Buffalo Wild Wings Increases Sales but Misses Estimates on Earnings

Buffalo Wild Wings (Nasdaq: BWLD  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 24 (Q2), Buffalo Wild Wings met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.

Margins dropped across the board.

Revenue details
Buffalo Wild Wings booked revenue of $238.7 million. The 17 analysts polled by S&P Capital IQ predicted revenue of $240.0 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $184.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.62. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.68 per share. GAAP EPS of $0.62 for Q2 were 6.9% higher than the prior-year quarter's $0.58 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.8%, 410 basis points worse than the prior-year quarter. Operating margin was 7.6%, 140 basis points worse than the prior-year quarter. Net margin was 4.9%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $253.7 million. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $3.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,388 members out of 4,713 rating the stock outperform, and 325 members rating it underperform. Among 1,557 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,497 give Buffalo Wild Wings a green thumbs-up, and 60 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buffalo Wild Wings is outperform, with an average price target of $91.64.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Buffalo Wild Wings. Motley Fool newsletter services have recommended buying shares of Buffalo Wild Wings. Motley Fool newsletter services have recommended writing covered calls on Buffalo Wild Wings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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