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Buffalo Wild Wings Inc. Reports Operating Results (10-K)

February 21, 2012 | About:

Buffalo Wild Wings Inc. (NASDAQ:BWLD) filed Annual Report for the period ended 2011-12-25.

Buffalo Wld Wng has a market cap of $1.61 billion; its shares were traded at around $86.38 with a P/E ratio of 32.2 and P/S ratio of 2.1. Buffalo Wld Wng had an annual average earning growth of 26.5% over the past 10 years.

Highlight of Business Operations:

Sales at our company-owned restaurants, which represented 91% of total revenue in 2011. Food and nonalcoholic beverages accounted for 76% of restaurant sales. The remaining 24% of restaurant sales was from alcoholic beverages. The menu items with the highest sales volumes are traditional and boneless wings at 20% and 19%, respectively, of total restaurant sales.

Cost of sales increased by $42.4 million, or 26.4%, to $203.3 million in 2011 from $160.9 million in 2010 due primarily to more restaurants being operated in 2011. Cost of sales as a percentage of restaurant sales decreased to 28.3% in 2011 from 29.0% in 2010, primarily due to lower chicken wing prices partially offset by a sales mix shift to appetizers. In 2011, the cost of chicken wings averaged $1.21 per pound which was a 23.4% decrease compared to 2010.

Cost of sales increased by $42.4 million, or 26.4%, to $203.3 million in 2011 from $160.9 million in 2010 due primarily to more restaurants being operated in 2011. Cost of sales as a percentage of restaurant sales decreased to 28.3% in 2011 from 29.0% in 2010, primarily due to lower chicken wing prices partially offset by a sales mix shift to appetizers. In 2011, the cost of chicken wings averaged $1.21 per pound which was a 23.4% decrease compared to 2010.

Cost of sales increased by $13.2 million, or 9.0%, to $160.9 million in 2010 from $147.7 million in 2009 due primarily to more restaurants being operated in 2010. Cost of sales as a percentage of restaurant sales decreased to 29.0% in 2010 from 30.2% in 2009, primarily due to lower chicken wing prices. In 2010, chicken wings averaged $1.58 per pound which was a 7% decrease compared to 2009. Traditional wings decreased to 20.3% of our restaurant sales in 2010 from 20.4% in 2009. However, boneless wings, which are a better margin item than traditional wings, increased to 18.8% or our restaurant sales in 2010 from 18.3% in 2009.

Labor expenses increased by $20.6 million, or 14.1%, to $167.2 million in 2010 from $146.6 million in 2009 due primarily to more restaurants being operated in 2010. Labor expenses as a percentage of restaurant sales increased to 30.1% in 2010 compared to 30.0% in 2009. The increase in labor expenses as a percentage of restaurant sales is primarily due to higher management and hourly labor costs partially offset by lower health insurance costs.

Read the The complete Report

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10qk
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