Buffalo Wild Wings' 1Q profit down 10 pct on costs

Buffalo Wild Wings' 1st-quarter profit down 10 percent on wing costs, but sales up

Associated Press

NEW YORK (AP) -- Buffalo Wild Wings Inc. said that its first-quarter net income fell 10 percent as the restaurant chain grappled with high wing costs.

But the company's revenue results beat Wall Street analysts' estimates, sending up shares in after-hours trading.

The Minneapolis-based restaurant chain said that its net income was $16.4 million, or 87 cents per share, for the three-month period ended March 31. That compares with $18.2 million, or 98 cents per share, in the year-ago period.

Total revenue reached $304.4 million, up 21 percent from $251.1 million in the year-ago period.

Excluding franchise royalties and fees, restaurant sales increased 22.4 percent to $284.4 million.

Revenue at its company-owned restaurants opened at least a year rose 1.4 percent.

The quarter included one less week of the National Football League season as compared with the year-ago period

Analysts had expected 99 cents per share on revenue of $303.9 million, according to FactSet.

"We continued investing capital and labor for our future success, even though we faced the challenge of high wing costs and fluctuating wing yields," said Sally Smith, president and chief executive, in a statement.

The company said that it is pleased with its strong same-store sale trend to date in the current quarter of 5.2 percent at company-owned restaurants and a 5.8 percent increase at franchised locations. There are more than 900 locations in North America.

The company expects to see a 17 percent increase in earnings for 2013, equating to a 25 percent increase on a 52-week basis. Buffalo Wild Wings earned $3.06 last year. That implies that it will post earnings per share for 2013 of $3.58. On a 52-week basis, that would mean $3.82 per share.

Analysts expect $3.62 per share, according to FactSet.

Buffalo Wild Wings' share rose more than 2 percent, or $2, to $96.41 after closing down 72 cents to $94.33 in regular trading on Monday. The results were released after the market closed.

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