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Buffalo Wild Wings Reports Solid Earnings

By KEN HOOVER, INVESTOR'S BUSINESS DAILY
Posted 07/31/2009 04:59 PM ET
Featured Stocks
BWLD *

Buffalo Wild Wings Inc
* Top-Rated Company
Buffalo Wild Wings (BWLD) has avoided the malaise that has infected much of the restaurant industry.

The Minneapolis-based restaurant chain proved itself this week with an earnings report that beat analysts' estimates and sent the stock higher the next day.

After the close Monday, it reported earnings of 39 cents a share, a 26% increase from the year-ago quarter. That beat estimates by 5 cents and was the third-straight quarter the company beat forecasts. Revenue was up 32%.

That was pretty much in line with the top- and bottom-line growth rates from the last several quarters.

Same-store sales rose 2.8% at company-owned stores and 3.7% at franchised stores.

The company said it's on track to meet its 2009 annual goals for unit growth of 15%, revenue growth of 25% and earnings growth of 20% to 25%.

Buffalo has carved out a niche for itself as a sports bar. Its young, male clientele hasn't given up on watching sports on big-screen TVs, drinking beer and eating bar snacks — like buffalo wings. It also serves families early-evening dinners, often after a baseball or soccer game.

Buffalo Wild Wings has 601 restaurants in 41 states. The company hopes to exceed 1,000 restaurants by 2013, partly through international expansion.

Analysts tracked by Thomson Reuters forecast 2009 earnings of $1.62 a share, a 24% increase over the prior year. For 2010, they see $2.05, a 22% increase.

The company has an IBD EPS Stability Rating of 10.

The stock appears to be setting up in a nice base.

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