Buffalo Wild Wings, Inc. Announces Fourth Quarter Earnings per Share of $0.55 and Annual Net Earnings Growth of Over 25% for 2010

Image via WikipediaBuffalo Wild Wings, Inc. (Hospitality Business News), announced today financial results for the fourth quarter ended December 26, 2010. Highlights for the fourth quarter versus the same period a year ago were:

• Total revenue increased 13.1% to $163.9 million
• Company-owned restaurant sales grew 13.3% to $148.7 million
• Same-store sales decreased 0.3% at company-owned restaurants and 1.1% at franchised restaurants
• Net earnings increased 22.0% to $10.2 million from $8.3 million, and earnings per diluted share increased 19.6% to $0.55 from $0.46

Sally Smith, President and Chief Executive Officer, commented, "The fourth quarter completed another successful year for Buffalo Wild Wings. We increased our brand presence with 80 additional restaurants across the United States, and our system-wide sales topped $1.7 billion! We delivered earnings per diluted share of $0.55 to our shareholders in the fourth quarter and accomplished net earnings growth of over 25% for the year."
Total revenue increased 13.1% to $163.9 million in the fourth quarter compared to $145.0 million in the fourth quarter of 2009. Company-owned restaurant sales for the quarter increased 13.3% over the same period in 2009, to $148.7 million, mainly the result of 27 additional company-owned restaurants at the end of fourth quarter 2010 relative to the same period in 2009. Same-store sales at company-owned locations for the fourth quarter decreased 0.3%. Franchise royalties and fees increased 10.3% to $15.2 million versus $13.8 million in the fourth quarter of 2009. This increase is attributed to 53 additional franchised restaurants at the end of the period versus a year ago, partially offset by a franchised same-store sales decrease of 1.1%.
Average weekly sales for company-owned restaurants were $45,595 for the fourth quarter of 2010 compared to $44,583 for the same quarter last year, a 2.3% increase. Franchised restaurants averaged $49,837 for the period versus $50,115 in the fourth quarter a year ago, a 0.6% decrease.
For the fourth quarter, net earnings increased 22.0% to $10.2 million versus $8.3 million in the fourth quarter of 2009. Earnings per diluted share were $0.55, as compared to fourth quarter 2009 earnings per diluted share of $0.46.
2011 Outlook
Ms. Smith remarked, "We're just coming off the excitement of Super Bowl Sunday, and our same-store sales for the first six weeks of 2011 are strong at 3.8% in company-owned and 1.5% at franchised locations. As sports fans turn their focus to basketball, we'll increase our media presence with attention-getting programming that supports our Home Court Advantage(TM) campaign. In our restaurants, our Team Members are dedicated to delivering an exceptional 'courtside' experience to our Guests."
Ms. Smith concluded, "2011 is another year of growth for Buffalo Wild Wings. We expect to open more than 100 new restaurants, including our first units in Canada, and reach our goal of 13% unit growth for the year. With our strategic emphasis on the core elements that have built our success: wings, beer, and sports, and our proven track record of results, we are confident in our ability to achieve our net earnings goal of over 18% growth for 2011."

When Is A Franchisee’s IT Obsolete?

It just got a lot tougher for franchise chains to crack the whip when it comes to IT mandates. A Florida judge has said Burger King can’t immediately shut down several franchisee stores for missing a deadline to purchase new POS systems. The $2.5 billion chain will now have to go though more legal proceedings and possibly a trial. Or it can settle what has become the most visible case in a set of messy disputes over IT upgrades that should have been installed by the end of 2009.

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Burger King Introducing First Stuffed Burger

As expected, the burger was unveiled on Jan. 10.

Burger King will announce as early as tomorrow (Monday, Jan. 10) the much-anticipated introduction of the first stuffed burger on a national quick-service restaurant chain menu. With a name that is nearly as big a mouthful as the product, the Jalapeño & Cheddar BK Stuffed Steakhouse already has slipped onto the menu in some markets. But several operators told BurgerBusiness.com they were waiting until Monday.

