Mad Money

Cashing in on Conference Calls


Home Gamers know that Cramer is all about doing homework when it comes to investing in stocks, and one of the best ways to do that is by listening to company conference calls. Knowing how to analyze these calls can make you mad money, so Cramer picked the two best from this past earnings season to show you what to look for.

Buffalo Wild Wings did it right, Cramer says. Its call was simple and easy to understand, it had simple metrics to beat, and the company laid out a clear plan for the future. CEO Sally Smith and CFO Mary Twinem explained how its media buys during March Madness paid off, earnings per share jumped 58%, even that the chain had increased prices while competitors can’t. Cost of sales went down a percentage point because wing prices went up more than raw costs, and the bears’ call that corn prices would hurt BWLD turned out to be untrue.

A great call also leaves room for a Cramer staple, UPOD: underpromise, overdeliver. Buffalo Wild Wings noted that it has some tough compares coming, which could be a good buying opportunity for investors. But is Cramer actually worried about tough compares? No, there’s been acceleration of growth going into the quarter.

BWLD predicted 15% unit growth, 20% revenue growth and 25% earnings growth – solid double-digit gains with true visibility, Cramer says. The only thing that can hurt a regional to national story like this is saturation, and Buffalo Wild Wings is nowhere near that point.

Bottom Line: The Buffalo Wild Wings quarter was phenomenal, but it’s the amazing conference call that makes it a buy, Cramer says.

Questions? Comments?