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Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

 

 

Investor Relations Contact:

Heather Pribyl

952.253.0731


 

 

Buffalo Wild Wings, Inc. Announces
Fourth Quarter Earnings per Share of $1.10

 

Minneapolis, Minnesota, February 4, 2014Buffalo Wild Wings, Inc. (NASDAQ: BWLD) announced today financial results for the fourth quarter and fiscal year ended December 29, 2013. Highlights for the fourth quarter versus the same period a year ago were:

 

 

o

Total revenue increased 12.4% to $341.5 million

 

 

o

Company-owned restaurant sales grew 13.1% to $319.8 million

 

 

o

Same-store sales increased 5.2% at company-owned restaurants and 3.1% at franchised locations

 

 

o

Net earnings increased 24.9% to $20.8 million from $16.7 million, and earnings per diluted share increased 23.6% to $1.10 from $0.89

 

As a reminder, Buffalo Wild Wings utilizes a 52- or 53-week fiscal year. The fiscal year ended December 29, 2013 was a 52-week year, with the fourth quarter of 2013 having thirteen weeks. The fiscal year ended December 30, 2012 was a 53-week year, with the fourth quarter of 2012 including fourteen weeks.

 

Sally Smith, President and Chief Executive Officer, commented, “The fourth quarter completed a great year for Buffalo Wild Wings. In 2013 we continued to build the brand for future success by focusing on several key initiatives, including selling chicken wings by portion, our new Stadia restaurant design, continued rollout of our guest experience model, launch of Game Changer beer brewed by Redhook, continued international expansion, and a minority investment in PizzaRev.”

 

Ms. Smith continued, “Same-store sales growth, along with 53 additional company-owned and 49 franchised restaurants, helped drive the total revenue increase of 12.4% in the fourth quarter. Excluding the fourteenth week of the fourth quarter of 2012, total revenue increased 22.0%. Cost of sales and labor improved as a percentage of company-owned restaurant sales in the fourth quarter compared to last year. As a result, our net earnings grew 24.9% and earnings per diluted share increased 23.6% for the quarter when compared to the fourth quarter of 2012. Excluding the fourteenth week in fourth quarter last year, our 2013 fourth quarter net earnings grew 59.6% and earnings per diluted share increased 57.1%.”

  

 
 

 

 

Total revenue increased 12.4% to $341.5 million in the fourth quarter compared to $303.8 million in the fourth quarter of 2012. Company-owned restaurant sales for the quarter increased 13.1% over the same period in 2012, to $319.8 million, driven by a company-owned same-store sales increase of 5.2% and 53 additional company-owned restaurants at the end of fourth quarter 2013 relative to the same period in 2012. Franchise royalties and fees increased 2.7% to $21.7 million for the quarter versus $21.1 million in the fourth quarter of 2012. This increase is attributed to a franchised same-store sales increase of 3.1% and 49 additional franchised restaurants at the end of the period versus a year ago. The revenue increases were calculated using the thirteen weeks of operation in the fourth quarter of 2013 compared to the fourteen weeks of operation in the fourth quarter of 2012.

 

Average weekly sales for company-owned restaurants were $58,204 for the fourth quarter of 2013 compared to $55,595 for the same quarter last year, a 4.7% increase. Franchised restaurants averaged $61,167 for the period versus $58,490 in the fourth quarter a year ago, a 4.6% increase.

 

For the fourth quarter, net earnings increased 24.9% to $20.8 million versus $16.7 million in the fourth quarter of 2012. Earnings per diluted share were $1.10 as compared to fourth quarter 2012 earnings per diluted share of $0.89.

 

2014 Outlook

 

Ms. Smith remarked, “With our wall-to-wall televisions and big screens, Buffalo Wild Wings was the place for our guests to Tablegate™ and watch football - from NCAA bowl games to the NFL playoffs culminating with the Super Bowl. Same-store sales for the first five weeks of 2014 were 4.8% at company-owned restaurants and 2.1% at franchised locations compared to (0.2%) and 1.0%, respectively, for the same period last year. The excitement of March Madness is just around the corner and we’ll launch our Blazin’ Bracket Challenge to engage guests online and in restaurant. In the first quarter we expect to open nine company-owned restaurants, we anticipate our franchise partners in the United States will open 13 locations, and our international franchisees in Mexico have already opened two restaurants.”

