Buffalo Wild Wings, Inc. (Nasdaq:BWLD) announced today financial results for the third quarter ended September 30, 2007. Highlights for the third quarter versus the same period a year ago were:
• Total revenue increased 20.5% to $82.4 million
• Company-owned restaurant sales grew 20.5% to $73.3 million
• Same-store sales increased 8.3% at company-owned restaurants and 5.9% at franchised restaurants
• Earnings per diluted share increased 20% to $0.24 from $0.20
Sally Smith, President and Chief Executive Officer, commented, 'Same-store sales remained strong, at 8.3% for company-owned and 5.9% for franchised restaurants, critical in delivering a 20.5% increase in total revenue. Average weekly sales for company-owned restaurants grew by 8.8% and for franchised locations by 6.8%, demonstrating the strength of our new restaurant openings. Earnings per diluted share in the third quarter increased 20% over the prior year to $0.24, and year-to-date earnings per diluted share continue to outpace our annual target of 25% growth.'
Total revenue, which includes company-owned restaurant sales and franchise royalties and fees, increased 20.5% to $82.4 million in the third quarter compared to $68.3 million in the third quarter of 2006. Company-owned restaurant sales for the quarter increased 20.5% to $73.3 million driven by a company-owned same-store sales increase of 8.3% and 14 more company-owned restaurants in operation at the end of third quarter 2007 relative to the same period in 2006. Franchise royalties and fees increased 20.4% to $9.1 million versus $7.5 million in the prior year. This increase was due to a franchised same-store sales increase of 5.9% and 35 more franchised restaurants at the end of the period versus a year ago.
Average weekly sales for company-owned restaurants were $38,498 for the third quarter of 2007 compared to $35,380 for the same quarter last year, an 8.8% increase. Franchised restaurants averaged $45,879 for the period versus $42,963 in the third quarter a year ago, a 6.8% increase.
For the third quarter, earnings per diluted share were $0.24, as compared to third quarter 2006 earnings per diluted share of $0.20.
2007 and 2008 Outlook
Ms. Smith continued, 'In May, we announced that we had exercised the right of first refusal to acquire nine Buffalo Wild Wings franchised restaurants in the Las Vegas area and that the acquisition was anticipated to close by the end of 2007. One of the conditions to closing this transaction is obtaining gaming license approvals. This process is taking longer than expected, and, although we cannot determine the exact closing date, we anticipate that the transaction, upon satisfaction of the remaining contingencies, will be completed in 2008.'
In closing, Ms. Smith stated, 'Fourth quarter is filled with the excitement of new restaurant openings, with seven locations already opened and twenty-seven additional locations expected to open before year-end. We had our first-ever national cable and network media buy in October, and with strong sales and a diligent focus on operations and guest hospitality, we are committed to achieving our annual growth targets for 2007, and also for 2008, of 15% unit growth, 20% revenue growth, and 25% earnings growth.'
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