Buffalo Wild Wings (BWLD) has reported 17.75 percent rise in profit for the quarter ended Sep. 25, 2016. The company has earned $22.65 million, or $1.23 a share in the quarter, compared with $19.24 million, or $1 a share for the same period last year.
Revenue during the quarter grew 8.48 percent to $494.17 million from $455.53 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 41.92 percent. Total expenses were 93.35 percent of quarterly revenues, down from 93.67 percent for the same period last year. This has led to an improvement of 32 basis points in operating margin to 6.65 percent.
Operating income for the quarter was $32.85 million, compared with $28.83 million in the previous year period.
Sally Smith, president and chief executive officer, commented, "Our focus is to return to industry-leading same-store sales. To advance these efforts and drive traffic, in the third quarter we implemented a 15-minute guarantee for FastBreak lunch and Half-Price Wing Tuesdays. Both programs are seeing initial success. To deliver value to shareholders, we increased our credit facility to $500 million in October allowing us to execute against our expanded share repurchase authorization."
Operating cash flow improves significantlyBuffalo Wild Wings has generated cash of $213.94 million from operating activities during the nine month period, up 28.20 percent or $47.05 million, when compared with the last year period. The company has spent $121 million cash to meet investing activities during the nine month period as against cash outgo of $322.95 million in the last year period.
The company has spent $89.03 million cash to carry out financing activities during the nine month period as against cash inflow of $74.15 million in the last year period.
Cash and cash equivalents stood at $14.76 million as on Sep. 25, 2016, up 28.57 percent or $3.28 million from $11.48 million on Sep. 27, 2015.
Working capital remains negative
Working capital of Buffalo Wild Wings was negative $73.04 million on Sep. 25, 2016 compared with negative $46.60 million on Sep. 27, 2015. Current ratio was at 0.58 as on Sep. 25, 2016, down from 0.77 on Sep. 27, 2015.
Cash conversion cycle (CCC) was almost stable at 5 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 7 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 2 days for the quarter compared with 4 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 17 for the same period last year.
Debt increases substantiallyBuffalo Wild Wings has witnessed an increase in total debt over the last one year. It stood at $100.68 million as on Sep. 25, 2016, up 31.13 percent or $23.90 million from $76.78 million on Sep. 27, 2015. Total debt was 10.23 percent of total assets as on Sep. 25, 2016, compared with 7.53 percent on Sep. 27, 2015. Debt to equity ratio was at 0.16 as on Sep. 25, 2016, up from 0.12 as on Sep. 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
