Restaurant chain, Buffalo Wild Wings Inc. (NASDAQ: BWLD) reported on Monday that fiscal first quarter income fell 10% due to higher wing costs; however shares gained about 1.20% in extended trading hours as revenue edged past Street’s estimates and same-store sales also rose.
For the fiscal first quarter which ended March 31, the Minneapolis based restaurant chain reported a profit of $16.4 million or 87 cents a share compared to year-earlier net income of $18.2 million or 98 cents a share.
Total revenue during the period soared 21% to $304.4 million from $251.1 million, in the same quarter of last year. Excluding proceeds from franchise royalties and fees, sales climbed 22.4% to $284.4 million.
Same-store-sales (excluding sales from stores operating under franchise agreements) increased 1.4%. Same-store-sales, is a key gauge on restaurant chain’s performance since it strips out sales impact from those stores that were opened or shuttered in last 12 months.
Analysts polled by FactSet were expecting earnings of 99 cents a share on revenue of $303.9 million.
The Company said that same-store-sales trend in the current quarter was particularly strong. While same-store-sales at company-owned restaurants thus far were up 5.2%, it rose 5.8% in stores operating under franchise agreements. In North America, Buffalo Wild Wings operates more than 900 restaurants.
For the fiscal 2013, the chain anticipates earnings to rise 17% (25% on 52 week basis), which implies earnings of $3.58 a share up from last year’s earnings of $3.06 a share. However, on 52 week basis, it implies earnings of $3.82 a share.
Analysts polled by FactSet were expecting earnings of $3.62 a share.
Commenting over the results, the Company’s President and Chief Executive, Sally Smith, said in a statement, “We continued investing capital and labor for our future success, even though we faced the challenge of high wing costs and fluctuating wing yields.”