Buffalo Wild Wings
The 10-second takeaway
For the quarter ended June 30 (Q2), Buffalo Wild Wings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased significantly.
Gross margins shrank, operating margins increased, net margins grew.
Buffalo Wild Wings logged revenue of $305.0 million. The 20 analysts polled by S&P Capital IQ wanted to see revenue of $304.4 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $238.7 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 $0.88. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.79 per share. GAAP EPS of $0.88 for Q2 were 42% higher than the prior-year quarter's $0.62 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 23.4%, 40 basis points worse than the prior-year quarter. Operating margin was 8.0%, 40 basis points better than the prior-year quarter. Net margin was 5.4%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $314.5 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $1.27 billion. The average EPS estimate is $3.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,440 members out of 4,748 rating the stock outperform, and 308 members rating it underperform. Among 1,631 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,591 give Buffalo Wild Wings a green thumbs-up, and 40 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 $103.82.
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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.