On Tuesday, May 1, after the market close, sports bar restaurateur Buffalo Wild Wings
- Expansion of media campaigns facilitated a 24% growth in revenue.
- Despite a 23% boost in the cost of goods sold, mainly from the price increase of chicken wings, margins continued to improve.
- The company was able to leverage strong sales growth into an even higher diluted earnings improvement as the bottom line grew 57.5%, even as shares outstanding increased modestly.
- Buffalo Wild Wings carries an above-average four-star rating in the Motley Fool CAPS community. Rapidly growing casual dining rivals include Kona Grill
(NASDAQ:KONA) , which carries a slightly better five-star rating; P.F. Chang's(NASDAQ:PFCB) and BJ's Restaurants(NASDAQ:BJRI) , with only two stars; and Applebee's(NASDAQ:APPB) and O'Charley's(NASDAQ:CHUX) , which have unappetizing one-star ratings.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$78,450 |
$79,902 |
$64,261 |
24.3% |
|
Net Profit |
-- |
$5,541 |
$3,516 |
57.6% |
|
EPS |
$0.52 |
$0.63 |
$0.40 |
57.5% |
|
Diluted Shares |
-- |
8,842 |
8,736 |
1.2% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
72.39% |
71.98% |
0.41 |
|
Operating Margin |
10.44% |
8.55% |
1.89 |
|
Net Margin |
6.93% |
5.47% |
1.46 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$71,895 |
$56,565 |
27.1% |
|
Accounts Rec. |
$5,180 |
$5,070 |
2.2% |
|
Inventory |
$2,015 |
$1,567 |
28.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$6,710 |
$7,505 |
(10.6%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$11,299 |
$9,395 |
20.3% |
|
Capital Expenditures |
$3,904 |
$4,686 |
(16.7%) |
|
Free Cash Flow |
$7,395 |
$4,709 |
57% |
Find out why free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Buffalo Wild Wings is a Motley Fool Hidden Gems selection, and you can learn much more about it with a free 30-day trial subscription.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
