Buffalo Wild Wings (BWLD) 10-Q 2 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 27, 2016	Apr. 27, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	BUFFALO WILD WINGS INC
Entity Central Index Key	1,062,449
Current Fiscal Year End Date	--12-25
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 27, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		18,826,449
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 27, 2016	Dec. 27, 2015
Current assets:
Cash and cash equivalents	$ 11,693	$ 11,220
Marketable securities	9,147	9,043
Accounts receivable, net of allowance of $25	33,873	34,087
Inventory	14,583	15,351
Prepaid expenses	5,509	6,386
Refundable income taxes	0	21,591
Restricted assets	22,880	100,073
Total current assets	97,685	197,751
Property and equipment, net	593,670	604,712
Reacquired franchise rights, net	128,175	129,282
Other assets	36,122	26,536
Goodwill	115,823	114,101
Total assets	971,475	1,072,382
Current liabilities:
Unearned franchise fees	1,963	2,144
Accounts payable	40,762	44,760
Accrued compensation and benefits	31,943	55,578
Accrued expenses	19,675	21,678
Income tax payable	1,189	0
Current portion of long-term debt and capital lease obligations	4,787	2,147
Current portion of deferred lease credits	76	59
System-wide payables	81,220	137,257
Total current liabilities	181,615	263,623
Long-term liabilities:
Other liabilities	16,168	16,473
Deferred income taxes	24,585	23,726
Long-term debt and capital lease obligations, net of current portion	42,423	70,954
Deferred lease credits	42,636	41,869
Total liabilities	$ 307,427	$ 416,645
Commitments and Contingencies
Stockholders’ equity:
Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,750,276 and 18,917,776, respectively	$ 159,265	$ 160,353
Retained earnings	508,332	499,085
Accumulated other comprehensive loss	(3,847)	(4,094)
Total stockholders’ equity	663,750	655,344
Noncontrolling interests	298	393
Total equity	664,048	655,737
Total liabilities and equity	$ 971,475	$ 1,072,382

Consolidated Balance Sheets (u3

Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 27, 2016	Dec. 27, 2015
Statement of Financial Position [Abstract]
Accounts Receivable, allowance	$ 25	$ 25
Undesignated stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in Dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	44,000,000	44,000,000
Common stock, shares issued (in shares)	18,750,276	18,917,776
Common stock, shares outstanding (in shares)	18,750,276	18,917,776

Consolidated Statements of Earn

Consolidated Statements of Earnings (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Revenue:
Restaurant sales	$ 483,911	$ 414,972
Franchise royalties and fees	24,346	25,614
Total revenue	508,257	440,586
Restaurant operating costs:
Cost of sales	143,823	125,677
Labor	149,129	130,394
Operating	69,680	58,551
Occupancy	26,723	21,990
Depreciation and amortization	37,549	28,069
General and administrative	31,665	30,522
Preopening	1,863	1,270
Loss on asset disposals	1,222	605
Total costs and expenses	461,654	397,078
Income from operations	46,603	43,508
Interest and other income (expense)	27	(75)
Earnings before income taxes	46,630	43,433
Income tax expense	13,952	14,448
Net earnings including noncontrolling interests	32,678	28,985
Net loss attributable to noncontrolling interests	(95)	(78)
Net earnings attributable to Buffalo Wild Wings	$ 32,773	$ 29,063
Earnings per common share – basic (in Dollars per share)	$ 1.73	$ 1.53
Earnings per common share – diluted (in Dollars per share)	$ 1.73	$ 1.52
Weighted average shares outstanding – basic (in Shares)	18,922,040	18,992,965
Weighted average shares outstanding – diluted (in Shares)	18,957,084	19,074,328

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Statement of Comprehensive Income [Abstract]
Net earnings including noncontrolling interests	$ 32,678	$ 28,985
Other comprehensive loss:
Foreign currency translation adjustments, net of tax	247	(895)
Other comprehensive income (loss), net of tax	247	(895)
Comprehensive income including noncontrolling interests	32,925	28,090
Comprehensive loss attributable to noncontrolling interests	(95)	(78)
Comprehensive income attributable to Buffalo Wild Wings	$ 33,020	$ 28,168

