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	Mary Twinem – CFO

Buffalo Wild Wings, Inc. Announces

Second Quarter Earnings per Share of $0.62 and

Quarterly Net Earnings Growth of 9.3%

Minneapolis, Minnesota, July 24, 2012 – Buffalo Wild Wings, Inc.(NASDAQ: BWLD), announced today financial results for the second quarter ended June 24, 2012. Highlights for the second quarter versus the same period a year ago were:

o Total revenue increased 29.7% to $238.7 million

o Company-owned restaurant sales grew 31.4% to $220.6 million

o Same-store sales increased 5.3% at company-owned restaurants and 5.5% at franchised restaurants

o Net earnings increased 9.3% to $11.7 million from $10.7 million, and earnings per diluted share increased 6.9% to $0.62 from $0.58

Sally Smith, President and Chief Executive Officer, commented, “We are very pleased with our strong sales and our ongoing ability to drive revenue increases. We continue to outpace the casual dining category with same-store sales increases of 5.3% at company-owned restaurants and 5.5% at franchised locations for the second quarter. The combination of strong same-store sales, new restaurant performance, and franchised restaurants acquired in 2011 fueled our substantial revenue increase of nearly 30%. We managed controllable costs, but the higher year-over-year wing costs in the second quarter moderated our net earnings to a 9.3% increase over the same quarter last year, providing earnings per diluted share of $0.62 compared to $0.58 a year ago.”

Total revenue increased 29.7% to $238.7 million in the second quarter compared to $184.1 million in the second quarter of 2011. Company-owned restaurant sales for the quarter increased 31.4% over the same period in 2011, to $220.6 million, driven by a company-owned same-store sales increase of 5.3% and 53 additional company-owned restaurants at the end of second quarter 2012 relative to the same period in 2011. Franchise royalties and fees increased 12.1% to $18.2 million for the quarter versus $16.2 million in the second quarter of 2011. This increase is attributed to a franchise same-store sales increase of 5.5% and 13 additional franchised restaurants at the end of the period versus a year ago.

Average weekly sales for company-owned restaurants were $51,524 for the second quarter of 2012 compared to $47,970 for the same quarter last year, a 7.4% increase. Franchised restaurants averaged $54,766 for the period versus $50,995 in the second quarter a year ago, also a 7.4% increase.

For the second quarter, net earnings increased 9.3% to $11.7million versus $10.7 million in the second quarter of 2011. Earnings per diluted share were $0.62, as compared to second quarter 2011 earnings per diluted share of $0.58.

2012 Outlook

Ms. Smith remarked, “We have exciting things happening in the second half of 2012 and are pleased that our same-store sales remain strong, at 6.8% at company-owned restaurants and 7.3% at franchised locations for the first four weeks of the third quarter. We plan to open more than 70 new company-owned and franchised locations before the end of the year, and we intend to purchase nine Buffalo Wild Wings franchised locations this quarter. We are building more locations in Canada, including our first location in the Calgary, Alberta market, and we are pleased to announce we have signed two new international franchising agreements.  We have an agreement for up to 22 locations across six countries in the Middle East over the next six years, and another agreement for four locations in Puerto Rico in the next four years.”

Ms. Smith continued, “We are gearing up for football season, an exciting time of year for us. Yesterday, we announced we have become the title sponsor of a longstanding college bowl game to be played on December 29th in Tempe, Arizona that will now be titled the Buffalo Wild Wings Bowl. We plan to make this a bowl game for football fans across the country and will bring the Buffalo Wild Wings experience to this exciting game for Big Ten and Big Twelve teams.

Our focus for the remainder of the year is on driving strong sales and disciplined expense management. Like industries across the country, we are facing rising commodity costs. We are responding to the challenge with menu price increases and marketing and operations strategies that will help lessen the bottom-line impact of wings in the near future and long term. Considering these factors, and provided sales remain strong, we should achieve net earnings growth between 15% and 20% for 2012.”

Ms. Smith concluded, “As we look ahead, we are excited about the strategies we have set in motion to evolve our brand to ensure we remain compelling to our Guests in the future. In addition to our updated logo, we have begun construction of restaurants that incorporate our new facility design. We are building a technology foundation for a pipeline of new initiatives to engage our Guests with unique and interactive platforms that will ensure Buffalo Wild Wings remains the preferred destination for a great sports-viewing experience. Fans across North America continue to embrace our growing brand and we look forward to sharing it across the globe.”

Buffalo Wild Wings will be hosting a conference call today, July 24, 2012 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 July 31, 2012. To access this replay, please dial 1.858.384.5517 password 4551930.

