Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Tuesday, April 27, 2010 at 2:12 PM

Comments (0)     E-mail E-mail article      Print Print      Share Share

Buffalo Wild Wings 1Q earnings climb, shares fall

Buffalo Wild Wings Inc. said Tuesday that its first-quarter profit rose 24 percent and its revenue improved, but a key indicator weakened in April and raised doubt whether the restaurant chain would hit its performance targets, and the company's shares plunged more than 20 percent after hours.

The Associated Press

MINNEAPOLIS —

Buffalo Wild Wings Inc. said Tuesday that its first-quarter profit rose 24 percent and its revenue improved, but a key indicator weakened in April and raised doubt whether the restaurant chain would hit its performance targets, and the company's shares plunged more than 20 percent after hours.

The restaurant industry has been hurting in the recession as consumers cut their spending, but that spending - tied to people's feelings about the economy as well as their personal finances - had been expected to improve at least moderately.

For the quarter, sales at company-owned restaurants open at least a year rose 0.1 percent and at franchised restaurants 0.7 percent. The figure is considered key because it isn't skewed by restaurants opening or closing during the year.

And for April, it headed downward as it did for many consumer companies as the recession took hold.

CEO Sally Smith said April sales fell 3.7 percent at company-owned restaurants open at least and 2.4 percent at franchised locations.

The company earlier said it still may meet its earlier forecast for earnings growth of 20 percent in 2010. But Smith said it depends on rising sales and a cut in wing costs.

Buffalo Wild Wings, which is based in Minneapolis, owns or franchises 669 sports bar-restaurants across 42 states.

The company issued its results and moderated forecast after the market closed, and the restaurant operator's shares fell $10.53, or 20.6 percent, to $40.48. Shares closed regular trading down 23 cents to $51.01.

Buffalo Wings said it earned $10.6 million, or 58 cents a share, in the three-month period that ended March 28, compared with $9.5 million, or 47 cents a share, a year earlier.

Analysts expected earnings per share of 57 cents on revenue of $154.4 million.

Revenue rose 15 percent to $152.3 million from $131.6 million.

Based on the company's fiscal 2009 profit of $1.70 a share, the forecast for a 20 percent increase implies earnings of $2.04 a share. Analysts on average predict it will earn $2.06 per share, according to Thomson Reuters.

E-mail E-mail article      Print Print      Share Share

More Business & Technology

UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case

UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip

UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award

UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall

NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

More Business & Technology headlines...

Comments
No comments have been posted to this article.

advertising


Get home delivery today!

Video

Advertising

AP Video

Entertainment | Top Video | World | Offbeat Video | Sci-Tech

Marketplace

Advertising