Buffalo Wild Wings Inc. Earnings: Fifth Consecutive Quarter of Double-Digit Growth

Buffalo Wild Wings Inc. (NASDAQ:BWLD) reported higher profit for the first quarter as revenue showed growth. Buffalo Wild Wings is an owner, operator, and franchiser of restaurants.

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Buffalo Wild Wings Earnings Cheat Sheet for the First Quarter

Results: Net income for Buffalo Wild Wings Inc. rose to $18.2 million (98 cents per share) vs. $14.9 million (81 cents per share) in the same quarter a year earlier. This marks a rise of 22.8% from the year-earlier quarter.

Revenue: Rose 37.9% to $251.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Buffalo Wild Wings Inc. beat the mean analyst estimate of 95 cents per share. Analysts were expecting revenue of $251.2 million.

Quoting Management: “For the first four weeks of the second quarter, same-store sales are 6.7% at company-owned restaurants and 6.6% at our franchised locations,” said Sally Smith, President and CEO. “We’re increasing our advertising over last year with national radio to cover all of our markets and we’re airing a new TV spot. Our Operations Excellence team remains keenly focused on the fundamentals of providing great service to our guests and driving restaurant-level profitability. With solid first quarter results, ongoing same-store sales strength, the benefit of a 53rd week, and expense leveraging, we believe we will achieve our net earnings growth goal of 20% for 2012.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 29.8%, with the biggest boost coming in the most recent quarter when revenue rose 37.9% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 34% and in the third quarter of the last fiscal year, the figure rose 32.5%.

Gross margin shrank 18 percentage points to 10.7%. The contraction appeared to be driven by increased costs, which rose 72.6% from the year earlier quarter while revenue rose 37.9%.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 6 cents in the fourth quarter of the last fiscal year and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: The average estimate for the second quarter remains unchanged at 65 cents a share. For the fiscal year, the average estimate has moved up from $3.23 a share to $3.28 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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