Buffalo Wild Wings Inc. has reported its financial results for the first quarter ended March 28, 2010.
While total revenue increased 15.7 percent to $152.3 million, same-store sales increased 0.1 percent at company-owned restaurants and 0.7 percent at franchised restaurants.
Net earnings increased 24.5 percent to $10.6 million, up from $8.5 million.
Company-owned restaurant sales grew 15.5 percent to $138.0 million, mainly the result of operating 29 additional company-owned restaurants at the end of first quarter 2010 relative to the same period in 2009.
Franchise royalties and fees increased 18.0 percent to $14.3 million versus $12.1 million in the first quarter of 2009. This increase is attributed to 57 additional franchised restaurants at the end of the period versus a year ago and the franchised same-store sales increase of 0.7 percent.
"In the first quarter, we achieved year-over-year growth in units, revenue and bottom-line performance, even while same-store sales were nearly flat," Sally Smith, president and CEO, said in a news release. "We've opened 86 additional restaurants in the last twelve months, a 14.9 percent unit increase. Our first quarter revenue grew by 15.7 percent, and we produced net earnings growth of 24.5 percent, even in the face of record-high wing costs."
Smith said the company is experiencing softness in April as same-store sales have dipped 3.7 percent at company-owned restaurants and have decreased 2.4 percent at franchised locations.
"We are addressing specific unit performance as well as implementing system-wide strategies to drive sales," she said. "We expect to realize year-over-year cost savings in the quarter for traditional wings, as the market has declined steadily in the past few months. While we believe that our previously-announced net earnings growth goal for 2010 of 20 percent may be achievable, improvement in same-store sales and moderate wing costs are key to meeting this goal."
