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Buffalo Wild Wings (Buffalo Wild Wings) ROE %

: 28.80% (As of Sep. 2017)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Buffalo Wild Wings's annualized net income for the quarter that ended in Sep. 2017 was $73 Mil. Buffalo Wild Wings's average Total Stockholders Equity over the quarter that ended in Sep. 2017 was $253 Mil. Therefore, Buffalo Wild Wings's annualized ROE % for the quarter that ended in Sep. 2017 was 28.80%.

The historical rank and industry rank for Buffalo Wild Wings's ROE % or its related term are showing as below:

BWLD's ROE % is not ranked *
in the Restaurants industry.
Industry Median: 8.76
* Ranked among companies with meaningful ROE % only.

Buffalo Wild Wings ROE % Historical Data

The historical data trend for Buffalo Wild Wings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Buffalo Wild Wings Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.33 16.85 18.10 15.47 16.15

Buffalo Wild Wings Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.53 10.87 20.38 12.34 28.80

Competitive Comparison

For the Restaurants subindustry, Buffalo Wild Wings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Buffalo Wild Wings ROE % Distribution

For the Restaurants industry and Consumer Cyclical sector, Buffalo Wild Wings's ROE % distribution charts can be found below:

* The bar in red indicates where Buffalo Wild Wings's ROE % falls into.



Buffalo Wild Wings ROE % Calculation

Buffalo Wild Wings's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=94.745/( (655.344+518.039)/ 2 )
=94.745/586.6915
=16.15 %

Buffalo Wild Wings's annualized ROE % for the quarter that ended in Sep. 2017 is calculated as

ROE %=Net Income (Q: Sep. 2017 )/( (Total Stockholders Equity (Q: Jun. 2017 )+Total Stockholders Equity (Q: Sep. 2017 ))/ count )
=72.72/( (241.661+263.411)/ 2 )
=72.72/252.536
=28.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2017) net income data. ROE % is displayed in the 30-year financial page.


Buffalo Wild Wings  (NAS:BWLD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2017 )
=Net Income/Total Stockholders Equity
=72.72/252.536
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(72.72 / 1986.8)*(1986.8 / 930.367)*(930.367 / 252.536)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.66 %*2.1355*3.6841
=ROA %*Equity Multiplier
=7.82 %*3.6841
=28.80 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2017 )
=Net Income/Total Stockholders Equity
=72.72/252.536
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (72.72 / 99.252) * (99.252 / 113.696) * (113.696 / 1986.8) * (1986.8 / 930.367) * (930.367 / 252.536)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7327 * 0.873 * 5.72 % * 2.1355 * 3.6841
=28.80 %

Note: The net income data used here is four times the quarterly (Sep. 2017) net income data. The Revenue data used here is four times the quarterly (Sep. 2017) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Buffalo Wild Wings ROE % Related Terms

Thank you for viewing the detailed overview of Buffalo Wild Wings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Buffalo Wild Wings (Buffalo Wild Wings) Business Description

Traded in Other Exchanges
N/A
Address
Buffalo Wild Wings operates and franchises restaurants under the names Buffalo Wild Wings, R Taco, and PizzaRev. The Buffalo Wild Wings restaurants, which provide the vast majority of company revenue, have sports-bar atmospheres and feature Buffalo-style chicken wings. The restaurants are designed for group gatherings and feature projection screens and dozens of televisions. About half of the company's restaurants are franchised. The company has a centralized supply chain that serves all company-owned and franchised restaurants. The majority of its restaurants are in the United States, but the company has a small presence in Canada and Mexico and is expanding to the Middle East and Asia.
Executives
Richard Mcguire director FOUR EMBARCADERO CENTER, SUITE 2100, SAN FRANCISCO CA 94111
Alexander H Ware officer: Chief Financial Officer 4000 DAIN RAUSCHER PLAZA, 60 SOUTH SIXTH STREET, MINNEAPOLIS MN 55402
Andre J Fernandez director 333 WEST STATE STREET, MILWAUKEE WI 53203
Harmit J Singh director 71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Cindy L Davis director 2635 SW GRENWOLDE PLACE, PORTLAND OR 97201
Andrew D. Block officer: SVP-Talent Management 5500 WAYZATA BOULEVARD, SUITE 1600, MINNEAPOLIS MN 55416
Lawton Iii Harry A director C/O EBAY INC., 2065, SAN JOSE CA 95125
Marcato Capital Management Llc director FOUR EMBARCADERO CENTER, SUITE 2100, SAN FRANCISCO CA 94111
Marcato International Master Fund, Ltd. director C/O OGIER FIDUCIARY SERVICES (CAYMAN)LTD, 89 NEXUS WAY, CAMANA BAY, GRAND CAYMAN E9 KY1-9007
Janice L Fields director 800 NORTH LINDBERGH BLVD., ST. LOUIS MO 63167
Scott Bergren director 1441 GARDINER LANE, LOUISVILLE KY 40213
Sally J Smith officer: CEO & President 5500 WAYZATA BLVD., SUITE 1600, MINNEAPOLIS MN 55416
Sam Brian Rovit director KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Michael P Johnson director 2431 EAST 61ST STREET, TULSA OK 74136
Mary J Twinem officer: Exec VP, CFO & Treasurer 5500 WAYZATA BLVD., SUITE 1600, MINNEAPOLIS MN 55416

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