of restaurant sales. Food and non- alcoholic beverage sales were 79% of restaurant sales in the fourth quarter, also flat with the last year.

Buffalo Wild Wings registered company-owned comps growth of 1.9% that compared unfavorably with prior quarter comps growth of 3.9% as well as year-ago comps growth of 5.9%. Calendar shifts (with Halloween falling on a Saturday and Christmas on a Friday) hurt comps by 30 basis points (bps) in the fourth quarter.

Franchise royalties and fees decreased 2.9% year over year to $23.8 million due to lower franchised units in the quarter compared to last year. Comps growth at franchise locations was 0.1% that compared unfavorably with prior quarter comps growth of 1.2% as well as the year-ago quarter comps growth of 5.1%.

Buffalo Wild Wings' cost of sales, as a percentage of revenues, decreased 110 bps to 29.5% due to a 5% year-over-year decrease in chicken wing costs. The company’s cost of labor, as a percentage of revenues, decreased 20 bps to 30.9%.

Restaurant operating expenses as a percentage of restaurant sales were 15.4%, up 30 bps from the prior year quarter due to a rise in repair and maintenance costs.

Lower-than-Expected Earnings Guidance for 2016

The company expects 2016 earnings per share to be in the range of $5.95- $6.20, which reflects year-over-year growth of 20% to 25%. The earnings guidance, however, fell short of the general market expectations.

For the first four weeks of first quarter 2016, comps at company-owned restaurants increased 0.3%. However, comps at franchised locations decreased 1.5%. This compared unfavorably with comps growth of 12.7% at company-owned restaurants and 12.4% at franchised locations in the year-ago period.

The company expects comps to rise in a single-digit range in fiscal 2016 while traffic is expected to be modestly positive. The company expects deflationary food cost in 2016, excluding traditional chicken wings. Traditional chicken wings costs are expected to be relatively flat compared to 2015 levels.

The restaurateur expects to open six company-owned Buffalo Wild Wings restaurants in the first quarter of 2016, including one relocation, with four already opened.

In 2016, Buffalo Wild Wings plans to focus on areas of operational control, such as enhancing the beer experience, improving execution in the weekday lunch, increasing takeout business, and driving the Guest Experience business model.

The restaurateur expects to open six company-owned Buffalo Wild Wings restaurants in the first quarter of 2016, including one relocation, with four already opened.

In 2016, Buffalo Wild Wings plans to focus on areas of operational control, such as enhancing the beer experience, improving execution in the weekday lunch, increasing takeout business, and driving the Guest Experience business model

Recent News Buffalo Wild Wings’ R Taco Set to Expand – Feb 10, 2016

Buffalo Wild Wings announced plans to grow the R Taco fast-casual restaurant chain. Currently R Taco has 11 company-owned and franchised locations serving street-style tacos in Dallas, Denver and Minneapolis/St. Paul regions. Buffalo Wild Wings is looking for franchisees and business partners with multi-restaurant experience to expand R Taco to markets including Austin, Houston and San Antonio, Texas; Oklahoma City and Tulsa, Okla., St. Louis, Mo.; and Des Moines, Iowa. R Taco intends to expand its company-owned restaurant locations as well.

Buffalo Wild Wings Initiates $200M Share Repurchase Program – Nov 23, 2015

Buffalo Wild Wings announced that its Board of Directors authorized a share buyback program for upto $200 million of the company's common shares. The company intends to fund the program through both cash and debt.

Buffalo Wild Wings Ups Restaurant Count, Now in Dubai – Sep 3, 2015

Buffalo Wild Wings opened its first Buffalo Wild Wings restaurant in the United Arab Emirates (UAE). The new store is operated by First Food Services (LLC), an affiliate of The Olayan Group. Headquartered in Saudi Arabia, The Olayan Group operates restaurants in the

Zacks Equity Research: BWLD www.zacks.com Page 5 of 9 Middle East and North African region. Located on Jumeirah Beach Road and Al Shasha Street in Dubai, the new store incorporates preference of local consumers with its original “Wings. Sports. Fun.” concept. The restaurant features a new stadia design, which ensures the look and feel of a stadium with excellent sports viewing experience. The restaurant also features a video gaming wall, where the guests can compete against each other in some of the latest range of games.

