Buffalo Wild Wings, Inc. Buffalo Wild Wings (NASDAQ – BWLD) January 2005.

Buffalo Wild Wings, Inc.

Buffalo Wild Wings(NASDAQ – BWLD)

January 2005


Safe Harbor Statement

We make forward-looking statements in this presentation which represent

our expectations or beliefs about future events and financial performance.

Forward-looking statements are identifiable by words such as “believe”,

“anticipate”, “expect”, “intend”, “plan”, “will”, “may” and other similar

expressions. In addition, any statements that refer to expectations,

projections or other characterizations of future events or circumstances

are forward-looking statements. Forward-looking statements are subject

to known and unknown risks and uncertainties, including those described

in the Company’s filings with the Securities and Exchange Commission. In

addition, actual results could differ materially from those suggested by the

forward-looking statements, and therefore you should not place undue

reliance on the forward-looking statements.


Sally SmithPresident,

Chief Executive Officer

Mary Twinem Executive Vice President,

Chief Financial Officer


Overview

Strategy

Financials


Company Overview

• Successful 20-yearconcept

• Casual dining/fast casual category

• 307 locations in 31 states

• 35% company-owned65% franchised

• 1,000-plus unit potentialin U.S.


Buffalo Wild Wings Today

104 Company203 Franchise31 States

As of January 10, 2005

2

108

14

1325

9

7 80

3

1

56

1

25

14

43

8

19

836

3

2

8

4

7

35

1


Buffalo Wild Wings Concept

Restaurant concept with broad appeal– Neighborhood dining concept

– Cravable food in entertaining, sports-oriented atmosphere

– Flexible service model

– Irreverent brand positioning


Menu

New Additions– Popcorn Shrimp

– Chili Con Queso Dip

– Loaded Chili Potato Skins

– Buffalo Ranch Chicken Sandwich

– BBQ Bacon Chicken Sandwich

– Kids Macaroni & Cheese

– Desserts


Lunch20%

Chill Out14%

Dinner39%

Late Night27%

Dayparts

Our Guests• Broad demographic appeal

• “Cult-like” following = high frequency

• Multiple uses

– Workday lunch

– Sit-down dinner with the family

– Watching the big game

– Late-night cravings

– Take-out

Percentages for fiscal year 2004at Company-owned restaurants



Advertising

Shrimp

“Interview”



Advertising

Branding

“Heaven”


Strategy


• Company-ownedunit expansion

• Store level &corporate execution

• Franchise growth

Strategy


• Development– 19 locations in 2004

– 20+ estimated in 2005

• Initiatives– Improve new store opening process

– Execute consistent service strategy

– Gain efficiencies in new markets thru multiple stores

• New prototype

Company-owned


Execution

• Store Level– Increase average unit volumes

– Reduce cost of goods sold

– Improve labor efficiencies

• Corporate– Leverage SG&A

– Develop a comprehensivepeople plan

– Build the brand nationally


Franchise Growth

• Development– 42 locations in 2004

– 45-50 estimated in 2005

• Quality partners – Growth from existing and

new franchisees

– Experienced multi-unitdevelopers

• Growth areas – California, New York, Texas,

Florida, Arizona


Financials


42

95

53

105

70

129

84

161

103

203

2000 2001 2002 2003 2004

Company Franchise

Unit Growth

158199

245

137

306


2000 2001 2002 2003 2004E

Company Restaurant Sales Franchise Revenue

Revenue Growth

$53,175,000 $74,570,000$96,107,000

$126,497,000

$170,942,000


Net Income Growth

$2,562,000 $2,701,000$3,077,000

$3,583,000

$6,019,000

2000 2001 2002 2003 Sept 2004Rolling 12


Balance Sheet

Dec 28, Sept 26,(US$ in millions) 2003 2004

Cash 49.5$ 30.0$ Marketable Securities --- 18.5Other Current Assets 6.1 6.0 Property & Equipment, net 44.5 52.7 Other Long-Term Assets 3.9 3.7 Total Assets 104.0$ 110.9$

Current Liabilities 15.6$ 15.9$ Other Long-Term Liabilities 13.3 13.7 Total Liabilities 28.9$ 29.6$

Common Stockholders' Equity 75.1$ 81.3$

Total Liabilities and Stockholders' Equity 104.0$ 110.9$


Chicken Wing Prices

Average Quarterly Wing Prices2000 - 2004

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Price by Qtr 0.87 0.79 0.86 1.00 1.14 1.22 1.22 1.16 1.11 0.87 0.84 0.78 1.01 1.02 1.00 1.21 1.49 1.46 1.35 1.30

2000

Q1 Q2 Q3 Q4

2001

Q1 Q2 Q3 Q4

2002

Q1 Q2 Q3 Q4

2003

Q1 Q2 Q3 Q4

2004

Q1 Q2 Q3 Q4

($/l

bs)


Outlook

• Pre-announcedfourth quarter – Revenue of approximately

$48.5 million

– Diluted EPS range updated to$0.25 to $0.28

• 2005 guidance to begiven in Februaryconference call


Accounting Updates

• Stock option accounting

• Sarbanes-Oxley compliance

• Accounting for depreciation and rent

• System-wide financial data


Investment Highlights

• Concept with broad appeal

• Proven portability

• Under-penetrated brand

• Experienced management

• Demonstrated financial track record

• Strong balance sheet

Buffalo Wild Wings, Inc. Buffalo Wild Wings (NASDAQ – BWLD) January 2005.

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Transcript of Buffalo Wild Wings, Inc. Buffalo Wild Wings (NASDAQ – BWLD) January 2005.