The ongoing war between Buffalo Wild Wings and Marcato Capital, a San Francisco-based hedge fund, is heating up.
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Buffalo Wild Wings just torched a Bill Ackman protégé (BWLD)
On Tuesday the fast-food chain released a presentation to shareholders that emphasized the firm's strength and countered recent criticisms made by Marcato.
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On Tuesday Buffalo Wild Wings released a presentation to shareholders that emphasized the firm's strength and took shots at recent criticisms flung at the casual dining chain by Marcato. The hedge fund currently has a 6.1% stake in the company, according to a May press release by Marcato calling for board changes.
Marcato released a deck in April in which they outlined some of the company's failures and urged fellow shareholders to vote for a board shake-up. Marcato's wants the company to transition more towards franchise ownership, which it claims leads to more efficient management. The deck also included quotes from former Buffalo Wild Wings employees and customers bashing the company.
Buffalo Wild Wings said Marcato's belief that the company should move to a franchise model is based on flawed assumptions.
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The presentation also called out Mick McGuire, Marcato's founder and head, for his "track record of losses in the boardroom," citing his tenure on the boards of NCR, a consumer technology company, and Borders, the now defunct bookstore. McGuire "protégé." target="_blank"
"McGuire 'plan' to create value for Borders was unsuccessful, and Borders was eventually liquidated in a bankruptcy process," the company said.
The presentation referred to McGuire's time on NCR's board as "the lost year."
Ouch.
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