Buffalo Wild Wings, Inc. Announces First Quarter Earnings per Share of $1.52

MINNEAPOLIS - April 28, 2015 // GLOBE NEWSWIRE // - Buffalo Wild Wings, Inc. (Nasdaq:BWLD) announced today financial results for the first quarter ended March 29, 2015. Highlights for the first quarter versus the same period a year ago were:

  • Total revenue increased 19.8% to $440.6 million
  • Company-owned restaurant sales grew 20.3% to $415.0 million
  • Same-store sales increased 7.0% at company-owned restaurants and 6.0% at franchised restaurants
  • Net earnings increased 2.6% to $29.1 million from $28.3 million, and earnings per diluted share increased 1.7% to $1.52 from $1.49

Sally Smith, President and Chief Executive Officer, commented, "We're pleased with our first quarter same-store sales of 7.0% at company-owned restaurants and 6.0% at franchised locations. Sales were exceptionally strong during the college football bowl games as well as the NFL playoffs. Buffalo Wild Wings really came alive during March Madness® and we launched a new advertising campaign with unique commercials for each round of the tournament."

Ms. Smith continued, "Our sales growth leveraged operating, occupancy, and general and administrative costs. As anticipated, cost of sales and labor as a percentage of restaurant sales were higher than the prior year which tempered our net earnings growth. The price per pound for traditional chicken wings increased 41% versus the prior year's unusually low price. We achieved net earnings growth of 2.6% and earnings per diluted share was $1.52 in the first quarter."

Total revenue increased 19.8% to $440.6 million in the first quarter compared to $367.9 million in the first quarter of 2014. Company-owned restaurant sales for the quarter increased 20.3% over the same period in 2014, to $415.0 million, driven by a same-store sales increase at company-owned Buffalo Wild Wings restaurants of 7.0% and 53 additional Buffalo Wild Wings restaurants at the end of first quarter of 2015. Franchise royalties and fees increased 11.8% to $25.6 million for the quarter versus $22.9 million in the first quarter of 2014. This increase is attributed to a same-store sales increase at franchised Buffalo Wild Wings locations of 6.0% and 18 additional franchised Buffalo Wild Wings restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned Buffalo Wild Wings restaurants were $64,851 for the first quarter of 2015 compared to $60,966 for the same quarter last year, a 6.4% increase. Franchised Buffalo Wild Wings restaurants in the United States averaged $67,075 for the period versus $63,852 in the first quarter a year ago, a 5.0% increase.

For the first quarter, net earnings increased 2.6% to $29.1 million versus $28.3 million in the first quarter of 2014. Earnings per diluted share were $1.52, as compared to first quarter 2014 earnings per diluted share of $1.49.

2015 Outlook

Ms. Smith remarked, "Same-store sales increased 4.2% at company-owned restaurants and 1.8% at franchised locations for the first four weeks of the second quarter of 2015 compared to 5.7% and 4.4%, respectively, for the same period last year. We launched B-Dubs® Fast Break, a system-wide lunch program that provides Guests speed and value during this daypart. We're bringing the World of Sports to Buffalo Wild Wings beginning in June, highlighting fun and unique sports from the U.S. and around the world. To further engage Guests, we'll have new in-restaurant games to play during the World of Sports promotion with prizes awarded daily and weekly."

Ms. Smith concluded, "Our focus remains on creating an engaging sports-viewing experience with great food and beverage offerings for our Guests and we continue to make progress in guest experience technology initiatives. Our net earnings growth goal for 2015 remains 18%."

Buffalo Wild Wings will be hosting a conference call today, April 28, 2015 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 May 5, 2015. To access this replay, please dial 1.858.384.5517 password 5135891.

March Madness® is a trademark of the National Collegiate Athletic Association.

About Buffalo Wild Wings, Inc.

Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, 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 1,080 Buffalo Wild Wings locations in the United States, Canada, Mexico, and Philippines.

To stay up-to-date on all the latest events and offers for sports fans and wing lovers, like Buffalo Wild Wings on Facebook, follow @BWWings on Twitter and visit www.BuffaloWildWings.com.

