MINNEAPOLIS Buffalo Wild Wings Inc. reported a 21-percent spike in net income for the third quarter ended Sept. 30, to $4.3 million, or 24 cents per share, from $3.5 million, or 20 cents per share, in the year-ago period. However, that increase fell short of analysts’ average predictions of a 26-cents-per-share profit, as calculated by Thomson Financial. Some blamed high commodity costs, which they expect will persist in the fourth quarter.
Buffalo Wild Wings, which operates or franchises 465 sports-theme chicken wings restaurants, said it would meet its annual growth targets of 15-percent unit growth, 20-percent revenue growth and 25-percent earnings growth.
Latest-quarter total revenue jumped 20.5-percent to $82.4 million. Same-store sales rose 8.3 percent at corporate restaurants and 5.9 percent at franchised units.
Sally Smith, president and chief executive, reported that the company expects 27 more locations to open before the end of this year. However, she predicts delays in closing last May’s acquisition of nine franchised restaurants in Las Vegas, mainly because of a slower-than-expected approval process in obtaining gaming licenses. That deal likely will close sometime next year, the company reported.
Larry Miller, RBC Capital Markets securities analyst, warned in a statement that fourth-quarter pressures to watch for included new-store opening expenses and holiday promotions costs, including a gift card promotion. Continued increases in food costs also will pressure the company, he said.