Brand benefits from significantly lower commodity costs
Performance on the top and bottom lines contributed to a 41.4-percent growth in net income for Minneapolis-based Buffalo Wild Wings Inc. in its June 30-ended second quarter. Revenue grew significantly as the casual-dining chain of more than 930 units had 97 more locations open compared with a year earlier, and same-store sales rose 3.8 percent and 4.1 percent at corporate and franchised restaurants, respectively. Buffalo Wild Wings’ profits also benefited from significantly lower commodity costs for chicken wings, which caused food costs to decrease from 31.6 percent of sales a year earlier to 30.4 percent of sales in the current second quarter.
Result: $16.5 million, or 88 cents per share
% Increase: 41.4% (from $11.7 million, or 62 cents per share)
Result: $305 million
% Increase: 27.8% (from $238.7 million)
% Increase: 3.8 percent at company-owned units, 4.1 percent at franchised units
• Analysts upbeat on Buffalo Wild Wings
• Buffalo Wild Wings to implement new pricing system
• More restaurant industry finance news
Contact Mark Brandau at email@example.com.
Follow him on Twitter: @Mark_from_NRN