What is Buffalo Wild Wings Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Buffalo Wild Wings's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Buffalo Wild Wings's Probability of Financial Distress (%)
For the Restaurants subindustry, Buffalo Wild Wings's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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's Probability of Financial Distress (%) Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Buffalo Wild Wings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Buffalo Wild Wings's Probability of Financial Distress (%) falls into.
Buffalo Wild Wings Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
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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