Buffalo Wild Wings Misses Where it Counts

Buffalo Wild Wings (Nasdaq: BWLD  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Buffalo Wild Wings beat expectations on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
Buffalo Wild Wings logged revenue of $303.8 million. The 19 analysts polled by S&P Capital IQ predicted sales of $292.6 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $220.5 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 $0.89. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.96 per share. GAAP EPS of $0.89 for Q4 were 22% higher than the prior-year quarter's $0.73 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 23.5%, 220 basis points worse than the prior-year quarter. Operating margin was 8.1%, 50 basis points worse than the prior-year quarter. Net margin was 5.5%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $300.9 million. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $3.60.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,452 members out of 4,762 rating the stock outperform, and 310 members rating it underperform. Among 1,630 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,587 give Buffalo Wild Wings a green thumbs-up, and 43 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 $85.07.

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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 recommends Buffalo Wild Wings. The Motley Fool owns shares of 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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