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 restaurant performance measures and growth goals, including but not limited to those relating to our second quarter sales trends and projected unit and net earnings growth rates for 2015, 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 and supply chain consistency, 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 28, 2014, 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

 

March 29,

   March 30,

 

2015

2014

Revenue:

 

 

Restaurant sales

 $ 414,972

 344,945

Franchise royalties and fees

25,614

22,910

Total revenue

440,586

367,855

Costs and expenses:

 

 

Restaurant operating costs:

 

 

Cost of sales

125,677

97,487

Labor

130,394

105,334

Operating

58,551

49,038

Occupancy

21,990

18,969

Depreciation and amortization

28,069

22,832

General and administrative

30,522

28,156

Preopening

1,270

2,578

Loss on asset disposals and impairment

605

787

Total costs and expenses

397,078

325,181

Income from operations

43,508

42,674

Investment income (loss)

(75)

(127)

Earnings before income taxes

43,433

42,547

Income tax expense

14,448

14,231

Net earnings including noncontrolling interests

28,985

28,316

Net loss attributable to noncontrolling interests

(78)

Net earnings attributable to Buffalo Wild Wings

 $ 29,063

 28,316

Earnings per common share - basic

 $ 1.53

 1.50

Earnings per common share - diluted

 $ 1.52

 1.49

Weighted average shares outstanding - basic

18,993

18,873

Weighted average shares outstanding - diluted

19,074

18,953

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

 

March 29,

 2015

   March 30,

 2014

Revenue:

 

 

Restaurant sales

94.2%

93.8%

Franchise royalties and fees

5.8

6.2

Total revenue

100.0

100.0

Costs and expenses:

 

 

Restaurant operating costs:

 

 

Cost of sales

30.3

28.3

Labor

31.4

30.5

Operating

14.1

14.2

Occupancy

5.3

5.5

Depreciation and amortization

6.4

6.2

General and administrative

6.9

7.7

Preopening

0.3

0.7

Loss on asset disposals and impairment

0.1

0.2

Total costs and expenses

90.1

88.4

Income from operations

9.9

11.6

Investment income (loss)

Earnings before income taxes

9.9

11.6

Income tax expense

3.3

3.9

Net earnings including noncontrolling interests

6.6

7.7

Net loss attributable to noncontrolling interests

Net earnings attributable to Buffalo Wild Wings

6.6%

7.7%

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands)

(unaudited)

 

 

 

 

March 29,

   December 28,

 

2015

2014

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

 $ 92,601

 93,329

Marketable securities

21,017

19,547

Accounts receivable, net of allowance of $25

30,393

28,322

Inventory

11,550

11,893

Prepaid expenses

9,817

4,215

Refundable income taxes

9,779

Deferred income taxes

16,435

15,807

Restricted assets

55,439

81,037

Total current assets

237,252

263,929

 

 

 

Property and equipment, net

494,866

494,401

Reacquired franchise rights, net

41,777

37,631

Other assets

19,237

19,399

Goodwill

40,625

38,106

Total assets

 $ 833,757

 853,466

 

 

 

Liabilities and Stockholders' Equity

 

 

Current liabilities:

 

 

Unearned franchise fees

 $ 2,461

 2,099

Accounts payable

33,850

37,241

Accrued compensation and benefits

39,190

59,161

Accrued expenses

13,236

16,573

Income tax payable

7,951

Current portion of deferred lease credits

499

743

System-wide payables

55,125

79,668

Total current liabilities

152,312

195,485

 

 

 

Long-term liabilities:

 

 

Other liabilities

6,420

6,388

Deferred income taxes

34,515

39,815

Deferred lease credits

38,106

37,479

Total liabilities

231,353

279,167

 

 

 

Commitments and contingencies

 

 

Stockholders' equity:

 

 

Undesignated stock, 1,000,000 shares authorized

Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,995,188 and 18,937,131, respectively

148,129

148,114

Retained earnings

456,758

427,695

Accumulated other comprehensive loss

(2,991)

(2,096)

Total stockholders' equity

601,896

573,713

Noncontrolling interests

508

586

Total equity

602,404

574,299

Total liabilities and equity

 $ 833,757

 $ 853,466

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(unaudited)

 

 

 

 

