An activist investor just publicly ripped apart Buffalo Wild Wings for the second time in a little over six months.
Marcato Capital Managementsent a presentation to Buffalo Wild Wings’ shareholders accusing the company of “overpromising and under-delivering.”
“Buffalo Wild Wings has an unfortunate history of misrepresenting that they are on the verge of rolling out new initiatives that will improve the performance and shareholder value,” the presentation says.
Mick McGuire, the founder and CEO of Marcatowho has been called a Bill Ackman “protégé,” said in a statement that the company is squandering its potential thanks to the ignorance and inaction of management.
“Buffalo Wings’ shareholders deserve a board comprised of directors with the relevant restaurant experience and conviction to exercise much needed oversight and accountability,” McGuire said.
A company spokesperson defended the chain against Marcato's comments but welcomed the criticism.
"The Company remains focused on executing its strategy, continuing to deliver value to its shareholders and supporting Buffalo Wild Wings' position as an industry leader," a company spokesperson said. "The Company welcomes input from shareholders and will respond to Marcato's presentation in due course."
Marcato, which has a 5.2% stake in Buffalo Wild Wings, has recommended a list of replacement company directors and asked shareholders to submit ideas on how the company could be improved online, here.
Here is the full presentation:
