Shares of B-Dubs (BWLD) Surge as Investors Eat Up Earnings Upside

February 7, 2012 5:28 PM EST
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Buffalo Wild Wings, Inc. (NASDAQ: BWLD) shares are now trading up 15.2 percent in the after-hours session following the release of fourth-quarter figures. Shares closed up 1.9 percent to $70.19 on the day.

Total revenue increased 34.5 percent to $220.5 million and topped the Street’s consensus of $210.48 million. Franchise royalties and fees accounted for $17.53 million, or 8 percent of the total revenue and rose 15.3 percent year over year. Franchising royalties and fees made up 9.3 percent of total revenue over the same period in 2010. Same-store sales increased 8.9 percent at company-owned restaurants and 5.9 percent at franchised restaurants.

Cost of sales totaled $59.64 million, an increase of 40 percent year over year, as the cost of labor rose 36.6 percent to $60.68 million. Total cost of expenses increased 35 percent to $201.88 million and made up 91.6 percent of total sales.

Net earnings grew 34 percent to $13.6 million, while earnings per diluted share rose 32.7 percent from $0.55 in the same quarter last year to $0.73. The Street’s consensus was calling earnings of $0.67 per share.

The company ended the quarter with $20.53 million in cash and cash equivalents, up from the $15.31 million one year ago.

Sally Smith, President and Chief Executive Officer, commented, “Our strong fourth quarter performance capped a tremendous year for Buffalo Wild Wings, which reflects the focused efforts and hard work of our franchisees and Team Members in providing sports fans with an outstanding guest experience. Together, we accomplished category-leading results. Fourth quarter same-store sales grew by 8.9% at company-owned and 5.9% at franchised locations, helping us surpass $2 billion in system-wide sales for 2011. Strong sales at both new and existing restaurants drove fourth quarter earnings per share of $0.73, bringing our annual net earnings growth to over 31%.”

Buffalo Wild Wings forecasts same-store sales growth for the first six weeks of 2012 at 12.9 percent for company-owned locations and 10.8 percent at franchised-owned restaurants.

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