Buffalo Wild Wings Q3 Sales Increase, Beat Estimates
Minneapolis-based Buffalo Wild Wings, Inc., posted increased third-quarter net earnings and sales-both of which beat estimates-but warned that same-store-sales in the first four weeks of the fourth quarter were down.
Net earnings for the quarter that ended September 26 totaled $8.5 million, or 47 cents per share, up 23.7 percent from $6.9 million, or 38 cents per share, in the same period last year, the company said Tuesday.
Third-quarter revenue was $151.3 million, up from last year's third-quarter revenue of $132.7 million
Analysts polled by Thomson Reuters expected the company to earn 44 cents per share on revenue of $150.6 million.
Same-store sales-sales at restaurants that have been open for at least a year-increased 2.6 percent at company-owned restaurants and 0.3 percent at franchised restaurants.
Although the company posted better-than-expected third-quarter results, it said that in the first four weeks of the fourth quarter, same-store sales at company-owned locations fell 0.7 percent and they fell 1.7 percent at franchised locations.
Sally Smith, Buffalo Wild Wings CEO, said that the company plans to open 15 company-owned and 17 franchised restaurants in the fourth quarter, which is on track to meet its 13 percent unit growth goal for 2010.
Shares of the company's stock fell 6.9 percent to $45.20 in extended trading on Tuesday and they were down 4.5 percent to $46.35 in Wednesday afternoon trading.
Buffalo Wild Wings-founded in 1982-owns, operates, and franchises its namesake restaurants, which feature New York-style chicken wings and 18 signature sauces. It is among Minnesota's 60-largest pubic companies based on revenue, which totaled $538.9 million in 2009.