B-Dubs' CEO Weighs In On The Fowl Foul Of Missing Street Estimates
Restaurant operator Buffalo Wild Wings (NASDAQ: BWLD) posted worse-than-expected first quarter results recently, causing its shares to fall more than 10 percent on Wednesday.
EPS for the quarter came in at $1.52 on revenue of $40.6 million, compared with EPS of $1.49 on revenue of $367.9 million reported same quarter last year.
Sally Smith, Buffalo Wild Wings CEO, was on CNBC Thursday to discuss the company's earnings miss and how higher cost of food products is impacting the company's margins.
Street Didn't Factor In Same-Store Sales
"We had a great, phenomenal January," Smith said. "I think, our same-store sales were up 11 plus percent.
"The Street consensus had us a little bit higher [...] but we felt we were, I mean, from our internal projections, we were right where we thought we would be. So that would have been where the sales miss was."
On how the Street didn't factor this in, Smith said, "I think the whole industry had really strong February sales, and I think they extrapolated that. You had a number of companies missing consensus on same-store sales for the quarter."
Wings Prices Don't Follow Normal Markets
On the higher costs of wings the company had to bear in the quarter, Smith said, "We had guided, actually, on cost of sales for wings costs; we knew they were going to be high, and we expect them to moderate throughout the year.
"They don't follow the normal market. So, they typically rise throughout football season and into March Madness, then they start levelling off," Smith explained.
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