Buffalo Wild Wings (BWLD) 8-K Buffalo Wild Wings, Inc. Announces First Quarter 2009 Results

Exhibit 99.1

Buffalo Wild Wings, Inc. Announces First Quarter 2009 Results

Same-store sales increases of 6.4% at company-owned and 6.0% at franchised restaurants

Earnings per diluted share increase of 30.6% to $0.47

MINNEAPOLIS--(BUSINESS WIRE)--April 28, 2009--Buffalo Wild Wings, Inc. (NASDAQ: BWLD), announced today financial results for the first quarter ended March 29, 2009. Highlights for the first quarter versus the same period a year ago were:

• Total revenue increased 35.3% to $131.6 million
• Company-owned restaurant sales grew 37.4% to $119.4 million
• Same-store sales increased 6.4% at company-owned restaurants and 6.0% at franchised restaurants
• Net earnings increased 30.1% to $8.5 million from $6.5 million, and earnings per diluted share increased 30.6% to $0.47 from $0.36

Sally Smith, President and Chief Executive Officer, commented, “We’re very pleased to share the continued strength and momentum of our first quarter results. Our outstanding revenue growth of 35.3% and net earnings growth of 30.1% demonstrate the stability and strength of the Buffalo Wild Wings brand and the ongoing commitment to exceptional execution by our Franchisees and Team Members. I applaud the entire Buffalo Wild Wings Team for their ability to rise to the challenges of this difficult economy with such strong results.”

Total revenue increased 35.3% to $131.6 million in the first quarter compared to $97.3 million in the first quarter of 2008. Company-owned restaurant sales for the quarter increased 37.4% to $119.4 million driven by a company-owned same-store sales increase of 6.4% and 41 additional company-owned restaurants in operation at the end of first quarter 2009 relative to the same period in 2008. Franchise royalties and fees increased 17.0% to $12.1 million versus $10.4 million in the prior year. This increase was the result of a franchised same-store sales increase of 6.0% and 33 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $45,593 for the first quarter of 2009 compared to $41,438 for the same quarter last year, a 10.0% increase. Franchised restaurants averaged $50,730 for the period versus $47,812 in the first quarter a year ago, a 6.1% increase.

For the first quarter, net earnings increased 30.1% to $8.5 million versus $6.5 million in the prior year. Earnings per diluted share were $0.47, as compared to first quarter 2008 earnings per diluted share of $0.36.

2009 Outlook

Ms. Smith continued, “We are reiterating our 2009 annual growth goals of 15% unit growth, 25% revenue growth, and 20% to 25% net earnings growth. We have strategies in place to continue our momentum and drive our business forward. We remain focused on enhancing our unique Buffalo Wild Wings experience through engaged Team Members, new menu choices, national and local restaurant marketing activities, and facility upgrades that provide our guests new reasons to come and enjoy themselves more often at our restaurants.”

Ms. Smith concluded, “To date, our second quarter same-store sales are about 1.8% at company-owned restaurants and 3.6% at franchised locations. These percentages include the effect of Easter occurring in April this year, which we estimate adversely impacted same-store sales by about 2.5%. We are on track to open more restaurants before the end of third quarter this year than we opened during all of 2008. We will, however, have additional expense in the second quarter as a result of this accelerated opening schedule and a shift in stock-based compensation. With more units open to take full advantage of football season, we look forward to a strong second half of 2009.”

Buffalo Wild Wings will be hosting a conference call today, April 28, 2009 at 4:00 p.m. Central Daylight Time to discuss these results. There will be a simultaneous webcast conducted at our website www.buffalowildwings.com.

A replay of the call will be available until May 5, 2009. To access this replay, please dial 1.303.590.3030, password 4056035.

About the Company

Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of restaurants featuring a variety of boldly-flavored, made-to-order menu items including Buffalo-style chicken wings spun in one of 14 signature sauces. Buffalo Wild Wings is an inviting neighborhood destination with widespread appeal and is the recipient of dozens of “Best Wings” and “Best Sports Bar” awards from across the country. There are currently 588 Buffalo Wild Wings locations across 40 states.