 

Ms. Smith concluded, “We continue to evolve Buffalo Wild Wings as a vibrant and strong brand. We recently achieved a significant milestone with the opening of our 1,000th location. We are rolling out new guest-facing technologies, including tabletop tablets and proprietary TV content, to further enhance guest engagement. In addition to continued unit growth, net earnings will be driven by same-store sales momentum and continued operational diligence. We reaffirm our 20% net earnings growth goal for 2014.”

 

Buffalo Wild Wings will be hosting a conference call today, February 4, 2014 at 4:00 p.m. Central Standard Time to discuss these results. There will be a simultaneous webcast conducted at our investor website ir.buffalowildwings.com.

 

A replay of the call will be available until February 11, 2014. To access this replay, please dial 1-858-384-5517 password 4659693.

  

 
 

 

 

About the Company

 

Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings® restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The Buffalo Wild Wings’ menu specializes in 21 mouth-watering signature sauces and seasonings with flavor sensations ranging from Sweet BBQ to Blazin’®. Guests enjoy a welcoming neighborhood atmosphere that includes an extensive multi-media system for watching their favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of "Best Wings" and "Best Sports Bar" awards from across the country. There are currently more than 1,000 Buffalo Wild Wings locations across 49 states in the United States, Canada and Mexico.

 

Forward-looking Statements

 

Various 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. These statements relate to our future financial and store performance measures and growth goals for 2014 and beyond, including but not limited to those relating to our first quarter sales trends and projected unit and net earnings growth rates for 2014 and beyond. All statements other than statements of historical fact are statements that could be deemed forward-looking statements and are based upon the current beliefs and expectations of our management. We have attempted to identify forward-looking statements by terminology, including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should” or “will” or the negative of these terms or other comparable terminology. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including, but not limited to, our ability to achieve and manage our planned expansion, the ability of our franchisees to open and manage new restaurants, market acceptance in the new geographic regions we enter (particularly non-U.S. locations), success of acquired restaurants and investments in new or emerging concepts, unforeseen obstacles in developing nontraditional sites or non-U.S. locations, our ability to obtain and maintain licenses and permits necessary to operate our existing and new restaurants, our franchisees’ adherence to our system standards, the cost of commodities such as traditional chicken wings, the success of our key initiatives and our advertising and marketing campaigns, our ability to control restaurant labor and other restaurant operating costs, the continued service of key management personnel, our ability to protect our name and logo and other proprietary information, economic conditions (including changes in consumer preferences or consumer discretionary spending), the impact of federal, state or local government regulations relating to our employees, the sale of food and alcoholic beverages, the effect of competition in the restaurant industry, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission, including the factors described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2012, as updated in subsequent reports filed with the SEC. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

 

# # #

 

 

 
 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF EARNINGS

 

(Dollar and share amounts in thousands except per share data)

 

(unaudited)

 

 

 

   

Three months ended

   

Twelve months ended

 
   

December 29,
2013

   

December 30,
2012

   

December 29,
2013

   

December 30,
2012

 

Revenue:

                               

Restaurant sales

  $ 319,830       282,679       1,185,351       963,963  

Franchise royalties and fees

    21,717       21,147       81,368       76,567  
                                 

Total revenue

    341,547       303,826       1,266,719       1,040,530  
                                 

Costs and expenses:

                               

Restaurant operating costs:

                               

Cost of sales

    95,345       90,440       363,755       303,653  

Labor

    95,802       85,457       360,302       289,167  

Operating

    47,353       41,645       174,338       141,417  

Occupancy

    18,127       14,798       68,394       54,147  

Depreciation and amortization

    22,164       19,023       84,978       67,462  

General and administrative

    26,620       21,936       96,182       84,149  

Preopening

    4,965       5,968       14,647       14,630  

Loss on asset disposals and impairment

    1,560       1,169       3,262       3,291  
                                 

Total costs and expenses

    311,936       280,436       1,165,858       957,916  
                                 

Income from operations

    29,611       23,390       100,861       82,614  

Investment income

    30       41       674       754  
                                 

Earnings before income taxes

    29,641       23,431       101,535       83,368  

Income tax expense

    8,826       6,771       29,981       26,093  
                                 

Net earnings

  $ 20,815       16,660       71,554       57,275  
                                 

Earnings per common share – basic

  $ 1.11       0.90       3.81       3.08  

Earnings per common share – diluted

    1.10       0.89       3.79       3.06  

Weighted average shares outstanding – basic

    18,787       18,608       18,770       18,582  

Weighted average shares outstanding – diluted

    18,965       18,789       18,872       18,705  

 

