Investors have been flapping their chicken wings over Buffalo Wild Wings'
In the midst of a soggy casual-dining climate, along with inflationary pressures eating away at profits, B-Dubs posted a saucy 21.7% increase in sales and a 16% boost in earnings per share. The robust top-line trend was helped by the rapid opening of new establishments, in keeping with the company's long-term plan to grow units by 15% annually. More importantly, existing restaurants are proving to be increasingly popular with customers, as same-store sales increased 4.1% at company-owned restaurants and 2.1% at franchised restaurants.
Tasty and affordable food, along with the sports-bar theme, attracts a steady stream of loyal sports fans on both weeknights and weekends. During the conference call, management boasted of selling 4 million buffalo wings on Super Bowl Sunday and said the company also saw strong guest growth during NCAA basketball's March Madness.
What I found most impressive during the quarter was management's ability to contain costs. A wide array of restaurants -- from Darden Restaurants'
The company stated that it is on track to maintain its long-term 25% earnings growth this year. Even with the big jump in the share price today, B-dubs is still trading well below its 52-week high, meaning it has plenty of potential upside given the strong growth trends it is posting.