MINNEAPOLIS (AP) -- Buffalo Wild Wings Inc. said Tuesday that its second-quarter net income jumped 41 percent, boosted by the openings of new stores and lower chicken wing prices.
The results beat Wall Street predictions, but shares slipped in after-hours trading due to weakening sales gains in the current quarter.
The Minneapolis-based restaurant chain earned $16.5 million, or 88 cents per share, for the three months ended June 30. That was up from $11.7 million, or 62 cents per share, in the 2012 second quarter.
Revenue rose 28 percent to $305 million, from $238.7 million last year, as sales at company-owned stores increased 29 percent to $285.4 million.
Analysts, on average, expected a profit of 79 cents per share, on $304.7 million in revenue, according to FactSet.
Buffalo Wild Wings' population of company owned stores jumped by 77, or 23 percent, from a year ago. Revenue at stores open at least a year increased 3.8 percent at company-owned restaurants and 4.1 percent at franchised restaurants.
President and CEO Sally Smith said the company focused on managing its controllable costs and saw the cost of a pound of traditional chicken wings fall from year-ago levels.
Franchise royalties and fees increased 8 percent to $19.6 million.
For the first four weeks of the third quarter, revenue at stores open at least a year rose 1.5 percent at company-owned restaurants and 1.2 percent at franchised restaurants. The company attributed the lackluster growth to one less Ultimate Fighting Championship event compared with a year ago.
Buffalo Wild Wings said it's preparing for upcoming fantasy football draft parties and the start of the professional and college football seasons. It said it remains confident that it will post 17 percent earnings growth for the full year.
Based on the reported $57.3 million in net earnings for 2012, that implies a 2013 forecast for earnings of $67 million. Analysts were expecting full-year net income of $68.2 million, with estimates ranging from $66.2 million to $70.6 million.
Shares of Buffalo Wild Wings fell $2.04, or 2.1 percent, to $94.99 in aftermarket trading. The shares ended the regular session at $97.69, reflecting a 34 percent increase since the start of the year.