- Buffalo Wild Wings raised its full-year forecast for adjusted earnings per share, sending its stock flying in extended trading.
- The company had faced "historically high" chicken-wing costs, but killed one of its most popular promos to save costs.
Buffalo Wild Wings shares on Wednesday surged nearly 22% in extended trading after the company raised its forecast for full-year earnings.
The restaurant chain forecast adjusted earnings per share of $4.85 to $5.15, topping analysts' forecasts that ranged between $4.13 and $4.70 according to Bloomberg. Third-quarter adjusted EPS was $1.36, crushing the estimate for $0.79.
The earnings release also showed that the company was working to save costs amid rising chicken-wing prices. It ended half-price wings Tuesday and replaced it with a "buy-one, get-one" offer for boneless wings.
"The recent Tuesday promotion shift from traditional to boneless wings at company-owned restaurants will continue to improve cost of sales while traditional wing prices remain elevated," said Sally Smith, the CEO of Buffalo Wild Wings, in a statement.
Chicken wings cost $2.16 per pound on average in the third quarter, up from $1.72 a year ago.
Sales at stores open for at least one year fell in the third quarter by 2.3% at company-owned restaurants.
The stock fell 34% this year through Wednesday's close.
More to come ...
