• Brett Schafer

Is Build-a-Bear Workshop Stuffed With Value? With Strat Becker (Ticker: BBW)




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Show Notes

This week we had first-time guest Strat Becker on the show to discuss Build-a-Bear Workshop. Here are some questions we asked him:


  1. How did you find Build-A-Bear stock? For anyone that doesn’t know Build-a-Bear, could you explain the concept?

  2. How has the company changed/evolved over the last two decades? How is their physical footprint different today than it was in 2015?

  3. Outside of the core retail operations, what other segments do you think have the most promise to drive growth for Build-A-Bear this decade?

  4. Have they had success in e-commerce? Does that model work with the Build-A-Bear concept?

  5. Can you talk through some of the financials? How many stores do they have, how much do they generate in sales, what kind of margins?

  6. Why is Build-A-Bear stock so cheap? What is causing investors to give it an earnings multiple below 5?

  7. Let’s go through the activist investors. Who are they? What are they advocating for?

  8. What is the opportunity for a take-private bid? What sort of premium could reasonably be offered?

  9. Premortem: What could go wrong with an investment in Build-A-Bear?

Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.

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