{
  "docId": "019dd923-622b-71dc-a6db-c1be3336de12",
  "docSlug": "06bee195e08c",
  "documentTitle": "Buffalo Wild Wings (BWLD)",
  "authorId": "07_Marcato",
  "authorName": "Marcato",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2016-06-13 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2941177,
  "pageNumber": 33,
  "pageCount": 48,
  "prevPage": 32,
  "nextPage": 34,
  "slideType": "valuation_table",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 18,
  "notes": "Includes a table comparing franchisee acquisitions vs new company-owned stores, and a bar chart showing historical ROE vs Cost of Equity.",
  "elementsJson": [
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  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6db-c1be3336de12/33",
  "deckHref": "/decks/019dd923-622b-71dc-a6db-c1be3336de12",
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  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "An enterprise whose returns fail to exceed the cost of equity destroys shareholder value, regardless of its growth",
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      "bbox": {
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      "kind": "chart",
      "text": "Bar chart showing Return on Avg. Equity from 2011 to Q1'16 LTM against a Cost of Equity line",
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      "kind": "list",
      "text": "The low 'excess' returns on new company-owned stores fail to exceed BWLD's cost of equity and are dilutive to current returns. Over time, we believe that BWLD's ROEs could converge to its cost of equity—or worse, below it. An enterprise whose returns fail to exceed the cost of equity destroys shareholder value, regardless of its growth.",
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      "kind": "metric",
      "text": "Return on Equity: 9.5%",
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      "kind": "source-note",
      "text": "Source: Company filings, Bloomberg, MCM estimates. Note: Return on avg. equity calculated as net earnings including noncontrolling interests, divided by average total equity.",
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      "kind": "table",
      "text": "Table comparing FCF and costs for 2015 Franchisee Acquisitions vs New Company-Owned Store",
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      "kind": "title",
      "text": "FUNDING GROWTH THROUGH 100% EQUITY IS DILUTIVE TO ROE",
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  "frameworks": [
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      "matchId": "66a0337f-2279-45b7-96e3-19c21e098c9b",
      "evidence": "Analysis of ROE vs Cost of Equity to determine value creation/destruction",
      "confidence": 0.9
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      "from": 33,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
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      "matchId": "215292e2-9b27-4c8e-abce-b96a629001f2",
      "evidence": "Funding growth through 100% equity is dilutive to ROE",
      "position": 2,
      "objective": "Highlighting the costs of not changing the capital allocation strategy",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
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