Buffalo Wild Wings, Inc. Announces Second Quarter Earnings Per Share of $0.88

MINNEAPOLIS - July 30, 2013 // GLOBE NEWSWIRE // - Buffalo Wild Wings, Inc. (Nasdaq:BWLD) announced today financial results for the second quarter ended June 30, 2013. Highlights for the second quarter versus the same period a year ago were:

  • Total revenue increased 27.8% to $305.0 million
  • Company-owned restaurant sales grew 29.4% to $285.4 million
  • Same-store sales increased 3.8% at company-owned restaurants and 4.1% at franchised restaurants
  • Net earnings increased 41.4% to $16.5 million from $11.7 million, and earnings per diluted share increased 41.9% to $0.88 from $0.62

Sally Smith, President and Chief Executive Officer, commented, "We're very pleased with our strong results for the second quarter. Revenue increased 27.8% driven primarily by a 23% increase in the number of company-owned restaurants versus last year and a 3.8% increase in same-store sales at company-owned locations. Same-store sales at franchised locations increased 4.1% for the second quarter. This quarter's growth is on top of strong second quarter same-store sales in 2012 of 5.3% at company-owned and 5.5% at franchised locations. We are pleased that same-store sales at both company-owned and franchised restaurants continue to outpace the casual dining category."

Ms. Smith continued, "We managed our controllable expenses and saw the cost per pound of traditional wings decline compared to last year, which benefited cost of sales. Strong sales growth and lower costs and expenses as a percent of revenue produced impressive net earnings growth of 41.4% and earnings per diluted share of $0.88."

Total revenue increased 27.8% to $305.0 million in the second quarter compared to $238.7 million in the second quarter of 2012. Company-owned restaurant sales for the quarter increased 29.4% over the same period in 2012, to $285.4 million, driven by a company-owned same-store sales increase of 3.8% and 77 additional company-owned restaurants at the end of second quarter 2013 relative to the same period in 2012. Franchise royalties and fees increased 7.9% to $19.6 million for the quarter versus $18.2 million in the second quarter of 2012. This increase is attributed to a franchise same-store sales increase of 4.1% and 20 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $54,759 for the second quarter of 2013 compared to $51,524 for the same quarter last year, a 6.3% increase. Franchised restaurants averaged $58,186 for the period versus $54,766 in the second quarter a year ago, a 6.2% increase.

For the second quarter, net earnings increased 41.4% to $16.5 million versus $11.7 million in the second quarter of 2012. Earnings per diluted share were $0.88, as compared to second quarter 2012 earnings per diluted share of $0.62.

2013 Outlook

Ms. Smith remarked, "Our same-store sales in the first four weeks of the third quarter are 1.5% at company-owned restaurants and 1.2% at franchised locations, and reflect one less UFC pay-per-view fight compared to last year. We are comping over last year's strong same-store sales in the first four weeks of the quarter of 6.8% and 7.3%, respectively. We are gearing up for fantasy football draft parties and are excited for the beginning of the NFL and NCAA football seasons, which include one extra week of games in our third quarter. This month we rolled out a new menu strategy of selling wings by portion at all of our restaurants. Guests now receive a more consistent amount of chicken in their order rather than a fixed number of wings. We expect this strategy, along with lower traditional wing costs versus last year, to improve our cost of sales percentage. We remain confident we will achieve 17% net earnings growth for 2013, equating to 25% on a 52-week basis."

Ms. Smith concluded, "We will continue to provide a rewarding experience for our Guests and remain diligent in managing our business with the right balance of executing today and preparing for tomorrow. We have exciting changes in motion to continue building the long-term success of Buffalo Wild Wings across the globe."

Buffalo Wild Wings will be hosting a conference call today, July 30, 2013 at 4:00 p.m. Central Daylight 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 August 6, 2013. To access this replay, please dial 1.858.384.5517 password 4629831.

About Buffalo Wild Wings, Inc.

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 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 over 930 Buffalo Wild Wings locations across 49 states in the United States, as well as in Canada.

Forward-looking Statements

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 third 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 and 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 30, 2012, 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.