Three months ended

 

March 29,

   March 30,

 

2015

2014

Cash flows from operating activities:

 

 

Net earnings including noncontrolling interests

 $ 28,985

  28,316

Adjustments to reconcile net earnings to net cash provided by operations:

 

 

Depreciation

26,851

21,699

Amortization

1,218

1,133

Loss on asset disposals and impairment

605

787

Deferred lease credits

1,159

998

Deferred income taxes

(5,508)

(6,892)

Stock-based compensation

2,745

3,615

Excess tax benefit from stock issuance

(66)

(29)

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

 

 

Trading securities

(328)

(90)

Accounts receivable

(2,053)

(3,403)

Inventory

471

(859)

Prepaid expenses

(5,619)

(2,423)

Other assets

154

121

Unearned franchise fees

362

(126)

Accounts payable

(1,037)

(4,211)

Income taxes

17,796

19,872

Accrued expenses

(18,374)

(10,414)

Net cash provided by operating activities

47,361

48,094

Cash flows from investing activities:

 

 

Acquisition of property and equipment

(25,788)

(25,732)

Acquisition of businesses

(13,894)

Purchase of marketable securities

(12,297)

Proceeds from marketable securities

11,155

Net cash used in investing activities

(40,824)

(25,732)

Cash flows from financing activities:

 

 

Issuance of common stock

231

244

Excess tax benefit from stock issuance

66

29

Tax payments for restricted stock units

(7,627)

(7,474)

Net cash used in financing activities

(7,330)

(7,201)

Effect of exchange rate changes on cash and cash equivalents

65

(115)

Net increase (decrease) in cash and cash equivalents

(728)

15,046

Cash and cash equivalents at beginning of period

93,329

57,502

Cash and cash equivalents at end of period

 $ 92,601

  72,548

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

Restaurant Count

 

Company-owned Restaurants (includes Buffalo Wild Wings, Rusty Taco, and Buffalo Wild Wings-owned PizzaRev locations):

 

 

 

 

 

 

Q1

Q2

Q3

Q4

2015

501

 

 

 

2014

443

449

463

491

2013

397

407

415

434

2012

327

330

343

381

2011

263

277

288

319

 

 

 

 

 

Franchised Restaurants (includes Buffalo Wild Wings and Rusty Taco locations):

 

 

 

 

 

 

Q1

Q2

Q3

Q4

2015

593

 

 

 

2014

569

579

588

591

2013

514

525

534

559

2012

505

505

511

510

2011

488

492

498

498

 

 

Same-Store Sales at Buffalo Wild Wings locations in United States and Canada

 

Company-owned Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2015

7.0%

 

 

 

 

2014

6.6%

7.7%

6.0%

5.9%

6.5%

2013

1.4%

3.8%

4.8%

5.2%

3.9%

2012

9.2%

5.3%

6.2%

5.8%

6.6%

2011

3.9%

5.9%

5.7%

8.9%

6.1%

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2015

6.0%

 

 

 

 

2014

5.0%

6.5%

5.7%

5.1%

5.6%

2013

2.2%

4.1%

3.9%

3.1%

3.3%

2012

7.3%

5.5%

5.8%

7.4%

6.5%

2011

1.6%

2.7%

4.2%

5.9%

3.6%

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

 

 

 

Average Weekly Sales Volumes at Buffalo Wild Wings locations in United States and Canada

 

 

 

 

 

 

Company-owned Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2015

$ 64,851

 

 

 

 

2014

60,966

59,403

59,643

62,119

60,470

2013

56,953

54,759

55,592

58,204

56,392

2012

55,131

51,524

52,561

55,595

53,783

2011

48,845

47,970

49,461

51,983

49,627

 

 

 

 

 

 

Franchised Restaurants:

 

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Year

2015

$ 67,075

 

 

 

 

2014

63,852

61,845

61,586

63,949

62,595

2013

60,050

58,186

58,926

61,167

59,594

2012

57,282

54,766

55,608

58,490

56,570

2011

52,744

50,995

51,350

53,385

52,081

SOURCE Buffalo Wild Wings, Inc.

Investor Relations Contact:

Heather Pribyl
952.253.0731

###

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