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Cash flows from operating activities:
Net earnings including noncontrolling interests	$ 32,678	$ 28,985
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation	34,552	26,851
Amortization	2,997	1,218
Loss on asset disposals	1,222	605
Deferred lease credits	2,067	1,159
Deferred income taxes	858	(5,508)
Stock-based compensation	1,404	2,745
Excess tax benefit from stock issuance	(33)	(66)
Change in fair value of contingent consideration	(1,106)	0
Loss on investments in affiliates	158	0
Change in operating assets and liabilities, net of effect of acquisitions:
Trading securities	(104)	(328)
Accounts receivable	(1,297)	(2,053)
Inventory	806	471
Prepaid expenses	889	(5,619)
Other assets	(428)	154
Unearned franchise fees	(181)	362
Accounts payable	(706)	(1,037)
Income taxes	22,813	17,796
Accrued expenses	(19,488)	(18,374)
Net cash provided by operating activities	77,101	47,361
Cash flows from investing activities:
Acquisition of property and equipment	(34,094)	(25,788)
Acquisition of businesses	(3,860)	(13,894)
Purchase of marketable securities	0	(12,297)
Proceeds from marketable securities	0	11,155
Net cash used in investing activities	(37,954)	(40,824)
Cash flows from financing activities:
Proceeds from line of credit	108,633	0
Repayments of line of credit	135,514	0
Borrowings from restricted funds	22,622	0
Repurchases of common stock	(25,000)	0
Other financing activities	(500)	0
Issuance of common stock	434	231
Excess tax benefit from stock issuance	33	66
Tax payments for restricted stock units	(9,172)	(7,627)
Net cash used in financing activities	(38,464)	(7,330)
Effect of exchange rate changes on cash and cash equivalents	(210)	65
Net increase (decrease) in cash and cash equivalents	473	(728)
Cash and cash equivalents at beginning of period	11,220	93,329
Cash and cash equivalents at end of period	$ 11,693	$ 92,601

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	3 Months Ended
	Mar. 27, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation The consolidated financial statements as of March 27, 2016 and December 27, 2015 , and for the three -month periods ended March 27, 2016 and March 29, 2015 have been prepared by Buffalo Wild Wings, Inc. pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The financial information as of March 27, 2016 and for the three -month periods ended March 27, 2016 and March 29, 2015 is unaudited, but, in the opinion of management, reflects all adjustments and accruals necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. References in the remainder of this document to “the Company,” “we,” “us” and “our” refer to the business of Buffalo Wild Wings, Inc. and its wholly and majority owned subsidiaries. We operate Buffalo Wild Wings ® , R Taco TM , and PizzaRev ® restaurants as well as sell Buffalo Wild Wings and R Taco restaurant franchises. In exchange for initial and continuing franchise fees, we give franchisees the right to use the brand names. We operate as a single segment for reporting purposes. The financial information as of December 27, 2015 is derived from our audited consolidated financial statements and notes thereto for the fiscal year ended December 27, 2015 , which are included in Item 8 in the fiscal 2015 Annual Report on Form 10-K, and should be read in conjunction with such financial statements. The results of operations for the three -month period ended March 27, 2016 are not necessarily indicative of the results of operations that may be achieved for the entire year ending December 25, 2016 .

