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Buffalo Wild Wings income rises 29%, beating estimates
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Despite the down economy, Buffalo Wild Wings Inc. is flying high.
Fourth-quarter net income at the chicken-wing restaurant chain grew 29 percent, surpassing expectations thanks to strong sales at company-owned stores, the St. Louis Park company reported Wednesday after the markets closed. Shares rose 17.5 percent, to $25.75 in after-hours trading.
Chief Executive Sally Smith said the first quarter was off to a strong start, with same-store sales up 8 percent at company-owned stores and up 7 percent at franchised locations. Smith said the company's October expectations for 2009 -- growth of 25 percent for revenue and 20 to 25 percent for earnings -- are achievable.
For the fourth quarter, the company reported net income of $7.7 million, or 43 cents a share, up from $6 million, or 34 cents a share, a year ago.
Revenue grew 33 percent, to $121.2 million.
Analysts polled by Thomson First Call expected earnings of 39 cents a share on revenue of $117 million.
Restaurant sales grew 36 percent, while franchise royalties and fees rose 9 percent.
Same-store sales were up 4.5 percent at company-owned stores and 2.5 percent in franchised locations. Average weekly sales volume rose 8.3 percent in company-owned restaurants and 2.4 percent in franchised locations.
In November, Jefferies & Co. said Buffalo Wild Wings was the most recent casual-dining chain to show negative traffic growth and said that it could be the first to emerge from the slump, as the chain has generally outperformed other casual-dining chains. The firm also noted that the company has a quality balance sheet with no debt.
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