Forward-looking Statements

Certain statements in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. These statements include, without limitation, those relating to our projected unit, revenue and earnings growth rates for 2009 and beyond and our ability to fund our growth. Forward-looking statements are based upon the current beliefs and expectations of our management. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of locations opening in the future, the sales at these and our other company-owned and franchised locations, our ability to successfully operate in new markets, the cost of commodities, the success of our marketing and other initiatives, our ability to control restaurant labor and other restaurant operating costs, economic conditions (including changes in consumer preferences or consumer discretionary spending), the availability of financing to real estate developers and franchisees, competition, the impact of applicable regulations, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands except per share data)
(unaudited)
	Three months ended
	March 29, 2009		March 30, 2008
Revenue:
Restaurant sales	$	119,424	$	86,896
Franchise royalties and fees		12,131		10,366
Total revenue		131,555		97,262
Costs and expenses:
Restaurant operating costs:
Cost of sales		36,208		26,415
Labor		35,549		25,858
Operating		17,987		13,275
Occupancy		7,594		5,697
Depreciation		7,495		5,239
General and administrative (1)		11,420		9,341
Preopening		2,409		1,185
Loss on asset disposals and impairment		175		753
Total costs and expenses		118,837		87,763
Income from operations		12,718		9,499
Investment income		76		432
Earnings before income taxes		12,794		9,931
Income tax expense		4,308		3,406
Net earnings	$	8,486	$	6,525
Earnings per common share – basic	$	0.47	$	0.37
Earnings per common share – diluted		0.47		0.36
Weighted average shares outstanding – basic		17,980		17,766
Weighted average shares outstanding – diluted		18,041		17,877

(1) Includes stock-based compensation of $801 and $1,020, respectively

The following table expresses results of operations as a percentage of total revenue for the periods presented, except for restaurant operating costs which are expressed as a percentage of restaurant sales:

	Three months ended
	March 29, 2009		March 30, 2008
Revenue:
Restaurant sales	90.8	%	89.3	%
Franchising royalties and fees	9.2		10.7
Total revenue	100.0		100.0
Costs and expenses:
Restaurant operating costs:
Cost of sales	30.3		30.4
Labor	29.8		29.8
Operating	15.1		15.3
Occupancy	6.4		6.6
Depreciation	5.7		5.4
General and administrative	8.7		9.6
Preopening	1.8		1.2
Loss on asset disposals and impairment	0.1		0.8
Total costs and expenses	90.3		90.2
Income from operations	9.7		9.8
Investment income	0.1		0.4
Earnings before income taxes	9.7		10.2
Income tax expense	3.3		3.5
Net earnings	6.5	%	6.7	%

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 29, 2009 and December 28, 2008
(Dollar amounts in thousands)
(unaudited)
	March 29, 2009		December 28, 2008
Assets
Current assets:
Cash and cash equivalents	$	6,745	$	8,347
Marketable securities		37,279		36,157
Accounts receivable – franchisees, net of allowance of $25		1,001		895
Accounts receivable – other		8,008		5,759
Inventory		3,515		3,104
Prepaid expenses		2,596		3,294
Refundable income taxes		—		1,611
Deferred income taxes		2,158		1,731
Total current assets		61,302		60,898
Property and equipment, net		163,071		154,432
Restricted cash		6,395		7,670
Other assets		9,771		9,846
Goodwill		10,972		10,972
Total assets	$	251,511	$	243,818
Liabilities and Stockholders’ Equity
Current liabilities:
Unearned franchise fees	$	2,685	$	2,514
Income tax payable		1,166		—
Accounts payable		14,715		16,691
Accrued compensation and benefits		12,714		14,155
Accrued expenses		6,807		7,116
Current portion of deferred lease credits		141		56
Total current liabilities		38,228		40,532
Long-term liabilities:
Other liabilities		1,276		1,270
Marketing fund payables		6,395		7,670
Deferred income taxes		10,496		8,916
Deferred lease credits, net of current portion		14,388		13,837
Total liabilities		70,783		72,225
Commitments and contingencies
Stockholders’ equity:
Undesignated stock, 1,000,000 shares authorized; none issued		—		—
Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 17,977,626 and 17,887,271 respectively		86,967		86,318
Retained earnings		93,761		85,275
Total stockholders’ equity		180,728		171,593
Total liabilities and stockholders’ equity	$	251,511	$	243,818

