Research Desk Line-up: Carrols Restaurant Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Buffalo Wild Wings, Inc. (NASDAQ: BWLD), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=BWLD, following the Company's announcement of its third quarter fiscal 2017 operating results on October 25, 2017. The restaurant chain's revenues edged up on a y-o-y basis. The Company also provided guidance for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected Carrols Restaurant Group, Inc. (NASDAQ: TAST) for due-diligence and potential coverage as the Company announced on November 08, 2017, its financial results for Q3 2017 which ended on October 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on Carrols Restaurant when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BWLD; also brushing on TAST. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=BWLD
http://protraderdaily.com/optin/'symbol=TAST
Earnings Reviewed
Buffalo Wild Wings' total revenues inched up 0.5% to $496.7 million in Q3 2017 compared to $494.2 million in Q3 2016. The Company's revenue numbers fell short of analysts' estimates of $501 million.
During Q3 2017, Buffalo Wild Wings' income from operations was $28.4 million, or 5.7% of total revenue, compared to $32.8 million, or 6.6% of total revenue, in Q3 2016. The Company's adjusted income from operations was $32.5 million, or 6.6% of total revenue, in the reported quarter compared to $34.4 million, or 7.0% of total revenue, in the year-ago same period.
Buffalo Wild Wings' net earnings decreased 19.7% to $18.2 million in Q3 2017 compared to $22.7 million in Q3 2016. The Company's earnings per diluted share were $1.17 in Q3 2017 versus $1.23 in the year-ago comparable period. Buffalo Wild Wings' adjusted earnings per diluted share were $1.36 for Q3 2017 compared to $1.29 in Q3 2016, and were way ahead of Wall Street's forecasts of $0.79 per share.
Operating Results
Buffalo Wild Wings' Company-owned restaurant sales grew 0.5% to $473.0 million on a y-o-y basis for Q3 2017, driven by 21 additional Company-owned restaurants. Buffalo Wild Wings' franchise royalties and fees increased 1.0% to $23.7 million on a y-o-y basis for the reported quarter versus $23.5 million in the year-ago corresponding period, driven by 31 additional franchised restaurants.
During Q3 2017, Buffalo Wild Wings' cost of sales was 30.8% of restaurant sales compared to 28.9% in Q3 2016, driven by higher traditional chicken wing prices. Traditional wings were $2.16 per pound in the reported quarter, representing a $0.44 increase, or 25.6%, above the last year's third quarter average of $1.72. Traditional wings as a percentage of cost of sales was 28.8% in Q3 2017.
For Q3 2017, Buffalo Wild Wings' cost of labor totaled 31.4% of restaurant sales, 70 basis points lower than Q3 2016, and driven primarily by 40 basis points of favorable hourly labor, and 50 basis points from an out-of-period benefits adjustment, partially offset by wage inflation.
Buffalo Wild Wings' restaurant operating expenses as a percentage of restaurant sales were 15.2%, 40 basis points lower than Q3 2016, driven by favorable insurance, and repair and maintenance expenses. During Q3 2017, the Company's occupancy costs were 6.0% as a percentage of restaurant sales, 20 basis points higher on a y-o-y basis based on sales deleveraging.
Buffalo Wild Wings' restaurant-level profit was $78.5 million, or 16.6% of restaurant sales, in Q3 2017 compared to $82.8 million, or 17.6% of restaurant sales, in Q3 2016.
Balance Sheet
As of September 30, 2017, Buffalo Wild Wings' cash totaled $30.7 million. The Company's revolving credit facility had an outstanding balance of $385 million as of the end of the quarter.
During Q3 2017, Buffalo Wild Wings' cash flow from operations was $43.2 million, reflecting a 33.1% drop on a y-o-y basis. The Company's capital expenditure was $25.0 million in the reported quarter compared to $47.2 million in the prior year's same quarter. Buffalo Wild Wings' free cash flow was $18.2 million in Q3 2017 compared to $17.3 million in Q3 2016.
2017 Outlook
For FY17, the Company is forecasting to open 14 Company-owned Buffalo Wild Wings restaurants in the United States, 5 of which to be opened in Q4 2017. The Company is expecting 15 franchised Buffalo Wild Wings locations in the United States, with 3 in the upcoming quarter; and 20 franchised Buffalo Wild Wings locations internationally, with 10 in Q4 2017.
For FY17, Buffalo Wild Wings is forecasting same-store sales growth of approximately -1.5%. The Company is expecting traditional chicken wing inflation of 10% to 11%, and is estimating earnings per diluted share in the range of $4.30 to $4.60, and adjusted earnings per diluted share in the band of $4.85 to $5.15.
Stock Performance
On Friday, November 17, 2017, the stock closed the trading session at $138.25, declining 1.88% from its previous closing price of $140.90. A total volume of 378.15 thousand shares have exchanged hands. Buffalo Wild Wings' stock price surged 26.66% in the last one month and 28.07% in the past three months. The stock is trading at a PE ratio of 36.04 and currently has a market cap of $2.19 billion.
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