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 27, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (a) Inventories Inventories are stated at the lower of cost and net realizable value (see Recently Adopted Accounting Standards for our early adoption of the guidance issued in 2015 for inventory measurement). Cost is determined by the first-in, first-out method. We purchase products from a number of suppliers and believe there are alternative suppliers. We have minimum purchase commitments from some of our vendors, but the terms of the contracts and nature of the products are such that our purchase requirements do not create a market risk. One of the primary food products used by our restaurants and our franchised restaurants is traditional chicken wings. The price we pay for traditional chicken wings is determined based on the average of the previous month’s wing market plus mark-up for processing and distribution. If the monthly average exceeds an upper threshold or falls below a lower threshold set in the contract, we split the impact with our suppliers. For the three-month periods ended March 27, 2016 and March 29, 2015 , chicken wings were 25.9% and 26.5% , respectively, of restaurant cost of sales. (b) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 “Revenue with Contracts from Customers.” ASU 2014-09 supersedes the current revenue recognition guidance, including industry-specific guidance. The guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The requirements will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of the updated requirements on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires for lease arrangements spanning more than 12 months, an entity to recognize an asset and liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We believe the adoption of ASU 2016-02 will materially impact our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, “Liabilities - Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.” ASU 2016-04 provides specific guidance for the derecognition of prepaid stored-value product liabilities. The updated guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. We do not believe it will materially impact our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 provides specific guidance to determine whether an entity is providing a specified good or service itself or is arranging for the good or service to be provided by another party. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of the updated requirements on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation: Improvement to Employee Share-Based Payment Accounting.” ASU 2016-09 provides guidance intended to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted for any entity in any interim or annual period. We are currently evaluating the impact of the updated guidance on our consolidated financial statements. We reviewed all other significant newly-issued accounting pronouncements and concluded they are not applicable to our operations. (c) Recently Adopted Accounting Standards We adopted each of the following four standards as of December 28, 2015, which did not have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation: Amendments to the Consolidation Analysis.” ASU 2015-02 modifies the analysis that must be performed to determine whether a reporting entity should consolidate certain types of legal entities. The updated guidance was effective for interim and annual periods beginning after December 15, 2015. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 provides guidance related to a customer's accounting for fees paid in a cloud computing arrangement. The updated guidance was effective for interim and annual periods beginning after December 15, 2015. We adopted this guidance prospectively. Fees that meet the criteria of a software license are capitalized and included in other assets on our consolidated balance sheets. Amortization expense is recognized over the term of the arrangement and is included in depreciation and amortization expense on our consolidated statements of earnings. In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory.” ASU 2015-11 changed the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The guidance requires prospective application for the reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. The Company elected early adoption of this guidance as of December 28, 2015. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments.” ASU 2015-16 removes the requirement to retrospectively account for adjustments to preliminary amounts recognized in a business combination. The guidance requires the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. The guidance was effective for interim and annual reporting periods beginning after December 15, 2015.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 27, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The guidance for fair value measurements establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We use a three-tier fair value hierarchy based upon observable and non-observable inputs as follows: • Level 1 – Observable inputs such as quoted prices in active markets; • Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and • Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of March 27, 2016 : Fair Value Measurements Level 1 Level 2 Level 3 Total Assets Marketable Securities $ 9,147 — — 9,147 Liabilities Contingent Consideration $ — — 445 445 Deferred Compensation 8,979 — — 8,979 The following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of December 27, 2015 : Fair Value Measurements Level 1 Level 2 Level 3 Total Assets Marketable Securities $ 9,043 — — 9,043 Liabilities Contingent Consideration — — 1,551 1,551 Deferred Compensation 8,958 — — 8,958 Our marketable securities were classified as trading securities. Our trading securities and deferred compensation liability comprise investments held for future needs of our non-qualified deferred compensation plan and were reported at fair market value, using the “market approach” valuation technique. The “market approach” valuation method uses prices and other relevant information observable in market transactions involving identical or comparable assets and is a Level 1 approach. Our contingent consideration liabilities represent amounts owed in association with our fiscal year 2015 acquisitions. These liabilities were valued using a Level 3 approach that utilizes an option pricing model and the projected future performance of certain restaurants we acquired. The future performance of these acquired restaurants will ultimately determine the settlement amount of these liabilities. Estimates of fair value are inherently uncertain and represent only management's reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. The following table summarizes the activity within Level 3 instruments during the three-month period ended March 27, 2016 : Contingent Consideration Liabilities Level 3 balance at December 27, 2015 $ (1,551 ) Mark to market adjustment 1,106 Level 3 balance at March 27, 2016 $ (445 ) There was no significant activity within Level 3 instruments during the three-month period ended March 29, 2015 . There were no significant transfers between the levels of the fair value hierarchy during the three -month periods ended March 27, 2016 and March 29, 2015 .

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 27, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities Marketable securities consisted of the following: March 27, December 27, Trading Mutual funds $ 9,147 9,043 Total $ 9,147 9,043 There were no purchases or sales of available-for-sale securities during the three -month period ended March 27, 2016 . There were purchases totaling $12,297 and sales totaling $11,155 of available-for-sale securities during the three -month period ended March 29, 2015 .

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 27, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: March 27, December 27, Construction in process $ 22,193 18,662 Buildings 94,304 92,603 Capital leases and buildings under deemed landlord financing 24,928 25,105 Furniture, fixtures, and equipment 361,158 369,344 Leasehold improvements 566,312 553,736 Property and equipment, gross 1,068,895 1,059,450 Less accumulated depreciation (475,225 ) (454,738 ) Property and equipment, net $ 593,670 604,712

Long-Term Debt and Capital Leas

Long-Term Debt and Capital Lease Obligations	3 Months Ended
	Mar. 27, 2016
Debt Disclosure [Abstract]
Long-Term Debt and Capital Lease Obligations	Long-Term Debt and Capital Lease Obligations Our long-term debt and capital lease obligations consisted of the following: Average interest rate for the three months ended March 27, 2016 Maturity March 27, 2016 December 27, 2015 Revolving credit facility 1.3% July 2018 $ 7,648 34,530 Capital lease and deemed landlord financing obligations 7.7% Various through November 2030 39,562 38,571 Total debt and capital lease obligations 47,210 73,101 Less current maturities (4,787 ) (2,147 ) Total long-term debt and capital lease obligations $ 42,423 70,954 We have a $200,000 unsecured revolving credit facility. Interest is charged at LIBOR plus an applicable margin based on our consolidated total leverage ratio. We also pay a commitment fee on the average unused portion of the facility at a rate per annum based on our consolidated total leverage ratio. The revolving credit facility contains covenants that require us to maintain certain financial ratios, including consolidated coverage, consolidated total leverage and minimum EBITDA. The revolving credit facility also has other customary affirmative and negative covenants, including covenants that restrict the right of the Company and its subsidiaries to merge, to lease, sell or otherwise dispose of assets, to make investments and to grant liens on their assets. As of March 27, 2016 , we were in compliance with all of these covenants.

