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Sally Smith, Buffalo Wild Wings CEO and president, on why football season is so profitable for the restaurants and why overtime helps drive revenue up...
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They'll -- is good -- restaurants like Buffalo Wild Wings these quarterbacks on your screen of the other stuff your face is going sideways.
We got after a lot and you've got RG three Tom Brady got traffic banning.
Glimpse of the wild -- CEO and president Sally Smith this is your Super Bowl -- -- according to do was look.
At the February -- the past two years and you have double digit percentage moves in the stock.
Two years in a row here and and so will it be a third -- effect make it gets right now.
Well I'd like to think so I know one thing that will set a record for.
The number of Wednesday evening -- seven point seven million -- but this year with -- hundred mart locations.
I guess -- -- -- eight million mark.
Okay that that is.
That's a good thought I had I -- -- you're absolutely probably right now this little bit of a pullback in the past three months of the stock but maybe that's sort of waiting for that big move because we started to turn up today your having a nice move as well but let's talk about the football season.
-- just probably look very deeply into this it might be a little bit of tea leaf reading but it do certain teens who get to the playoffs -- certainty to get to the final.
Game does that make a difference on how many wings are eaten.
-- benefit makes a difference on the number of -- I sit I think a close game definitely makes a difference -- and of course we love over -- and everything and I go into overtime.
Our extra innings or anything like that.
That as a good forecast authorities aren't -- that you know what to that and do you start to get more orders.
As a game goes into overtime -- the phones are ringing off the hook.
Well that what ends up happening -- guests stay longer in restaurants.
And they'll think OK there is time for more -- or another beverage a -- something else on our menu.
So they stay in restaurant even longer other or they'll say oh.
I have time to order something to take home as soon as games over we have so it really we have a bunch of your wings right here I've wanted to tell you -- -- -- what's your best seller.
You know the favorite shots the -- is such as honey Barbeque.
In fact -- and I hope you have some honey Barbeque aren't here.
Yeah it's it's really it's got a great flavor I had the chance to speak with a lot of -- telling -- in the ball -- -- my my producers -- -- each one lives on but you know I have that I won't be able to talk at the moment believe -- I'm -- well you can enjoy -- when this is done at the next commercial break here's what what some people look at and that is that 22 -- there's the other spending my floor director which one did you get.
-- -- Up that's what -- percent of your floated shorted allure that has to do when we talk to analysts with the fact that it's very hard to hedge.
Chicken and at ten -- chicken either their parts of chicken the could be -- but not the -- You know.
Eight year right -- we serve a fresh traditional bone in type -- so not present so we don't buy an advanced.
-- buy based on the last month's price.
But this is something we've been doing for thirty years at this floating with the market and -- as we look back.
It's always been better forced to float.
Yes the traditional -- make up about 20% of our total sales so we do have some fluctuation on our cost of sales.
But there's a lot of things we do in restaurants and -- at the home office that helps alleviate that helps us manage.
That we can't control when prices but there are a lot of things we can control arm in arm where we spend our market -- If for example even menu development tighter we how to incorporate our sauces.
And -- seasonings that you and another -- -- menu items.
We introduced boneless wings about a decade ago and it now also accounts for about 20% boneless wings we do contract on an annual -- That's that's amazing you can you can actually hedge certain parts of the chicken but not not others.
-- -- I plot points.
With our -- but chicken prices have gone up good percentage about 40% over the past five years so I look at that must say all right you have other headwinds.
Health care for example of restaurant company is certainly we talked to many of them and they -- say look when your you've got a lot of employees like that.
You wanna do the right thing and cover them but it's getting expensive is that not tell me what you'll be doing to make sure that you can cover.
The expenses now that we have the health care -- Sure -- of the things that we're looking that is.
As -- the regulations are coming out taking a look we offer help health care coverage for our full time employee or employees.
The interesting thing about the industry and I think one of the advantages is.
We employ we we create jobs and we employ a lot of people who want just a part time job.
They may be in school they may be -- working for the summer they may be.
New and and in transition -- that they want flexible hours for those employees.
And they often don't want health care.
It we have we offer a plan for -- part time people as well -- -- and I wish more people participated and it.
Will have to see now since it's going to be required.
How many people would choose an exchange or -- -- to allow -- but it's something we're looking carefully.
Again -- will develop our plan and Dubai is how we're going to offer benefits.
Again I think it's a competitive advantage for those companies that do offer benefits.
To retain some of their great people and that's something -- done and we'll continue to do well.
The stock's up 12% over the past year and and like I said Buffalo Wild Wings rose 30% last February super -- months.
And 21%.
Set in February 2011 -- -- Sally thank you have a great season.
List thank you so much anytime Sally Smith buffalo -- CEO president -- commercial break ultimately commercial break.
