TL;DR
Buffalo Wild Wings plans to sell at least 60 locations to franchisees as part of a strategy to strengthen sales and profits. The company aims to generate restaurant level margins of 20 percent by evaluating its cost structure.
Shareholder pressure is forcing Buffalo Wild Wings to change up its strategy to strengthen sales and profits. According to a recent Nation’s Restaurant News article, the company plans to sell at least 60 locations to franchisees and it has identified around 10 percent of company-owned restaurants for refranchising.
“We will continually evaluate our portfolio, and we will pursue the appropriate strategies whether to own units, sell units or intensively improve the performance of units — not to reach a predetermined ownership target, but rather to increase shareholder value by taking into account market conditions and performance potential,” said Alexander Ware, Buffalo Wild Wings’ CFO.
The company is also hoping to generate restaurant level margins of 20 percent by evaluating its cost structure. Same-stores sales and chicken wing prices are what executives say make the biggest impact on those margins, although the brand will be looking for all kinds of ways to cut back.
In this story
This story was originally published in 1851 Franchise on February 9, 2017. Burnaze summarizes and links to the original reporting.
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