Stockholder's Equity

Stockholder's Equity	3 Months Ended
	Mar. 27, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholder's Equity	Stockholder’s Equity We have 5.4 million shares of common stock reserved for issuance under our Equity Incentive Plan (Plan) for our employees, officers, and directors. The Plan had 910,099 shares available for grant as of March 27, 2016 . (a) Stock Options The exercise price for stock options issued under the Plan is to be not less than the fair market value on the date of grant with respect to incentive and nonqualified stock options. Stock options vest in four equal annual installments and have a contractual life of seven years. Incentive stock options may be granted under this Plan until March 12, 2022. We issue new shares of common stock upon the exercise of stock options. Option activity is summarized for the three months ended March 27, 2016 as follows: Number of shares Weighted average exercise price Average remaining contractual life (years) Aggregate intrinsic value Outstanding, December 27, 2015 131,248 $ 113.12 4.0 $ 7,051 Exercised (6,392 ) 67.85 Cancelled (3,821 ) 152.93 Outstanding, March 27, 2016 121,035 $ 114.26 3.8 $ 4,788 Exercisable, March 27, 2016 81,276 95.60 3.2 4,311 The aggregate intrinsic value in the table above is before applicable income taxes, based on our closing stock price of $144.84 as of the last business day of the three -month period ended March 27, 2016 , which would have been received by the optionees had all options been exercised and sold on that date. As of March 27, 2016 , total unrecognized stock-based compensation expense related to nonvested stock options was approximately $1,600 , which is expected to be recognized over a weighted average period of approximately 2.2 years . During the three -month periods ended March 27, 2016 and March 29, 2015 , the total intrinsic value of stock options exercised was $533 and $288 , respectively. No shares were granted or vested during the three -month periods ended March 27, 2016 or March 29, 2015 . (b) Restricted Stock Units Restricted stock units are granted annually under the Plan at the discretion of the Compensation Committee of our Board of Directors. We grant restricted stock units subject to three -year cliff vesting and a cumulative three -year earnings target. The number of units that vest at the end of the three-year period is based on performance against the target. These restricted stock units are subject to forfeiture if they have not vested at the end of the three-year period. Stock-based compensation is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant date through the end of the performance period. For each grant, restricted stock units meeting the performance criteria will vest as of the end of the third fiscal year in the performance period, subject to a Plan-specified maximum number of shares that may be issued to any individual in any year in settlement of restricted stock units. The distribution of vested restricted stock units as common stock typically occurs in March of the following year. The common stock is issued to participants net of the number of shares needed for the required minimum employee withholding taxes. We issue new shares of common stock upon the disbursement of restricted stock units. Restricted stock units are contingently issuable shares, and the activity for the three months ended March 27, 2016 was as follows: Number of shares Weighted average grant date fair value Outstanding, December 27, 2015 190,120 $ 161.06 Cancelled (6,772 ) 166.88 Outstanding, March 27, 2016 183,348 $ 160.85 As of March 27, 2016 , the total stock-based compensation expense related to nonvested awards not yet recognized was $7,181 , which is expected to be recognized over a weighted average period of 1.3 years. No shares were granted or vested during the three -month periods ended March 27, 2016 and March 29, 2015 . During the three -month periods ended March 27, 2016 and March 29, 2015 , we recognized $1,111 and $2,317 , respectively, of stock-based compensation expense related to restricted stock units. (c) Employee Stock Purchase Plan We have reserved 600,000 shares of common stock for issuance under our Employee Stock Purchase Plan (ESPP). The ESPP is available to substantially all employees subject to employment eligibility requirements. Participants may purchase our common stock at 85% of the beginning or ending closing price, whichever is lower, for each six-month period ending in May and November. During the three -month periods ended March 27, 2016 , and March 29, 2015 , we issued no shares of common stock under the ESPP. As of March 27, 2016 , we had 185,758 shares available for future issuance under the ESPP.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 27, 2016
Earnings Per Share [Abstract]
Earnings Per Common Share	Earnings Per Common Share The following is a reconciliation of basic and fully diluted earnings per common share for the three -month periods ended March 27, 2016 and March 29, 2015 : Three Months Ended March 27, 2016 Earnings (numerator) Shares (denominator) Per-share amount Net earnings attributable to Buffalo Wild Wings $ 32,773 Earnings per common share 32,773 18,922,040 $ 1.73 Effect of dilutive securities – stock options — 35,044 Earnings per common share – assuming dilution $ 32,773 18,957,084 $ 1.73 Three Months Ended March 29, 2015 Earnings (numerator) Shares (denominator) Per-share amount Net earnings attributable to Buffalo Wild Wings $ 29,063 Earnings per common share 29,063 18,992,965 $ 1.53 Effect of dilutive securities – stock options — 81,363 Earnings per common share – assuming dilution $ 29,063 19,074,328 $ 1.52 The following is a summary of those securities outstanding at the end of the respective periods, which have been excluded from the fully diluted calculations because the effect on net earnings per common share would have been antidilutive or were performance-granted shares for which the performance criteria had not yet been met: Three months ended March 27, March 29, Stock options 49,094 6,691 Restricted stock units 183,348 242,471

