Wall Street is loving the World Cup. As sports bars pack with fans who stay for hours, beer and chicken wings flow generously—and so do the dollars.
Since it's a month long event, businesses have much more time to cash in on adult sports fans, unlike the Super Bowl or NBA playoffs. For the World Cup, chain sports bars experience a "bounce" in stocks. This year, Buffalo Wild Wings stock soared six percent, to $166. A similar surge occurred during the NCAA tournament, also a month long affair.
Bob Derrington of Wunderlich Securities coined the term "World Cup bounce" for this affect. This past Sunday during the USA/Portugal game, Derrington noticed the hour long waits for tables, as other patrons decided to stand with their beers to catch a glimpse of the U.S. play. Derrington estimates same-store sales will be up six percent for the company because of the buffalo bounce.
"Interestingly, our sources told us that regardless of what matches were being featured since the World Cup began, World Cup viewership in B-dubs [short for Buffalo Wild Wings] has consistently been very strong, with most of the 'soccer powerhouse matches' including Mexico, Brazil, and Germany especially well attended," Derrington told CNN Money.
So next time you are frustrated trying to get a table or some wings during the big match, remember, you are stimulating the economy. Analysts everywhere thank you.