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Fast-food restaurants plan a heaping helping of excess

Who's ready for a steaming-hot bowl of meat, eggs and cheese from Burger King for breakfast? Or a pizza with not just bacon but "double bacon" and six types of cheese?

Rolling into 2011, fast-food joints across the country are set to deploy a potent new arsenal of greasy goodness for Americans who have grown numb to mere burgers. Think spicier, cheesier, gooier. The new items flout principles of healthful eating and instead celebrate a spirit of wanton gluttony.

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Burger King franchisee with 92 units files bankruptcy

A Burger King franchise operator in the Midwest has filed for voluntary bankruptcy protection and is seeking buyers, according to a story first published in the Minneapolis/St. Paul Business Journal, a sister publication.
Duke and King Acquisition Corp., filed for Chapter 11 on Dec. 4 in U.S. Bankruptcy Court for the District of Minnesota.
The company, incorporated in 2006 and based in Burnsville, Minn., lists in bankruptcy court documents 70 Burger King franchises in Minnesota, Wisconsin, Illinois and Iowa.

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Burger King’s lays off over 400 employees

Burger King's new owners continued their purge of headquarters Monday, dismissing a large number of workers there in an effort to catch-up with McDonald's in the fast-food wars.
The Miami-based company announced 413 dismissals company-wide, including 261 in South Florida. Most of those jobs came from the No. 2 burger chain's headquarters in the Blue Lagoon commercial park.
The company refused to say how many people worked at headquarters before the cuts, but in recent years Burger King put the number at between 500 and 700, according to the Beacon Council, Miami-Dade's economic development agency.
``It's significant news,'' said Frank Nero, the Beacon Council's president. ``They've told us they remain committed to having a headquarters here. Obviously, a much smaller headquarters.''

Here is a list of positions

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Man Dies After Altercation With Burger King Employee

According to a story by CBS Detroit , an altercation between a 20-year old Burger King employee and a 67-year old man has led to the death of the customer.
 The incident happened Thursday evening at a Burger King restaurant on Gratiot, near St. Aubin, on Detroit’s east side.
According to Detroit Police, the employee allegedly punched the customer, who then fell to the floor.
 The man apparently began choking on his dentures.  The man was rushed to a hospital where he died a short time later.
 The Burger King employee has been arrested.

Burger King's U.S. sales continue to struggle

The launch of Burger King's new breakfast menu helped drive traffic to stores during the first quarter, but it wasn't enough to turn around sales trends at U.S. restaurants.
Burger King said Wednesday that sales at restaurants in the U.S. and Canada open at least a year declined 4.2 percent for the quarter ending Sept. 30, compared to the same period last year. Worldwide same store sales declined 1.7 percent.

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5 worst fast-food meals marketed to kids

The most recent issue of Good Medicine lists what it considers the five worst fast-food meals marketed to children. The list was compiled by the Physicians Committee for Responsible Medicine:
McDonald's Mighty Kids Meal – with a double cheeseburger, fries and chocolate milk: 840 calories and 37 grams of fat.
Wendy's Kids' Meal – A chicken sandwich, fries and a chocolate Frosty: 770 calories and 34 grams of fat.
KFC Kids' Meal – Popcorn Chicken, potato wedges, string cheese and soda: 800 calories, 1,800 mg of sodium.
A&W Kids' Meal – cheeseburger, fries and soda: 780 calories and 9 grams of saturated fat.
Burger King's BK Kids – Breakfast muffin sandwich meal: 95 mg of cholesterol, and it exceeds the recommended daily allowance of sodium.

Free coffee at Burger King every Friday in November

Grab a free, 12-ounce cup of Seattle's Best coffee at Burger King every Friday in November. Click to find a participating BK near you to get your free coffee, then click on the link under "Coffee's On At BK." No purchase necessary. One per customer during breakfast hours, which presumably end at 12 noon or thereabouts.