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	3 Months Ended
	Mar. 27, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosures of Cash Flow Information	Supplemental Disclosures of Cash Flow Information Three months ended March 27, March 29, Cash paid (received) during the period for: Income taxes $ (9,786 ) 2,096 Interest 867 — Noncash financing and investing transactions: Decrease in property and equipment not yet paid for (3,326 ) (2,311 ) Increase in deemed owner assets and obligations 1,490 — Increase in property and equipment and liabilities from hosted software arrangements 1,151 —

Contingencies

Contingencies	3 Months Ended
	Mar. 27, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We have a limited guarantee of the borrowings of Pie Squared Pizza, LLC, a subsidiary of Pie Squared Holdings, LLC, in the amount of $575 . On June 2, 2015, two of our former employees (the “plaintiffs”) filed a collective action under the Fair Labor Standards Act (“FLSA”) and putative class action under New York state law against us in the United States District Court for the Western District of New York. The claim alleges that we have a policy or procedure requiring employees who receive compensation in part through tip credits to perform work that is ineligible for tip credit compensation at a tip credit rate in violation of the FLSA and New York state law. We intend to vigorously defend this lawsuit. We believe a loss is reasonably possible, but we are currently unable to reasonably estimate the amount of loss. In addition to the litigation described above, we are involved in various other legal matters arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these other matters will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 27, 2016
Accounting Policies [Abstract]
Inventories	Inventories are stated at the lower of cost and net realizable value (see Recently Adopted Accounting Standards for our early adoption of the guidance issued in 2015 for inventory measurement). Cost is determined by the first-in, first-out method. We purchase products from a number of suppliers and believe there are alternative suppliers. We have minimum purchase commitments from some of our vendors, but the terms of the contracts and nature of the products are such that our purchase requirements do not create a market risk. One of the primary food products used by our restaurants and our franchised restaurants is traditional chicken wings. The price we pay for traditional chicken wings is determined based on the average of the previous month’s wing market plus mark-up for processing and distribution.
New Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 “Revenue with Contracts from Customers.” ASU 2014-09 supersedes the current revenue recognition guidance, including industry-specific guidance. The guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The requirements will be effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of the updated requirements on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 requires for lease arrangements spanning more than 12 months, an entity to recognize an asset and liability. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We believe the adoption of ASU 2016-02 will materially impact our consolidated financial statements. In March 2016, the FASB issued ASU 2016-04, “Liabilities - Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products.” ASU 2016-04 provides specific guidance for the derecognition of prepaid stored-value product liabilities. The updated guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. We do not believe it will materially impact our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 provides specific guidance to determine whether an entity is providing a specified good or service itself or is arranging for the good or service to be provided by another party. The guidance is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. We are currently evaluating the impact of the updated requirements on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation: Improvement to Employee Share-Based Payment Accounting.” ASU 2016-09 provides guidance intended to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted for any entity in any interim or annual period. We are currently evaluating the impact of the updated guidance on our consolidated financial statements. We reviewed all other significant newly-issued accounting pronouncements and concluded they are not applicable to our operations. (c) Recently Adopted Accounting Standards We adopted each of the following four standards as of December 28, 2015, which did not have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation: Amendments to the Consolidation Analysis.” ASU 2015-02 modifies the analysis that must be performed to determine whether a reporting entity should consolidate certain types of legal entities. The updated guidance was effective for interim and annual periods beginning after December 15, 2015. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 provides guidance related to a customer's accounting for fees paid in a cloud computing arrangement. The updated guidance was effective for interim and annual periods beginning after December 15, 2015. We adopted this guidance prospectively. Fees that meet the criteria of a software license are capitalized and included in other assets on our consolidated balance sheets. Amortization expense is recognized over the term of the arrangement and is included in depreciation and amortization expense on our consolidated statements of earnings. In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory.” ASU 2015-11 changed the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The guidance requires prospective application for the reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. The Company elected early adoption of this guidance as of December 28, 2015. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments.” ASU 2015-16 removes the requirement to retrospectively account for adjustments to preliminary amounts recognized in a business combination. The guidance requires the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The prior period impact of the adjustment should be either presented separately on the face of the income statement or disclosed in the notes. The guidance was effective for interim and annual reporting periods beginning after December 15, 2015.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 27, 2016
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring and Nonrecurring Basis	The following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of March 27, 2016 : Fair Value Measurements Level 1 Level 2 Level 3 Total Assets Marketable Securities $ 9,147 — — 9,147 Liabilities Contingent Consideration $ — — 445 445 Deferred Compensation 8,979 — — 8,979 The following table summarizes the financial instruments measured at fair value in our consolidated balance sheet as of December 27, 2015 : Fair Value Measurements Level 1 Level 2 Level 3 Total Assets Marketable Securities $ 9,043 — — 9,043 Liabilities Contingent Consideration — — 1,551 1,551 Deferred Compensation 8,958 — — 8,958
Schedule of Changes in Assets Measured on Recurring Basis with Unobservable Inputs	Contingent Consideration Liabilities Level 3 balance at December 27, 2015 $ (1,551 ) Mark to market adjustment 1,106 Level 3 balance at March 27, 2016 $ (445 )
Schedule of Changes in Liabilities Measured on Recurring Basis with Unobservable Inputs	Contingent Consideration Liabilities Level 3 balance at December 27, 2015 $ (1,551 ) Mark to market adjustment 1,106 Level 3 balance at March 27, 2016 $ (445 )

