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.