Buffalo Wild Wings Brings Back Fan Favorite Sauces – Aug 31, 2015

Buffalo Wild Wings announced that its in-house sauce laboratory – B-Dubs Sauce Lab – has brought back a number of popular “Limited Time Only” sauces per guests’ requests. Beginning Aug 31, the company re-launched the popular Ghost Pepper and Bourbon Honey Mustard at all its U.S. restaurants.

Zacks Equity Research: BWLD www.zacks.com Page 6 of 9 Industry Analysis Zacks Industry Rank: 71 / 265 (Top 27%) Top Peers

ARCOS DORADOS-A (ARCO) BRAVO BRIO RSTR (BBRG) BJS RESTAURANT (BJRI) BLOOMIN BRANDS (BLMN) BOB EVANS FARMS (BOBE) INC (BOJA) CHEESECAKE FACT (CAKE) CRACKER BARREL (CBRL) CHUYS HOLDINGS (CHUY)

Industry Comparison Retail-restrnts | Position in Industry: 20 of 55 Industry Peers

BWLD X Industry S&P 500 ARCO BBRG BJRI Market Cap 2.72 B 498.08 M 18.29 B 736.89 M 112.17 M 1.01 B # of Analysts 22 7 14 3 3 14 Dividend Yield 0.00% 0.00% 1.75% 1.72% 0.00% 0.00% Growth Score - - Hist. EPS Growth (3-5 yrs) 19.79% 9.87% 8.44% 12.54 -15.89 -3.54 Proj. EPS Growth (F1/F0) 23.38% 14.16% 6.00% 7.64 8.75 8.86 Curr. Cash Flow Growth 15.59% 11.40% 3.81% NA 0.81 1.17 Hist. Cash Flow Growth (3-5 yrs) 23.46% 8.43% 8.05% 2.57 2.10 3.34 Current Ratio 0.75 0.86 1.33 12.47 4.54 10.30 Debt/Capital 9.76% 33.61% 40.66% 100.00 11.35 21.46 Net Margin 5.24% 4.93% 9.42% 0.24 0.26 1.10 Return on Equity 14.95% 12.23% 17.07% 1.14% 8.85% 4.65% Sales/Assets 1.91 1.50 0.55 1.72 0.79 0.32 Proj. Sales Growth (F1/F0) 18.62% 5.72% 2.51% 0.28 1.67 4.07 Value Score - - Cash/Price -9.23 0.00 2.63 -21.96% -3.20% 3.35% EV/EBITDA 10.41 11.52 11.12 114.00% -1.96% 18.44% PEG Ratio 1.34 1.61 1.78 690.12% 4.47% 22.99% Price/Book (P/B) 4.21 3.64 3.00 NA -0.47% 14.85% Price/Cash Flow (P/CF) 12.40 12.56 11.81 0.66 0.28 0.80 P/E (F1) 23.63 23.53 17.94 63.30% 44.13% 24.10% Price/Sales (P/S) 1.50 1.27 2.14 -1.69% 1.08% 4.93% Earnings Yield 4.23% 4.01% 5.42% -15.20% 18.63% 12.86% Debt/Equity 0.11 0.26 0.67 2.05 1.69 1.39 Cash Flow ($/share) 11.69 1.44 5.33 -8.95% 1.05% 11.83% Momentum Score - - Daily Price Chg 0.11% 0.39% 0.76% -0.85% 6.32% 0.26% 1 Week Price Chg 0.03% 0.03% 0.02% 0.07% -0.03% 0.02% 4 Week Price Chg -10.28% -1.63% 3.69% 27.27% -12.59% -5.65% 12 Week Price Chg -5.37% 5.09% 10.70% 30.11% -4.78% 0.43% 52 Week Price Chg -20.99% -13.95% -4.73% -41.57% -50.36% -17.67% 20 Day Average Volume 564,495 297,292 0 863,147 54,920 306,314 (F1) EPS Est Wkly Chg -0.08% 0.00% 0.00% 75.00% 0.00% 0.00% (F1) EPS Est Mthly Chg -4.47% 0.00% -1.27% 5.00% -6.10% 1.90% (F1) EPS Est Qtrly Chg 1.42% 0.25% 0.84% 0.08% 0.25% 0.57% (Q1) EPS Est Mthly Chg -0.18% 0.00% 0.00% NA 0.00% 0.00%

