MINNEAPOLIS - July 29, 2014 // GLOBE NEWSWIRE // - Buffalo Wild Wings, Inc. (Nasdaq:BWLD) announced today financial results for the second quarter ended June 29, 2014. Highlights for the second quarter versus the same period a year ago were:
Sally Smith, President and Chief Executive Officer, commented, "We're pleased with our strong results in the second quarter. Same-store sales increased 7.7% at company-owned restaurants and 6.5% at franchised locations. Same-store sales were strong during the Final Four and continued through the NBA and NHL playoffs. We love it when playoff series have more games and extend into overtime! With the 2014 World Cup, we had an opportunity to showcase the brand and capture sales from the growing U.S. soccer audience. Sales during the tournament were robust, contributing 100 basis points to our company-owned same-store sales increase for the quarter."
Ms. Smith continued, "Our cost of sales percentage was lower than last year, primarily driven by a decrease in the price per pound for traditional chicken wings. Strong sales growth, combined with lower costs and leveraging expenses, produced net earnings growth of 43.8% and earnings per diluted share of $1.25."
Total revenue increased 20.0% to $366.0 million in the second quarter compared to $305.0 million in the second quarter of 2013. Company-owned restaurant sales for the quarter increased 20.2% over the same period in 2013, to $343.1 million, driven by a company-owned same-store sales increase of 7.7% and 41 additional company-owned Buffalo Wild Wings restaurants at the end of second quarter 2014 relative to the same period in 2013. Franchise royalties and fees increased 16.6% to $22.9 million for the quarter versus $19.6 million in the second quarter of 2013. This increase is attributed to a franchised same-store sales increase of 6.5% and 54 additional franchised restaurants at the end of the period versus a year ago.
Average weekly sales for company-owned restaurants were $59,403 for the second quarter of 2014 compared to $54,759 for the same quarter last year, an 8.5% increase. Franchised restaurants averaged $61,845 for the period versus $58,186 in the second quarter a year ago, a 6.3% increase.
For the second quarter, net earnings increased 43.8% to $23.7 million versus $16.5 million in the second quarter of 2013. Earnings per diluted share were $1.25, as compared to second quarter 2013 earnings per diluted share of $0.88.
Ms. Smith remarked, "Our same-store sales for the first four weeks of the third quarter were 8.2% at company-owned restaurants and 7.4% at franchised locations. Company-owned same-store sales include a benefit of 330 basis points from the World Cup. Looking ahead, we are preparing for our favorite time of the year, football season. Buffalo Wild Wings is the best place to host your fantasy football draft party and to watch all the games with friends. We believe that draft parties kick off a great football season at Buffalo Wild Wings."
Ms. Smith concluded, "We're very pleased with our sales momentum in the first seven months of 2014. We are investing for long-term growth and delivering impressive net earnings growth to Buffalo Wild Wings shareholders. Based on our year-to-date performance, our current same-store sales trends, and anticipated food costs and labor expense, we believe net earnings growth will exceed 25% for 2014, and could reach 30%."
Buffalo Wild Wings will be hosting a conference call today, July 29, 2014 at 4:00 p.m. Central Daylight Time to discuss these results. There will be a simultaneous webcast conducted at our investor website ir.buffalowildwings.com.
A replay of the call will be available until August 5, 2014. To access this replay, please dial 1.858.384.5517 password 1728851.
Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings® 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 21 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 more than 1,025 Buffalo Wild Wings locations in the United States, Canada, and Mexico.
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 restaurant performance measures and growth goals, including but not limited to those relating to our third quarter sales trends and projected unit and net earnings growth rates for 2014 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, success of investments in new or emerging concepts, 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 system standards, 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 29, 2013, 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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SOURCE Buffalo Wild Wings, Inc.
Heather Pribyl
952.253.0731
Buffalo Wild Wings® restaurants features a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings.