CEO’s got ‘Wings’
Buffalo chief’s exit a big win for hedgie
Activist investor Mick McGuire scored major wins at Buffalo Wild Wings.
The wings and beer chain announced Friday that longtime CEO Sally Smith would be stepping down by yearend. Meanwhile, McGuire’s Marcato Capital said that three of the hedge fund’s four nominees won spots on the Buffalo Wild Wings board.
Shares of Buffalo Wild Wings — which trade on the Nasdaq under the ticker “BWLD” — jumped as much as 6 percent on the news but ended the day up 1.7 percent, at $152.35.
“We are very pleased that our fellow BWLD shareholders recognize that additional change on the Board is warranted to return Buffalo Wild Wings to a path of growth and long-term value creation,” McGuire said Friday.
But success was not always certain for McGuire.
Since the Bill Ackman protege announced a 5.6 percent stake in Buffalo Wild Wings last July that has since grown to 9.9 percent, analysts and proxy advisory firms were split on whether the hedgie’s demands — which included Smith’s exit, board refresh- ment and franchising 90 percent of the company’s 1,200 locations — were appropriate.
Earlier this week, Wedbush analyst Nick Setyan said Friday’s vote would be a “loselose” for shareholders.
Setyan reiterated that point Friday and told The Post that Buffalo Wild Wings and McGuire now face “execution risk” as the chain changes its leadership and strategy.
Such skepticism was on display early Friday when Buffalo Wild Wings shares plunged more than 3 percent after the shareholder meeting was delayed for an hour with no reason given.
But, in a stunning turnaround, the day’s losses turned positive after Buffalo Wild Wings announced that Smith, who McGuire previously said was “seemingly out to lunch,” would be retiring by the end of the year, ending her more than 20-year reign at Buffalo Wild Wings.
“I am proud of Buffalo Wild Wings’ tremendous success. We have made great strides in executing our strategic plan and continuing to innovate to stay ahead of the competition,” Smith said.