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollar amounts in thousands)
(unaudited)
	Three months ended
	March 29, 2009			March 30, 2008
Cash flows from operating activities:
Net earnings	$	8,486		$	6,525
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		7,342			5,239
Amortization		153			(36	)
Loss on asset disposals and impairment		175			753
Deferred lease credits		620			834
Deferred income taxes		1,153			1,267
Stock-based compensation		801			1,020
Excess tax benefit from stock issuance		(2	)		(278	)
Change in operating assets and liabilities:
Trading securities		(691	)		1
Accounts receivable		(2,339	)		(345	)
Inventory		(411	)		(260	)
Prepaid expenses		698			751
Other assets		(78	)		23
Unearned franchise fees		171			132
Accounts payable		784			(219	)
Income taxes		2,779			1,826
Accrued expenses		(384	)		(1,212	)
Net cash provided by operating activities		19,257			16,021
Cash flows from investing activities:
Acquisition of property and equipment		(18,916	)		(10,395	)
Purchase of marketable securities		(13,070	)		(27,704	)
Proceeds of marketable securities		12,639			36,322
Net cash used in investing activities		(19,347	)		(1,777	)
Cash flows from financing activities:
Issuance of common stock		3			101
Excess tax benefit from stock issuance		2			278
Tax payments for restricted stock		(1,517	)		(989	)
Net cash used in financing activities		(1,512	)		(610	)
Net increase (decrease) in cash and cash equivalents		(1,602	)		13,634
Cash and cash equivalents at beginning of period		8,347			1,521
Cash and cash equivalents at end of period	$	6,745		$	15,155

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information
Restaurant Count
Company-owned Restaurants:
	Q1		Q2		Q3		Q4
2009	206
2008	165		169		187		197
2007	140		145		148		161
2006	124		129		134		139
2005	106		110		116		122
Franchised Restaurants:
	Q1		Q2		Q3		Q4
2009	373
2008	340		346		348		363
2007	299		301		313		332
2006	260		270		278		290
2005	212		224		234		248
Same-Store Sales
Company-owned Restaurants:
	Q1		Q2		Q3		Q4		Year
2009	6.4	%
2008	4.1	%	8.3	%	6.8	%	4.5	%	5.9	%
2007	8.7	%	8.1	%	8.3	%	3.4	%	6.9	%
2006	7.7	%	8.2	%	11.8	%	13.2	%	10.4	%
2005	6.1	%	2.7	%	1.8	%	2.5	%	3.2	%
Franchised Restaurants:
	Q1		Q2		Q3		Q4		Year
2009	6.0	%
2008	2.1	%	4.5	%	2.1	%	2.5	%	2.8	%
2007	3.3	%	4.0	%	5.9	%	2.3	%	3.9	%
2006	6.7	%	4.7	%	6.4	%	6.5	%	6.1	%
2005	3.2	%	1.8	%	1.1	%	2.6	%	2.2	%

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES
Supplemental Information
Average Weekly Sales Volumes
Company-owned Restaurants:
	Q1	Q2	Q3	Q4	Year
2009	$45,593
2008	41,438	40,572	42,400	43,864	42,141
2007	39,254	36,655	38,498	40,485	38,757
2006	35,857	33,660	35,380	38,800	36,033
2005	33,195	30,531	31,361	33,953	32,304
Franchised Restaurants:
	Q1	Q2	Q3	Q4	Year
2009	$50,730
2008	47,812	46,390	46,889	48,424	47,382
2007	46,439	43,998	45,879	47,293	45,901
2006	44,342	42,338	42,963	46,008	43,975
2005	41,309	39,824	40,149	42,533	40,999

CONTACT:
Buffalo Wild Wings, Inc.
Investor Relations Contact:
Mary Twinem, 952-253-0731