<< Previous :: Next >> By Date :: Top Recent :: Top 30 days :: Top 365 days :: Back

Buffalo Wild Wings, Inc. Announces First Quarter Earnings Per Share of $0.81 and Quarterly Net Earnings Growth of Over 40%

2011-04-26

Send

Text Size:

Buffalo Wild Wings Total revenue increased 19.6% to $182.2 million in the first quarter compared to $152.3 million in the first quarter of 2010.

Buffalo Wild Wings, Inc. (NASDAQ: BWLD), announced financial results for the first quarter ended March 27, 2011. Highlights for the first quarter versus the same period a year ago were:

Total revenue increased 19.6% to $182.2 million
Company-owned restaurant sales grew 20.0% to $165.5 million
Same-store sales increased 3.9% at company-owned restaurants and 1.6% at franchised restaurants
Net earnings increased 40.7% to $14.9 million from $10.6 million, and earnings per diluted share increased 39.7% to $0.81 from $0.58

Sally Smith, President and Chief Executive Officer, commented, “We are very pleased with another successful quarter for Buffalo Wild Wings. Our fast-paced unit growth continued across the country and our same-store sales were strong throughout the first quarter, with increases of 3.9% at company-owned restaurants and 1.6% at franchised locations. Revenue growth of 19.6% and impressive restaurant-level performance, which benefited from lower costs for traditional wings and expense leveraging, fueled our net earnings growth of over 40% for the first quarter, providing our shareholders with earnings per diluted share of $0.81.”

Total revenue increased 19.6% to $182.2 million in the first quarter compared to $152.3 million in the first quarter of 2010. Company-owned restaurant sales for the quarter increased 20.0% over the same period in 2010, to $165.5 million, driven by a company-owned same-store sales increase of 3.9% and 28 additional company-owned restaurants at the end of first quarter 2011 relative to the same period in 2010. Franchise royalties and fees increased 16.2% to $16.6 million versus $14.3 million in the first quarter of 2010. This increase is attributed to a franchise same-store sales increase of 1.6% and 58 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $48,845 for the first quarter of 2011 compared to $45,327 for the same quarter last year, a 7.8% increase. Franchised restaurants averaged $52,744 for the period versus $51,532 in the first quarter a year ago, a 2.4% increase.

For the first quarter, net earnings increased 40.7% to $14.9 million versus $10.6 million in the first quarter of 2010. Earnings per diluted share were $0.81, as compared to first quarter 2010 earnings per diluted share of $0.58.



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 27,		March 28,
	2011		2010
Revenue:
Restaurant sales	$	165,527	137,962
Franchise royalties and fees		16,623	14,309
Total revenue		182,150	152,271
Costs and expenses:
Restaurant operating costs:
Cost of sales		46,264	42,224
Labor		48,878	40,685
Operating		24,549	21,455
Occupancy		10,227	8,910
Depreciation and amortization		11,022	9,550
General and administrative ⁽¹⁾		16,292	12,026
Preopening		2,387	1,115
Loss on asset disposals and store closures		411	411
Total costs and expenses		160,030	136,376
Income from operations		22,120	15,895
Investment income		356	185
Earnings before income taxes		22,476	16,080
Income tax expense		7,615	5,519
Net earnings	$	14,861	10,561
Earnings per common share – basic	$	0.81	0.58
Earnings per common share – diluted		0.81	0.58
Weighted average shares outstanding – basic		18,306	18,147
Weighted average shares outstanding – diluted		18,375	18,229

⁽¹⁾ Includes stock-based compensation of $2,553 and $1,225, respectively

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 27,		March 28,
	2011		2010
Revenue:
Restaurant sales	90.9	%	90.6	%
Franchising royalties and fees	9.1		9.4
Total revenue	100.0		100.0
Costs and expenses:
Restaurant operating costs:
Cost of sales	27.9		30.6
Labor	29.5		29.5
Operating	14.8		15.6
Occupancy	6.2		6.5
Depreciation and amortization	6.1		6.3
General and administrative	8.9		7.9
Preopening	1.3		0.7
Loss on asset disposals and store closures	0.2		0.3
Total costs and expenses	87.9		89.6
Income from operations	12.1		10.4
Investment income	0.2		0.1
Earnings before income taxes	12.3		10.6
Income tax expense	4.2		3.6
Net earnings	8.2	%	6.9	%


BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
(unaudited)

	March 27,			December 26,
	2011			2010
Assets
Current assets:
Cash and cash equivalents	$	30,411		15,309
Marketable securities		60,901		56,827
Accounts receivable – franchisees, net of allowance of $25		1,288		1,086
Accounts receivable – other		10,294		7,947
Inventory		4,119		4,158
Prepaid expenses		3,081		3,505
Refundable income taxes		2,729		6,366
Deferred income taxes		6,686		6,069
Restricted assets		33,785		32,937
Total current assets		153,294		134,204

