On Tuesday after market close, Buffalo Wild Wings (NASDAQ: BWLD) announced the second quarter financial results ended June 26, 2016. Stock price jumped up 10% to $161.70 on Wednesday morning.
The company posted a quarterly drop in same-store sales, even the decline was offset by a rise in revenue propelled by the opening of new locations. The boost from the new storefronts helped the chain meet earnings expectations, though it missed the estimate drawn up by Wall Street analysts for revenue.
According to the earnings announcement, total revenue increased 15.0% to $490.2 million. Same-store sales decreased 2.1% at company-owned restaurants and 2.6% at franchised restaurants. Net earnings increased 10.2% to $23.7 million from $21.5 million, and diluted earnings per share up 13.1% to $1.27 from $1.12.
Sally Smith, President and Chief Executive Officer, commented, “We delivered another solid quarter, with total revenue increasing by 15.0% from new restaurant openings and franchise acquisitions over the last year. We controlled costs and expenses well in a challenging sales environment, and this discipline, along with our revenue growth, helped us to achieve earnings per diluted share of $1.27, a 13.1% increase compared to the prior year. In the second quarter, we opportunistically repurchased $75 million of our common stock, delivering value to our shareholders.”
Buffalo Wild Wings, which has faced some struggles this year, could be in for more pressure. Activist investor Marcato Capital Management LP disclosed Monday it had acquired a 5.1% stake in Buffalo Wild Wings Inc.