Sports bar and wing-joint operator Buffalo Wild Wings
CEO Sally Smith talked with The Motley Fool on a recent visit to B-dubs’ company headquarters in Minneapolis, providing plenty of insight into the secret sauce that has made the company a resounding success with patrons and investors alike. This success was easily evident in yesterday's second-quarter results, as total sales grew 28.8% to $97.9 million and diluted earnings clucked ahead 41% to $0.31 per share.
While the opening of 24 new company stores and 45 franchised locations over the course of the last year played a major role in the top-line growth, organic growth remained strong. Same-store sales rose 8.3% at company-owned locations and 4.5% at franchised restaurants. The results are particularly impressive in light of the weakened economy, which is causing consumers to eat at home or trade down to more affordable fast-food alternatives such as McDonald's
B-dubs also kept a tight lid on expenses as chicken-wing prices fell $0.08 per pound from last year. While that helped improve the gross margin, management reported that it is likely to see higher costs in the coming months as suppliers must pass on rising transportation costs.
B-dubs' results are in stark contrast to those being posted by casual-dining rivals such as DineEquity