Buffalo Wild Wings income rises 29%, beating estimates

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.