Beer and wings may not be the sport enthusiast’s choice of food and beverage these days given the sharp drop Buffalo Wild Wings (NASDAQ: BWLD) has seen in recent weeks.
The company’s earnings report back in April were a hit and miss. Earnings of $1.73 per share came in short of the $1.78 that investors had expected. Revenue of $508.30 million for the quarter also came in short compared to analyst estimates of $533.14 million.
Despite all this, the business’s revenue for the quarter was still up 15.4% on a year-over-year basis and the chain earned $1.52 earnings per share during the same period in the previous year.
Although the number of Buffalo Wild Wings restaurants have also increased by almost 100 in the first quarter, comparable-store sales dropped 1.7 percent. “There is a price-sensitive consumer out there right now,” Buffalo Wild Wings Chief Operating Officer James Schmidt said on a conference call.
Growth for sit-down restaurant chains in general have slowed this year compared to the last two years. Research IBISWorld Inc. has reported that sales are expected to rise just 1.7 percent this year, after gaining 2.9 percent in 2015 and 5.1 percent the year before.
It may just be a matter of time that people start craving wings again considering the broader look at the company’s long-term earnings performance. Buffalo Wild Wings has turned in average earnings growth of almost 26% over the past 10 years, a number that is much higher than the market average.
Disclaimer: We have no position in Buffalo Wild Wings (NASDAQ: BWLD) and have not been compensated for this article.