Buffalo Wild Wings, Inc. Announces First Quarter 2009 Results

Buffalo Wild Wings, Inc. (NASDAQ: BWLD), announced today financial results for the first quarter ended March 29, 2009. Highlights for the first quarter versus the same period a year ago were:

* Total revenue increased 35.3% to $131.6 million

* Company-owned restaurant sales grew 37.4% to $119.4 million

* Same-store sales increased 6.4% at company-owned restaurants and 6.0% at franchised restaurants

* Net earnings increased 30.1% to $8.5 million from $6.5 million, and earnings per diluted share increased 30.6% to $0.47 from $0.36

Sally Smith, President and Chief Executive Officer, commented, 'We're very pleased to share the continued strength and momentum of our first quarter results. Our outstanding revenue growth of 35.3% and net earnings growth of 30.1% demonstrate the stability and strength of the Buffalo Wild Wings brand and the ongoing commitment to exceptional execution by our Franchisees and Team Members. I applaud the entire Buffalo Wild Wings Team for their ability to rise to the challenges of this difficult economy with such strong results.'

Total revenue increased 35.3% to $131.6 million in the first quarter compared to $97.3 million in the first quarter of 2008. Company-owned restaurant sales for the quarter increased 37.4% to $119.4 million driven by a company-owned same-store sales increase of 6.4% and 41 additional company-owned restaurants in operation at the end of first quarter 2009 relative to the same period in 2008. Franchise royalties and fees increased 17.0% to $12.1 million versus $10.4 million in the prior year. This increase was the result of a franchised same-store sales increase of 6.0% and 33 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $45,593 for the first quarter of 2009 compared to $41,438 for the same quarter last year, a 10.0% increase. Franchised restaurants averaged $50,730 for the period versus $47,812 in the first quarter a year ago, a 6.1% increase.

For the first quarter, net earnings increased 30.1% to $8.5 million versus $6.5 million in the prior year. Earnings per diluted share were $0.47, as compared to first quarter 2008 earnings per diluted share of $0.36.

2009 Outlook

Ms. Smith continued, 'We are reiterating our 2009 annual growth goals of 15% unit growth, 25% revenue growth, and 20% to 25% net earnings growth. We have strategies in place to continue our momentum and drive our business forward. We remain focused on enhancing our unique Buffalo Wild Wings experience through engaged Team Members, new menu choices, national and local restaurant marketing activities, and facility upgrades that provide our guests new reasons to come and enjoy themselves more often at our restaurants.'

Ms. Smith concluded, 'To date, our second quarter same-store sales are about 1.8% at company-owned restaurants and 3.6% at franchised locations. These percentages include the effect of Easter occurring in April this year, which we estimate adversely impacted same-store sales by about 2.5%. We are on track to open more restaurants before the end of third quarter this year than we opened during all of 2008. We will, however, have additional expense in the second quarter as a result of this accelerated opening schedule and a shift in stock-based compensation. With more units open to take full advantage of football season, we look forward to a strong second half of 2009.'

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