On Tuesday after market close, Buffalo Wild Wings, Inc. (NASDAQ: BWLD) reported financial results for the first quarter ended March 27, 2016. Stock price slumped 11.86% to $127.47 during Wednesday midday.
According to the earnings announcement, total revenue was up approximately 15.4% to $508.3 million from last year $440.6 million. Net earnings rose 12.8% to $32.8 million compared with $29.0 million last year, and diluted earnings per share increased 13.5% to $1.73 during the same period. Company-owned restaurant sales rose 16.6% to $483.9 million. However, same-store sales decreased 1.7% at company-owned restaurants and 2.4% at franchised restaurants.
Sally Smith, President and Chief Executive Officer, said, “Our total revenue in the first quarter increased 15.4%, when compared to the prior year, resulting from continued unit development and franchise acquisitions over the last 12 months. We are dissatisfied to report a same-store sales decline and we're undertaking several sales-driving initiatives to regain momentum. We were able to manage costs and improve our restaurant-level margin, and earnings per diluted share increased 13.5% year-over-year to $1.73.”
Buffalo Wild Wings is guiding for whole year of 2016 that developing almost 40 company-owned restaurants, repurchasing the company stocks of $100 million, and expecting diluted earnings per share range between $5.65 to $5.85.
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 in January at one of its restaurants in Overland Park, Kan. Buffalo Wild Wings also announced in February that it would stop disclosing quarter-to-date same-store sales trends because the trend was “not predictive of quarterly same-store sales.”
"The macro environment for casual dining has had a rough quarter and a rough couple of quarters," Sally Smith told analysts during earnings conference call. "I just don't think there is a robust consumer out there."