Everything wings
Buffalo Wild Wings (NASDAQ:BWLD) is best known for its Buffalo Wild Wings (NASDAQ:BWLD). At the end of last year, the company owned and operated 381 locations and franchised an additional 510 locations in North America. Each location also televises sporting events and offers a full bar.
In the first quarter of this year, revenue grew 21%. Same-store sales in company-owned locations grew 1.4%. In April, same-store sales grew 5.2%. The company opened 20 new locations in the quarter. The company has no debt and a $100 million unsecured line of credit for future investments.
Going forward, Buffalo Wild Wings (NASDAQ:BWLD) will benefit from lower chicken-wing costs. Last year’s average cost per pound was $1.90. Year-to-date, the average cost is $1.75. For a company that primarily sells wings and doesn’t discount, this goes straight to the bottom line. The company will further benefit as it has changed how it sells wings. Wings will now be sold in portion sizes. By making this change, the company is likely to see 40 to 50 basis points in cost savings.
The company is also expanding its draft beer offerings. In the first quarter, beer and alcohol sales made up 22% of revenue. Buffalo Wild Wings (NASDAQ:BWLD) has partnered with the Craft Brew Alliance Inc (NASDAQ:BREW) to launch a new craft beer. This will target the increased demand for specialty brews. Each location is looking to expand its draft beer selection from 24 to 30 brands. By having a vested stake in its own beer, Buffalo Wild Wings (NASDAQ:BWLD) can push its brand at its locations and drive sales.
Foolish assessment
I like all three companies, but my favorite would be BJ’s Restaurants, Inc. (NASDAQ:BJRI). The company remains relatively unknown and there’s plenty of room for growth with its concept. The stock is unchanged in the past year and has risen 12% year-to-date. Revenue and profits are growing and the company has no debt and $40 million in cash.
Overall, the casual restaurant continues to be popular with diners. These restaurants have the ability to expand and generate revenue. Their concepts and menu offerings are tailored to their core customers. I see continued growth ahead for all three companies in the long run.
The article Don’t Miss Out on These Specialty Diners originally appeared on Fool.com and is written by Mark Yagalla.
Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends BJ’s Restaurants, Buffalo Wild Wings, and Red Robin Gourmet Burgers. The Motley Fool owns shares of BJ’s Restaurants and Buffalo Wild Wings. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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