 
 

 

 

The following table expresses results of operations as a percentage of total revenue for the periods presented, except for restaurant operating costs which are expressed as a percentage of restaurant sales:

 

 

   

Three months ended

   

Twelve months ended

 
   

December 29,
2013

   

December 30,
2012

   

December 29,
2013

   

December 30,
2012

 

Revenue:

                               

Restaurant sales

    93.6 %     93.0 %     93.6 %     92.6 %

Franchising royalties and fees

    6.4       7.0       6.4       7.4  
                                 

Total revenue

    100.0       100.0       100.0       100.0  
                                 

Costs and expenses:

                               

Restaurant operating costs:

                               

Cost of sales

    29.8       32.0       30.7       31.5  

Labor

    30.0       30.2       30.4       30.0  

Operating

    14.8       14.7       14.7       14.7  

Occupancy

    5.7       5.2       5.8       5.6  

Depreciation and amortization

    6.5       6.3       6.7       6.5  

General and administrative

    7.8       7.2       7.6       8.1  

Preopening

    1.5       2.0       1.2       1.4  

Loss on asset disposals and impairment

    0.5       0.4       0.3       0.3  
                                 

Total costs and expenses

    91.3       92.3       92.0       92.1  
                                 

Income from operations

    8.7       7.7       8.0       7.9  

Investment income

    0.0       0.0       0.1       0.1  
                                 

Earnings before income taxes

    8.7       7.7       8.0       8.0  

Income tax expense

    2.6       2.2       2.4       2.5  
                                 

Net earnings

    6.1       5.5       5.6       5.5  

 

 
 

 

  

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

(Dollar amounts in thousands)

 

(unaudited)

 

 

   

December 29,
2013

   

December 30,
2012

 

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 57,502       21,340  

Marketable securities

    7,584       9,579  

Accounts receivable – net of allowance of $25

    21,845       20,203  

Inventory

    9,492       7,820  

Prepaid expenses

    4,509       3,869  

Refundable income taxes

    4,329       4,122  

Deferred income taxes

    9,287       5,774  

Restricted assets

    68,208       52,829  
                 

Total current assets

    182,756       125,536  
                 

Property and equipment, net

    440,538       386,570  

Reacquired franchise rights, net

    33,403       37,370  

Goodwill

    32,533       32,365  

Other assets

    16,498       9,246  
                 

Total assets

  $ 705,728       591,087  

 

Liabilities and Stockholders’ Equity

               

Current liabilities:

               

Unearned franchise fees

  $ 1,818       1,763  

Accounts payable

    31,806       36,418  

Accrued compensation and benefits

    52,049       39,637  

Accrued expenses

    13,784       11,461  

System-wide payables

    67,017       51,564  
                 

Total current liabilities

    166,474       140,843  
                 

Long-term liabilities:

               

Other liabilities

    1,913       1,752  

Deferred income taxes

    37,822       37,128  

Deferred lease credits

    33,711       27,992  
                 

Total liabilities

    239,920       207,715  
                 

Commitments and contingencies

               

Stockholders’ equity:

               

Undesignated stock, 1,000,000 shares authorized; none issued

           

Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,803,663 and 18,623,370, respectively

    133,203       121,450  

Retained earnings

    333,601       262,047  

Accumulated other comprehensive loss

    (996 )     (125 )
                 

Total stockholders’ equity

    465,808       383,372  
                 

Total liabilities and stockholders’ equity

  $ 705,728       591,087  

 

 
 

 

  

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Dollar amounts in thousands)

 

(unaudited)

 

 

   

Twelve months ended

 
   

December 29,
2013

   

December 30,
2012

 

