Buffalo Wild Wings (BWLD), McDonald’s Corporation (MCD), AFC Enterprises, Inc. (AFCE): This Company Is Ready for Game Time

Given AFC Enterprises, Inc. (NASDAQ:AFCE)’s chicken contracts, its management expects big third and fourth quarters. In addition to excellent cost management, this chain of 2,153 restaurants expects to add 85 to 115 new locations this year. These factors point toward the company delivering on its guidance of 15% earnings-per-share growth over the long-term.

Since Buffalo Wild Wings (NASDAQ:BWLD) doesn’t have such contracts, the company has increased prices, and has even overhauled how wings are priced. Now, instead of charging per wing, customers are billed by weight. This will greatly help the company deal with inconsistent wing sizes. It will buy and sell using the same metric: the pound. The company’s costs will be more predictable, and the customer will get a more consistent product.

While menu prices have already gone up, this year wing prices have gone down. Wings average $1.64/pound compared to $1.97/pound at the same time last year, -17% in Buffalo Wild Wings’ favor.

Remaining 2013 pipeline
By averaging 70 new locations per year over the last decade, Buffalo Wild Wings has swelled to 930 units. So far this year, 41 new locations have opened. A whopping 62 locations, both franchised and company-owned, are scheduled to be open before year’s end.

The timing of these openings couldn’t be better, coinciding with the football season. In all, there are currently 97 more restaurants open now than at the start of football season last year. In short, Buffalo Wild Wings (NASDAQ:BWLD) will be packed out in 10% more locations than last year.

Conclusion
With chicken wing prices coming down, a new pricing system, and scores of new locations opening, Buffalo Wild Wings is ready for its favorite time of year: football season. This fall looks to be just the latest accomplishment for a company poised to open another 500 locations in the next four to five years.

The article This Company Is Ready for Game Time originally appeared on Fool.com and is written by Jon Quast.

Jon Quast has no position in any stocks mentioned. The Motley Fool recommends Buffalo Wild Wings and McDonald’s. The Motley Fool owns shares of AFC Enterprises, Buffalo Wild Wings, and McDonald’s.

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