Buffalo Wild Wings, Inc. (BWLD) Tuesday reported a 50.4% increase in profit for the third quarter driven by a 25% increase in sales. The growth in quarterly revenues was mainly boosted by an increase in company-owned restaurant sales. The Minneapolis, Minnesota headquartered restaurants operator said company-owned same-store sales for the quarter grew by 0.8 percent.
Net earnings for the quarter rose 50.4% to $6.9 million from $4.6 million in the same period last year. Earnings increased to $0.38 per share from $0.25 per share in the corresponding period last year and came in line with the consensus estimate of $0.38 per share projected by sixteen analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Total quarterly revenue increased 25.1% to $132.7 million from $106.1 million in the year-ago quarter. Street analysts expected the company to report revenues of $136.74 million for the quarter. Company-owned restaurant sales grew by 26.0% over the same period last year to $120.3 million. The company said it operated 33 additional company-owned restaurants at the end of third quarter of 2009 relative to the same period in 2008.
Franchise royalties and fees advanced 17.7% to $12.5 million from $10.6 million a year earlier driven by a franchised same-store sales increase of 1.9% and the addition of 52 l franchised restaurants at the end of the quarter.
Average weekly sales for company-owned restaurants increased 0.5% to $42,602 from $42,400 in the same quarter last year. Franchised restaurants averaged $48,458 compared with $46,889 in the third quarter a year ago, a 3.3% increase.
year-to-date, net earnings surged to $22.3 million or $1.24 per share from $16.7 million or $0.93 per share in the same period last year. Revenue increased to $393.9 million from $301.2 million in the corresponding period last year.
Looking forward to the full year 2009, the company expects to achieve net earnings growth in the range of 20% to 25% with net earnings likely to be at the higher end of its stated goal. Revenues are expected to grow 25 percent. Currently, analysts expect the company to report earnings of $1.73 per share on revenues of $545.10 million for 2009.
For 2010, the company said it believes it can achieve 13% to 15% unit growth in 2010, which, along with strong restaurant-level performance and leveraging our infrastructure, should translate into net earnings growth of 20 percent.
BWLD declined $0.78 or 1.84% and closed Tuesday's regular trading at $41.65. After hours, BWLD declined further $1.19 or 2.86% and traded at $40.46.
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