Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dunkin Brands Group Inc (DNKN), Buffalo Wild Wings (BWLD), Burger King Worldwide Inc (BKW): Looking Forward

Page 1 of 2

Consumer confidence improved yet again in August. The index rose to 81.5, while economists were expecting it to be 79, according to Bloomberg. This shows that consumers are gradually becoming willing to spend more, and this is a positive development for the restaurant industry in the U.S.

The restaurant industry accounts for approximately 4% of U.S. gross domestic product. In 2013, the industry is expected to be worth $660.5 billion, generating about $1.8 billion in sales per day.

Competing for a share in this market is Buffalo Wild Wings (NASDAQ:BWLD), which recently declared impressive second-quarter results and looks set to grow going forward.

A good performance
In the previous quarter, consolidated revenue jumped 27.8% year-over-year to hit a figure of $305 million, beating the consensus estimate of $304 million. Growth in comparable-store sales and unit expansion were the primary drivers behind revenue growth. It opened 10 company-owned restaurants and 11 franchised restaurants in the quarter as it continues to expand its wings (get it?).

Buffalo Wild Wings (NASDAQ:BWLD)On the earnings side as well, Buffalo Wild Wings (NASDAQ:BWLD) managed to beat the consensus estimate of $0.79 per share. It reported earnings per share of $0.88, which was 41.9% higher than the year-ago quarter.

Looking forward
Buffalo Wild Wings (NASDAQ:BWLD) is willing to invest in company-owned stores for growth, like it did in the previous quarter.While this requires more capital, it also gives the company more control over customer experiences and a better shot at building its brand.

But the franchise model shouldn’t be ignored. Royalties and fee revenue from franchisees jumped 7.9% year-over-year to $19.6 million in the last quarter. This was driven by 20 new restaurants and a 4.1% increase in franchise same-store sales.

In July, Buffalo Wild Wings (NASDAQ:BWLD) started to serve wings based on portions rather than numbers in order to reduce the risk associated with inconsistent wing yields. This is a move that’s going to help in closely matching sales with costs and should lead to stronger bottom line performance going forward.

The company has two of its strongest quarters coming up. It expects that comps will get a boost from the NFL and NCAA football seasons. This will help the company increase its brand visibility and attract customers through digital and social media platforms.

It has plans to keep growing and expanding to new locations. As of July 30, there were approximately 930 Buffalo Wild Wings (NASDAQ:BWLD) Grill & Bar restaurants in the United States and Canada. Last year, the company expanded its operations in Mexico and the Middle East and added Philippines to the list last month.

Buffalo Wild Wings (NASDAQ:BWLD) believes that the Philippines isamong the fastest-growing economic regions in Asia, and with a population of 100 million, the company might find some good growth opportunities there.

Looking around
Dunkin Brands Group Inc (NASDAQ:DNKN) saw an increase of 5.9% in revenue year-over-year because of higher sales of ice cream products and higher royalty income. However, it missed consensus estimates.

But Dunkin Brands Group Inc (NASDAQ:DNKN)’ has been looking to expand its business, so a minor hiccup in the form of a top-line miss shouldn’t be a big deal. The company is looking at 330-360 new restaurants across the U.S. in 2013. It currently has 10,600 Dunkin’ Donuts restaurants and around 7,000 Baskin-Robbins restaurants worldwide. Looking ahead, Dunkin’ plans to have around 15,000 stores in the U.S. alone in the next 20 years, doubling its presence in the country.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!