Buffalo Wild Wings, Inc. Announces Second Quarter Earnings Per Share of $0.62 and Quarterly Net Earnings Growth of 9.3%

Buffalo Wild Wings, Inc. Announces Second Quarter Earnings Per Share of $0.62
and Quarterly Net Earnings Growth of 9.3%

MINNEAPOLIS, July 24, 2012 (GLOBE NEWSWIRE) -- Buffalo Wild Wings, Inc.
(Nasdaq:BWLD), announced today financial results for the second quarter ended
June 24, 2012. Highlights for the second quarter versus the same period a year
ago were:

  *Total revenue increased 29.7% to $238.7 million
  *Company-owned restaurant sales grew 31.4% to $220.6 million
  *Same-store sales increased 5.3% at company-owned restaurants and 5.5% at
    franchised restaurants
  *Net earnings increased 9.3% to $11.7 million from $10.7 million, and
    earnings per diluted share increased 6.9% to $0.62 from $0.58

Sally Smith,President and Chief Executive Officer, commented, "We are very
pleased with our strong sales and our ongoing ability to drive revenue
increases. We continue to outpace the casual dining category with same-store
sales increases of 5.3% at company-owned restaurants and 5.5% at franchised
locations for the second quarter. The combination of strong same-store sales,
new restaurant performance, and franchised restaurants acquired in 2011 fueled
our substantial revenue increase of nearly 30%. We managed controllable costs,
but the higher year-over-year wing costs in the second quarter moderated our
net earnings to a 9.3% increase over the same quarter last year, providing
earnings per diluted share of $0.62 compared to $0.58 a year ago."

Total revenue increased 29.7% to $238.7 million in the second quarter compared
to $184.1 million in the second quarter of 2011. Company-owned restaurant
sales for the quarter increased 31.4% over the same period in 2011, to $220.6
million, driven by a company-owned same-store sales increase of 5.3% and 53
additional company-owned restaurants at the end of second quarter 2012
relative to the same period in 2011. Franchise royalties and fees increased
12.1% to $18.2 million for the quarter versus $16.2 million in the second
quarter of 2011. This increase is attributed to a franchise same-store sales
increase of 5.5% and 13 additional franchised restaurants at the end of the
period versus a year ago.

Average weekly sales for company-owned restaurants were $51,524 for the second
quarter of 2012 compared to $47,970 for the same quarter last year, a 7.4%
increase. Franchised restaurants averaged $54,766 for the period versus
$50,995 in the second quarter a year ago, also a 7.4% increase.

For the second quarter, net earnings increased 9.3% to $11.7 million versus
$10.7 million in the second quarter of 2011. Earnings per diluted share were
$0.62, as compared to second quarter 2011 earnings per diluted share of $0.58.

2012 Outlook

Ms. Smith remarked, "We have exciting things happening in the second half of
2012 and are pleased that our same-store sales remain strong, at 6.8% at
company-owned restaurants and 7.3% at franchised locations for the first four
weeks of the third quarter. We plan to open more than 70 new company-owned and
franchised locations before the end of the year, and we intend to purchase
nine Buffalo Wild Wings franchised locations this quarter. We are building
more locations in Canada, including our first location in the Calgary, Alberta
market, and we are pleased to announce we have signed two new international
franchising agreements. We have an agreement for up to 22 locations across six
countries in the Middle East over the next six years, and another agreement
for four locations in Puerto Rico in the next four years."

Ms. Smith continued, "We are gearing up for football season, an exciting time
of year for us. Yesterday, we announced we have become the title sponsor of a
longstanding college bowl game to be played on December 29^th in Tempe,
Arizona that will now be titled the Buffalo Wild Wings Bowl. We plan to make
this a bowl game for football fans across the country and will bring the
Buffalo Wild Wings experience to this exciting game for Big Ten and Big Twelve
teams.

"Our focus for the remainder of the year is on driving strong sales and
disciplined expense management. Like industries across the country, we are
facing rising commodity costs. We are responding to the challenge with menu
price increases and marketing and operations strategies that will help lessen
the bottom-line impact of wings in the near future and long term. Considering
these factors, and provided sales remain strong, we should achieve net
earnings growth between 15% and 20% for 2012."

