In January, Netflix, Inc. (NASDAQ:NFLX) announced adding an additional 7 million new subscribers to its list in the fourth quarter. This brings the streaming company’s subscription base to 93.8 million. On the contrary, Buffalo Wild Wings announced less that 1% raise in its total revenue for the fourth quarter. It also reported a 4% fall in same-store sales; the fourth consecutive quarter such sales have tumbled causing profits to fall by over 38%. Netflix is a public listed NASDAQ Stock that offering streaming services.
Sitting at home and watching a movies or game with family and friends is more popular and preferred by many than going out. This could be the most disturbing development for the beer-and-wings joint which has come under sharp criticism from an activist investor who is looking to cause an overhaul at the chain.
There is a lot of evidence to support this assertion. According to research by intelligence company Foursquare, many liquor stores recorded a 20% rise in visits in 2016 compared to the previous year. Bars on the other hand experienced a 2% rise in visits. Sports bars on the other hand recorded a 3% decline in visits in 2016. Foursquare data could be troubling for B-Dubs investors owing to the fact that Buffalo Wild Wings specializes in offering beer, wings and sports.
Over 50 million people use the City Guide by Foursquare to locate new joints to visit. The application recorded over 10 billion check-ins. The application also recorded a daily average check-in of 9 million on its Foursquare Swarm.
Foursquare has also established that people who check-in at a local liquor store additionally check-in at the supermarket as their next stop. 8% of all visits to a local liquor store ended into a supermarket visit. This could mean that many shoppers are preparing to stay in their homes and may be organize for their own social events in their homes. According to Foursquare, the increase in visits to liquor stores compared to visits to bars could be part of the “Netflix and chill” scenario
The restaurant industry in general is experiencing a windfall. Restaurants recorded a 5% fall in customer traffic.