Buffalo Wild Wings Earnings: Here’s Why Investors Like These Results

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 up 2.83%.

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Buffalo Wild Wings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.22% to $0.87 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Rose 21.2% to $304.36 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Buffalo Wild Wings Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company missed the mean analyst estimate of $0.99. It beat the average revenue estimate of $302.96 million.

Quoting Management: Sally Smith, President and Chief Executive Officer, commented, “We’re pleased with our strong revenue growth in the first quarter of over 21%. For the quarter, same-store sales in company-owned locations increased 1.4%, outpacing the negative same-stores sales in the casual dining category. If you recall, our first quarter includes one less week of the NFL season compared to last year, and our same-store sales at the time of the February earnings call were negative 2.8%, so we’re very pleased with the upswing that brought our full quarter same-store sales to a positive 1.4%. This trend continues in April with same-store sales of 5.2%. Our first quarter results are also comping over a substantial same-store sales increase of 9.2% in 2012. Similarly, same-store sales in franchised locations increased 2.2% for the first quarter over strong results of 7.3% last year. We also expanded our presence in North America, with 20 additional restaurants, including our 900th location.”

Key Stats (on next page)…

Revenue increased 0.17% from $303.83 million in the previous quarter. EPS decreased 2.25% from $0.89 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.78 and has not changed. For the current year, the average estimate has moved up from a profit of $3.60 to a profit of $3.62 over the last ninety days.

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