Buffalo Wild Wings, our company that we selected, is situated in a very saturated marketplace with many competitors. However, the company only recently went public in 2002, which places it in a young position that hasn’t matured yet with its valuation. The company currently is only located in the United States and a select few Canadian provinces which leads to a huge untapped market for the young but high growth company. First off, a key attribute that we found was extraordinary about Buffalo Wild Wings was its lack of debt. The lack of debt led to our forecasts of free cash flow and cost of capital to increase over time. Buffalo Wild Wings has led valiant efforts to expand and tap the international markets. They expect to open over 100 restaurants in North America alone in 2013. They have signed franchise development agreements for restaurants in the Middle East and Puerto Rico. The average cash investment to open a restaurant is $2.28 million. This has led their growth to average at nearly 25% to even greater in revenue growths per year. The growths have simply been astonishing to be able to be sustained. It led to our future forecasts to remain high and sustained.
A particularly interesting attribute about the company is the fact it does not pay out dividends or preferred stock to its shareholders. The assets to liabilities ratio is always positive and the company has never been in the negative (red) for its large investments it makes annually. The forecasts of our company were very high, yet reasonable for the pace that it has grown at over the past eleven years. We estimated aggressively, yet reasonably, to make sure that Buffalo Wild Wings future growth rates would remain high, but not as excessively high as previous years have been. An important factor of the company particular was the sustained increase in total investor funds each year. It increased at a reasonably high rate, which in turn showed the high growth