{ "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": 48, "pageCount": 50, "prevPage": 47, "nextPage": 49, "slideType": "cite_precedent", "function": "cite_precedent", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses authority bias to validate the refranchising thesis.", "elementsJson": [ "headline_text", "logo_grid", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-c76db57564df/48", "deckHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-c76db57564df#slide-48", "components": [ { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.15 }, "kind": "quote", "text": "First, we're excited about the prospect of operating a smaller group of stores at the corporate level, but also excited about our franchisees growing sales...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "480243ed-6511-432f-a76a-9185163637a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.78 }, "kind": "quote", "text": "And what we found is that by refranchising, we were able to put restaurants back in the hands of some of the best operators in the system...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "982acad5-1568-45fc-bcf8-07bc7f91d971", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.63 }, "kind": "quote", "text": "[R]efranchising [is] intended to mitigate the trough associated with transformation and fund investments and initiatives that improve the guest experience and create opportunities for growth", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "995e8349-66d1-4f60-88c9-ff807b4c9fd9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.3 }, "kind": "quote", "text": "Over the long term the financial resources and capabilities brought by our expanded network of developmental licensees create opportunities for accelerated expansion and innovation", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c40d03f2-7dbc-4ace-a71f-e6cf320ffa1b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.45 }, "kind": "quote", "text": "The material financial benefits [of refranchising] to highlight [are that it] will reduce volatility, will increase free cash flow, will accelerate its growth off a higher base...", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f3bc21d1-6154-4539-bec3-341329e6b524", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"First, we're excited about the prospect of operating a smaller group of stores at the corporate level, but also excited about our franchisees growing sales and growing the performance of these stores they've acquired from us as well as the new store counts that will result with these refranchised units\" — Sonic Q2'17 Earnings Call, 3/28/17; \"Over the long term the financial resources and capabilities brought by our expanded network of developmental licensees create opportunities for accelerated expansion and innovation\" — McDonald's Analyst Day, 3/1/17; \"The material financial benefits [of refranchising] to highlight [are that it] will reduce volatility, will increase free cash flow, will accelerate its growth off a higher base, and return excess capital to shareholders. We're upping our franchise mix target, now to at least 98% from at least 96%\" — YUM! Analyst Day, 10/11/16; \"[R]efranchising [is] intended to mitigate the trough associated with transformation and fund investments and initiatives that improve the guest experience and create opportunities for growth\" — Panera Q1'16 Earnings Call, 4/27/16; \"And what we found is that by refranchising, we were able to put restaurants back in the hands of some of the best operators in the system. We were able to accelerate a remodeling initiative that we thought was very strategically critical to us. And it allowed us to refocus...on developing the brand around the world, and supporting our franchisees, not trying to run 1,200 restaurants all over the world\" — Burger King Worldwide at Piper Jaffray Conference, 6/10/14", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0391-77f4-a9ef-970175510cb7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.1, "x": 0.17, "y": 0.95 }, "kind": "source-note", "text": "Source: Company filings.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "00611712-39fc-45f5-ab7a-42b49e034bbb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "BEST-IN-CLASS RESTAURANT COMPANIES HAVE IDENTIFIED REFRANCHISING AS A WAY TO IMPROVE THE BRAND & STIMULATE GROWTH", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4ca3518-e8af-424d-ac25-8585e41bf66d", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "eb494af6-be0d-46df-82e8-cda7fcdcd19b", "evidence": "The slide presents quotes from company filings, indicating an understanding of the audience's interests and concerns.", "confidence": 0.7 }, { "name": "Credibility Transfer", "slug": "credibility-transfer", "agent": "Storyteller", "layer": "slide", "matchId": "847fbf19-1bd4-44f1-b688-51a008f101d9", "evidence": "The quotes from company filings lend credibility to the argument being presented.", "confidence": 0.7 } ], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "b02ccfb1-0fc8-4cd0-aa04-5f407cca1782", "evidence": "Uses quotes from industry leaders to support the thesis.", "confidence": 0.9 } ], "arcBeats": [ { "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" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }