NEW YORK (TheStreet) -- Shares of Buffalo Wild Wings Inc (BWLD) were up 0.82% to $169.95 in late afternoon trading Tuesday, ahead of the chicken wings restaurant's latest earnings results due out after the market closes today.
For the second quarter ended June 30, Wall Street analysts are forecasting the company to post a year-over-year rise in both earnings and revenue.
In its latest quarter, Buffalo Wild Wings is expected to earn $1.27 per share on revenue of $429.87 million.
In the same quarter of last year, the company earned $1.25 per share on sales of $365.99 million.
Shares of Buffalo Wild Wings have fallen about 6% so far this year.
Minneapolis-based Buffalo Wild Wings is an owner, operator, and franchisor of restaurants featuring chicken wings. The company operates under the Buffalo Wild Wings, PizzaRev, and Rusty Taco brands.
Separately, TheStreet Ratings team rates BUFFALO WILD WINGS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BUFFALO WILD WINGS INC (BWLD) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, growth in earnings per share, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 19.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry average. The net income increased by 2.6% when compared to the same quarter one year prior, going from $28.32 million to $29.06 million.
- BUFFALO WILD WINGS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BUFFALO WILD WINGS INC increased its bottom line by earning $4.95 versus $3.80 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $4.95).
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- BWLD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.95 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: BWLD Ratings Report