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Buffalo Wild Wings (BWLD) Sally J. Smith on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Call

April 26, 2016 5:00 pm ET

Executives

Heather Pribyl - Investor Relations

Sally J. Smith - President, Chief Executive Officer & Director

James M. Schmidt - Chief Operating Officer

Jeffrey B. Sorum - Chief Financial & Accounting Officer

Analysts

Keith R. Siegner - UBS Securities LLC

Michael Tamas - Oppenheimer & Co., Inc. (Broker)

Matthew Kirschner - Guggenheim Securities LLC

Will Slabaugh - Stephens, Inc.

Pratik Patel - Barclays Capital, Inc.

Andrew Strelzik - BMO Capital Markets (United States)

Robert Derrington - Telsey Advisory Group LLC

Brian M. Vaccaro - Raymond James & Associates, Inc.

David E. Tarantino - Robert W. Baird & Co., Inc. (Broker)

Nick Setyan - Wedbush Securities, Inc.

Stephen Anderson - Maxim Group LLC

Karen Holthouse - Goldman Sachs & Co.

Chris O'Cull - KeyBanc Capital Markets, Inc.

Alton K. Stump - Longbow Research LLC

Andrew Charles - Cowen & Co. LLC

Operator

Please stand by. Good afternoon, ladies and gentlemen. Welcome to the Buffalo Wild Wings First Quarter 2016 Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. I would like to remind everyone, that this conference call is being recorded.

I will now turn the call over to Heather Pribyl, Director of Investor Relations for Buffalo Wild Wings. Please go ahead.

Heather Pribyl - Investor Relations

Thank you, James. Good afternoon and thank you for joining us as we review our first quarter 2016 results. I'm Heather Pribyl, Director of Investor Relations for Buffalo Wild Wings.

Joining me today is Sally Smith, President and Chief Executive Officer; Jim Schmidt, Chief Operating Officer; and Jeff Sorum, Senior Vice President and Corporate Controller. By now, everyone should have access to our first quarter earnings release. Copies are available on our investor website at ir.buffalowildwings.com.

Before we get started, I remind you that today's call will contain forward-looking statements, and actual results may vary materially from those discussed in the forward-looking statements due to many factors including the risks and uncertainties identified in today's earnings release, which we filed on a Form 8-K concurrent with this release, and in our other filings with the Securities and Exchange Commission. A few calendar items to note, our second quarter 2016 ends on June 26, and we tentatively plan to issue our earnings release after market close on July 27 with a conference call held at 4 PM central time. We will also be hosting our 2016 Analyst Day on August 16 in Denver, Colorado, and our next 53-week year is our fiscal 2017.

On today's call, Sally will provide an overview of our performance for the first quarter and our sales initiatives. After that, Jim will provide further detail on the quarter, comment on trends to-date in the second quarter, and our outlook for 2016. Sally will provide some final thoughts and then we'll then answer questions.

So with that, I'll turn things over to Sally.

Sally J. Smith - President, Chief Executive Officer & Director

Thank you, Heather, and good afternoon, everyone. Our total revenue in the first quarter increased 15.4% when compared to prior year, resulting from continued unit development and franchise acquisitions over the last 12 months.

We're dissatisfied to report a same-store sales decline for Buffalo Wild Wings, and we're undertaking several sales driving initiatives. We were able to manage costs and improve our restaurant level margins, and our earnings per diluted share increased 13.5% year-over-year to $1.73.

There are a variety of factors that impacted our sales this quarter, but rather than talk about the weak macro environment, I'm going to share with you what Buffalo Wild Wings is doing to regain momentum. Our sales driving initiatives include; first, continuing to execute a strong takeout program and gain additional share; second, enhancing our FastBreak lunch with a speed-of-service guarantee; third, improve and promote our value occasion; and finally winning the market for Soccer.