Buffalo Wild Wings (BWLD) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE
Investor Relations Contact: Mary Twinem 952.253.0731	Sally Smith – President and CEO Mary Twinem – CFO

Buffalo Wild Wings, Inc. Announces

Fourth Quarter 2009 Results

– Same-store sales increases of 2.6% at company-owned and 2.0% at franchised restaurants –

– Earnings per diluted share increase of 7.0% to $0.46 –

Minneapolis, Minnesota, February 11, 2010 – Buffalo Wild Wings, Inc.(NASDAQ: BWLD), announced today financial results for the fourth quarter ended December 27, 2009. Highlights for the fourth quarter versus the same period a year ago were:

o Total revenue increased 19.6% to $145.0 million

o Company-owned restaurant sales grew 19.5% to $131.2 million

o Same-store sales increased 2.6% at company-owned restaurants and 2.0% at franchised restaurants

o Net earnings increased 7.9% to $8.3 million from $7.7 million, and earnings per diluted share increased 7.0% to $0.46 from $0.43

Sally Smith, President and Chief Executive Officer, commented, “The fourth quarter capped off another successful year that exceeded all of our annual growth goals. Our fast-paced unit growth throughout 2009 further established our position as a leader in the casual dining category as we opened 92 additional locations, a 16% increase in total units. Our 2009 revenue increase of nearly 28% is testimony that our restaurant team members remained dedicated to creating a compelling dining experience for our Guests. And, our focus on bottom-line performance is validated by impressive annual net earnings growth of over 25%.”

Ms. Smith continued, “In the fourth quarter, we achieved strong top-line performance as revenue increased 20%, fueled in part by 2.6% same-store sales increases at company-owned restaurants and 2.0% at franchised locations. Net earnings increased 7.9% for the quarter, yet didn’t hamper our ability to exceed our annual net earnings goal even though we experienced a quarterly increase in insurance costs and stock compensation expense.”

Total revenue increased 19.6% to $145.0 million in the fourth quarter compared to $121.2 million in the fourth quarter of 2008. Company-owned restaurant sales for the quarter increased 19.5% over the same period in 2008, to $131.2 million driven by a company-owned same-store sales increase of 2.6% and 35 additional company-owned restaurants in operation at the end of fourth quarter 2009 relative to the same period in 2008. Franchise royalties and fees increased 21.1% to $13.8 million versus $11.4 million in the fourth quarter of 2008. This increase was the result of a franchised same-store sales increase of 2.0% and 57 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $44,583 for the fourth quarter of 2009 compared to $43,864 for the same quarter last year, a 1.6% increase. Franchised restaurants averaged $50,115 for the period versus $48,424 in the fourth quarter a year ago, a 3.5% increase.

For the fourth quarter, net earnings increased 7.9% to $8.3 million versus $7.7 million in the fourth quarter of 2008. Earnings per diluted share were $0.46, as compared to fourth quarter 2008 earnings per diluted share of $0.43.

2010 Outlook

“The first quarter is an exciting time for Buffalo Wild Wings and a great time of year for sports fans!” Ms. Smith remarked. “The excitement of the Super Bowl, one of our biggest sales days, is still buzzing as we transition into the Winter Olympics and begin gearing up for the college basketball tournaments. We’ll debut a new menu and a new TV spot. In addition, we are operationally focused on building sales and profitability, with an intense dedication toward delivering a fun and unique dining experience.”

Ms. Smith concluded, “We are moving full speed ahead! Buffalo Wild Wings is a great brand with tremendous opportunity. Despite the challenges of our economy, our momentum has continued and we achieved the healthy annual growth goals we set for ourselves. We are confident we can achieve our new annual goals of 13% to 15% unit growth and 20% net earnings growth in 2010.”

Buffalo Wild Wings will be hosting a conference call today, February 11, 2010 at 4:00 p.m. Central Standard 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 February 18, 2010. To access this replay, please dial 1.303.590.3030, password 4205262.