Property and equipment, net		237,522		224,970
Other assets		10,253		9,937
Goodwill		11,246		11,246
Total assets	$	412,315		380,357

Liabilities and Stockholders’ Equity
Current liabilities:
Unearned franchise fees	$	2,114		2,109
Accounts payable		24,909		17,632
Accrued compensation and benefits		22,198		19,324
Accrued expenses		6,498		5,696
Current portion of deferred lease credits		81		293
System-wide payables		33,985		34,062
Total current liabilities		89,785		79,116

Long-term liabilities:
Other liabilities		1,752		1,574
Deferred income taxes		27,980		24,557
Deferred lease credits, net of current portion		18,964		18,289
Total liabilities		138,481		123,536
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 18,321,353 and 18,214,065 respectively		104,644		102,484
Retained earnings		169,207		154,346
Accumulated other comprehensive loss		(17	)	(9	)
Total stockholders’ equity		273,834		256,821
Total liabilities and stockholders’ equity	$	412,315		380,357


BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(unaudited)

	Three months ended
	March 27,			March 28,
	2011			2010
Cash flows from operating activities:
Net earnings	$	14,861		10,561
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		10,871		9,396
Amortization		151		154
Loss on asset disposals and store closures		411		410
Deferred lease credits		802		537
Deferred income taxes		2,806		(1,136	)
Stock-based compensation		2,553		1,225
Excess tax benefit from the exercise of stock options		(140	)	(74	)
Change in operating assets and liabilities:
Trading securities		(289	)	(205	)
Accounts receivable		(2,796	)	(953	)
Inventory		39		42
Prepaid expenses		425		71
Other assets		(468	)	(46	)
Unearned franchise fees		5		(115	)
Accounts payable		2,236		866
Income taxes		3,777		6,101
Accrued expenses		4,565		(2,099	)
Net cash provided by operating activities		39,809		24,735
Cash flows from investing activities:
Acquisition of property and equipment		(18,746	)	(9,908	)
Purchase of marketable securities		(27,185	)	(17,960	)
Proceeds of marketable securities		23,401		9,854
Net cash used in investing activities		(22,530	)	(18,014	)
Cash flows from financing activities:
Issuance of common stock		168		123
Excess tax benefit from the exercise of stock options		140		74
Tax payments for restricted stock		(2,481	)	(1,625	)
Net cash used in financing activities		(2,173	)	(1,428	)
Effect of exchange rate changes on cash and cash equivalents		(4	)	—
Net increase in cash and cash equivalents		15,102		5,293
Cash and cash equivalents at beginning of period		15,309		9,580
Cash and cash equivalents at end of period	$	30,411		14,873


BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information

Restaurant Count

Company-owned Restaurants:

	Q1	Q2	Q3	Q4
2011	263
2010	235	234	244	259
2009	206	215	220	232
2008	165	169	187	197
2007	140	145	148	161

Franchised Restaurants:

	Q1	Q2	Q3	Q4
2011	488
2010	430	447	457	473
2009	373	383	400	420
2008	340	346	348	363
2007	299	301	313	332


Same-Store Sales

Company-owned Restaurants:

	Q1		Q2		Q3		Q4		Year
2011	3.9	%
2010	0.1	%	(0.1	%)	2.6	%	(0.3	%)	0.6	%
2009	6.4	%	2.8	%	0.8	%	2.6	%	3.1	%
2008	4.1	%	8.3	%	6.8	%	4.5	%	5.9	%
2007	8.7	%	8.1	%	8.3	%	3.4	%	6.9	%

Franchised Restaurants:

	Q1		Q2		Q3		Q4		Year
2011	1.6	%
2010	0.7	%	(0.7	%)	0.3	%	(1.1	%)	(0.2	%)
2009	6.0	%	3.7	%	1.9	%	2.0	%	3.4	%
2008	2.1	%	4.5	%	2.1	%	2.5	%	2.8	%
2007	3.3	%	4.0	%	5.9	%	2.3	%	3.9	%


BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information

Average Weekly Sales Volumes

Company-owned Restaurants:

	Q1		Q2	Q3	Q4	Year
2011	$	48,845
2010		45,327	43,021	44,394	45,595	44,601
2009		45,593	42,938	42,602	44,583	43,912
2008		41,438	40,572	42,400	43,864	42,141
2007		39,254	36,655	38,498	40,485	38,757

Franchised Restaurants:

	Q1		Q2	Q3	Q4	Year
2011	$	52,744
2010		51,532	49,051	49,005	49,837	49,835
2009		50,729	48,619	48,458	50,115	49,479
2008		47,812	46,390	46,889	48,424	47,382
2007		46,439	43,998	45,879	47,293	45,901