Buffalo Wild Wings
The 10-second takeaway
For the quarter ended Sep. 23 (Q3), Buffalo Wild Wings missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Margins dropped across the board.
Buffalo Wild Wings reported revenue of $246.9 million. The 17 analysts polled by S&P Capital IQ predicted revenue of $254.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $197.8 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 $0.57. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.57 for Q3 were 6.6% lower than the prior-year quarter's $0.61 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 23.8%, 230 basis points worse than the prior-year quarter. Operating margin was 6.3%, 210 basis points worse than the prior-year quarter. Net margin was 4.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $300.0 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $3.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,423 members out of 4,741 rating the stock outperform, and 318 members rating it underperform. Among 1,636 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,588 give Buffalo Wild Wings a green thumbs-up, and 48 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 $85.73.
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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 recommend 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.