Ms. Smith concluded, "As we look ahead, we are excited about the strategies we
have set in motion to evolve our brand to ensure we remain compelling to our
Guests in the future. In addition to our updated logo, we have begun
construction of restaurants that incorporate our new facility design. We are
building a technology foundation for a pipeline of new initiatives to engage
our Guests with unique and interactive platforms that will ensure Buffalo Wild
Wings remains the preferred destination for a great sports-viewing experience.
Fans across North America continue to embrace our growing brand and we look
forward to sharing it across the globe."

Buffalo Wild Wings will be hosting a conference call today, July 24, 2012 at
4:00 p.m. Central Daylight Time to discuss these results. There will be a
simultaneous webcast conducted at our website www.buffalowildwings.com.

A replay of the call will be available until July 31, 2012. To access this
replay, please dial 1.858.384.5517 password 4551930.

About the Company

Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis,
Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings
Grill & Bar^™ restaurants featuring a variety of boldly-flavored,
made-to-order menu items including its namesake Buffalo, New York-style
chicken wings. The Buffalo Wild Wings' menu specializes in eighteen
mouth-watering signature sauces and seasonings with flavor sensations ranging
from Sweet BBQ^™ to Blazin'^®. Guests enjoy a welcoming neighborhood
atmosphere that includes an extensive multi-media system for watching their
favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of
"Best Wings" and "Best Sports Bar" awards from across the country. There are
currently 837 Buffalo Wild Wings locations across 48 states in the United
States, as well as in Canada.

Forward-looking Statements

Various remarks we make about future expectations, plans, and prospects for
the company constitute forward-looking statements for purposes of the Safe
Harbor provisions under the Private Securities Litigation Reform Act of 1995.
These statements relate to our future financial and store performance measures
and growth goals for 2012 and beyond, including but not limited to those
relating to our second quarter sales trends and projected unit and net
earnings growth rates for 2012 and beyond. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements and are based upon the current beliefs and
expectations of our management. We have attempted to identify forward-looking
statements by terminology, including "anticipates," "believes," "can,"
"continue," "could," "estimates," "expects," "intends," "may," "plans,"
"potential," "predicts," "should" or "will" or the negative of these terms or
other comparable terminology. Actual results may vary materially from those
contained in forward-looking statements based on a number of factors,
including, but not limited to, our ability to achieve and manage our planned
expansion, the ability of our franchisees to open and manage new restaurants,
market acceptance in the new geographic regions we enter (particularly
non-U.S. locations), unforeseen obstacles in developing nontraditional sites
or non-U.S. locations, our ability to obtain and maintain licenses and permits
necessary to operate our existing and new restaurants, our franchisees'
adherence to our practices, policies and procedures, the cost of commodities
such as traditional chicken wings, the success of our key initiatives and our
advertising and marketing campaigns, our ability to control restaurant labor
and other restaurant operating costs, the continued service of key management
personnel, our ability to protect our name and logo and other proprietary
information, economic conditions (including changes in consumer preferences or
consumer discretionary spending), the impact of federal, state or local
government regulations relating to our employees, the sale of food and
alcoholic beverages, the effect of competition in the restaurant industry, and
other factors disclosed from time to time in our filings with the U.S.
Securities and Exchange Commission, including the factors described under
"Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the
fiscal year ended December 25, 2011, as updated in subsequent reports filed
with the SEC. Investors should take such risks into account when making
investment decisions. Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date on which they are made. We undertake no obligation to update any
forward-looking statements.

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollar and share amounts in thousands except per share data)
(unaudited)
                                                          
                                      Three months ended Six months ended
                                      June 24,   June 26,  June 24,  June 26,
                                       2012       2011      2012      2011
Revenue:                                                          
Restaurant sales                      $220,550  167,896  452,866  333,423
Franchise royalties and fees          18,173    16,205   36,979   32,828
Total revenue                         238,723   184,101  489,845  366,251
                                                                  
Costs and expenses:                                               
Restaurant operating costs:                                       
Cost of sales                         69,799    45,735   141,950  91,999
Labor                                 66,638    51,309   134,906  100,187
Operating                             32,349    25,048   65,146   49,597
Occupancy                             13,091    10,659   25,891   20,886
Depreciation and amortization         16,090    11,931   31,621   22,953
General and administrative            20,976    18,766   40,400   35,058
Preopening                            1,536     4,116    4,127    6,503
Loss on asset disposals and store      597       492      1,334    903
closures
Total costs and expenses              221,076   168,056  445,375  328,086
                                                                  
