Buffalo Wild Wings
The 10-second takeaway
For the quarter ended March 25 (Q1), Buffalo Wild Wings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins contracted across the board.
Buffalo Wild Wings recorded revenue of $251.1 million. The 15 analysts polled by S&P Capital IQ expected to see sales of $252.1 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $182.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.95 per share. GAAP EPS of $0.98 for Q1 were 21% higher than the prior-year quarter's $0.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.9%, 280 basis points worse than the prior-year quarter. Operating margin was 11.0%, 140 basis points worse than the prior-year quarter. Net margin was 7.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $243.7 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $3.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,385 members out of 4,705 rating the stock outperform, and 320 members rating it underperform. Among 1,674 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,624 give Buffalo Wild Wings a green thumbs-up, and 50 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Buffalo Wild Wings is hold, with an average price target of $87.
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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.