Buffalo Wild Wings beats by $0.57, reports revs in-line; raises FY17 EPS above consensus
- Reports Q3 (Sep) earnings of $1.36 per share, excluding non-recurring items, $0.57 better thanthe Capital IQ Consensus of $0.79; revenues rose 0.5% year/year to $496.7 mln vs the $500.97 mln Capital IQ Consensus.
- Same-store sales decreased 2.3% at company-owned restaurants and 3.2% at franchise locations.
- Cost of labor for the third quarter was 31.4% of restaurant sales, 70 basis points lower than third quarter last year, driven primarily by 40 basis points of favorable hourly labor, 50 basis points from an out-of-period benefits adjustment, partially offset by wage inflation.
- Co issues upside guidance for FY17, sees adj. EPS guidance of $4.85-5.15 (prior:$4.50-5.00) vs. $4.39 Capital IQ Consensus Estimate.
- 14 company-owned Buffalo Wild Wings restaurants in the United States, with 5 in the fourth quarter
- 15 franchised Buffalo Wild Wings locations in the United States, with 3 in the fourth quarter
- 20 franchised Buffalo Wild Wing locations internationally, with 10 in the fourthquarter
- 2 company-owned and 10 franchised R Taco restaurants
- Same-store sales growth of approximately -1.5% (prior: -1 to -2%)
- Traditional chicken wing inflation of 10% to 11%
- Sally Smith, President and Chief Executive Officer, commented, "Our teams are executing on the cost initiatives of our fiscal fitness program and we exceeded our goal in the third quarter. These savings helped deliver adjusted income from operations above our expectations. The recent Tuesday promotion shift from traditional to boneless wings at company-owned restaurants will continue to improve cost of sales while traditional wing prices remain elevated. Combined with our cost savings initiatives and service excellence focus, we are optimistic these actions will deliver an improving bottom line."
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