Buffalo Wild Wings Inc. tumbled in late trading after higher chicken-wing costs squeezed profit in the first quarter.
The company dropped as much as 11 percent in New York after the earnings were released. Buffalo Wild Wings had gained 1.8 percent this year through Tuesday’s close.
Net income rose to $29.1 million, or $1.52, a share, from $28.3 million, or $1.49 a year ago, the Minneapolis-based company said in a statement on Tuesday. The average of analysts’ estimates compiled by Bloomberg was $1.63.
Traditional chicken wing prices jumped 41 percent from last year, Chief Executive Officer Sally Smith said. Labor expenses also were higher, she said.
Despite March Madness basketball games and a new advertising campaign for each round of the tournament, the chain’s revenue also trailed analysts’ estimates in the quarter.