Buffalo Wild Wings stock plunged after the restaurant chain failed to meet Wall Street's quarterly earnings and revenue estimates on Tuesday.
Quarterly earnings rose to $1.52 per share from $1.49 a year ago. Revenue jumped 20 percent to $441 million from $368 million in the year-ago period.
related investing news
Analysts had expected earnings of $1.63 per share on $452 million, according to a consensus estimate from Thomson Reuters.
Its stock dropped around 10 percent after the release. (Click here to track its shares.)
Same-store sales, a key industry metric, increased 7 percent at company-owned restaurants and 6 percent at franchised restaurants. This key metric also failed to meet the Street's lofty expectations. Comps at company-owned locations were expected to rise 8.6 percent, while those at franchised restaurants were forecast to jump 7.7 percent, according to Consensus Metrix.
"As anticipated, cost of sales and labor as a percentage of restaurant sales were higher than the prior year which tempered our net earnings growth," said Sally Smith, Buffalo Wild Wing's president and CEO in the earnings release. "The price per pound for traditional chicken wings increased 41 percent versus the prior year's unusually low price."
During the first four weeks of the current quarter, same-store sales growth slowed to 4.2 percent at company locations and 1.8 percent at franchised ones.