An activist investor is looking to spice up the Buffalo Wild Wings board.
Marcato Capital — which has griped that the sports-bar chain’s service is too slow and its menu is overly complicated — on Monday nominated four directors to the restaurant chain’s nine-member board.
The hedge fund didn’t look too far when talent scouting: Mick McGuire, who founded Marcato after a stint with Bill Ackman’s Pershing Square, is among the nominees.
Since announcing a 5.2-percent stake in Buffalo Wild Wings last July, Marcato has likewise complained that the restaurant chain has refused to goose growth by opening up its brand to franchisees.
“Unfortunately, the Company has been unwilling to explore a serious dialogue in any of these areas, exposing an acute breakdown in good governance and shareholder alignment,” McGuire wrote.
Buffalo Wild Wings contested Marcato’s characterization, saying in a statement late Monday that it has “engaged numerous times, in person and telephonically” with the hedge fund.
The restaurant chain said it will review Marcato’s board recommendations and will file its own with the Securities and Exchange Commission at a later date.
Buffalo Wild Wings said it has hired Lazard to act as its financial advisor and Faegre Baker Daniels to serve as its legal advisor.
Marcato’s other nominees are: former YUM! Brands CEO Scott Bergren, current CTI Foods CEO Sam Rovit, and Lee Sanders, who was previously TGI Friday’s global chief development officer. The deadline to submit nominees is Feb. 11.
“We believe our carefully selected, highly-qualified director nominees have the extensive restaurant industry operating, strategic and financial expertise that the incumbent directors sorely lack, and will bring fresh perspectives and robust oversight to Buffalo Wild Wings’ Board,” McGuire said.
McGuire had earlier blasted the board’s lack of restaurant experience.
Buffalo Wild Wings is scheduled to report fourth-quarter earnings Tuesday afternoon. Shares of the company rose 0.8 percent to $151.15 on Monday.
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