Buffalo Wild Wings, Inc. announced financial results for the second quarter ended June 26. Highlights for the second quarter versus the same period a year ago were:
Total revenue increased 15 percent to $490.2 million.
Company-owned restaurant sales increased 16.1 percent to $466.6 million.
Same-store sales decreased 2.1 percent at company-owned restaurants and 2.6 percent at franchised restaurants.
Net earnings increased 10.2 percent to $23.7 million from $21.5 million, and earnings per diluted share increased 13.1 percent to $1.27 from $1.12
Sally Smith, president and chief executive officer, says, “We delivered another solid quarter, with total revenue increasing by 15 percent from new restaurant openings and franchise acquisitions over the last year. We controlled costs and expenses well in a challenging sales environment, and this discipline, along with our revenue growth, helped us to achieve earnings per diluted share of $1.27, a 13.1 percent increase compared to the prior year. In the second quarter, we opportunistically repurchased $75 million of our common stock, delivering value to our shareholders.”
Smith concludes, "Buffalo Wild Wings remains strong and we're continuing to differentiate our brand for the long-term while also implementing near-term traffic driving programs. We launched a 15-minute guarantee for our FastBreak lunch program at the beginning of the third quarter and we're pleased with its early results. Also in the third quarter, we will be highlighting our value offering on Wing Tuesdays. We are looking forward to the return of football and our new fall media campaign. There is no better place than Buffalo Wild Wings to host your fantasy football draft party and catch all the action on the gridiron this year."
Total revenue increased 15 percent to $490.2 million in the second quarter, compared to $426.4 million in the second quarter of 2015. Company-owned restaurant sales for the quarter increased 16.1 percent over the same period in 2015, to $466.6 million, driven by 89 additional Buffalo Wild Wings restaurants at the end of the second quarter of 2016, partially offset by a same-store sales decrease of 2.1 percent. Franchise royalties and fees decreased 3.8 percent to $23.6 million for the quarter, versus $24.5 million in the second quarter of 2015. This decrease is attributed to a same-store sales decrease of 2.6 percent at franchised Buffalo Wild Wings restaurants in operation at the end of the period, compared to the same period in 2015.
Average weekly sales for company-owned Buffalo Wild Wings restaurants were $59,894 for the second quarter of 2016, compared to $61,960 for the same quarter last year, a 3.3 percent decrease. Franchised Buffalo Wild Wings restaurants in the United States averaged $62,454 for the period, versus $63,904 in the second quarter a year ago, a 2.3 percent decrease.
Under the previously announced share repurchase authorization, 548,402 shares were repurchased during the second quarter of 2016 for a total of $75 million.
For 2016, the company expects the following new unit development:
- Around 40 company-owned Buffalo Wild Wings restaurants
- 30 to 35 franchised Buffalo Wild Wings locations in the U.S.
- 12 to 15 franchised Buffalo Wild Wing locations internationally
- 6 company-owned and 4 franchised R Taco restaurants
For 2016, the company expects the following:
- Deflationary food costs, excluding traditional chicken wings
- Depreciation and amortization expense of $150 to $155 million
- Share repurchase activity of around $150 million for the year
- Earnings per diluted share of $5.65 to $5.85
- Capital expenditures of around $170 million