What Has Build-A-Bear Stock Done For Investors?

• Build-A-Bear banal has outperformed the S&P 500 implicit aggregate clip horizons since 2020.

• The company’s diversified concern exemplary has helped nutrient grounds gross and profits.

• Build-A-Bear returns currency to shareholders done quarterly dividends and stock buybacks.

• 10 stocks we similar amended than Build-A-Bear Workshop ›

When you deliberation astir stocks that person outperformed the S&P 500 implicit the past 5 years, Build-A-Bear Workshop (NYSE: BBW) astir apt isn't the archetypal 1 that comes to mind. In fact, if you don't person kids, there's a decent accidental you haven't adjacent heard of Build-A-Bear.

But this retailer is worthy getting to know, arsenic the banal has delivered market-beating returns successful caller years.

Over the past 12 months, Build-A-Bear has generated a full instrumentality of 53%, compared to the S&P 500's full instrumentality of 15%, arsenic of this writing. Total instrumentality provides a implicit representation of a stock's show due to the fact that it factors successful superior appreciation -- the summation successful stock terms -- and dividends. Over the past 3 years, Build-A-Bear's full instrumentality of 152% has comfortably outpaced the S&P 500's instrumentality of 76%.

When we zoom retired adjacent further connected the clip horizon, Build-A-Bear truly pulls away. While the S&P 500 has produced a steadfast 101% full instrumentality implicit the past 5 years, Build-A-Bear has skyrocketed astir 1,400%.

With truthful galore top-performing stocks trading astatine sky-high valuations today, there's been a batch of chatter astir a marketplace bubble. Build-A-Bear isn't 1 of those stocks. Build-A-Bear is simply a profitable institution trading astatine a guardant price-to-earnings (P/E) ratio of 11.6, compared to an estimated guardant P/E ratio of 23.6 for the S&P 500. Build-A-Bear's stock gains bespeak a beardown underlying concern that's been generating grounds gross and profits portion steadily returning currency to shareholders.

The archetypal Build-A-Bear Workshop opened successful 1997 successful the St. Louis Galleria mall. Although you'll inactive find Build-A-Bear stores successful buying malls today, the bulk of Build-A-Bear's new-store maturation successful caller years has travel from the motorboat of partner-operated units successful places similar Great Wolf Lodge, SeaWorld, Kalahari Resorts, and adjacent Carnival cruise ships. This exemplary shifts overmuch of the capital-cost load to the operators, allowing Build-A-Bear to seizure higher-margin gross arsenic a wholesale supplier.

International franchise stores person go different maturation engine, with gross soaring 176% from 2020 to 2024. Build-A-Bear has besides been expanding its web presence, and e-commerce request has surged 110% implicit the past six years.