Zacks Equity Research: BWLD www.zacks.com Page 7 of 9 Zacks Rank Education The Zacks Rank is calculated from four primary inputs: Agreement, Magnitude, Upside and Surprise.

Agreement This is the extent which brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of estimates being revised higher, the better the score for this component.

For example, if there were 10 estimate revisions over the last 60 days, with 8 of those revisions up, and the other 2 down, then the agreement factor would be 80% positive. If, however, 8 were to the downside with only 2 of them up, then the agreement factor would be 80% negative. The higher the percentage of agreement the better.

Magnitude This is a measure based on the size of the recent change in the current consensus estimates. The Zacks Rank looks at the magnitude of these changes over the last 60 days.

In the chart to the right, the display shows the consensus estimate from 60-days ago, 30-days ago, 7-days ago, and the most current estimate The difference between the current estimate and the estimate from 60-days ago is displayed as a percentage. A larger positive percentage increase will score better on this component.

Upside This is the difference between the most accurate estimate, as calculated by Zacks, and the consensus estimate. For example, a stock with a consensus estimate of $1.00, and a most accurate estimate of $1.05 will have an upside factor of 5%.

This is not an indication of how much a stock will go up or down. Instead, it's a measure of the difference between these two estimates. This is particularly useful near earnings season as a positive upside percentage can be used to help predict a future surprise.

Surprise The Zacks Rank also factors in the last few quarters of earnings surprises. Companies that have positively surprised in the recent past have a tendency of positively surprising again in the future (or missing if they recently missed).

A stock with a recent track record of positive surprises will score better on this factor than a stock with a history of negative surprises. These stocks will have a greater likelihood of positively surprising again.

Zacks Style Score Education The Zacks Style Score is as a complementary indicator to the Zacks Rank, giving investors a way to focus on the best Zacks Rank stocks that best fit their own stock picking preferences. Value Score

Academic research has proven that stocks with the best Growth, Value, and Momentum Growth Score characteristics outperform the market. The Zacks Style rate stocks on each of these Momentum Score individual styles and assigns a rating of A, B, C, D and F. An A, is better than a B; a B is better than a C; and so on. VGM Score

As an investor, you want to buy stocks with the highest probability of success. That means buying stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Style Score of an A or a B.

Zacks Equity Research: BWLD www.zacks.com Page 8 of 9 Disclosures The analysts contributing to this report do not hold any shares of this stock. The EPS and revenue forecasts are the Zacks Consensus estimates. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. Zacks certifies that no part of the analysts compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. Because of individual objectives, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. This report is not to be construed as an offer or the solicitation of an offer to buy or sell the securities herein mentioned. Zacks or its officers, employees or customers may have a position long or short in the securities mentioned and buy or sell the securities from time to time. Zacks uses the following rating system for the securities it covers which results from a proprietary quantitative model using trends in earnings estimate revisions. This model is proven most effective for judging the timeliness of a stock over the next 1 to 3 months. The model assigns each stock a rank from 1 through 5. Zacks Rank 1 = Strong Buy. Zacks Rank 2 = Buy. Zacks Rank 3 = Hold. Zacks Rank 4 = Sell. Zacks Rank 5 = Strong Sell. We also provide a Zacks Industry Rank for each company which provides an idea of the near-term attractiveness of a company s industry group. We have 264 industry groups in total. Thus, the Zacks Industry Rank is a number between 1 and 264. In terms of investment attractiveness, the higher the rank the better. Historically, the top half of the industries has outperformed the general market.

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