Buffalo Wild Wings
The 10-second takeaway
For the quarter ended March 31 (Q1), Buffalo Wild Wings met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share dropped.
Margins contracted across the board.
Buffalo Wild Wings reported revenue of $304.4 million. The 20 analysts polled by S&P Capital IQ hoped for revenue of $304.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $251.1 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 $0.87. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. GAAP EPS of $0.87 for Q1 were 11% lower than the prior-year quarter's $0.98 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 22.4%, 350 basis points worse than the prior-year quarter. Operating margin was 7.4%, 360 basis points worse than the prior-year quarter. Net margin was 5.4%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $301.8 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $3.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,448 members out of 4,757 rating the stock outperform, and 309 members rating it underperform. Among 1,613 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,577 give Buffalo Wild Wings a green thumbs-up, and 36 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 $89.94.
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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.