Fantasy football parties and World Cup watchers filled Buffalo Wild Wings restaurants during the third quarter, giving the chain another period of strong same-store sales and net income growth.
Same-store sales at company-owned restaurants increased 6 percent during the quarter ended Sept. 28, pushing revenue up 18.3 percent, to $373.5 million. Higher same-store sales coupled with lower chicken wing prices helped the company’s net earnings grow 21.7 percent, to $21.8 million. Earnings per share grew 20 percent, to $1.14.
But chicken wing prices are rising, Buffalo Wild Wings Inc. said Monday. The Minneapolis-based operator is paying $1.98 per pound for wings this quarter, 30 percent higher than the average cost for the third quarter. Chicken wing prices typically increase during football season.
Those increases are in addition to minimum wage increases in a number of states. In response, the company plans to raise menu prices 3 percent at the end of November.
Buffalo Wild Wings still expects its current sales momentum to continue. Same-store sales at company locations have risen 5.4 percent during the first four weeks of the fourth quarter, CEO Sally Smith said.
The company said it plans to add 50 corporate locations in 2015, while franchisees expect to add 40 new units. International franchisees expect to open eight to 10 locations. The company expects the new units and same-store sales growth to help it realize 18-percent earnings growth for the year.
3Q NET INCOME
Result: $21.8 million, or $1.14 per share% Increase: 21.7% (from $17.9 million, or 95 cents per share)
3Q REVENUE
Result: $350.5 million% Increase: 18.3% (from $295.7 million)
3Q SAME-STORE SALES
% Increase corporate units: 6%
% Increase franchised units: 5.7%
Source: Company report
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