Income from operations                17,647    16,045   44,470   38,165
Investment income (loss)              (115)     (152)    295      204
                                                                  
Earnings before income taxes          17,532    15,893   44,765   38,369
Income tax expense                    5,870     5,220    14,858   12,835
                                                                  
Net earnings                          $11,662   10,673   29,907   25,534
                                                                  
Earnings per common share – basic     $0.63     0.58     1.61     1.39
Earnings per common share – diluted   0.62      0.58     1.60     1.39
Weighted average shares outstanding –  18,575    18,330   18,565   18,318
basic
Weighted average shares outstanding –  18,660    18,401   18,650   18,389
diluted

The following table expresses results of operations as a percentage of total
revenue for the periods presented, except for restaurant operating costs which
are expressed as a percentage of restaurant sales:

                                                                         
                                       Three monthsended Six monthsended
                                       June 24,  June 26, June 24, June 26,
                                        2012      2011     2012     2011
Revenue:                                                                  
Restaurant sales                        92.4%    91.2%    92.5%   91.0%
Franchising royalties and fees          7.6      8.8      7.5     9.0
Total revenue                           100.0     100.0    100.0    100.0
                                                                         
Costs and expenses:                                                       
Restaurant operating costs:                                               
Cost of sales                           31.6     27.2     31.3    27.6
Labor                                   30.2     30.6    29.8    30.0
Operating                               14.7     14.9     14.4    14.9
Occupancy                               5.9      6.3      5.7     6.3
Depreciation and amortization           6.7      6.5      6.5     6.3
General and administrative              8.8      10.2     8.2     9.6
Preopening                              0.6      2.2      0.8     1.8
Loss on asset disposals and store       0.3      0.3      0.3     0.2
closures
Total costs and expenses                92.6     91.3     90.9    89.6
                                                                         
Income from operations                  7.4      8.7      9.1     10.4
Investment income (loss)                0.0       (0.1)    0.1     0.1
                                                                         
Earnings before income taxes            7.3      8.6      9.1     10.5
Income tax expense                      2.5      2.8      3.0     3.5
                                                                         
Net earnings                            4.9      5.8      6.1     7.0
                                                                         

                                      

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
(unaudited)
                                                                
                                                        June 24, December 25,
                                                         2012     2011
                                                                
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                                $23,247  20,530
Marketable securities                                    52,985   39,956
Accounts receivable – net of allowance of $25            14,390   12,165
Inventory                                                6,022    6,311
Prepaid expenses                                         2,617    3,707
Refundable income taxes                                  1,600    7,561
Deferred income taxes                                    6,963    6,323
Restricted assets                                        30,751   42,692
Total current assets                                     138,575  139,245
                                                                
Property and equipment, net                              321,440  310,170
Other assets                                             27,903   28,174
Goodwill                                                 17,777   17,770
Total assets                                             $505,695 495,359
                                                                
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Unearned franchise fees                                  $1,807   1,852
Accounts payable                                         28,299   30,089
Accrued compensation and benefits                        23,151   30,499
Accrued expenses                                         8,750    7,580
System-wide payables                                     30,861   44,250
Total current liabilities                                92,868   114,270
                                                                
Long-term liabilities:                                           
Other liabilities                                        1,631    1,544
Deferred income taxes                                    36,907   38,512
Deferred lease credits, net of current portion           23,868   23,047
Total liabilities                                        155,274  177,373
                                                                
Commitments and contingencies                                    
Stockholders' equity:                                            
Undesignated stock, 1,000,000 shares authorized; none    —      —
issued
Common stock, no par value. Authorized 44,000,000
shares; issued and outstanding 18,587,152 and 18,377,920 116,215  113,509
respectively
Retained earnings                                        234,679  204,772
Accumulated other comprehensive loss                     (473)   (295)
                                                                
Total stockholders' equity                               350,421  317,986
                                                                
Total liabilities and stockholders' equity               $505,695 495,359



BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(unaudited)
                                                                   