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

 

 

 

 

CONSOLIDATED STATEMENTS OF EARNINGS

 

 

 

 

 

(Dollar and share amounts in thousands except per share data)

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three months ended

  Six months ended

 

June 30,

June 24,

June 30,

June 24,

 

2013

2012

2013

2012

 

 

 

 

 

Revenue:

 

 

 

 

Restaurant sales

$285,403

220,550

569,828

452,866

Franchise royalties and fees

19,604

18,173

39,543

36,979

 

 

 

 

 

Total revenue

305,007

238,723

609,371

489,845

 

 

 

 

 

Costs and expenses:

 

 

 

 

Restaurant operating costs:

 

 

 

 

Cost of sales

86,630

69,799

179,721

141,950

Labor

88,929

66,638

174,760

134,906

Operating

41,212

32,349

82,317

65,146

Occupancy

16,865

13,091

32,991

25,891

Depreciation and amortization

21,084

16,090

41,227

31,621

General and administrative

23,601

20,976

44,898

40,400

Preopening

2,420

1,536

6,691

4,127

Loss on asset disposals and store closures

229

597

800

1,334

 

 

 

 

 

Total costs and expenses

280,970

221,076

563,405

445,375

 

 

 

 

 

Income from operations

24,037

17,647

45,966

44,470

Investment income (loss)

(84)

(115)

261

295

 

 

 

 

 

Earnings before income taxes

23,953

17,532

46,227

44,765

Income tax expense

7,464

5,870

13,359

14,858

 

 

 

 

 

Net earnings

$16,489

11,662

32,868

29,907

 

 

 

 

 

Earnings per common share — basic

$0.88

0.63

1.75

1.61

Earnings per common share — diluted

0.88

0.62

1.75

1.60

Weighted average shares outstanding — basic

18,768

18,575

18,758

18,565

Weighted average shares outstanding — diluted

18,827

18,660

18,815

18,650

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:

 

Three months ended

  Six months ended

 

June 30,

June 24,

June 30,

June 24,

 

2013

2012

2013

2012

 

 

 

 

 

Revenue:

 

 

 

 

Restaurant sales

93.6%

92.4%

93.5%

92.5%

Franchising royalties and fees

6.4

7.6

6.5

7.5

 

 

 

 

 

Total revenue

100.0

100.0

100.0

100.0

 

 

 

 

 

Costs and expenses:

 

 

 

 

Restaurant operating costs:

 

 

 

 

Cost of sales

30.4

31.6

31.5

31.3

Labor

31.2

30.2

30.7

29.8

Operating

14.4

14.7

14.4

14.4

Occupancy

5.9

5.9

5.8

5.7

Depreciation and amortization

6.9

6.7

6.8

6.5

General and administrative

7.7

8.8

7.4

8.2

Preopening

0.8

0.6

1.1

0.8

Loss on asset disposals and store closures

0.1

0.3

0.1

0.3

 

 

 

 

 

Total costs and expenses

92.1

92.6

92.5

90.9

 

 

 

 

 

Income from operations

7.9

7.4

7.5

9.1

Investment income (loss)

(0.0)

(0.0)

0.0

0.1

 

 

 

 

 

Earnings before income taxes

7.9

7.3

7.6

9.1

Income tax expense

2.4

2.5

2.2

3.0

 

 

 

 

 

Net earnings

5.4

4.9

5.4

6.1

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

(Dollar amounts in thousands)

 

(unaudited)

 

 

 

 

 

 

 

June 30, 

  December 30,

 

2013

2012

 

 

 

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$23,499

21,340

Marketable securities

6,645

9,579

Accounts receivable — net of allowance of $25

18,411

20,203

Inventory

8,598

7,820

Prepaid expenses

2,213

3,869

Refundable income taxes

2,136

4,122

Deferred income taxes

9,336

5,774

Restricted assets

32,316

52,829

 

 

 

Total current assets

103,154

125,536

 

 

 

Property and equipment, net

407,867

386,570

Reacquired franchise rights, net

35,976

37,370

Goodwill

32,533

32,365

Other assets

16,140

9,246

 

 

 

Total assets

$595,670

591,087

 

 

 

Liabilities and Stockholders' Equity

 

 

Current liabilities:

 

 

Unearned franchise fees

$2,173

1,763

Accounts payable

23,011

36,418

Accrued compensation and benefits

36,368

39,637

Accrued expenses

10,008

11,461

System-wide payables

32,296

51,564

 

 

 

Total current liabilities

103,856

140,843

 

 

 

Long-term liabilities:

 

 

Other liabilities

1,939

1,752

Deferred income taxes

38,843

37,128

Deferred lease credits

30,247

27,992

 

 

 

Total liabilities

174,885

207,715

 

 

 

Commitments and contingencies

 

 

Stockholders' equity:

 

 

Undesignated stock, 1,000,000 shares authorized; none issued

Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,777,706 and 18,623,370, respectively

126,367

121,450

Retained earnings

294,915

262,047

Accumulated other comprehensive loss

(497)

(125)

 

 

 

Total stockholders' equity

420,785

383,372

 

 

 

Total liabilities and stockholders' equity

$595,670

591,087

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Dollar amounts in thousands)

 

(unaudited)

 

 

 

 

 

 

 

Six months ended

 

June 30,

June 24,

 

