The battle between Buffalo Wild Wings and Marcato Capital Management raged on Thursday after the chicken wing company wrote a letter to shareholders accusing the hedge fund of making misleading claims about the company's performance.
"Marcato Capital Management continues to make misleading claims regarding Buffalo Wild Wings' performance based on flawed analysis, in particular that the company has not generated superior returns for shareholders," the company said.
Buffalo Wild Wings said that Marcato is incorrectly comparing the chicken chain to much larger companies in the S&P 500, to broad market indices and to retailers and restaurants that the company says are "meaningfully different" from how B-Dubs operates.
"Buffalo Wild Wings should instead be compared to its casual dining peers — companies that are similar in service delivery and business model and that compete for similar consumers," the company said. "The casual dining peer group utilized by Buffalo Wild Wings properly excludes companies that are quick-serve, fast-food or delivery restaurants as well as companies outside the restaurant industry."
The company included the following chart to demonstrate Buffalo Wild Wings' shareholder returns compared to that of its casual dining peer group on a one-, three- and five-year basis.