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Mar. 27, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable securities consisted of the following: March 27, December 27, Trading Mutual funds $ 9,147 9,043 Total $ 9,147 9,043

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 27, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment consisted of the following: March 27, December 27, Construction in process $ 22,193 18,662 Buildings 94,304 92,603 Capital leases and buildings under deemed landlord financing 24,928 25,105 Furniture, fixtures, and equipment 361,158 369,344 Leasehold improvements 566,312 553,736 Property and equipment, gross 1,068,895 1,059,450 Less accumulated depreciation (475,225 ) (454,738 ) Property and equipment, net $ 593,670 604,712

Long-Term Debt and Capital Le21

Long-Term Debt and Capital Lease Obligations (Tables)	3 Months Ended
	Mar. 27, 2016
Debt Disclosure [Abstract]
Schedule of Line of Credit Facilities	Our long-term debt and capital lease obligations consisted of the following: Average interest rate for the three months ended March 27, 2016 Maturity March 27, 2016 December 27, 2015 Revolving credit facility 1.3% July 2018 $ 7,648 34,530 Capital lease and deemed landlord financing obligations 7.7% Various through November 2030 39,562 38,571 Total debt and capital lease obligations 47,210 73,101 Less current maturities (4,787 ) (2,147 ) Total long-term debt and capital lease obligations $ 42,423 70,954

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 27, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Activity	Option activity is summarized for the three months ended March 27, 2016 as follows: Number of shares Weighted average exercise price Average remaining contractual life (years) Aggregate intrinsic value Outstanding, December 27, 2015 131,248 $ 113.12 4.0 $ 7,051 Exercised (6,392 ) 67.85 Cancelled (3,821 ) 152.93 Outstanding, March 27, 2016 121,035 $ 114.26 3.8 $ 4,788 Exercisable, March 27, 2016 81,276 95.60 3.2 4,311
Restricted Stock and Restricted Stock Units Activity	Restricted stock units are contingently issuable shares, and the activity for the three months ended March 27, 2016 was as follows: Number of shares Weighted average grant date fair value Outstanding, December 27, 2015 190,120 $ 161.06 Cancelled (6,772 ) 166.88 Outstanding, March 27, 2016 183,348 $ 160.85

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 27, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of basic and fully diluted earnings per common share for the three -month periods ended March 27, 2016 and March 29, 2015 : Three Months Ended March 27, 2016 Earnings (numerator) Shares (denominator) Per-share amount Net earnings attributable to Buffalo Wild Wings $ 32,773 Earnings per common share 32,773 18,922,040 $ 1.73 Effect of dilutive securities – stock options — 35,044 Earnings per common share – assuming dilution $ 32,773 18,957,084 $ 1.73 Three Months Ended March 29, 2015 Earnings (numerator) Shares (denominator) Per-share amount Net earnings attributable to Buffalo Wild Wings $ 29,063 Earnings per common share 29,063 18,992,965 $ 1.53 Effect of dilutive securities – stock options — 81,363 Earnings per common share – assuming dilution $ 29,063 19,074,328 $ 1.52
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following is a summary of those securities outstanding at the end of the respective periods, which have been excluded from the fully diluted calculations because the effect on net earnings per common share would have been antidilutive or were performance-granted shares for which the performance criteria had not yet been met: Three months ended March 27, March 29, Stock options 49,094 6,691 Restricted stock units 183,348 242,471

