Buffalo Wild Wings Earnings: Here’s Why Investors are Not Happy Now

Buffalo Wild Wings Inc. (NASDAQ:BWLD) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.

Buffalo Wild Wings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 57.89% to $0.90 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 37.8% to $303.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Buffalo Wild Wings Inc. reported adjusted EPS income of $0.90 per share. By that measure, the company missed the mean analyst estimate of $0.95. It beat the average revenue estimate of $291.96 million.

Quoting Management: Sally Smith, President and Chief Executive Officer, commented, “We achieved a 37.8% increase in revenue for the fourth quarter as a result of strong same-store sales of 5.8% at company-owned restaurants and 7.4% at franchised locations, 62 additional company-owned locations in 2012, and incremental revenue from our fourteenth fiscal week. For the year, our total revenue exceeded $1 billion, a new milestone for Buffalo Wild Wings! High cost of sales continued in the fourth quarter, offsetting some of the bottom-line benefit of the fourteenth week, resulting in net earnings growth of 22.3% for the fourth quarter and 13.6% for the year.”

Key Stats (on next page)…

Revenue increased 23.07% from $246.86 million in the previous quarter. EPS increased 57.89% from $0.57 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.05 to a profit $1.04. For the current year, the average estimate is a profit of $3.13, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)