MINNEAPOLIS - Feb. 12, 2013 // GLOBE NEWSWIRE // - Buffalo Wild Wings, Inc. (Nasdaq:BWLD), announced today financial results for the fourth quarter ended December 30, 2012. Highlights for the fourth quarter versus the same period a year ago were:
As a reminder, Buffalo Wild Wings utilizes a 52- or 53-week fiscal year. The fiscal year ended December 30, 2012 was a 53-week year, with the fourth quarter of 2012 having fourteen weeks, while the fourth quarter of 2011 included thirteen weeks.
Sally Smith, President and Chief Executive Officer, commented, "We achieved a 37.8% increase in revenue for the fourth quarter as a result of strong same-store sales of 5.8% at company-owned restaurants and 7.4% at franchised locations, 62 additional company-owned locations in 2012, and incremental revenue from our fourteenth fiscal week. For the year, our total revenue exceeded $1 billion, a new milestone for Buffalo Wild Wings! High cost of sales continued in the fourth quarter, offsetting some of the bottom-line benefit of the fourteenth week, resulting in net earnings growth of 22.3% for the fourth quarter and 13.6% for the year."
Total revenue increased 37.8% to $303.8 million in the fourth quarter compared to $220.5 million in the fourth quarter of 2011. Company-owned restaurant sales for the quarter increased 39.3% over the same period in 2011, to $282.7 million, driven by a company-owned same-store sales increase of 5.8% and 62 additional company-owned restaurants at the end of fourth quarter 2012 relative to the same period in 2011. Same-store sales for the fourth quarter are calculated on a thirteen-week basis. The fourteenth week in the fourth quarter contributed $22.3 million of restaurant sales. Franchise royalties and fees increased 20.6% to $21.1 million for the quarter versus $17.5 million in the fourth quarter of 2011. This increase is attributed to a franchise same-store sales increase of 7.4%, an additional 12 franchised restaurants at the end of the period versus a year ago, and the incremental $1.5 million of franchise royalties and fees in the fourteenth week.
Average weekly sales for company-owned restaurants were $55,595 for the fourth quarter of 2012 compared to $51,983 for the same quarter last year, a 6.9% increase. Franchised restaurants averaged $58,490 for the period versus $53,385 in the fourth quarter a year ago, a 9.6% increase.
For the fourth quarter, net earnings increased 22.3% to $16.7 million versus $13.6 million in the fourth quarter of 2011. For the year, net earnings increased 13.6% to $57.3 million versus $50.4 million in 2011. Earnings per diluted share were $0.89, as compared to fourth quarter 2011 earnings per diluted share of $0.73. For the year, earnings per diluted share for 2012 were $3.06, a 12.1% increase over earnings per diluted share of $2.73 in 2011. The benefit from the additional week of operations in 2012 is estimated at $0.19 earnings per diluted share.
Ms. Smith remarked, "We are energized and determined to achieve net earnings growth of 25% for 2013 when compared on a 52-week basis to last year, which equates to 17% over full-year 2012. We are creating the ultimate sports-viewing experience for our Guests, innovating around our products and technology, and rolling out our new restaurant design. Our recently announced multi-year partnership with the NCAA gives us exclusive marketing and promotional opportunities, and makes Buffalo Wild Wings the 'Official Hangout' of NCAA March Madness®. We'll increase the presence and popularity of the Buffalo Wild Wings brand and look forward to achieving a successful year of unit and net earnings growth."
Ms. Smith continued, "As we begin 2013, our same-store sales are challenging to interpret, as sporting events do not align due to the 53rd week in 2012. Through the first six weeks of the first quarter of 2013, same-store sales are (2.8%) at company-owned restaurants and (1.7%) at franchised locations. However, if we calculate our same-store sales to align the timing of the college and NFL football seasons for both years, we estimate our same-store sales would be 2.6% at our company-owned restaurants and 1.6% at franchised locations. We also note that same-store sales increases in the first six weeks of 2012 were particularly high at 12.9% at company-owned restaurants and 10.8% at franchised locations."
Ms. Smith concluded, "Our development efforts continue to be a key driver of our success and we expect to open 60 company-owned and 45 franchised Buffalo Wild Wings restaurants during the year. We recently put a three-year $100 million unsecured line of credit in place that allows us to remain nimble for future investment in franchised acquisitions and emerging brands as we build the foundation for continued growth of this dynamic company."
Buffalo Wild Wings will be hosting a conference call today, February 12, 2013 at 4:00 p.m. Central Standard Time to discuss these results. There will be a simultaneous webcast conducted at our website www.buffalowildwings.com.
A replay of the call will be available until February 19, 2013. To access this replay, please dial 1.858.384.5517 password 4589813.
Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings Grill & Bar™ restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The Buffalo Wild Wings' menu specializes in 20 mouth-watering signature sauces and seasonings with flavor sensations ranging from Sweet BBQ™ to Blazin'®. Guests enjoy a welcoming neighborhood atmosphere that includes an extensive multi-media system for watching their favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of "Best Wings" and "Best Sports Bar" awards from across the country. There are currently nearly 900 Buffalo Wild Wings locations across 49 states in the United States, as well as in Canada.
Various remarks we make about future expectations, plans, and prospects for the company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements relate to our future financial and store performance measures and growth goals for 2013 and beyond, including but not limited to those relating to our first quarter sales trends and projected unit and net earnings growth rates for 2013 and beyond. All statements other than statements of historical fact are statements that could be deemed forward-looking statements and are based upon the current beliefs and expectations of our management. We have attempted to identify forward-looking statements by terminology, including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should" or "will" or the negative of these terms or other comparable terminology. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including, but not limited to, our ability to achieve and manage our planned expansion, the ability of our franchisees to open and manage new restaurants, market acceptance in the new geographic regions we enter (particularly non-U.S. locations), success of acquired restaurants, unforeseen obstacles in developing nontraditional sites or non-U.S. locations, our ability to obtain and maintain licenses and permits necessary to operate our existing and new restaurants, our franchisees' adherence to our practices, policies and procedures, the cost of commodities such as traditional chicken wings, the success of our key initiatives and our advertising and marketing campaigns, our ability to control restaurant labor and other restaurant operating costs, the continued service of key management personnel, our ability to protect our name and logo and other proprietary information, economic conditions (including changes in consumer preferences or consumer discretionary spending), the impact of federal, state or local government regulations relating to our employees, the sale of food and alcoholic beverages, the effect of competition in the restaurant industry, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission, including the factors described under "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 25, 2011, as updated in subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.
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The following table expresses results of operations as a percentage of total revenue for the periods presented, except for restaurant operating costs which are expressed as a percentage of restaurant sales:
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Mary Twinem
952.253.0731
Source: Buffalo Wild Wings, Inc.
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Buffalo Wild Wings® restaurants features a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings.