Buffalo Wild Wings Posts Downbeat Results
February 03 2016 - 5:50PM
Dow Jones News
Buffalo Wild Wings Inc. posted weaker-than-expected results in
its latest quarter as same-store sales were soft during the holiday
season.
Same-store sales in the December quarter climbed 1.9% at
company-owned restaurants and 0.1% at franchised locations, missing
the company's expectations.
"We estimate the holiday shifts for Halloween and Christmas
negatively impacted fourth-quarter same-store sales by 30 basis
points," said Sally Smith, CEO of the company.
Shares fell 2.07% to $140.66
The chain has stumbled out of the gate in the current 2016
fiscal year. The company previously reported health officials were
investigating gastrointestinal illnesses that affected customers
last week, closing one of it restaurants in Overland Park, Kan.
BTIG analyst Peter Saleh said "investors and consumers are very
sensitive to food borne illnesses in the wake of Chipotle."
Chipotle Mexican Grill Inc. reported its first quarterly revenue
decline as a public company last night after two E.coli outbreaks
and a recent norovirus outbreak in Boston.
On Wednesday, Buffalo Wild Wings said same-store sales increased
a modest 0.3% at company-owned restaurants while falling 1.5% at
franchised locations for the first four weeks of the current
quarter.
The company said it would stop disclosing quarter-to-date
same-store sales trends because the trend was "not predictive of
quarterly same-store sales."
For 2016, Buffalo Wild Wings said it expected earnings on a
per-share basis of $5.95 to $6.20, which is below the average
analyst estimate of $6.48 on Thomson Reuters but above its 2015
profit of $4.97.
For the latest quarter, net income rose to $25.3 million, or
$1.32 a share, from $20.3 million, or $1.07 a share, a year
earlier.
Revenue increased 20% to $490.2 million.
Analysts told Thomson Reuters that they expected earnings of
$1.48 a share on revenue of $507 million.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
February 03, 2016 17:35 ET (22:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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