Buffalo Wild Wings, Inc. Announces Third Quarter Earnings Per Share of $0.57

Buffalo Wild Wings, Inc. Announces Third Quarter Earnings Per Share of $0.57

MINNEAPOLIS, Oct. 23, 2012 (GLOBE NEWSWIRE) -- Buffalo Wild Wings, Inc.
(Nasdaq:BWLD), announced today financial results for the third quarter ended
September 23, 2012. Highlights for the third quarter versus the same period a
year ago were:

  *Total revenue increased 24.8% to $246.9 million
  *Company-owned restaurant sales grew 26.2% to $228.4 million
  *Same-store sales increased 6.2% at company-owned restaurants and 5.8% at
    franchised restaurants
  *Net earnings decreased 5.0% to $10.7 million from $11.3 million, and
    earnings per diluted share decreased 6.6% to $0.57 from $0.61

Sally Smith, President and Chief Executive Officer, commented, "We're pleased
with our strong top-line growth of nearly 25% in the third quarter. We focused
on operational excellence at the restaurant level and our teams delivered
strong same-store sales. In addition, we leveraged on labor, operating, and
occupancy expenses. High cost of sales and incremental preopening expenses
moderated our bottom-line expansion, producing earnings per diluted share of
$0.57 compared to $0.61 in 2011."

Total revenue increased 24.8% to $246.9 million in the third quarter compared
to $197.8 million in the third quarter of 2011. Company-owned restaurant sales
for the quarter increased 26.2% over the same period in 2011, to $228.4
million, driven by a company-owned same-store sales increase of 6.2% and 55
additional company-owned restaurants at the end of third quarter 2012 relative
to the same period in 2011. Franchise royalties and fees increased 10.2% to
$18.4 million for the quarter versus $16.7 million in the third quarter of
2011. This increase is attributed to a franchise same-store sales increase of
5.8% and 13 additional franchised restaurants at the end of the period versus
a year ago.

Average weekly sales for company-owned restaurants were $52,561 for the third
quarter of 2012 compared to $49,461 for the same quarter last year, a 6.3%
increase. Franchised restaurants averaged $55,608 for the period versus
$51,350 in the third quarter a year ago, an 8.3% increase.

For the third quarter, net earnings decreased 5.0% to $10.7 million versus
$11.3 million in the third quarter of 2011. Earnings per diluted share were
$0.57, as compared to third quarter 2011 earnings per diluted share of $0.61.

2012 and 2013 Outlook

Ms. Smith remarked, "With the excitement of football season, the entire
Buffalo Wild Wings team is focused on maximizing sales as we have strong prior
year same-store sales to eclipse during the next two quarters. Same-store
sales are about 3.8% at company-owned restaurants and 5.6% at franchised
locations for the first four weeks of the fourth quarter compared to 6.6% and
5.3%, respectively, for the same period last year. Our unit growth will
continue and we expect to open at least 24 new company-owned and 20 new
franchised restaurants before year end. We completed the purchase of nine
franchised locations and are positioned to acquire an additional nine
locations this quarter. With continued leveraging of expenses and the benefit
of a 53^rd week, we will partially offset the continuing high wing costs and
estimate our net earnings growth for 2012 will be 15%."

Ms. Smith concluded, "We are a vibrant and resilient brand. In 2013, we will
open more than 60 company-owned and 45 franchised restaurants, and should
achieve the 1,000 unit mark by the end of the year. We now anticipate we can
expand to 1,700 locations in North America, with additional growth abroad.
We'll begin to realize the benefit of strategies we've been working on over
the past year. We have an enhanced Guest service strategy along with new
innovations in food, beverage, and technology that will drive revenue. With
this growth and financial diligence, we have a goal for 2013 to achieve 20%
net earnings growth on a 52-week basis."

Buffalo Wild Wings will be hosting a conference call today, October 23, 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 October 30, 2012. To access this
replay, please dial 1.858.384.5517 password 4568234.

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 20 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 more
than 861 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 third 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          Nine months ended
                               September 23, September 25, September September
                              2012          2011          23,       25,
                                                           2012      2011
                                                                 
Revenue:                                                         
Restaurant sales              $228,418      181,036       681,284   514,459
Franchise royalties and fees  18,441        16,727        55,420    49,555
Total revenue                 246,859       197,763       736,704   564,014
                                                                 
Costs and expenses:                                              
Restaurant operating costs:                                      
Cost of sales                 71,263        51,655        213,213   143,654
Labor                         68,804        54,783        203,710   154,970
Operating                     34,626        28,537        99,772    78,134
Occupancy                     13,458        11,195        39,349    32,081
Depreciation and amortization 16,818        12,748        48,439    35,701
General and administrative    21,813        18,336        62,213    53,394
Preopening                    4,535         3,864         8,662     10,367
Loss on asset disposals and    788           612           2,122     1,515
store closures
Total costs and expenses      232,105       181,730       677,480   509,816
                                                                 
Income from operations        14,754        16,033        59,224    54,198
Investment income (loss)      418           (374)         713       (170)
                                                                 
Earnings before income taxes  15,172        15,659        59,937    54,028
Income tax expense            4,464         4,393         19,322    17,228
                                                                 