                                                                   
                                                          Six months ended
                                                          June 24,  June 26,
                                                           2012      2011
                                                                   
Cash flows from operating activities:                              
Net earnings                                              $29,907   25,534
Adjustments to reconcile net earnings to cash provided by           
operations:
Depreciation                                              30,267    22,574
Amortization                                              1,354    379
Loss on asset disposals and store closures                1,143    904
Deferred lease credits                                    1,618    1,568
Deferred income taxes                                     (2,245)  4,795
Stock-based compensation                                  3,919    5,952
Excess tax benefit from stock issuance                    (289)    (211)
Change in operating assets and liabilities:                        
Trading securities                                        (534)    (246)
Accounts receivable                                       (4,484)  (2,643)
Inventory                                                 281      (186)
Prepaid expenses                                          1,090    1,077
Other assets                                              (1,084)  (1,534)
Unearned franchise fees                                   (45)     (60)
Accounts payable                                          (177)    4,072
Income taxes                                              6,250    5,743
Accrued expenses                                          (234)    2,525
Net cash provided by operating activities                 66,737   70,243
                                                                   
Cash flows for investing activities:                               
Acquisition of property and equipment                     (44,438) (55,159)
Purchase of marketable securities                         (52,493) (54,790)
Proceeds of marketable securities                         39,998   63,597
Net cash used in investing activities                     (56,933) (46,352)
                                                                   
Cash flows for financing activities:                               
Issuance of common stock                                  1,117    867
Tax payments for restricted stock units                   (8,447)  (2,481)
Excess tax benefit from stock issuance                     289      211
Net cash used in financing activities                     (7,041)  (1,403)
Effect of exchange rate changes on cash and cash           (46)     39
equivalents
                                                                   
Net increase in cash and cash equivalents                 2,717    22,527
Cash and cash equivalents at beginning of period          20,530   15,309
Cash and cash equivalents at end of period                $23,247   37,836

                                         
                                         
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES 
Supplemental Information                  
                                     
Restaurant Count                          
Company-owned Restaurants:                
      Q1        Q2       Q3      Q4      
2012   327       330                    
2011   263       277      288     319     
2010   235       234      244     259     
2009   206       215      220     232     
2008   165       169      187     197     
                                     
Franchised Restaurants:                   
      Q1        Q2       Q3      Q4      
2012   505       505                    
2011   488       492      498     498     
2010   430       447      457     473     
2009   373       383      400     420     
2008   340       346      348     363     
                                     
                                     
Same-Store Sales
Company-owned Restaurants:
      Q1        Q2       Q3      Q4      Year
2012   9.2%      5.3%                   
2011   3.9%      5.9%     5.7%    8.9%    6.1%
2010   0.1%      (0.1%)   2.6%    (0.3%)  0.6%
2009   6.4%      2.8%     0.8%    2.6%    3.1%
2008   4.1%      8.3%     6.8%    4.5%    5.9%
                                     
Franchised Restaurants:
      Q1        Q2       Q3      Q4      Year
2012   7.3%      5.5%                   
2011   1.6%      2.7%     4.2%    5.9%    3.6%
2010   0.7%      (0.7%)   0.3%    (1.1%)  (0.2%)
2009   6.0%      3.7%     1.9%    2.0%    3.4%
2008   2.1%      4.5%     2.1%    2.5%    2.8%
                                     
                                     
                                     
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information
                                     
Average Weekly Sales Volumes
                                     
Company-owned Restaurants:
      Q1        Q2       Q3      Q4      Year
2012   $55,131   51,524                 
2011   48,845    47,970   49,461  51,983  49,627
2010   45,327    43,021   44,394  45,595  44,601
2009   45,593    42,938   42,602  44,583  43,912
2008   41,438    40,572   42,400  43,864  42,141
                                     
Franchised Restaurants:
      Q1        Q2       Q3      Q4      Year
2012   $57,282   54,766                 
2011   52,744    50,995   51,350  53,385  52,081
2010   51,532    49,051   49,005  49,837  49,835
2009   50,729    48,619   48,458  50,115  49,479
2008   47,812    46,390   46,889  48,424  47,382

CONTACT: Investor Relations Contact:
         Mary Twinem, CFO
         952.253.0731
 
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