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Burger King ousts top staff

Burger King's new private equity owners haven't wasted any time putting a new strategic recipe in place, implementing a major management shakeup this week as they move toward international expansion.

Less than a week after 3G Capital completed its deal to acquire the Miami fast-food chain, Bernardo Hees, Burger King's new chief executive, announced widespread changes in senior management.

Most of the changes focused on global positions.

The announcement was made via a press release; the company and 3G Capital did not return requests for comment.

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See Burger King Press Release

Burger King makes management changes

Burger King Holdings said Monday it has made numerous changes to its senior management team.
The shuffle comes a little more than a month after Burger King announced it was being acquired by affiliates of 3G Capital.

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3G Capital Completes Acquisition of Burger King Holdings, Inc.

MIAMI & NEW YORK--(BUSINESS WIRE)--Burger King Holdings, Inc. (NYSE:BKC) (the “Company”) and 3G Capital today announced the completion of the previously announced transaction for an affiliate of 3G Capital to acquire the Company for $24.00 per share in cash, or approximately $4.0 billion in the aggregate, including the assumption of outstanding debt.

“We are thrilled to complete this transaction and eager to continue building the BURGER KING® brand and enhance the guest experience in our restaurants all over the world”

As previously announced, Bernardo Hees will become Chief Executive Officer of the Company, and Alexandre Behring, Managing Partner of 3G Capital, will assume the position of Co-Chairman of the Board of the Company effective immediately, alongside John Chidsey, the Company’s Chairman and Chief Executive Officer prior to the completion of the transaction.

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Burger King buyer names rail exec as future CEO

NEW YORK (AP) -- Burger King's soon-to-be new owners have named a former Latin American railroad executive to be CEO of the fast-food chain after the $3.26 billion deal goes through.

The appointment of Bernardo Hees by 3G Capital is a signal that the investment firm is serious about expanding the Burger King brand further into Latin America and elsewhere abroad.

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What went wrong at Burger King

FORTUNE -- It's not yet clear what Burger King's new owner, the Brazilian-backed private equity firm 3G Capital, has in mind for the troubled No. 2 fast-food chain. But a total strategic revamp is in order.

Burger King (BKC), which went public four years ago after its previous private equity owners cashed out, has limped its way through the recession, losing sales and market share even as its far-better-managed rival, McDonald's (MCD, Fortune 500), has thrived. Thriving is what fast-food purveyors are supposed to do during a recession, when diners tend to trade down. But Burger King has stubbornly stuck to a losing strategy, falling further behind with each passing quarter. The result: A loss in share value over the two years up until Tuesday -- just before rumors of the buyout started to float -- of 36%. McDonald's shares over the same period rose 14%.

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Burger King Sold, now here come the Lawyers

September 2, 2010

Today a buyout deal for Burger King Holdings Inc by investment firm 3G Capital, at a value of $24 per share, or about $4 billion, was announced at 9:22AM

Shares of Burger King, the No. 2 U.S. hamburger chain, surged 23 percent to $23.20 after the report. They had gained nearly 15 percent on Wednesday after news of a potential deal first emerged. So Burger King went from around $15 on Wednesday to over $23 today. An increase of around 52%

At 10:38AM Tripp Levy PLLC sent out their press release stating:

“The investigation concerns, among other things, whether the consideration to be paid to Burger King shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Burger King. The investigation further concerns whether the directors of Burger King may have breached their fiduciary duties by not acting in Burger King shareholders' best interests in connection with the sale process of Burger King.”

At 11:18AM today the firm of Levi & Korsinsky, LLP sent out their press release stating:

“For the quarter ending June 30, 2010, Burger King reported total revenue of $623 million and net income of $49 million as compared to total revenue and net income of $596.90 million and $41 million, respectively, for the prior quarter. The investigation concerns whether the Burger King Board of Directors breached their fiduciary duties to Burger King stockholders by failing to adequately shop the Company before entering into this transaction and whether 3G is underpaying for Burger King shares, thus unlawfully harming Burger King stockholders.”

