Buffalo Wild Wings Inc., the casual-dining chain that gained 54 percent last year, dropped after yesterday lowering its full-year net income forecast because of rising food costs.
The shares fell 11 percent to $74.70 at the close in New York for the biggest decline since July 25. The Minneapolis-based company has gained 11 percent this year.
Profit for 2012 will increase 15 percent, Chief Executive Officer Sally Smith said in a statement. The company had previously estimated earnings growth of as much as 20 percent. The chicken-wing seller yesterday forecast net income growth of 20 percent in 2013.
Buffalo Wild Wings, along with other restaurant operators, has been facing higher costs for raw ingredients such as chicken wings. The company, which has about 860 stores in the U.S. and Canada, can expand to 1,700 North American locations, Smith said in the statement.