Supplemental Disclosures of C24

Supplemental Disclosures of Cash Flow Information (Tables)	3 Months Ended
	Mar. 27, 2016
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Three months ended March 27, March 29, Cash paid (received) during the period for: Income taxes $ (9,786 ) 2,096 Interest 867 — Noncash financing and investing transactions: Decrease in property and equipment not yet paid for (3,326 ) (2,311 ) Increase in deemed owner assets and obligations 1,490 — Increase in property and equipment and liabilities from hosted software arrangements 1,151 —

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Chicken Wings
Summary of Significant Accounting Policies (Details) [Line Items]
Percentage of Cost of Sales	25.90%	26.50%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value Measurements - USD ($)	3 Months Ended
	Mar. 27, 2016	Mar. 27, 2016	Dec. 27, 2015	Mar. 29, 2015
Fair Value Measurements (Details) - Fair Value Measurements [Line Items]
Marketable Securities		$ 9,147,000	$ 9,043,000
Contingent Consideration	$ 1,551,000	445,000	1,551,000
Deferred Compensation		8,979,000	8,958,000
Fair Value, Changes In Liabilities Measured At Level 3 Fair Value Hierarchy [Roll Forward]
Level 3 balance at December 27, 2015	(1,551,000)
Level 3 balance at March 27, 2016	(445,000)
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount		0		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount		0		$ 0
Level 1
Fair Value Measurements (Details) - Fair Value Measurements [Line Items]
Marketable Securities		9,147,000	9,043,000
Deferred Compensation		8,979,000	8,958,000
Level 2
Fair Value Measurements (Details) - Fair Value Measurements [Line Items]
Marketable Securities		0	0
Level 3
Fair Value Measurements (Details) - Fair Value Measurements [Line Items]
Marketable Securities		0	0
Contingent Consideration	1,551,000	$ 445,000	$ 1,551,000
Fair Value, Changes In Liabilities Measured At Level 3 Fair Value Hierarchy [Roll Forward]
Level 3 balance at December 27, 2015	(1,551,000)
Mark to market adjustment	1,106,000
Level 3 balance at March 27, 2016	$ (445,000)

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 27, 2016	Dec. 27, 2015
Investments, Debt and Equity Securities [Abstract]
Trading Mutual funds	$ 9,147	$ 9,043
Total	$ 9,147	$ 9,043

Marketable Securities (Details

Marketable Securities (Details 2) - USD ($)	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Investments, Debt and Equity Securities [Abstract]
Payments to Acquire Available-for-sale Securities	$ 0	$ (12,297,000)
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 11,155,000

Property and Equipment (Details

Property and Equipment (Details) - Property and Equipment - USD ($) $ in Thousands	Mar. 27, 2016	Dec. 27, 2015
Property, Plant and Equipment [Abstract]
Construction in process	$ 22,193	$ 18,662
Buildings	94,304	92,603
Capital leases and buildings under deemed landlord financing	24,928	25,105
Furniture, fixtures, and equipment	361,158	369,344
Leasehold improvements	566,312	553,736
Property and equipment, gross	1,068,895	1,059,450
Less accumulated depreciation	(475,225)	(454,738)
Property and equipment, net	$ 593,670	$ 604,712

Long-Term Debt and Capital Le30

Long-Term Debt and Capital Lease Obligations (Details) - USD ($)	3 Months Ended
	Mar. 27, 2016	Dec. 27, 2015	Feb. 28, 2013
Revolving Credit Facility (Details) [Line Items]
Debt and capital lease obligations including current maturities	$ 47,210,000	$ 73,101,000
Current portion of long-term debt and capital lease obligations	(4,787,000)	(2,147,000)
Long-term debt and capital lease obligations, net of current portion	$ 42,423,000	70,954,000
Line of Credit | Revolving Credit Facility
Revolving Credit Facility (Details) [Line Items]
Interest rate during period	1.30%
Debt and capital lease obligations including current maturities	$ 7,648,000	34,530,000
Capital Lease Obligations and Landlord Financing Obligations
Revolving Credit Facility (Details) [Line Items]
Interest rate during period	7.70%
Debt and capital lease obligations including current maturities	$ 39,562,000	$ 38,571,000
Unsecured Debt | Revolving Credit Facility
Revolving Credit Facility (Details) [Line Items]
Line of credit facility			$ 200,000,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 27, 2016USD ($)installment$ / sharesshares	Mar. 29, 2015USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing stock price | $ / shares	$ 144.84
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments in which incentive stock options become exercisable | installment	4
Contractual life of share based award	7 years
Nonvested stock awards, cost not yet recognized | $	$ 1,600
Nonvested stock awards, cost not yet recognized, period for recognition	2 years 2 months 15 days
Total intrinsic value of options exercised | $	$ 533	$ 288
Number of shares vested	0	0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Nonvested stock awards, cost not yet recognized | $	$ 7,181
Nonvested stock awards, cost not yet recognized, period for recognition	1 year 3 months 20 days
Duration of earnings target for granting restricted stock	3 years
Restricted stock or unit expense | $	$ 1,111	$ 2,317
Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for issuance to employees	5,400,000
Shares available for grant	910,099
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for issuance to employees	600,000
Shares available for grant	185,758
Market price less discount	85.00%
Shares issued under employee stock purchase plan	0

