Buffalo Wild Wings Shares Plunge After Reporting Worse Than Expected Q4 Earnings

Written by StockNews.com

Buffalo Wild Wings (Nasdaq:BWLD) posted much worse than expected earnings results after the market closed on Tuesday and offered a tepid outlook for 2017, sending its shares plunging in after-hours trading.

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The Minneapolis-based sports bar operator reported Q4 EPS of $0.87, which was a whopping $0.44 worse than the Wall Street consensus estimate of of $1.31. Revenues rose 0.4% from last year to $492.4 million, also missing analysts’ $519.3 million view.

BWLD noted that same-store sales fell 4.0% at company-owned restaurants and 3.9% at franchised restaurants. Same-store sales are a key indicator of a restaurant’s health, since they measure the year-over-year performance of locations open at least 12 months.

Looking ahead, Buffalo Wild Wings forecast full-year 2017 EPS of $5.60 to $6.00, well below Wall Street’s estimate of $6.55. It also expects same-store sales growth of 1% to 2%, with margins improving by 10 to 30 basis points.

The company commented on the weak performance via press release:

“The challenging restaurant environment continued in the fourth quarter and culminated with a difficult December. Our key programs to drive traffic at Buffalo Wild Wings, including FastBreak™ Lunch, Half-Price Wing Tuesdays®, and our Blazin’ Rewards® loyalty program, have driven positive traffic so far in the first quarter.”

Buffalo Wild Wings shares fell $6.55 (-4.37%) in after-hours trading Tuesday. Year-to-date, BWLD had declined -2.98% prior to today’s report, versus a 2.42% rise in the benchmark S&P 500 index during the same period.

BWLD currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #28 of 54 stocks in the Restaurants category.

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