News

Buffalo Wild Wings flies above analyst expectations

October 26, 2010

Buffalo Wild Wings Inc. has announced financial results for the third quarter ended September 26, 2010, that have risen above analyst expectations of 43 cents per share.

For the quarter, same-store sales increased 2.6 percent at company-owned restaurants and 0.3 percent at franchised stores.

Total revenue increased 14.0 percent to $151.3 million, up from $132.7 million in Q3 2009, while company-owned restaurant sales grew 13.9 percent to $137.0 million.

Net earnings increased 23.7 percent to $8.5 million, or 47 cents per share, up from $6.9 million, and 38 cents per share, reported in the same quarter last year.

"We continue to be a leader in the industry, and our focus on execution and profitability again produced strong year-over-year growth in units, revenue, and net earnings," said Buffalo Wild Wings president and CEO Sally Smith.

Despite the increases, a reported lower same-store sales for the first four weeks of the fourth 2010 quarter has contributed to a 6 percent decrease in company shares, to $45.40. Shares closed Tuesday at $48.53, but opened today at $44.31.

Franchise royalties and fees increased 15.6 percent to $14.4 million, a reflection of 57 additional franchised restaurants at the end of the period versus a year ago. The restaurant chain has added 81 locations over the last twelve months, 20 of which were in the third quarter. There are now 708 locations across 43 states.

Average weekly sales for company-owned restaurants were $44,394 for the third quarter of 2010 compared to $42,602 for the same quarter last year, a 4.2 percent increase. Franchised restaurants averaged $49,005 for the period versus $48,458 in the third quarter a year ago.

2010 and 2011 outlook

In the fourth quarter of 2010, the company plans to open an additional 15 company-owned locations and 17 franchise units, all in an effort to meets its year-end goal of 13 percent unit growth.

"For the first four weeks of the fourth quarter, same-store sales at company-owned locations decreased 0.7 percent and franchised locations are negative 1.7 percent, comping over prior year same-store sales of 5.9 percent and 3.8 percent, respectively," Smith said. "With sustained efforts to drive traffic throughout the football season, combined with higher media spending, we believe we can achieve at least flat same-store sales at company-owned restaurants for the fourth quarter and accomplish our 2010 net earnings goal of 20 percent growth for the year."