Buffalo Wild Wings, Inc. Announces First Quarter 2010 Results
'In the first quarter, we achieved year-over-year growth in units, revenue and bottom-line performance, even while same-store sales were nearly flat at 0.1% at company-owned restaurants and 0.7% at franchised locations.'
Buffalo Wild Wings, Inc. (NASDAQ: BWLD), announced today financial results for the first quarter ended March 28, 2010. Highlights for the first quarter versus the same period a year ago were:
- Total revenue increased 15.7% to $152.3 million
- Company-owned restaurant sales grew 15.5% to $138.0 million
- Same-store sales increased 0.1% at company-owned restaurants and 0.7% at franchised restaurants
- Net earnings increased 24.5% to $10.6 million from $8.5 million, and earnings per diluted share increased 23.4% to $0.58 from $0.47
Sally Smith, President and Chief Executive Officer, commented, “In the first quarter, we achieved year-over-year growth in units, revenue and bottom-line performance, even while same-store sales were nearly flat at 0.1% at company-owned restaurants and 0.7% at franchised locations. We’ve opened 86 additional restaurants in the last twelve months, a 14.9% unit increase. Our first quarter revenue grew by 15.7%, and we produced net earnings growth of 24.5%, even in the face of record-high wing costs. We continued to provide value to our shareholders with earnings per share of $.58.”
Total revenue increased 15.7% to $152.3 million in the first quarter compared to $131.6 million in the first quarter of 2009. Company-owned restaurant sales for the quarter increased 15.5% over the same period in 2009, to $138.0 million, mainly the result of operating 29 additional company-owned restaurants at the end of first quarter 2010 relative to the same period in 2009. Same-store sales at company-owned locations for the first quarter increased 0.1%. Franchise royalties and fees increased 18.0% to $14.3 million versus $12.1 million in the first quarter of 2009. This increase is attributed to 57 additional franchised restaurants at the end of the period versus a year ago and a franchised same-store sales increase of 0.7%.
Average weekly sales for company-owned restaurants were $45,327 for the first quarter of 2010 compared to $45,593 for the same quarter last year, a 0.6% decrease. Franchised restaurants averaged $51,532 for the period versus $50,729 in the first quarter a year ago, a 1.6% increase.
For the first quarter, net earnings increased 24.5% to $10.6 million versus $8.5 million in the first quarter of 2009. Earnings per diluted share were $0.58, as compared to first quarter 2009 earnings per diluted share of $0.47.
2010 Outlook
Ms. Smith remarked, “We are experiencing softness in April same-store sales of (3.7%) at company-owned restaurants and (2.4%) at franchised locations. We are addressing specific unit performance as well as implementing system-wide strategies to drive sales. We expect to realize year-over-year cost savings in the quarter for traditional wings, as the market has declined steadily in the past few months. While we believe that our previously-announced net earnings growth goal for 2010 of 20% may be achievable, improvement in same-store sales and moderate wing costs are key to meeting this goal.”
Ms. Smith concluded, “We have a vigorous focus on the core elements of our brand that have been the cornerstone of our success and that have built loyalty among our Guests with our unique You Have To Be Here™ experience. Our diligence to improve our performance and build our sales and profitability will not waver. We are dedicated to maintaining our position as a leader by delivering wings, beer and sports in a fun and social atmosphere that will continue to drive Guest loyalty and the long-term success and growth of Buffalo Wild Wings.”
