MINNEAPOLIS (AP) -- Shares of Buffalo Wild Wings dropped in extended trading Tuesday after the restaurant chain's second-quarter earnings rose but missed Wall Street expectations.
The Minneapolis-based company posted net income of $11.7 million, or 62 cents per share, up from $10.7 million, or 58 cents per share, in the same period the year before.
Revenue was up 29.7 percent to $238.7 million.
Analysts expected earnings of 68 cents on revenue of $240.3 million, according to the data provider FactSet.
Costs and expenses in the recent quarter rose to $221.1 million from $168.1 million a year ago.
CEO Sally Smith said that the company is responding to higher commodity costs for chicken by raising prices for menu items and making marketing and other moves. These steps "will help lessen the bottom-line impact of wings in the near future and long term," she said, and should help the company post earnings growth between 15 and 20 percent this year.
Restaurant sales surged 32 percent to $220 million in the second quarter. Same-store sales rose 5.3 percent at restaurants owned by the company and 5.5 percent at franchises. Same-store sales are an important measure of retail performance because they exclude stores open for less than a year.
The company reported earnings a day after it took over title sponsorship of the college football bowl in Tempe, Ariz. The game, which was born as the Copper Bowl and last known as the Insight.com Bowl, will now be called the Buffalo Wild Wings Bowl.
In after-hours trading, Buffalo Wild Wing Inc. fell $10.85, or 13.8 percent, to $68.05. The company's stock ended regular trading down $1.79 at $78.90.