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Buffalo Wild Wings CEO on Earnings

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  • Description

    Buffalo Wild Wings CEO Sally Smith talks business.

  • Duration 3:48
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Rising costs.

And that -- consumer are no challenge for Buffalo Wild -- the company -- first quarter profit beating estimates rising 22%.

How the company can -- this or let's put that question to Sally Smith this CEO of Buffalo Wild Wings thank you so much for joining us Sally it's great to have you.

Think you know it's nice to be here aren't so is a terrific quarter up 22% terms.

Of of growth what are you expecting can you maintain that growth rate.

You know we do think we can we rid of reiterated that in our earnings release on Tuesday -- We've stated that our goal was 20% for the year.

And I think our -- on revenue of 37%.

Plus.

Really helps us continue to offset.

The high wind costs which -- and are at historical highs.

And still allowing us to deliver on what we set for expectations for 2012.

A -- company owned same store sales for the first quarter of impressive as well nine point 2% but just for the first couple weeks here's you know you guys but -- -- -- your earnings as well.

Yeah a little bit -- is 6% level so how we can make that margin -- Well I think it.

Couple of things that it's important to point out about the first quarter we were killed in the first six months and even the first two months of -- first to six weeks into months.

The quarter of strong gift card redemptions we had a phenomenal sales.

Throughout the holidays and that really helped propel we attribute two to 3% of our same store sales.

So we're pretty much on par with where we've ban on same store sales as we're going into the second quarter.

A little higher comparisons to last year but we think we have great momentum with our gas we offer a great valeo.

And sports.

-- we've got a few things winding down but.

Certainly the kick off Major League Baseball we're going into of course tonight NFL draft so we expect our restaurants to be filled.

With football fans of course hockey playoffs and done NBA basketball playoffs this year.

You -- headwinds you are facing -- -- significant ones in the form of higher commodity crack costs.

You know fuel prices are so much higher also the cost of chicken.

Is on the rise mean you have competitors like to Paul take -- gobbling up the supply how are you hedging that.

You know we have -- On the chicken when markets for thirty years so we buy and the stock market we know what we're going to be their costs is going to be for the future months.

And it's always been better for us in the long term to float.

Luckily the -- now make up -- smaller percentage of our total sales -- used to represent about 40% of sales today they're 19%.

So.

I think we've broadened our menu and give great -- still a great compelling reason.

To select things besides -- Besides -- is interesting to pick up on that line of discussion -- because Deutsche Bank as you know has a buy rating on.

You're restaurants.

And they -- -- really impressed with your ability to raise prices especially on wings obviously without driving customers away.

-- continue to do that.

You know we just did announce that we -- taking our promotional -- Tuesday witches are.

Chicken -- -- Up by five cents we have not taken a price increase on that category for several years.

It's very nominal I think we still.

Represent a tremendous value for that -- On what we -- what we -- so they come not only for the food but they come for.

Watching sports playing trivia hanging out with friends and family and I think we have a lot of alternatives.

And still provide that compelling value even with a slight price increase.

All right Sally Smith of Buffalo Wild -- -- CEO so much appreciate your time.

Think -- some.

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