Buffalo Wild Wings, Inc. (BWLD) has reported 38.19 percent plunge in profit for the quarter ended Dec. 25, 2016. The company has earned $15.62 million, or $0.87 a share in the quarter, compared with $25.27 million, or $1.32 a share for the same period last year. Revenue during the quarter went up marginally by 0.81 percent to $494.19 million from $490.22 million in the previous year period. Gross margin for the quarter contracted 241 basis points over the previous year period to 40.13 percent. Total expenses were 95.59 percent of quarterly revenues, up from 92.96 percent for the same period last year. That has resulted in a contraction of 263 basis points in operating margin to 4.41 percent.
Operating income for the quarter was $21.80 million, compared with $34.50 million in the previous year period.
Sally Smith, president and chief executive officer, commented, "The challenging restaurant environment continued in the fourth quarter and culminated with a difficult December. Our key programs to drive traffic at Buffalo Wild Wings, including FastBreak™ Lunch, Half-Price Wing Tuesdays®, and our Blazin Rewards® loyalty program, have driven positive traffic so far in the first quarter."
Operating cash flow improvesBuffalo Wild Wings, Inc. has generated cash of $282.59 million from operating activities during the year, up 19.11 percent or $45.33 million, when compared with the last year. The company has spent $144.84 million cash to meet investing activities during the year as against cash outgo of $365.19 million in the last year.
The company has spent $99.67 million cash to carry out financing activities during the year as against cash inflow of $45.50 million in the last year period.
Cash and cash equivalents stood at $49.27 million as on Dec. 25, 2016, up 339.09 percent or $38.05 million from $11.22 million on Dec. 27, 2015.
Debt increases substantially
Buffalo Wild Wings, Inc. has witnessed an increase in total debt over the last one year. It stood at $209.06 million as on Dec. 25, 2016, up 185.98 percent or $135.96 million from $73.10 million on Dec. 27, 2015. Total debt was 19.96 percent of total assets as on Dec. 25, 2016, compared with 6.82 percent on Dec. 27, 2015. Debt to equity ratio was at 0.40 as on Dec. 25, 2016, up from 0.11 as on Dec. 27, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
