{ "docId": "019dd923-622b-71dc-a6db-c76db57564df", "docSlug": "4688728b59a1", "documentTitle": "Buffalo Wild Wings (BWLD)", "authorId": "07_Marcato", "authorName": "Mick McGuire", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2017-04-20 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 24, "pageCount": 50, "prevPage": 23, "nextPage": 25, "slideType": "quote_slide", "function": "cite_precedent", "density": "overcrowded", "nDataPoints": 1, "notes": "The slide uses authority bias to validate the activist's thesis by citing external financial analysts.", "elementsJson": [ "headline_text", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-c76db57564df/24", "deckHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df#slide-24", "components": [ { "bbox": null, "kind": "callout", "text": "[W]e believe BWLD company-owned stores could improve margins substantially, by up to 500 [basis points] based on our analysis, by adopting labor practices currently deployed by [franchisees]", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0391-77f4-a9ed-bfd63440c4ea", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "margin: 500 bps", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-0391-77f4-a9ed-c771a31b8bc8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.92, "x": 0.04, "y": 0.16 }, "kind": "quote", "text": "[W]e believe BWLD company-owned stores could improve margins substantially, by up to 500 [basis points] based on our analysis, by adopting labor practices currently deployed by [franchisees] -Jim Sanderson, Arthur Wood, 3/28/17", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "222a6904-bf9b-401c-bb01-1fdecb4b0942", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.44, "x": 0.04, "y": 0.41 }, "kind": "quote", "text": "Our advisor believes there is an opportunity to bring lower performers more in line with the rest of the system, with store-level labor perhaps the largest opportunity. The example of Guest Experience Captains was cited...In his experience, BWLD franchisees are as or more qualified to run a large number of restaurants than corporate personnel -Nick Setyan, Wedbush, 2/7/17", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37d77db3-00d0-47c0-9819-f869fdc73801", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.42, "w": 0.44, "x": 0.52, "y": 0.41 }, "kind": "quote", "text": "[Margin opportunities] exist across labor, operating expenses, and COGS...Diversified Restaurant Holdings, Buffalo Wild Wing's largest franchisee, highlights opportunity for greater margin efficiency. While there are notable differences, including geographic and overall exposure, SAUC has exhibited favorable food & labor margins relative to BWLD -Dennis Geiger, UBS, 1/5/17", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef0c7a91-ae69-488a-a312-1e8ad5269ac1", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"[W]e believe BWLD company-owned stores could improve margins substantially, by up to 500 [basis points] based on our analysis, by adopting labor practices currently deployed by [franchisees]\" — Jim Sanderson, Arthur Wood, 3/28/17; \"Our advisor believes there is an opportunity to bring lower performers more in line with the rest of the system, with store-level labor perhaps the largest opportunity. The example of Guest Experience Captains was cited...In his experience, BWLD franchisees are as or more qualified to run a large number of restaurants than corporate personnel\" — Nick Setyan, Wedbush, 2/7/17; \"[Margin opportunities] exist across labor, operating expenses, and COGS...Diversified Restaurant Holdings, Buffalo Wild Wing's largest franchisee, highlights opportunity for greater margin efficiency. While there are notable differences, including geographic and overall exposure, SAUC has exhibited favorable food & labor margins relative to BWLD\" — Dennis Geiger, UBS, 1/5/17", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0391-77f4-a9ed-c21b485c98de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.17, "y": 0.96 }, "kind": "source-note", "text": "Source: Wall Street research.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "95152b41-aa5b-4372-a0c4-5c71723306c4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.62, "x": 0.02, "y": 0.04 }, "kind": "title", "text": "RESEARCH ANALYSTS RECOGNIZE MARGIN DEFICIENCIES", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37d53c7e-bbf5-497c-9876-9e6c3bd44489", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Authority citation", "slug": "authority-citation", "agent": null, "layer": "slide", "matchId": "f9c67aca-35d9-442b-9069-225f142bc839", "evidence": "Source: Wall Street research.", "confidence": 0.9 } ], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "2541f5d8-0be0-466b-a860-dbcf26871175", "evidence": "Citing Wall Street analysts to validate the activist's thesis.", "confidence": 0.9 } ], "arcBeats": [ { "to": 35, "from": 14, "beatId": "e8b6f755-898e-41eb-8a65-545fc03da1ca", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document agitates the problem by highlighting underperformance, margin deficiencies, deteriorating guest experience, and poor capital deployment", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" }, { "to": 49, "from": 7, "beatId": "577f34c3-585b-4a10-ab75-d4a71d62e71e", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The document provides a solution: REITERATING MARCATO'S MULTI-LEVEL PLAN TO CREATE VALUE FOR BWLD SHAREHOLDERS", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [ { "to": 50, "from": 6, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "bee45f76-1c20-4bd4-ab97-dc946ed607cf", "evidence": "The document implies that inaction will result in continued underperformance", "position": 0, "objective": "What is the cost of inaction?", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" }, { "to": 26, "from": 14, "name": "David Goliath", "slug": "16-david-goliath", "bestFor": "Startups, disruptive innovation, competitive displacement", "matchId": "1ad8e86d-b7e4-460f-bf1b-a2f892ca3e00", "evidence": "The document compares Buffalo Wild Wings' performance to its peers", "position": 1, "objective": "Can a smaller, more agile competitor outperform Buffalo Wild Wings?", "structure": "The Giant's Weakness -> Our Slingshot (Unique Edge) -> The Topple", "confidence": 0.6, "description": "Frame your initiative as the nimble underdog taking on a slow, bloated incumbent" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }