Buffalo Wild Wings, Inc. has 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.
2011 Outlook
Ms. Smith remarked, “2011 is off to a strong start. Our dedication to a great guest experience and operational excellence during all dayparts is providing sales momentum as we roll into the summer months. In April, our same-store sales increased 5.3% at company-owned restaurants and 1.6% at franchised locations. We are confident we’ll achieve our annual unit goal of 13% growth, with 16 new company-owned and 9 new franchised locations planned to open in the second quarter, and over 100 total new restaurants expected to open in the year.”
Ms. Smith concluded, “As we look to the remainder of the year, we are moving forward with exciting marketing plans and promotions for the upcoming football season. A disruption to the regular NFL season has the potential to present a temporary challenge for our business and many others. Assuming continued strong same-store sales and low wing costs, we believe we can achieve our annual net earnings goal of more than 18% growth even if there is an abbreviated NFL season.”
About the Company
Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings Grill & Bar restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The Buffalo Wild Wings’ menu specializes in eighteen mouth-watering signature sauces and seasonings with flavor sensations ranging from Sweet BBQ to Blazin’. Guests enjoy a welcoming neighborhood atmosphere that includes an extensive multi-media system for watching their favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of “Best Wings” and “Best Sports Bar” awards from across the country. There are currently 753 Buffalo Wild Wings locations across 45 states.