News

Buffalo Wild Wings Q3 net earnings up big

October 23, 2011

Buffalo Wild Wings Inc. announced financial results for the third quarter ended Sept. 25, 2011. Highlights for the third quarter versus the same period a year ago were:

Total revenue increased 30.7 percent to $197.8 million;
Company-owned restaurant sales grew 32.2 percent to $181.0 million;
Same-store sales increased 5.7 percent at company-owned restaurants and 4.2 percent at franchised restaurants;
Net earnings increased 32.5 percent to $11.3 million from $8.5 million, and earnings per diluted share increased 29.8 percent to $0.61 from $0.47

Sally Smith, president and CEO, said demand for the brand is apparent and that unit growth and strong sales in new and existing restaurants contributed to the substantial increase in revenue. The company leveraged this revenue growth to accomplish a net earnings growth of more than 32 percent, providing shareholders with earnings per diluted share of 61 cents, she added.

Company-owned restaurant sales were driven by a same-store sales increase of 5.7 percent and 44 additional company-owned restaurants at the end of Q3 2011 relative to the same period in 2010.

Franchise royalties and fees increased 16.2 percent to $16.7 million for the quarter versus $14.4 million in the third quarter of 2010. This increase is attributed to a franchise same-store sales increase of 4.2 percent and 41 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $49,461 for the quarter compared to $44,394 for the same quarter last year, an 11.4 percent increase. Franchised restaurants averaged $51,350 for the period versus $49,005 in the third quarter a year ago, a 4.8 percent increase.

"We're pleased with our strong sales momentum as we approach the end of this year. For the first three weeks of the fourth quarter, same-store sales are 8.3 percent at company-owned restaurants and 6.7 percent at franchised locations. Football fans are filling our restaurants and our fourth quarter marketing plans are stronger than ever. We will reach our goal of 13 percent unit growth for the year, and we are confident that net earnings growth will be at least 23 percent for 2011," Smith said.

2012 outlook

Smith added that the company's restaurant development pipeline for 2012 should yield a 12 percent unit growth.

"We believe our ongoing sales strength, unit-level execution, and the benefit of a 53rd week will overcome rising commodity costs, and we will achieve net earnings growth of 20 percent in 2012," Smith said.

Also to come, Buffalo Wild Wings restaurants should open its goal 1,000th restaurant in 2013, and continue to grow to 1,500 locations in the U.S. and Canada with hundreds more across the world.

"This is an exciting time for our brand," Smith said.