Buffalo Wild Wings says it's under attack by hedge fund
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Buffalo Wild Wing's management Monday returned fire at a hedge fund that sought to oust long time CEO Sally Smith.
In a regulatory filing, the company said it is under attack "from a short-term-focused hedge fund ... that seeks to upend our winning formula and business strategy."
Marcato Capital Management is urging shareholders to vote in a slate of four board nominees at the company's annual meeting June 2. The company says Marcato's plans would create substantial risk for the business.
Marcato argues more company-owned restaurants should be turned over to franchisees, because they perform better financially and operationally.
The company has thrown Marcato a bone. The hedge fund's nominees to the Buffalo Wild Wings board include Sam Rovit. Management has also nominated Rovit for election to the board saying he has deep experience in the restaurant industry.
"After careful and deliberate evaluation by our Governance Committee, we believe Mr. Rovit will contribute to our Board," the company said in the filing. "We therefore enthusiastically nominated him ourselves."
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