Once again, Buffalo Wild Wings
Second-quarter net income increased 24.2%, to $7 million, or $0.39 per share. Revenue surged an impressive 32.4%, to $129.6 million. Same-store sales increased 2.8% and 3.7% at company-owned and franchise locations, respectively. Furthermore, Buffalo Wild Wings' franchise royalties and fees jumped 14%, to $11.9 million. In short, the company made a good showing all around.
CEO Sally Smith said Buffalo Wild Wings is still on track to increase 2009 revenue by 25%, with earnings climbing 20%-25% from 2008 levels. Smith sounded particularly enthusiastic about the advent of football season, one of the big draws for the company's client base.
Better yet for investors, B-Dubs is free cash flow-positive, generating $4.2 million in the first six months of the year. The company also has $11 million in cash, $37 million in short-term securities, and no debt -- big pluses for any investment thesis.
Despite the ugly economy, Buffalo Wild Wings has maintained bold plans to open more stores; so far, things seem to be progressing just fine. B-Dubs' results contrast sharply with those of companies such as Starbucks
Like B-Dubs, Chipotle
If you'd prefer something off Wall Street's value menu, fast-food giant and excellent performer McDonald's
Buffalo Wild Wings could be an intriguing pick for investors willing to take a walk on the wild side. Just make sure you're confident in the company's ability to keep generating heady, double-digit growth.
What do you think about B-Dubs' future prospects? Feel free to let us know in the comment boxes below.
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