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 658 Buffalo Wild Wings locations across 42 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 fourth quarter sales and projected unit, revenue and earnings growth rates for 2010 and beyond. 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, our ability to achieve and manage our planned expansion, the ability of our franchisees to open and manage new restaurants, the actual number of locations opened during 2010 and beyond, market acceptance in the new geographic regions we enter, unforeseen obstacles in developing nontraditional sites, our ability to obtain and maintain licenses and permits necessary to operate our existing and new restaurants, our franchisees’ adherence to our practices, policies and procedures, the sales at company-owned and franchised locations, the cost of commodities, the success of our key initiatives and our advertising and marketing campaigns, our ability to control other restaurant operating costs, the continued service of key management personnel, our ability to protect our name and logo and other proprietary information, economic conditions (including changes in consumer preferences or consumer discretionary spending), the impact of federal, state or local government regulations relating to our employees, the sale of food and alcoholic beverages, or the smoking of tobacco, the effect of competition in the restaurant industry, and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission, including the factors described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 28, 2008, as updated in subsequent reports filed with the SEC. 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.

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BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Dollar and share amounts in thousands except per share data)

(unaudited)

	Three months ended					Fiscal years ended
	December 27, 2009		December 28, 2008			December 27, 2009		December 28, 2008
Revenue:
Restaurant sales	$	131,225		109,836			488,702		379,686
Franchising royalties and fees		13,781		11,377			50,222		42,731
Total revenue		145,006		121,213			538,924		422,417
Costs and expenses:
Restaurant operating costs:
Cost of sales		39,720		32,181			147,659		113,266
Labor		38,581		32,442			146,555		114,609
Operating		20,989		17,398			76,358		60,205
Occupancy		8,588		7,285			32,362		25,157
Depreciation and amortization		8,955		6,902			32,605		23,622
General and administrative (1)		13,268		11,079			49,404		40,151
Preopening		2,471		2,511			7,702		7,930
Loss on asset disposals and impairment		639		15			1,928		2,083
Total costs and expenses		133,211		109,813			494,573		387,023
Income from operations		11,795		11,400			44,351		35,394
Investment income		209		(126	)		1,077		970
Earnings before income taxes		12,004		11,274			45,428		36,364
Income tax expense		3,666		3,547			14,757		11,929
Net earnings	$	8,338		7,727			30,671		24,435
Earnings per common share – basic	$	0.46		0.43			1.70		1.37
Earnings per common share – diluted		0.46		0.43			1.69		1.36
Weighted average shares outstanding – basic		18,038		17,854			18,010		17,813
Weighted average shares outstanding – diluted		18,208		18,011			18,177		17,995

(1) Includes stock-based compensation of $2,212, $1,679, $6,490, and $4,900, 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						Fiscal years ended
	December 27, 2009			December 28, 2008			December 27, 2009			December 28, 2008
Revenue:
Restaurant sales		90.5	%		90.6	%		90.7	%		89.9	%
Franchising royalties and fees		9.5			9.4			9.3			10.1
Total revenue		100.0			100.0			100.0			100.0
Costs and expenses:
Restaurant operating costs:
Cost of sales		30.3			29.3			30.2			29.8
Labor		29.4			29.5			30.0			30.2
Operating		16.0			15.8			15.6			15.9
Occupancy		6.5			6.6			6.6			6.6
Depreciation and amortization		6.2			5.7			6.1			5.6
General and administrative		9.1			9.1			9.2			9.5
Preopening		1.7			2.1			1.4			1.9
Loss on asset disposals and impairment		0.4			0.0			0.4			0.5
Total costs and expenses		91.9			90.6			91.8			91.6
Income from operations		8.1			9.4			8.2			8.4
Investment income		0.1			(0.1	)		0.2			0.2
Earnings before income taxes		8.3			9.3			8.4			8.6
Income tax expense		2.5			2.9			2.7			2.8
Net earnings		5.8	%		6.4	%		5.7	%		5.8	%

