Buffalo Wild Wings Outruns Estimates Again

Seth Jayson, The Motley Fool
Updated

Buffalo Wild Wings (NAS: BWLD) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Buffalo Wild Wings beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share expanded significantly.

Gross margins increased, operating margins dropped, and net margins were steady.

Revenue details
Buffalo Wild Wings recorded revenue of $220.5 million. The 18 analysts polled by S&P Capital IQ predicted revenue of $210.5 million. Sales were 34% higher than the prior-year quarter's $163.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.73. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.67 per share. GAAP EPS of $0.73 for Q4 were 33% higher than the prior-year quarter's $0.55 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.1%, 440 basis points better than the prior-year quarter. Operating margin was 8.6%, 60 basis points worse than the prior-year quarter. Net margin was 6.2%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $237.8 million. On the bottom line, the average EPS estimate is $0.89.

Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $3.23.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,378 members rating the stock outperform and 300 members rating it underperform. Among 1,690 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,642 give Buffalo Wild Wings a green thumbs-up, and 48 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 $74.07.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Buffalo Wild Wings. Motley Fool newsletter services have recommended buying shares of and writing covered calls in 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.

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