Same-Store Sales, Revenue Up at Buffalo Wild Wings
Buffalo Wild Wings, Inc. announces third quarter 2009 results; same-store-sales increases of 0.8% at company-owned and 1.9% at franchised restaurants.
-- Chain Leader, 10/28/2009 8:34:00 AM
PRESS RELEASE: MINNEAPOLIS--(BUSINESS WIRE)--Buffalo Wild Wings, Inc. (NASDAQ: BWLD), announced today financial results for the third quarter ended September 27, 2009. Highlights for the third quarter versus the same period a year ago were:
* Total revenue increased 25.1% to $132.7 million
* Company-owned restaurant sales grew 26.0% to $120.3 million
* Same-store sales increased 0.8% at company-owned restaurants and 1.9% at franchised restaurants
* Net earnings increased 50.4% to $6.9 million from $4.6 million, and earnings per diluted share increased 52.0% to $0.38 from $0.25
Sally Smith, President and Chief Executive Officer, commented, “Buffalo Wild Wings continues to deliver category-leading operational and financial performance as demonstrated by our outstanding third quarter results. Our revenue growth of 25% produced impressive net earnings growth of 50% over last year, achieving earnings per diluted share of $0.38. Our results demonstrate the compelling You Have To Be Here® experience that we provide to our Guests. I credit our success to the entire Buffalo Wild Wings Team for their continued dedication to improvement which delivered these great results.”
Total revenue increased 25.1% to $132.7 million in the third quarter compared to $106.1 million in the third quarter of 2008. Company-owned restaurant sales for the quarter increased 26.0% over the same period in 2008, to $120.3 million driven by a company-owned same-store sales increase of 0.8% and 33 additional company-owned restaurants in operation at the end of third quarter 2009 relative to the same period in 2008. Franchise royalties and fees increased 17.7% to $12.5 million versus $10.6 million in the third quarter of 2008. This increase was the result of a franchised same-store sales increase of 1.9% and 52 additional franchised restaurants at the end of the period versus a year ago.
Average weekly sales for company-owned restaurants were $42,602 for the third quarter of 2009 compared to $42,400 for the same quarter last year, a 0.5% increase. Franchised restaurants averaged $48,458 for the period versus $46,889 in the third quarter a year ago, a 3.3% increase.
For the third quarter, net earnings increased 50.4% to $6.9 million versus $4.6 million in the third quarter of 2008. Earnings per diluted share were $0.38, as compared to third quarter 2008 earnings per diluted share of $0.25.
2009 and 2010 Outlook
Ms. Smith continued, “Football season is off to a great start and our same-store sales momentum to date in the fourth quarter should provide a strong finish to the year. We are confident we will achieve our 2009 growth goals of 15% unit growth, 25% revenue growth, and 20 to 25% net earnings growth, with net earnings likely to be at the higher end of our stated goal.”
Ms. Smith concluded, “With the strong foundation we have built, we have set goals for 2010 that will uphold Buffalo Wild Wings as a leader in the casual dining category. Based on our current development pipeline, we believe we can achieve 13% to 15% unit growth in 2010, which, along with strong restaurant-level performance and leveraging our infrastructure, should translate into net earnings growth of 20%.”
Buffalo Wild Wings will be hosting a conference call today, October 27, 2009 at 4:00 p.m. Central Daylight Time to discuss these results. There will be a simultaneous webcast conducted at our website www.buffalowildwings.com.
A replay of the call will be available until November 3, 2009. To access this replay, please dial 1.303.590.3030, password 4169893.
About the Company
Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of restaurants featuring a variety of boldly-flavored, made-to-order menu items including Buffalo-style chicken wings spun in one of 14 signature sauces. Buffalo Wild Wings is an inviting neighborhood destination with widespread appeal and is the recipient of dozens of “Best Wings” and “Best Sports Bar” awards from across the country. There are currently 633 Buffalo Wild Wings locations across 41 states.
Forward-looking Statements
Certain statements in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. These statements include, without limitation, those relating to our fourth quarter sales and projected unit, revenue and earnings growth rates for 2009, 2010, and beyond. Forward-looking statements are based upon the current beliefs and expectations of our management. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of locations opening in the future, the sales at these and our other company-owned and franchised locations, our ability to successfully operate in new markets, unforeseen obstacles in developing nontraditional sites, the cost of commodities, the success of our marketing and other initiatives, our ability to control restaurant labor and other restaurant operating costs, economic conditions (including changes in consumer preferences or consumer discretionary spending), the availability of financing to real estate developers and franchisees, competition, the impact of applicable regulations, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. 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.
