* Q2 EPS $0.62 vs est $0.68
* Q2 rev $238.7 mln vs est $240.2 mln
* Shares fall 15 pct after market
July 24 U.S. casual dining chain Buffalo Wild
Wings Inc's second-quarter results fell short of Wall
Street estimates as menu-price increases failed to offset rising
costs of chicken wings.
The company's shares were down 15 percent in after-market
The company plans another round of price increase in
September as the bar and grill chain expects chicken wing costs
to be higher in the current quarter, compared with the second
quarter. For the quarter ended June 24, wing costs had doubled,
Buffalo Wild Wings has been struggling to protect margins
through price increases and cost cuts at its restaurants as
costs of chicken wings continue to climb.
Chief Executive Sally Smith in a statement on Tuesday said
the restaurant industry, among other industries in the United
States, was facing rising commodity costs.
Chicken wing costs were pushed up further by a recent
increase in feed costs such as corn.
A lethargic U.S. recovery has also cooled sales growth at
Restaurant chains such as Chipotle Mexican Grill Inc
and McDonald's Corp reported disappointing quarters and
flagged concerns regarding cutbacks on discretionary spending.
Buffalo Wild Wings, which has also been opening new
restaurants and acquiring franchise restaurants to boost sales,
reported an increase in same-store sales of 5.3 percent at
company-owned restaurants and 5.5 percent at franchised
Second-quarter profit rose to $11.7 million, or 62 cents per
share, from $10.7 million, or 58 cents per share, a year
Sales at the company, which operates 835 sports-themed
restaurants in the United States and Canada, rose 29.7 percent
to $238.7 million.
Analysts on average had expected earnings of 68 cents per
share on revenue of $240.2 million, according to Thomson Reuters
The company was founded by Jim Disbrow and Scott Lowery who
decided to open a restaurants to satisfy their craving for
Buffalo, New York-style chicken wings.
The company's shares, which have risen about 26 percent this
year, closed at $78.90 on Tuesday on the Nasdaq.