{
  "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",
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  "pageNumber": 26,
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  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "Uses a comparison frame to expose operational gaps in COGS and Labor costs.",
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      "kind": "callout",
      "text": "BWLD's largest franchisee's “4-wall” margins outperform company-owned system average by several hundred basis points",
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      "kind": "chart",
      "text": "LABOR COSTS AS % OF RESTAURANT SALES",
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      "kind": "chart",
      "text": "COGS AS % OF RESTAURANT SALES",
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      "text": "Based on geographic differences in store footprints, we estimate that BWLD's hourly tipped minimum wage costs were ~10-15% higher than SAUC's in FY'16. Even adjusting for BWLD's exposure, labor margins are higher.",
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      "kind": "list",
      "text": "Despite a more favorable mix of high-margin alcohol sales, BWLD's COGS still underperforms SAUC by ~180 bps. Vendor allowances from franchisee purchases offset BWLD's reported cost of sales.",
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    {
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      "kind": "metric",
      "text": "basis points: -686 bps",
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      "kind": "source-note",
      "text": "Source: Company filings, US Department of Labor Wage and Hour Division. \"SAUC\" refers to BWLD's largest franchisee.",
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      "kind": "title",
      "text": "BWLD'S LARGEST FRANCHISEE'S \"4-WALL\" MARGINS OUTPERFORM COMPANY-OWNED SYSTEM AVERAGE BY SEVERAL HUNDRED BASIS POINTS",
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      "evidence": "Direct comparison of BWLD vs SAUC metrics",
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      "evidence": "The document agitates the problem by highlighting underperformance, margin deficiencies, deteriorating guest experience, and poor capital deployment",
      "position": 1,
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      "parentBeatName": "Development",
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      "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",
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      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
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      "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",
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      "evidence": "The document compares Buffalo Wild Wings' performance to its peers",
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