Why Buffalo Wild Wings, Mattel, and Kulicke and Soffa Industries Jumped Today
Tuesday was a negative day on Wall Street, as major benchmarks fell back from their modest gains on Monday. Stocks did manage to recover from more extensive losses earlier in the day, but anxiety about key issues like tax reform and the naming of replacements for current leaders of the Federal Reserve continued to weigh on market sentiment to at least a small extent. Even in a somewhat gloomy environment, some individual stocks managed to post big gains on encouraging company-specific news. Buffalo Wild Wings (NASDAQ: BWLD), Mattel (NASDAQ: MAT), and Kulicke and Soffa Industries (NASDAQ: KLIC) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Buffalo Wild Wings soared 24% after the sports-oriented restaurant chain received a buyout bid from a private equity investment company. Roark Capital offered to purchase Buffalo Wild Wings for $2.3 billion, offering shareholders $150 per share in cash for the beer and chicken wing purveyor. Buffalo Wild Wings stock had already risen recently, generating positive momentum from a highly favorable quarterly earnings report that showed success in key new promotions and more beneficial cost structuring. The stock now trades about 2% below the offer price, reflecting excitement that a deal could get done but a lack of confidence that Buffalo Wild Wings will get a better bid either from another buyer or from Roark Capital.
Image source: Buffalo Wild Wings.
Source: Fool.com
