MINNEAPOLIS Buffalo Wild Wings on Tuesday reported a 17.7-percent jump in net income as positive same-store sales trumped an increase in operating expenses.
For the first quarter ended March 30, net income rose to $6.5 million, or 36 cents per share, from $5.5 million, or 31 cents per share a year earlier. The rise in profit included charges of 2 cents per share related to restaurant relocation costs, the company said.
Revenue for the first quarter surged nearly 22 percent to $97.3 million, from $79.9 million in the year-earlier period, Buffalo Wild Wings reported.
For the first quarter, same-store sales rose 4.1 percent at corporate units and 2.1 percent at franchised locations, the company said.
The stronger sales helped offset a 21-percent increase in expenses driven by higher ingredient and labor costs, the company said. Buffalo Wild Wings said it also faced much higher "preopening" costs, related to the purchase and conversion of eight Don Pablo's units. The company purchased the Don Pablo's locations after the concept's parent, Avado Brands Inc., filed for bankruptcy late last year.
Sally Smith, president and chief executive officer, said Buffalo Wild Wings was on track to reaching its goal of growing its annual net income by 25 percent.
Buffalo Wild Wings, based here, operates or franchises 507 restaurants in 37 states.