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Buffalo Wild Wings (BWLD)
Q2 2009 Earnings Call
July 27, 2009 5:00 pm ET
Mary J. Twinem - Chief Financial Officer, Executive Vice President, Treasurer
Sally J. Smith - President, Chief Executive Officer, Director
David Tarantino - Robert W. Baird
Matt DiFrisco - Oppenheimer
Paul Westra - Cowen & Company
Bryan Elliott - Raymond James
Dustin Tompkins - Morgan Keegan
Nicole Miller - Piper Jaffray
Brad Luddington - Keybanc Capital Markets
Dan Lewis - RBC Capital Markets
Greg McKinley - Dougherty & Company
Stephen Anderson - MKM Partners
Previous Statements by BWLD
» Buffalo Wild Wings Q3 2009 Earnings Call Transcript
» Buffalo Wild Wings, Inc. Q1 2009 Earnings Call Transcript
» Buffalo Wild Wings, Inc. Q4 2008 Earnings Call Transcript
Mary J. Twinem
Good afternoon and thank you for joining us as we review our second quarter 2009 results. I am Mary Twinem, Chief Financial Officer and Executive Vice President of Buffalo Wild Wings. Joining me today is Sally Smith, our President and Chief Executive Officer.
By now, everyone should have access to our second quarter earnings release, which went out after the market closed today. If you have not received the release, it is available on the investor relations section of our website at buffalowildwings.com. A script of our prepared remarks will also be posted on our website after the call.
Before we get started, I want to remind you that during the course of today’s call, there is remarks we make about future expectations, plans, and prospects for the company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including without limitation our ability to achieve and manage our planned expansions, the number of locations opening during the remainder of 2009 and beyond, the sales at these and our other company-owned and franchised locations, our ability to successfully operate in new markets, unforeseen obstacles in developing non-traditional sites, the costs of commodities, such as fresh chicken wings, the success of our marketing initiative, our ability to control restaurant labor, and other restaurant operating costs, economic conditions, including changes in consumer preferences or consumer discretionary spending, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission.
On today’s call, Sally will provide an overview of the second quarter. After that, I will provide further detail on our recent financial performance and comment on trends in the third quarter. Finally, Sally will share some thoughts about the remainder of 2009. We will then answer questions.
So with that, I will turn things over to Sally.
Sally J. Smith
Good afternoon, everyone. I am very pleased to share the details of our ongoing success and strong second quarter results. In the casual dining category, we continue to stand apart with our strong unit and revenue growth and positive same-store sales trend.
Our second quarter revenue growth of 32.4% produced impressive net earnings growth of 24.2% over the same period in the prior year, achieving earnings per diluted share of $0.39.
Our performance is a testament to the sound foundation from which we operate and to a brand that provides an unparalleled dining experience to our guests. The tenacious commitment to excellence by our franchisees and team members is evident in our results and I thank the entire Buffalo Wild Wings team for their contributions in delivering strong operational and financial performance.
Our second quarter results lay a solid foundation toward achieving our annual growth goals. Two weeks ago, one of our franchisees opened the first Buffalo Wild Wings grill and bar in Hawaii, giving us a presence in 41 states. Another franchisee opened our first restaurant in the San Francisco market, marking another step toward expanding our presence in California.
In addition, we are pleased to share that on July 20th, we surpassed the 600 unit mark. This momentum is evidence of our ability to build the Buffalo Wild Wings brand and keep us well-positioned to achieve our 1,000 unit goal in 2013.
We are enjoying the success of our new unit openings, thanks to the tireless effort of our development and new restaurant opening teams. We are keenly focused on providing our guests with a compelling experience and in the second quarter, our guest experience management program again indicated that our guests are rating their experience higher than in the past.
We believe these scores are predictive indicators of future sales performance. Our ability to provide a rewarding guest experience is also evident in our second quarter same-store sales which increased 2.8% at company owned locations and 3.7% at franchise locations, compared to last year, even with an estimated 70 basis point reduction in same-store sales at company-owned locations due to the shift of Easter to April this year.
In the second quarter, we focused on building key sales opportunities, like the night hunger day part, where we provide a gathering spot for friends and have delicious, shareable food available later at night than the majority of our casual dining competitors.
After the solid launch of our night hunger campaign last year, we reminded our guests again that our kitchen doesn’t close until we do with a June radio campaign. In addition, our operations team focused on promoting our takeout business and a [dab-and-grab] gift card campaign.
The second quarter saw continued innovation with new menu items. Our limited time offer menu included chicken tender slammers, a twisted chicken salad, and a new margarita flatbread. And building on the success of recent years, our margarita mayhem promotion returned and featured three new signature margaritas, the Primo, the MVP, and the Twisted Margarita.