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015	Dec. 27, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Number of Shares Beginning of Period (in shares)	131,248
Options Exercises in Period (in shares)	(6,392)
Options Canceled in Period (in shares)	(3,821)
Options Outstanding, Number of Shares End of Period (in shares)	121,035
Options Exercisable, Number (in shares)	81,276
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options Outstanding, Weighted Average Exercise Price Beginning of Period (in Dollars per share)	$ 113.12
Options Exercises in Period, Weighted Average Exercise Price (in Dollars per share)	67.85
Options Canceled in Period, Weighted Average Exercise Price (in Dollars per share)	152.93
Options Outstanding, Weighted Average Exercise Price End of Period (in Dollars per share)	114.26
Options Exercisable, Weighted Average Exercise Price (in Dollars per share)	$ 95.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options Outstanding, Weighted Average Remaining Contractual Term (in years)	3 years 8 months 60 days	4 years
Options Exercisable, Weighted Average Remaining Contractual Term (in years)	3 years 2 months 12 days
Options Outstanding, Intrinsic Value	$ 4,788		$ 7,051
Options Exercisable, Intrinsic Value	$ 4,311

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Activity (Details) - $ / shares	3 Months Ended
	Mar. 27, 2016	Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted Stock Units Outstanding Beginning of Period (in shares)	190,120
Cancelled in Period (in shares)	(6,772)
Restricted Stock Units Outstanding End of Period (in shares)	190,120	183,348
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value Beginning of Period (in Dollars per share)	$ 161.06
Cancelled in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	166.88
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value End of Period (in Dollars per share)	$ 160.85

Earnings Per Common Share - Rec

Earnings Per Common Share - Reconciliation of Basic and Fully Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Earnings Per Common Share (Details) - Reconciliation of Basic and Fully Diluted Earnings Per Common Share [Line Items]
Net earnings attributable to Buffalo Wild Wings	$ 32,773	$ 29,063
Net earnings to calculate earnings per share	$ 32,773	$ 29,063
Weighted average shares outstanding – basic (in Shares)	18,922,040	18,992,965
Earnings per common share – basic (in Dollars per share)	$ 1.73	$ 1.53
Earnings per common share – assuming dilution	$ 32,773	$ 29,063
Weighted average shares outstanding – diluted (in Shares)	18,957,084	19,074,328
Earnings per common share – diluted (in Dollars per share)	$ 1.73	$ 1.52
Equity Option
Earnings Per Common Share (Details) - Reconciliation of Basic and Fully Diluted Earnings Per Common Share [Line Items]
Effect of dilutive securities – stock options (in shares)	35,044	81,363

Earnings Per Common Share - Sec

Earnings Per Common Share - Securities Excluded From Fully Diluted Calculations (Details) - shares	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Equity Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from fully diluted computations	49,094	6,691
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from fully diluted computations	183,348	242,471

Supplemental Disclosures of C36

Supplemental Disclosures of Cash Flow Information (Details) - Supplemental Disclosures of Cash Flow Information - USD ($) $ in Thousands	3 Months Ended
	Mar. 27, 2016	Mar. 29, 2015
Income Taxes Paid
Cash paid for income taxes	$ (9,786)	$ 2,096
Interest Paid
Interest	867	0
Noncash financing and investing transactions:
Decrease in property and equipment not yet paid for	(3,326)	(2,311)
Increase in deemed owner assets and obligations	1,490	0
Increase in property and equipment and liabilities from hosted software arrangements	$ 1,151	$ 0

Contingencies (Details)

Contingencies (Details) $ in Thousands	Dec. 27, 2015USD ($)
Pie Squared Pizza, LLC | Guarantee Obligations
Guarantor Obligations [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 575