NEW YORK (Reuters) - Proxy adviser Institutional Shareholder Services (ISS) recommended on Wednesday that owners of Buffalo Wild Wings (BWLD.O) stock vote for board directors nominated by activist hedge fund Marcato Capital Management.
“The dissident has presented a compelling case that additional board change is warranted,” ISS said in its research report.
Shares of Buffalo Wild Wings, a $2.5 billion wings and beer chain based in Minneapolis, Minnesota, jumped more than 6 percent on news of the report, hitting $155.71.
ISS, an influential adviser to investment funds seeking guidance on how to vote for proposals and director nominees at annual shareholder meetings, put its weight behind Marcato nominees Mick McGuire, the hedge fund’s founder, and Scott Bergren, the former chief executive of Yum Brands’ (YUM.N) restaurant chain, Pizza Hut.
ISS did not recommend that shareholders support Marcato nominee, Lee Sanders, the former chief development officer at TGI Fridays.
The proxy adviser said in its note that it also supported board nominee Sam Rovit, the CEO of CTI Foods and a former executive at Kraft Foods.
Rovit, who was originally nominated by Marcato and then later nominated by the company as well, is running for a board seat uncontested.
Buffalo Wild Wings will hold its annual meeting on June 2.
Reporting by Michael Flaherty; Editing by Bernard Orr and Grant McCool