2013

2012

 

 

 

Cash flows from operating activities:

 

 

Net earnings

$32,868

29,907

Adjustments to reconcile net earnings to cash provided by operations:

 

 

Depreciation

38,704

30,267

Amortization

2,524

1,354

Loss on asset disposals and store closures

800

1,143

Deferred lease credits

2,105

1,618

Deferred income taxes

(1,542)

(2,245)

Stock-based compensation

4,014

3,919

Excess tax benefit from stock issuance

(147)

(289)

Change in operating assets and liabilities, net of effect of acquisitions:

 

 

Trading securities

(348)

(534)

Accounts receivable

3,478

(4,484)

Inventory

(678)

281

Prepaid expenses

1,653

1,090

Other assets

(852)

(1,084)

Unearned franchise fees

410

(45)

Accounts payable

(8,135)

(177)

Income taxes

2,133

6,250

Accrued expenses

(221)

(234)

 

 

 

Net cash provided by operating activities

76,766

66,737

 

 

 

Cash flows for investing activities:

 

 

Acquisition of property and equipment

(63,910)

(44,438)

Acquisition of businesses/investments in affiliates

(10,288)

Purchase of marketable securities

(52,493)

Proceeds from marketable securities

3,282

39,998

 

 

 

Net cash used in investing activities

(70,916)

(56,933)

 

 

 

Cash flows for financing activities:

 

 

Proceeds from line of credit

5,000

Repayments of line of credit

(5,000)

Issuance of common stock

1,152

1,117

Excess tax benefit from stock issuance

147

289

Tax payments for restricted stock units

(4,813)

(8,447)

 

 

 

Net cash used in financing activities

(3,514)

(7,041)

 

 

 

Effect of exchange rate changes on cash and cash equivalents

(177)

(46)

 

 

 

 

 

 

Net increase in cash and cash equivalents

2,159

2,717

 

 

 

Cash and cash equivalents at beginning of period

21,340

20,530

 

 

 

Cash and cash equivalents at end of period

$23,499

23,247

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

 

Restaurant Count

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

 

2013

397

407

 

 

 

2012

327

330

343

381

 

2011

263

277

288

319

 

2010

235

234

244

259

 

2009

206

215

220

232

 

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

Q1

Q2

Q3

Q4

 

2013

514

525

 

 

 

2012

505

505

511

510

 

2011

488

492

498

498

 

2010

430

447

457

473

 

2009

373

383

400

420

 

 

 

 

 

 

 

 

 

 

 

 

 

Same-Store Sales

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

1.4%

3.8%

 

 

 

2012

9.2%

5.3%

6.2%

5.8%

6.6%

2011

3.9%

5.9%

5.7%

8.9%

6.1%

2010

0.1%

(0.1%)

2.6%

(0.3%)

0.6%

2009

6.4%

2.8%

0.8%

2.6%

3.1%

 

 

 

 

 

 

Franchised Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

2.2%

4.1%

 

 

 

2012

7.3%

5.5%

5.8%

7.4%

6.5%

2011

1.6%

2.7%

4.2%

5.9%

3.6%

2010

0.7%

(0.7%)

0.3%

(1.1%)

(0.2%)

2009

6.0%

3.7%

1.9%

2.0%

3.4%

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

 

Average Weekly Sales Volumes

 

 

 

 

 

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

$56,953

54,759

 

 

 

2012

55,131

51,524

52,561

55,595

53,783

2011

48,845

47,970

49,461

51,983

49,627

2010

45,327

43,021

44,394

45,595

44,601

2009

45,593

42,938

42,602

44,583

43,912

 

 

 

 

 

 

Franchised Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

$60,050

58,186

 

 

 

2012

57,282

54,766

55,608

58,490

56,570

2011

52,744

50,995

51,350

53,385

52,081

2010

51,532

49,051

49,005

49,837

49,835

2009

50,729

48,619

48,458

50,115

49,479

Investor Relations Contact:

Heather Pribyl
952.253.0731

Source: Buffalo Wild Wings, Inc.

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Denny's
Denny's is America's largest full-service family restaurant chain, consisting of 168 company-owned units and 1,692 franchised units, with operations...
Roy Rogers Family Restaurants
There is no single factor that accounts for the powerful appeal of the Roy Rogers concept.
SpeedPro Imaging
SpeedPro Imaging is the ONLY franchise available exclusively focusing on wide format printing, the highest margin and fastest growing niche in the...
Tony Roma's
After two decades of fast-paced international expansion, we are introducing a new generation of domestic customers to the Tony Roma’s experience....
Which Wich® Superior Sandwiches
Which Wich is changing the franchising game with our fun, personalized, and incredibly attractive business approach.

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)