Buffalo Wild Wings, Inc. (BWLD – Free Report) released its first quarter 2017 financial results, posting earnings of $1.44 per share and revenues of $534.8 million. Currently, BWLD is a Zacks Rank #3 (Hold), and is down 3.2% to $157.21 per share in after-hours trading shortly after its earnings report was released.
Buffalo Wild Wings:
Missed earnings estimates. The company posted earnings of $1.44 per share (excluding $0.19 from non-recurring items), missing the Zacks Consensus Estimate of $1.68 per share.
Missed revenue estimates. The company saw revenue figures of $534.8 million, missing our consensus estimate of $536 million.
Buffalo Wild Wings revenue increased 5.2% to $534.8 million as restaurant sales also increased 5.2% year-over-year to $509.2 million.
The wing chain’s franchise royalties and fees increased 5% after it reported revenues of $25.6 million in the first quarter. Company-owned restaurant sales for the first quarter increased 5.2%. Buffalo Wild Wings’ net earnings decreased 34.2% to $21.5 million.
Buffalo Wild Wings projected its full-year earnings to be in the $5.45 to $5.90 per share range, with revenue in the range of $5.2 million to $5.5 million.
The company expects to see same-store sales growth of approximately 1% in 2017. Buffalo Wild Wings’ capital expenditure outlook is roughly $100 million. The wing giant also hopes to sell roughly 13% of company-owned Buffalo Wild Wings restaurants this year.
“In the first quarter, we are pleased same-store sales turned positive for both company-owned and franchised locations, outperforming both the negative restaurant industry and a negative casual dining segment,” Buffalo Wild Wings President and CEO Sally Smith said in a press release. “This is due to the continued momentum of our strategic initiatives launched in 2016.”
“We’ve identified areas to streamline work and improve efficiencies. As a result of these initiatives, we expect to realize $40 to $50 million in cost savings over the next two years. Our team is focused, on track, and making the strategic changes to improve sales and profitability for the long run.”