About the Company

Buffalo Wild Wings, Inc., founded in 1982 and headquartered in Minneapolis, Minnesota, is a growing owner, operator and franchisor of Buffalo Wild Wings Grill & Bar™ restaurants featuring a variety of boldly-flavored, made-to-order menu items including its namesake Buffalo, New York-style chicken wings. The Buffalo Wild Wings’ menu specializes in eighteen mouth-watering signature sauces and seasonings with flavor sensations ranging from Sweet BBQ™ to Blazin’®. Guests enjoy a welcoming neighborhood atmosphere that includes an extensive multi-media system for watching their favorite sporting events. Buffalo Wild Wings is the recipient of hundreds of "Best Wings" and "Best Sports Bar" awards from across the country. There are currently 837 Buffalo Wild Wings locations across 48 states in the United States, as well as in Canada.

Forward-looking Statements

Various remarks we make about future expectations, plans, and prospects for the company constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements relate to our future financial and store performance measures and growth goals for 2012 and beyond, including but not limited to those relating to our second quarter sales trends and projected unit and net earnings growth rates for 2012 and beyond. All statements other than statements of historical fact are statements that could be deemed forward-looking statements and are based upon the current beliefs and expectations of our management. We have attempted to identify forward-looking statements by terminology, including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should” or “will” or the negative of these terms or other comparable terminology. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including, but not limited to, our ability to achieve and manage our planned expansion, the ability of our franchisees to open and manage new restaurants, market acceptance in the new geographic regions we enter (particularly non-U.S. locations), unforeseen obstacles in developing nontraditional sites or non-U.S. locations, 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 cost of commodities such as traditional chicken wings, the success of our key initiatives and our advertising and marketing campaigns, our ability to control restaurant labor and 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, 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 25, 2011, 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						Six months ended
	June 24, 2012			June 26, 2011			June 24, 2012		June 26, 2011
Revenue:
Restaurant sales	$	220,550			167,896			452,866		333,423
Franchise royalties and fees		18,173			16,205			36,979		32,828
Total revenue		238,723			184,101			489,845		366,251
Costs and expenses:
Restaurant operating costs:
Cost of sales		69,799			45,735			141,950		91,999
Labor		66,638			51,309			134,906		100,187
Operating		32,349			25,048			65,146		49,597
Occupancy		13,091			10,659			25,891		20,886
Depreciation and amortization		16,090			11,931			31,621		22,953
General and administrative		20,976			18,766			40,400		35,058
Preopening		1,536			4,116			4,127		6,503
Loss on asset disposals and store closures		597			492			1,334		903
Total costs and expenses		221,076			168,056			445,375		328,086
Income from operations		17,647			16,045			44,470		38,165
Investment income (loss)		(115	)		(152	)		295		204
Earnings before income taxes		17,532			15,893			44,765		38,369
Income tax expense		5,870			5,220			14,858		12,835
Net earnings	$	11,662			10,673			29,907		25,534
Earnings per common share – basic	$	0.63			0.58			1.61		1.39
Earnings per common share – diluted		0.62			0.58			1.60		1.39
Weighted average shares outstanding – basic		18,575			18,330			18,565		18,318
Weighted average shares outstanding – diluted		18,660			18,401			18,650		18,389

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						Six months ended
	June 24, 2012			June 26, 2011			June 24, 2012			June 26, 2011
Revenue:
Restaurant sales		92.4	%		91.2	%		92.5	%		91.0	%
Franchising royalties and fees		7.6			8.8			7.5			9.0
Total revenue		100.0			100.0			100.0			100.0
Costs and expenses:
Restaurant operating costs:
Cost of sales		31.6			27.2			31.3			27.6
Labor		30.2			30.6			29.8			30.0
Operating		14.7			14.9			14.4			14.9
Occupancy		5.9			6.3			5.7			6.3
Depreciation and amortization		6.7			6.5			6.5			6.3
General and administrative		8.8			10.2			8.2			9.6
Preopening		0.6			2.2			0.8			1.8
Loss on asset disposals and store closures		0.3			0.3			0.3			0.2
Total costs and expenses		92.6			91.3			90.9			89.6
Income from operations		7.4			8.7			9.1			10.4
Investment income (loss)		0.0			(0.1	)		0.1			0.1
Earnings before income taxes		7.3			8.6			9.1			10.5
Income tax expense		2.5			2.8			3.0			3.5
Net earnings		4.9			5.8			6.1			7.0

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands)

(unaudited)

