Buffalo Wild Wings’ Q4 Earnings Miss Street’s Estimate, Shares Plunge in Afterhours Trading (BWLD)

Shares of Buffalo Wild Wings (NASDAQ: BWLD) fell 4.70% in afterhours trading on Tuesday after the restaurant chain reported weaker than expected earnings for the fiscal fourth quarter.

The Minneapolis-based company said  that net income for the fiscal fourth quarter ended December 30, climbed 22 percent to $16.7 million, or 89 cents per share, from $13.6 million, or 73 cents per share, in the year-earlier quarter.

Revenue during the period leaped almost 38% to $303.8 million from $220.5 million, in the same period of last year thanks to strong growth in comparable-stores (restaurant)-sales. Additions of new stores along with extra working week during the most recently concluded quarter also helped driving up the revenue.

Analysts’ consensus estimate was for earnings of 96 cents a share on revenue of $293 million, according to a data compiled by Factset Research.

Buffalo Wild Wing’s total costs and expenses jumped 39 percent to $280.5 million, in the fiscal fourth quarter.

In the fourth quarter sales at those restaurants that were opened at least 12 months ago (comparable-restaurant-sales) climbed 5.8% while sales from franchised restaurants jumped 7.4%. comparable store sales  is a key gauge on retailer’s performance since its strips out the sales impact of those stores that were shut or opened less than a year ago.

Buffalo Wild Wing’s CEO, Sally Smith said that the company expects to open 60 company-owned and 45 franchised Buffalo Wild Wings restaurants in the fiscal 2013.

For the fiscal 2012, Buffalo Wild Wings reported a profit of $57.3 million, or $3.06 per share, compared to earnings of $50.4 million, or $2.73 per share in fiscal 2011. Its annual revenue rose to $1.04 billion from $784.5 million.

Looking ahead at fiscal 2013, the company expects earnings to grow by 25% (on 52-week basis), which translates to 17% increase over the full fiscal year. Analysts’ consensus forecast is for earnings of $3.59 a share on revenue of $1.24 billion.




Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.