Marcato Buys 5.1% Stake in Buffalo Wild Wings

Activist investor Marcato Capital Management LP disclosed Monday it had acquired a 5.1% stake in restaurant chain Buffalo Wild Wings Inc.

The move, unveiled in a regulatory filing, makes the San Francisco-based fund one of the top five stakeholders of Buffalo Wild Wings. The stake was purchased on July 22, according to the filing.

Shares of Buffalo Wild Wings, down 12% over the past 12 months, rose 6% to $149.19 in afternoon trading after the announcement was disclosed.

The chain stumbled out of the gate this year as it grappled with an outbreak of gastrointestinal illnesses that affected customers in January at one of its restaurants in Overland Park, Kan.

The company also announced in February that it would stop disclosing quarter-to-date same-store sales trends because the trend was "not predictive of quarterly same-store sales."

Buffalo Wild Wings reported weaker-than-expected results as same-store sales declined during the first quarter, leading the chain to cut is earnings per-share guidance for the year.

San Francisco-based Marcato is run by Mick McGuire, a proté gé of activist William Ackman.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

July 25, 2016 16:15 ET (20:15 GMT)

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