NEW YORK (TheStreet) -- Buffalo Wild Wings (BWLD) shares are climbing, up 7.1% to $142.86 in after-market trading on Monday, following the release of the company's first quarter earnings report.
Year over year quarterly same store sales increased 6.6% at company-owned restaurants and 5% at franchised restaurants, leading to a total revenue increase of 20.9% to $367.9 million. Revenue for the quarter beat analysts estimates of $362.96 million.
Net earnings for the quarter were up 72.9% over the same period the previous year to $28.3 million, or $1.49 per diluted share, beating analysts estimates by 15 cents.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates BUFFALO WILD WINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BUFFALO WILD WINGS INC (BWLD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these 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 4.8%. Since the same quarter one year prior, revenues rose by 12.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 49.55% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BWLD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BUFFALO WILD WINGS INC has improved earnings per share by 23.6% in the most recent quarter compared to the same quarter a year ago. 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 $3.80 versus $3.06 in the prior year. This year, the market expects an improvement in earnings ($4.85 versus $3.80).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 24.9% when compared to the same quarter one year prior, going from $16.66 million to $20.82 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BUFFALO WILD WINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: BWLD Ratings Report