Buffalo Wild Wings' sales not so hot
It looks like the chickens are coming home to roost for Buffalo Wild Wings. After two years of rapid growth, Minnesota's high-flying casual dining company warned investors this week that its first-quarter sales were flat compared to the previous quarter, and April's numbers would be even worse, the Star Tribune reports.
Even so, the numbers masked some good news for St. Louis Park's BWW. Though quarter-to-quarter sales barely budged, the company's profits were up more than 20 percent compared to the same time last year--even in the midst of a serious recession.
BWW's warning, though, led investors to punish the stock, which fell 17 percent yesterday to $42 a share on the news that first-quarter sales rose just .1 percent and .7 percent, respectively, at company-owned stores and franchises. April will see a 3.7 and 2.4 percent drop in company-store and franchise sales, the company said.
In a way, that may be good news for wings fans. The company's CEO, Sally Smith, told the Strib that BWW may try to boost sales by lowering beer prices and offering $3 appetizers late at night.