Buffalo Wild Wings, Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

The Cheat Sheet

Buffalo Wild Wings, Inc. reported net income above Wall Street’s expectations for the third quarter. Buffalo Wild Wings is an owner, operator, and franchiser of restaurants.

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Buffalo Wild Wings Earnings Cheat Sheet for the Third Quarter

Results: Net income for the restaurant rose to $11.3 million (61 cents per share) vs. $8.5 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 32.5% from the year earlier quarter.

Revenue: Rose 30.7% to $197.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BWLD beat the mean analyst estimate of 58 cents per share. It beat the average revenue estimate of $190.3 million.

Quoting Management: “Net earnings increased 32.5% to $11.3 million from $8.5 million, and earnings per diluted share increased 29.8% to $0.61 from $0.47 Sally Smith, President and Chief Executive Officer, commented, “Demand for the Buffalo Wild Wings brand is apparent in our strong same-store sales for the third quarter, with an increase of 5.7% at company-owned restaurants and 4.2% at franchised locations. Unit growth and strong sales in our new and existing restaurants combined to achieve a substantial increase in revenue of 30.7%. We leveraged this revenue growth to accomplish net earnings growth of over 32%, providing our shareholders with earnings per diluted share of $0.61.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.7%, with the biggest boost coming in the most recent quarter when revenue rose 30.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 16.4% and in the first quarter, the figure rose 40.7%.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 58 cents versus a mean estimate of net income of 60 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 71 cents per share to 68 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $2.65 per share, the average estimate for the fiscal year has fallen from $2.67 ninety days ago.

Competitors to Watch: Landry’s Restaurants, Inc , Ark Restaurants Corp. , Red Robin Gourmet Burgers, Inc. , Brinker Intl., Inc. , O’Charley’s Inc. , Flanigan’s Enterprises, Inc. , California Pizza Kitchen, Inc. , BJ’s Restaurants, Inc. , Benihana Inc. , and P.F. Chang’s China Bistro .

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(Source: Xignite Financials)

 

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