Buffalo Wild Wings: An Earnings Preview

Wall Street is expecting big things from Buffalo Wild Wings (NASDAQ: BWLD  ) when it delivers second-quarter results next week. The restaurant chain should post an 18% sales gain and a 35% jump in earnings, according to the 23 analysts that cover the stock. Those high expectations are a big reason why shares have rallied 20% since April.

Source: Buffalo Wild Wings.

In the video below, Fool contributor Demitrios Kalogeropoulos previews B-Dubs' upcoming results, highlighting a few key numbers for investors to watch. For one, shareholders will want to pay attention to same-store sales growth, which was trending at a strong 5% through the first few weeks of the quarter, but likely was jolted higher thanks to a popular World Cup tournament. Anything higher than 6% would qualify as one of the company's best growth rates in years, Demitrios notes.

Keep an eye on profitability, as well. B-Dubs' profit margin has been marching back toward an all-time high, boosted by a drop in chicken wing costs and the company's switch to a per-portion -- rather than a per-piece -- chicken wing ordering system. Now that a full year of the new system has passed, investors should hear from management about what profit trends should look like over the longer term. Watch the following video for Demitrios' full take.

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  • Report this Comment On July 26, 2014, at 7:02 AM, kvartz wrote:

    So why was the earnings estimate lowered to $1.19? What credible analyst lowers estimates in the face of the "facts" mentioned in this article. What a joke.

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