Buffalo Wild Wings (NASDAQ:BWLD) announced financial results for the first quarter ended March 29, 2015. Highlights for the first quarter versus the same period a year ago were:
- Total revenue increased 19.8% to $440.6 million
- Company-owned restaurant sales grew 20.3% to $415.0 million
- Same-store sales increased 7.0% at company-owned restaurants and 6.0% at franchised restaurants
- Net earnings increased 2.6% to $29.1 million from $28.3 million, and earnings per diluted share increased 1.7% to $1.52 from $1.49
Sally Smith, President and Chief Executive Officer, commented, “We’re pleased with our first quarter same-store sales of 7.0% at company-owned restaurants and 6.0% at franchised locations. Sales were exceptionally strong during the college football bowl games as well as the NFLplayoffs. Buffalo Wild Wings really came alive during March Madness® and we launched a new advertising campaign with unique commercials for each round of the tournament.”
Ms. Smith continued, “Our sales growth leveraged operating, occupancy, and general and administrative costs. As anticipated, cost of sales and labor as a percentage of restaurant sales were higher than the prior year which tempered our net earnings growth. The price per pound for traditional chicken wings increased 41% versus the prior year’s unusually low price. We achieved net earnings growth of 2.6% and earnings per diluted share was $1.52 in the first quarter.”
Total revenue increased 19.8% to $440.6 million in the first quarter compared to $367.9 million in the first quarter of 2014. Company-owned restaurant sales for the quarter increased 20.3% over the same period in 2014, to $415.0 million, driven by a same-store sales increase at company-owned Buffalo Wild Wings restaurants of 7.0% and 53 additional Buffalo Wild Wings restaurants at the end of first quarter of 2015. Franchise royalties and fees increased 11.8% to $25.6 million for the quarter versus $22.9 million in the first quarter of 2014. This increase is attributed to a same-store sales increase at franchised Buffalo Wild Wings locations of 6.0% and 18 additional franchised Buffalo Wild Wingsrestaurants at the end of the period versus a year ago.
Average weekly sales for company-owned Buffalo Wild Wings restaurants were $64,851 for the first quarter of 2015 compared to $60,966 for the same quarter last year, a 6.4% increase. Franchised Buffalo Wild Wings restaurants in the United States averaged $67,075 for the period versus $63,852 in the first quarter a year ago, a 5.0% increase.
For the first quarter, net earnings increased 2.6% to $29.1 million versus $28.3 million in the first quarter of 2014. Earnings per diluted share were $1.52, as compared to first quarter 2014 earnings per diluted share of $1.49.
Ms. Smith remarked, “Same-store sales increased 4.2% at company-owned restaurants and 1.8% at franchised locations for the first four weeks of the second quarter of 2015 compared to 5.7% and 4.4%, respectively, for the same period last year. We launched B-Dubs® Fast Break, a system-wide lunch program that provides Guests speed and value during this daypart. We’re bringing the World of Sports to Buffalo Wild Wings beginning in June, highlighting fun and unique sports from the U.S. and around the world. To further engage Guests, we’ll have new in-restaurant games to play during the World of Sports promotion with prizes awarded daily and weekly.”
Ms. Smith concluded, “Our focus remains on creating an engaging sports-viewing experience with great food and beverage offerings for our Guests and we continue to make progress in guest experience technology initiatives. Our net earnings growth goal for 2015 remains 18%.” (Original Source)
Shares of Buffalo Wild Wings closed today at $166.75, down $12.40 or 6.92%. BWLD has a 1-year high of $195.83 and a 1-year low of $122.15. The stock’s 50-day moving average is $182.68 and its 200-day moving average is $173.43.
On the ratings front, Buffalo Wild Wings has been the subject of a number of recent research reports. In a report released today, Sterne analyst Lynne Collier assigned a Buy rating on BWLD, with a price target of $208, which implies an upside of 16.1% from current levels. Separately, on April 17, Wunderlich Securities’ Robert Derrington maintained a Buy rating on the stock and has a price target of $208.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Lynne Collier and Robert Derrington have a total average return of 15.1% and 20.1% respectively. Collier has a success rate of 76.2% and is ranked #445 out of 3581 analysts, while Derrington has a success rate of 76.9% and is ranked #153.
In total, one research analyst has rated the stock with a Sell rating, one research analyst has assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $179.16 which is 17.0% above where the stock opened today.
Buffalo Wild Wings Inc and itssubsidiaries operatesrestaurants as well as selling Buffalo Wild Wings and Rusty Taco restaurant franchises. The Company offersoffers dining and bar areas that provide distinct seating choices for sports fans and families.