Buffalo Wild Wings Rises as Profit Tops Analysts’ Estimates
February 08, 2012, 7:45 AM ESTBy Leslie Patton
(Updates with CEO’s comments in fourth paragraph.)
Feb. 7 (Bloomberg) -- Buffalo Wild Wings Inc., the restaurant chain with more than 800 locations, rose in extended trading after reporting a 34 percent increase in fourth-quarter profit that topped analysts’ estimates.
The shares jumped 15 percent to $80.75 at 5:41 p.m. in New York after closing out regular trading at $70.19. Buffalo Wild Wings gained 54 percent last year.
Net income rose to $13.6 million, or 73 cents a share, from $10.2 million, or 55 cents, a year earlier, the Minneapolis- based company said today in a statement. Analysts projected 67 cents, the average of estimates compiled by Bloomberg.
Buffalo Wild Wings, which plans to have 900 restaurants by the end of this year, has sought to attract consumers with flavored wings, shareable appetizers and draught beer. Customers ate a record 7.7 million wings on Super Bowl Sunday this year, Chief Executive Officer Sally Smith said on an earnings call with analysts and investors today.
Smith said the company will expand to 1,500 locations in five to seven years and may seek to acquire other restaurant brands to help fuel growth.
Sales at company-owned stores open at least 15 months rose 8.9 percent in the quarter. Sales at franchised locations increased 5.9 percent.
Revenue advanced 34 percent to $220.5 million in the quarter ended Dec. 25. Analysts projected $210.6 million, on average. The company reiterated its forecast for full-year profit growth of 20 percent.
--Editors: Romaine Bostick, Jeffrey Tannenbaum
To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net