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 27, 2009 and December 28, 2008

(Dollar amounts in thousands)

(unaudited)

	December 27, 2009		December 28, 2008
Assets
Current assets:
Cash and cash equivalents	$	9,580		8,347
Marketable securities		43,632		36,157
Accounts receivable – franchisees, net of allowance of $25		2,118		895
Accounts receivable – other		7,383		5,759
Inventory		3,644		3,104
Prepaid expenses		2,972		3,294
Refundable income taxes		1,872		1,611
Deferred income taxes		2,938		1,731
Total current assets		74,139		60,898
Property and equipment, net		189,639		154,432
Restricted assets		24,384		7,670
Other assets		9,665		9,846
Goodwill		11,246		10,972
Total assets	$	309,073		243,818
Liabilities and Stockholders’ Equity
Current liabilities:
Unearned franchise fees	$	2,706		2,514
Accounts payable		13,436		16,691
Accrued compensation and benefits		19,554		14,155
Accrued expenses		6,540		7,116
Current portion of deferred lease credits		84		56
Total current liabilities		42,320		40,532
Long-term liabilities:
Other liabilities		1,422		1,270
System-wide payables		24,384		7,670
Deferred income taxes		14,940		8,916
Deferred lease credits, net of current portion		16,174		13,837
Total liabilities		99,240		72,225
Commitments and contingencies
Stockholders’ equity:
Undesignated stock, 1,000,000 shares authorized		—		—
Common stock, no par value. Authorized 44,000,000 shares; issued and outstanding 18,054,375 and 17,887,271, respectively		93,887		86,318
Retained earnings		115,946		85,275
Total stockholders’ equity		209,833		171,593
Total liabilities and stockholders’ equity	$	309,073		243,818

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(unaudited)

	Fiscal years ended
	December 27, 2009			December 28, 2008
Cash flows from operating activities:
Net earnings	$	30,671			24,435
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		31,993			23,415
Amortization		612			207
Loss on asset disposals and impairment		1,928			2,083
Deferred lease credits		2,181			1,955
Deferred income taxes		4,817			6,322
Stock-based compensation		6,490			4,900
Excess tax benefit from stock issuance		(1,453	)		(615	)
Change in operating assets and liabilities, net of effect of acquisition:
Trading securities		(2,051	)		23
Accounts receivable		(2,663	)		375
Inventory		(540	)		(473	)
Prepaid expenses		322			(152	)
Other assets		(490	)		(608	)
Unearned franchise fees		192			198
Accounts payable		1,150			809
Income taxes		1,192			890
Accrued expenses		4,935			2,343
Net cash provided by operating activities		79,286			66,107
Cash flows from investing activities:
Acquisition of property and equipment		(73,748	)		(67,396	)
Purchase of marketable securities		(57,024	)		(116,259	)
Proceeds of marketable securities		51,600			146,592
Acquisition of franchised restaurants		—			(23,071	)
Net cash used in investing activities		(79,172	)		(60,134	)
Cash flows from financing activities:
Issuance of common stock		1,179			1,227
Excess tax benefit from stock issuance		1,453			615
Tax payments for restricted stock		(1,513	)		(989	)
Net cash provided by financing activities		1,119			853
Net increase in cash and cash equivalents		1,233			6,826
Cash and cash equivalents at beginning of year		8,347			1,521
Cash and cash equivalents at end of year	$	9,580			8,347

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

Restaurant Count

Company-owned Restaurants:

	Q1	Q2	Q3	Q4
2009	206	215	220	232
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	383	400	420
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%	2.8%	0.8%	2.6%	3.1%
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%	3.7%	1.9%	2.0%	3.4%
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	42,938	42,602	44,583	43,912
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	$50,729	48,619	48,458	50,115	49,479
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