At 11:20AM today the firm of Rigrodsky & Long, P.A. sends out their press release stating that

“The investigation concerns whether Burger Kings’s board of directors failed to adequately shop the Company and obtain the best price possible for Burger Kings’s shareholders before entering into the agreement with 3G Capital. Moreover, Burger King Chairman and CEO, John Chidsey, will remain through the transition period in his current capacity and subsequently assume a newly created position of Co-Chairman of the Board.”

All three of the above firms are trying to solicit plaintiffs so that they can collect huge fees while the plaintiffs walk off with a Burger King Breakfast Sandwich Coupon massive amounts of cash for their major loss .

As part of the agreement with 3G Capital Burger King said “the Company may solicit superior proposals from third parties for a period of 40 calendar days continuing through October 12, 2010. It is not anticipated that any developments will be disclosed with regard to this process unless the Company’s Board of Directors makes a decision with respect to a potential superior proposal. There are no guarantees that this process will result in a superior proposal.”

So if you are a shareholder what do you do? You need to pick one of the firms above so that you can get the money you need to build your retirement fund. After all, it’s the American Way! Obviously #3 took from 9:22 AM to 11:20 , almost 2 hours to get out their release. Do you want to deal with a “number 3” company? Number 2 didn’t do much better. So there is only one pick left. Obviously Tripp Levy must have a “jack rabbit” staff that can fire out Press Releases at a moments notice. Helping the stockholders recoup millions, perhaps billions, of dollars that has been illegally withheld from them is a high priority, I am sure.

So hold the pickles, hold the lettuce all we ask is that you don't forget us, all we want is that you sue them our way. . . .

One question.How much does this cost the company and the shareholders?

Burger King buyout by 3G Capital seen at $24/shr

A buyout deal for Burger King Holdings Inc (BKC.N) by investment firm 3G Capital is being valued at $24 per share, or about $4 billion, cable business channel CNBC reported on Thursday.

Shares of Burger King, the No. 2 U.S. hamburger chain, surged 23 percent to $23.20 after the report. They had gained nearly 15 percent on Wednesday after news of a potential deal first emerged.

Burger King has lagged larger rival McDonald's Corp (MCD.N) and other fast food chains as its key customer base takes a deeper hit from persistently high unemployment rates.

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Burger King Is in Talks Over Possible Sale

The status of the talks is unclear but one interested firm was 3i Group PLC, a British private-equity firm, these people said. It's uncertain whether these discussions will result in a sale.

Burger King has been a public company since 2006, but it already has passed through the hands of buyout firms. In 2002 a group led by TPG Capital LLC, Bain Capital LLC and Goldman Sachs Capital Partners bought the company for about $1.5 billion from Diageo PLC. They still own 32% of Burger King, and have significant representation on the company's board.

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Burger King Holdings, Inc. Reports Fourth Quarter and Full Fiscal 2010 Results

Fourth quarter fiscal 2010:


Worldwide comparable sales were negative 0.7 percent compared to negative 2.4 percent in the same period last year;
U.S. and Canada comparable sales were negative 1.5 percent compared to negative 4.5 percent in the same period last year;
Solid development growth continued with net restaurant count increasing by 59; and
Diluted earnings per share were $0.36, including $0.01 per share of negative impact from currency translation, compared to diluted earnings per share of $0.43 in the same quarter last year. Last year's diluted earnings per share included a $0.07 tax benefit from the dissolution of dormant foreign entities and this year's diluted earnings per share included a $0.02 tax benefit from the resolution of state tax audits and changes in state tax uncertainties.

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World Has ended - Burger King introduces Pizza Burger - In other news Americans get fatter!

Early next month Burger King will be introducing the Pizza Burger at its flagship location the Whopper Bar in NYC. This delectable "morsel" will weigh in with a whopping 2,520 calories under its belt and loaded with nearly 2 pounds of beef (4 whoppers), pepperoni, mozzarella, marinara sauce and will be served on a 9 1/2 inch sesame seed bun.

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