Net earnings                  $10,708       11,266        40,615    36,800
                                                                 
Earnings per common share –    $0.58         0.61          2.19      2.01
basic
Earnings per common share –    0.57          0.61          2.17      2.00
diluted
Weighted average shares        18,589        18,352        18,573    18,330
outstanding – basic
Weighted average shares        18,723        18,520        18,675    18,433
outstanding – 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           Nine monthsended
                     September 23,  September 25, September 23, September 25,
                      2012           2011          2012          2011
                                                             
Revenue:                                                      
Restaurant sales      92.5%          91.5%         92.5%         91.2%
Franchising royalties 7.5            8.5           7.5           8.8
and fees
Total revenue         100.0          100.0         100.0         100.0
                                                             
Costs and expenses:                                           
Restaurant operating                                          
costs:
Cost of sales         31.2           28.5          31.3          27.9
Labor                 30.1           30.3          29.9          30.1
Operating             15.2           15.8          14.6          15.2
Occupancy             5.9            6.2           5.8           6.2
Depreciation and      6.8            6.4           6.6           6.3
amortization
General and           8.8            9.3           8.4           9.5
administrative
Preopening            1.8            2.0           1.2           1.8
Loss on asset
disposals and store   0.3            0.3           0.3           0.3
closures
Total costs and       94.0           91.9          92.0          90.4
expenses
                                                             
Income from           6.0            8.1           8.0           9.6
operations
Investment income     0.2            (0.2)         0.1           0.0
(loss)
                                                             
Earnings before       6.1            7.9           8.1           9.6
income taxes
Income tax expense    1.8            2.2           2.6           3.1
                                                             
Net earnings          4.3            5.7           5.5           6.5

                                                                
                                                                
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
(unaudited)
                                                                
                                                   September 23, December 25,
                                                    2012          2011
                                                                
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                           $31,322       20,530
Marketable securities                               52,511        39,956
Accounts receivable – net of allowance of $25       17,785        12,165
Inventory                                           6,511         6,311
Prepaid expenses                                    3,128         3,707
Refundable income taxes                             2,355         7,561
Deferred income taxes                               7,249         6,323
Restricted assets                                   36,266        42,692
Total current assets                                157,127       139,245
                                                                
Property and equipment, net                         346,963       310,170
Other assets                                        27,979        28,174
Goodwill                                            17,777        17,770
Total assets                                        $549,846      495,359
                                                                
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Unearned franchise fees                             $1,815        1,852
Accounts payable                                    37,591        30,089
Accrued compensation and benefits                   33,595        30,499
Accrued expenses                                    11,614        7,580
System-wide payables                                36,503        44,250
Total current liabilities                           121,118       114,270
                                                                
Long-term liabilities:                                           
Other liabilities                                   1,679         1,544
Deferred income taxes                               35,826        38,512
Deferred lease credits, net of current portion      25,381        23,047
Total liabilities                                   184,004       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 18,590,352 and       120,268       113,509
18,377,920, respectively
Retained earnings                                   245,387       204,772
Accumulated other comprehensive income (loss)       187           (295)
Total stockholders' equity                          365,842       317,986
Total liabilities and stockholders' equity          $549,846      495,359

                                                               
                                                               
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(unaudited)
                                                               
                                                  Nine months ended
                                                  September 23, September 25,
                                                   2012          2011
                                                               
Cash flows from operating activities:                          
Net earnings                                      $40,615       36,800
Adjustments to reconcile net earnings to cash                   
provided by operations:
Depreciation                                      46,409        35,065
Amortization                                      2,030         636
Loss on asset disposals and store closures        1,757         1,279
Deferred lease credits                            2,966         2,703
Deferred income taxes                             (3,612)       8,220
Stock-based compensation                          6,207         8,642
Excess tax benefit from stock issuance            (2,024)       (700)
Change in operating assets and liabilities:                    
Trading securities                                (850)         37
Accounts receivable                               (7,712)       (5,752)
Inventory                                         (199)         (632)
Prepaid expenses                                  583           (1,019)
Other assets                                      (1,826)       (2,216)
Unearned franchise fees                           (37)          (124)
Accounts payable                                  2,088         5,704
Income taxes                                      7,230         2,877
Accrued expenses                                  13,162        13,322
Net cash provided by operating activities         106,787       104,842
                                                               
Cash flows for investing activities:                           
Acquisition of property and equipment             (79,007)      (84,651)
Purchase of marketable securities                 (123,943)     (78,690)
Proceeds of marketable securities                 112,238       94,387
Net cash used in investing activities             (90,712)      (68,954)
                                                               
Cash flows for financing activities:                           
Issuance of common stock                          1,147         870
Tax payments for restricted stock units           (8,447)       (2,481)
Excess tax benefit from stock issuance             2,024         700
Net cash used in financing activities             (5,276)       (911)
Effect of exchange rate changes on cash and cash   (7)           (86)
equivalents
Net increase in cash and cash equivalents         10,792        34,891
                                                               
Cash and cash equivalents at beginning of period  20,530        15,309
Cash and cash equivalents at end of period        $31,322       50,200

                             
                             
BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information
                             
Restaurant Count
Company-owned Restaurants:        
     Q1    Q2      Q3    Q4      
2012  327   330     343          
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     511          
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%    6.2%         
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%    5.8%         
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 52,561       
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 55,608       
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
         952.253.0731
 
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