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.
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Buffalo Wild Wings, Inc.
Buffalo Wild Wings(NASDAQ – BWLD)
January 2005
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Buffalo Wild Wings, Inc.
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.
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Buffalo Wild Wings, Inc.
Sally SmithPresident,
Chief Executive Officer
Mary Twinem Executive Vice President,
Chief Financial Officer
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Buffalo Wild Wings, Inc.
Overview
Strategy
Financials
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Buffalo Wild Wings, Inc.
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.
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
Buffalo Wild Wings Concept
Advertising
Shrimp
“Interview”
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Buffalo Wild Wings, Inc.
Buffalo Wild Wings Concept
Advertising
Branding
“Heaven”
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Buffalo Wild Wings, Inc.
Strategy
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Buffalo Wild Wings, Inc.
• Company-ownedunit expansion
• Store level &corporate execution
• Franchise growth
Strategy
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Buffalo Wild Wings, Inc.
• 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
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Buffalo Wild Wings, Inc.
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Buffalo Wild Wings, Inc.
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Buffalo Wild Wings, Inc.
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Buffalo Wild Wings, Inc.
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
Financials
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Buffalo Wild Wings, Inc.
42
95
53
105
70
129
84
161
103
203
2000 2001 2002 2003 2004
Company Franchise
Unit Growth
158199
245
137
306
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
Net Income Growth
$2,562,000 $2,701,000$3,077,000
$3,583,000
$6,019,000
2000 2001 2002 2003 Sept 2004Rolling 12
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Buffalo Wild Wings, Inc.
Balance Sheet
Dec 28, Sept 26,(US$ 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$
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Buffalo Wild Wings, Inc.
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)
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Buffalo Wild Wings, Inc.
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
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Buffalo Wild Wings, Inc.
Accounting Updates
• Stock option accounting
• Sarbanes-Oxley compliance
• Accounting for depreciation and rent
• System-wide financial data
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Buffalo Wild Wings, Inc.
Investment Highlights
• Concept with broad appeal
• Proven portability
• Under-penetrated brand
• Experienced management
• Demonstrated financial track record
• Strong balance sheet
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Buffalo Wild Wings, Inc.