Buffalo Wild Wings Shares Rise As Q1 Results Beat View, Lifts 2014 Outlook

(RTTNews) - Shares of restaurant operator Buffalo Wild Wings Inc. (BWLD) rose more than 5 percent in extended trades Monday after the company's first-quarter results beat estimates and it raised its fiscal 2014 earnings guidance range.

The company said profit for the first quarter rose 73 percent from last year, helped by the addition of 46 company-owned restaurants, higher same-store sales and a 440-basis point improvement in cost of sales due to lower traditional chicken wing prices.

The Minneapolis, Minnesota-based operator and franchisor of Buffalo Wild Wings Grill & Bar restaurants reported first-quarter net income of $28.32 million or $1.49 per share, up from $16.38 million or $0.87 per share in the same period last year.

On average, twenty two analysts polled by Thomson Reuters estimated earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose 21 percent to $367.86 million from $304.36 million in the prior-year period. Analysts had a consensus revenue estimate of $362.96 million for the quarter.

According to the company, sales momentum grew during February and March with the excitement of the Winter Olympics and March Madness bringing guests into its restaurants. Same-store sales increased 6.6 percent at company-owned restaurants and 5 percent at franchised restaurants.

Company-owned restaurant sales grew 21.3 percent to $344.95 million, reflecting the same-store sales increase and 46 additional restaurants at the end of the quarter compared to the year ago.

Franchise royalties and fees rose 15 percent to $22.91 million, reflecting the franchise same-store sales increase and 55 additional franchised restaurants at the end of the quarter compared to the year ago.

Average weekly sales for company-owned restaurants were $60,966, up 7 percent from the year-ago quarter. Franchised restaurants averaged $63,852, representing a 6.3 percent increase from last year.

Looking ahead to fiscal 2014, Buffalo Wild now expects net earnings growth of 25 percent, up from prior guidance of 20 percent. Street expects the company to earn $4.84 per share for the year.

The company currently operates more than 1,010 Buffalo Wild Wings locations in the U.S., Canada and Mexico.

BWLD closed Monday's regular trading at $133.39, down $3.13 or 2.29 percent on a volume of 1.09 million shares. However, in after-hours, the stock gained $7.01 or 5.26 percent to $140.40.