	June 24, 2012			December 25, 2011
Assets
Current assets:
Cash and cash equivalents	$	23,247			20,530
Marketable securities		52,985			39,956
Accounts receivable – net of allowance of $25		14,390			12,165
Inventory		6,022			6,311
Prepaid expenses		2,617			3,707
Refundable income taxes		1,600			7,561
Deferred income taxes		6,963			6,323
Restricted assets		30,751			42,692
Total current assets		138,575			139,245
Property and equipment, net		321,440			310,170
Other assets		27,903			28,174
Goodwill		17,777			17,770
Total assets	$	505,695			495,359
Liabilities and Stockholders’ Equity
Current liabilities:
Unearned franchise fees	$	1,807			1,852
Accounts payable		28,299			30,089
Accrued compensation and benefits		23,151			30,499
Accrued expenses		8,750			7,580
System-wide payables		30,861			44,250
Total current liabilities		92,868			114,270
Long-term liabilities:
Other liabilities		1,631			1,544
Deferred income taxes		36,907			38,512
Deferred lease credits, net of current portion		23,868			23,047
Total liabilities		155,274			177,373
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 18,587,152 and 18,377,920 respectively		116,215			113,509
Retained earnings		234,679			204,772
Accumulated other comprehensive loss		(473	)		(295	)
Total stockholders’ equity		350,421			317,986
Total liabilities and stockholders’ equity	$	505,695			495,359

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands)

(unaudited)

	Six months ended
	June 24, 2012			June 26, 2011
Cash flows from operating activities:
Net earnings	$	29,907			25,534
Adjustments to reconcile net earnings to cash provided by operations:
Depreciation		30,267			22,574
Amortization		1,354			379
Loss on asset disposals and store closures		1,143			904
Deferred lease credits		1,618			1,568
Deferred income taxes		(2,245	)		4,795
Stock-based compensation		3,919			5,952
Excess tax benefit from stock issuance		(289	)		(211	)
Change in operating assets and liabilities:
Trading securities		(534	)		(246	)
Accounts receivable		(4,484	)		(2,643	)
Inventory		281			(186	)
Prepaid expenses		1,090			1,077
Other assets		(1,084	)		(1,534	)
Unearned franchise fees		(45	)		(60	)
Accounts payable		(177	)		4,072
Income taxes		6,250			5,743
Accrued expenses		(234	)		2,525
Net cash provided by operating activities		66,737			70,243
Cash flows for investing activities:
Acquisition of property and equipment		(44,438	)		(55,159	)
Purchase of marketable securities		(52,493	)		(54,790	)
Proceeds of marketable securities		39,998			63,597
Net cash used in investing activities		(56,933	)		(46,352	)
Cash flows for financing activities:
Issuance of common stock		1,117			867
Tax payments for restricted stock units		(8,447	)		(2,481	)
Excess tax benefit from stock issuance		289			211
Net cash used in financing activities		(7,041	)		(1,403	)
Effect of exchange rate changes on cash and cash equivalents		(46	)		39
Net increase in cash and cash equivalents		2,717			22,527
Cash and cash equivalents at beginning of period		20,530			15,309
Cash and cash equivalents at end of period	$	23,247			37,836

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

Restaurant Count

Company-owned Restaurants:

	Q1	Q2	Q3	Q4
2012	327	330
2011	263	277	288	319
2010	235	234	244	259
2009	206	215	220	232
2008	165	169	187	197

Franchised Restaurants:

	Q1	Q2	Q3	Q4
2012	505	505
2011	488	492	498	498
2010	430	447	457	473
2009	373	383	400	420
2008	340	346	348	363

Same-Store Sales

Company-owned Restaurants:

	Q1	Q2	Q3	Q4	Year
2012	9.2%	5.3%
2011	3.9%	5.9%	5.7%	8.9%	6.1%
2010	0.1%	(0.1%)	2.6%	(0.3%)	0.6%
2009	6.4%	2.8%	0.8%	2.6%	3.1%
2008	4.1%	8.3%	6.8%	4.5%	5.9%

Franchised Restaurants:

	Q1	Q2	Q3	Q4	Year
2012	7.3%	5.5%
2011	1.6%	2.7%	4.2%	5.9%	3.6%
2010	0.7%	(0.7%)	0.3%	(1.1%)	(0.2%)
2009	6.0%	3.7%	1.9%	2.0%	3.4%
2008	2.1%	4.5%	2.1%	2.5%	2.8%

BUFFALO WILD WINGS, INC. AND SUBSIDIARIES

Supplemental Information

Average Weekly Sales Volumes

Company-owned Restaurants:

	Q1	Q2	Q3	Q4	Year
2012	$55,131	51,524
2011	48,845	47,970	49,461	51,983	49,627
2010	45,327	43,021	44,394	45,595	44,601
2009	45,593	42,938	42,602	44,583	43,912
2008	41,438	40,572	42,400	43,864	42,141

Franchised Restaurants:

	Q1	Q2	Q3	Q4	Year
2012	$57,282	54,766
2011	52,744	50,995	51,350	53,385	52,081
2010	51,532	49,051	49,005	49,837	49,835
2009	50,729	48,619	48,458	50,115	49,479
2008	47,812	46,390	46,889	48,424	47,382