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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Buffalo Wild Wings and Chipotle are Motley Fool Hidden Gems recommendations. Chipotle is also a Rule Breakers selection. Starbucks has been recommended by both Stock Advisor and Inside Value. The Fool owns shares of Buffalo Wild Wings, Chipotle, and Starbucks. Try any of our Foolish newsletter services free for 30 days.