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Buffalo Wild Wings shares surge 5% despite same-store sales declines

Published 07/26/2016, 08:51 PM
Updated 07/26/2016, 08:58 PM

Investing.com -- Shares in Buffalo Wild Wings Inc (NASDAQ:BWLD) rose more than 5% in after-hours trading even after its comparable store sales fell considerably last quarter, becoming the latest chain in the beleaguered restaurant industry to report disappointing results for the period.

For Buffalo Wild Wings' second quarter of 2016, the company reported net profit of 23.7 million or 1.27 per share, up from 21.5 million or earnings of 1.12 per share over the same quarter a year earlier. At the same time, Buffalo Wild Wings saw its revenues increased by 15% to $490.2 million, amid a host of new store openings and franchise acquisitions over the last year. The gains were offset by same-store declines among both company-owned and franchise restaurants of 2.1 and 2.6% respectively. During the first quarter, same-store sales fell by at least 1.7% in both segments. In addition, average weekly sales at Buffalo Wild Wings company-owned fell to $59,894, down from $61,960 during the second quarter of 2015. Among franchise restaurants, average weekly sales fell to $62,454, down from $64,904 in last year's second quarter.

Buffalo Wild Wings shares surged 5% in after-hours trading

"We delivered another solid quarter," said Sally Smith, Buffalo Wild Wings' CEO. "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." Over the period, Buffalo Wild Wings' board authorized the repurchase of 548,402 shares for a total of $75 million.

Smith is eagerly anticipating the start of the U.S. football season, a period that usually represents the company's busiest quarter of the year.

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"We are looking forward to the return of football and our new fall media campaign," Smith said. "There is no better place than Buffalo Wild Wings to host your fantasy football draft party and catch all the action on the gridiron this year."

Shares in Buffalo Wild Wings surged 7.80 or 5.31% to 154.80 in after-hours.

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