Buffalo Wild Wings Stays Hot

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Hot sauce and blue cheese purveyor Buffalo Wild Wings (Nasdaq: BWLD) recently reported news that may sound familiar to investors. Strong revenue and same-store sales growth for the company, publicly traded since November, powered a substantial year-over-year jump in EPS for the second quarter.

Quarterly income statement numbers -- the company puts detailed sales information, as well as a balance sheet and cash flow statement, in its press releases -- were impressive. Total revenue increased 36% to nearly $40 million; same-store sales rose more than 10% as both company-owned and franchised stores posted good figures; average weekly sales improved substantially; and both operating and net income boomed.

The company, in short, is growing at a time when the concept is working. Buffalo Wild Wings, one of my favorite places to eat when I can make it to one (coming to D.C. sometime soon, fellows?) has also seemingly picked a good time to hit the public market. It's generating strong operating leverage from its expansion and good store-level performance even as chicken wing prices are helping margins. Many beef-heavy chains, meanwhile, are bemoaning rising costs that have maintained pressure on profits even in a time of good revenues.

It's Buffalo Wild Wings' combination of growth and strong operational performance that has helped the company's shares outpace those of such competitors as Brinker (NYSE: EAT), Darden (NYSE: DRI), Ruby Tuesday (NYSE: RI), Steak 'n Shake (NYSE: SNS), and Applebee's (Nasdaq: APPB) -- not to mention the S&P 500 -- since the company went public.

Management, meanwhile, is trying to keep a straight face, insisting yesterday that its same-store sales growth levels will be difficult to maintain and putting that responsibility squarely on its marketing efforts. That kind of straight talk should please Buffalo Wild Wings' investors -- who, it must be said, have had little reason to complain so far.

Fool contributor Dave Marino-Nachison doesn't own any companies in this story.