Cash flows from operating activities:

               

Net earnings

  $ 71,554       57,275  

Adjustments to reconcile net earnings to cash provided by operations:

               

Depreciation

    79,881       64,154  

Amortization

    5,097       3,308  

Loss on asset disposals and impairment

    3,253       2,883  

Deferred lease credits

    5,247       4,322  

Deferred income taxes

    (2,209 )     (835 )

Stock-based compensation

    11,496       8,119  

Excess tax benefit from stock issuance

    (5,471 )     (4,151 )

Change in operating assets and liabilities:

               

Trading securities

    (1,287 )     (992 )

Accounts receivable

    (2,012 )     (11,797 )

Inventory

    (1,581 )     (1,088 )

Prepaid expenses

    (647 )     (46 )

Other assets

    (1,218 )     (2,071 )

Unearned franchise fees

    55       (89 )

Accounts payable

    (1,467 )     3,172  

Income taxes

    5,264       7,590  

Accrued expenses

    13,405       15,434  
                 

Net cash provided by operating activities

    179,360       145,188  
                 

Cash flows for investing activities:

               

Acquisition of property and equipment

    (138,735 )     (130,542 )

Acquisition of businesses/investments in affiliates

    (10,288 )     (43,580 )

Purchase of marketable securities

          (132,140 )

Proceeds from marketable securities

    3,282       163,509  
                 

Net cash used in investing activities

    (145,741 )     (142,753 )
                 

Cash flows for financing activities:

               

Proceeds from line of credit

    5,000        

Repayments of line of credit

    (5,000 )      

Issuance of common stock

    2,514       2,783  

Excess tax benefit from stock issuance

    5,471       4,151  

Tax payments for restricted stock units

    (4,946 )     (8,522 )
                 

Net cash provided by (used in) financing activities

    3,039       (1,588 )
                 

Effect of exchange rate changes on cash and cash equivalents

    (496 )     (37 )
                 
                 

Net increase in cash and cash equivalents

    36,162       810  
                 

Cash and cash equivalents at beginning of year

    21,340       20,530  
                 

Cash and cash equivalents at end of year

  $ 57,502       21,340  

 

 
 

 

 

 

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

 

 

 

Restaurant Count

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

2013

397

407

415

434

2012

327

330

343

381

2011

263

277

288

319

2010

235

234

244

259

2009

206

215

220

232

 

Franchised Restaurants:

 

 

Q1

Q2

Q3

Q4

2013

514

525

534

559

2012

505

505

511

510

2011

488

492

498

498

2010

430

447

457

473

2009

373

383

400

420

 

 

Same-Store Sales

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

1.4%

3.8%

4.8%

5.2%

3.9%

2012

9.2%

5.3%

6.2%

5.8%

6.6%

2011

3.9%

5.9%

5.7%

8.9%

6.1%

2010

0.1%

(0.1%)

2.6%

(0.3%)

0.6%

2009

6.4%

2.8%

0.8%

2.6%

3.1%

 

Franchised Restaurants: 

 

 

Q1

Q2

Q3

Q4

Year

2013

2.2%

4.1%

3.9%

3.1%

3.3%

2012

7.3%

5.5%

5.8%

7.4%

6.5%

2011

1.6%

2.7%

4.2%

5.9%

3.6%

2010

0.7%

(0.7%)

0.3%

(1.1%)

(0.2%)

2009

6.0%

3.7%

1.9%

2.0%

3.4%

 

 
 

 

  

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information 

 

 

Average Weekly Sales Volumes

 

Company-owned Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

$56,953

54,759

55,592

58,204

56,392

2012

55,131

51,524

52,561

55,595

53,783

2011

48,845

47,970

49,461

51,983

49,627

2010

45,327

43,021

44,394

45,595

44,601

2009

45,593

42,938

42,602

44,583

43,912

 

Franchised Restaurants:

 

 

Q1

Q2

Q3

Q4

Year

2013

$60,050

58,186

58,926

61,167

59,594

2012

57,282

54,766

55,608

58,490

56,570

2011

52,744

50,995

51,350

53,385

52,081

2010

51,532

49,051

49,005

49,837

49,835

2009

50,729

48,619

48,458

50,115

49,479