Buffalo Wild Wings 2006 Annual Report Download - page 9

Kathleen M. Benning, 44, has served as our Senior Vice President, Marketing and Brand Development since January
2002. She joined us in March 1997 as Vice President of Marketing. Prior to joining us, Ms. Benning was employed by
emer, Fieger & Associates, an advertising agency, from 1992 to 1997, where she was a partner from 1994 to 1997. N
Craig W. Donoghue, 45, has served as our Senior Vice President, Information Systems since January 2003, prior to
which he served as our Director of Information Systems and later as Vice President of Information Systems from August
1998 to January 2003. From November 1996 until August 1998, Mr. Donoghue was a self-employed computer consultant,
using the trade name of Excelsior Information Systems. From January 1996 until November 1996, Mr. Donoghue was
anager of Information Systems for Varitronic Systems, Inc. M
Lee Sanders, 54, has served as our Senior Vice President, Development and Franchising since January 2002. He joined
us as Vice President of Franchising in August 2001. Prior to joining us, Mr. Sanders was National Director of Franchising of
Allied Domecq Quick Service Restaurants, a franchisor of Dunkin’ Donuts, Togo’ s Eateries and Baskin-Robbins, from
September 1998 to August 2001. From 1988 to 1998, Mr. Sanders was a Manager of Branded Retail Systems for General
Mills.
James M. Schmidt, 47, has served as our Executive Vice President and General Counsel since December 2006, prior to
which he served as Senior Vice President and General Counsel joining us April 2002. Mr. Schmidt has also served as our
Secretary since September 2002, and he served as a director on our Board from 1994 to September 2003. Mr. Schmidt has
been a practicing attorney since 1985, most recently with the law firm of Robbins, Kelly, Patterson & Tucker, which provides
legal services to us from time to time.
Judith A. Shoulak, 47, has served as our Senior Vice President, Operations since March 2004. She served as our Senior
Vice President, Human Resources from January 2003 to February 2004 and as Vice President of Human Resources from
October 2001 to January 2003. From 1993 to 2001, Ms. Shoulak served as Vice President of Field Human Resources of
OfficeMax.
Linda G. Traylor, 55, has served as our Senior Vice President, Human Resources since October 2006. Prior to joining
us, Ms. Traylor managed her own consulting company, LG Traylor & Associates from 2005 to 2006. From 2001 to 2005,
Ms. Traylor served as Senior Vice President, Human Resources of Denny’ s Corporation and as its Vice President, Human
Resources Planning and Development from 1995 to 2001. From 1979 to 1995, Ms. Traylor held various leadership positions
with Burger King Corporation.
ITEM 1A. RISK FACTORS
The foregoing discussion and the discussion contained in Item 7 of this Form 10-K contain various “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are based on current expectations or beliefs concerning
future events. Such statements can be identified by the use of terminology such as “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “may,” “could,” “possible,” “plan,” “project,” “will,” “forecast” and similar words or expressions. Our
forward-looking statements generally relate to our growth strategy, financial results, sales efforts, store openings and related
expense, and cash requirements. Although it is not possible to foresee all of the factors that may cause actual results to differ
from our forward-looking statements, such factors include, among others, the risk factors that follow. Investors are cautioned
that all forward-looking statements involve risks and uncertainties.
Fluctuations in chicken wing prices could reduce our operating income.
The primary food product used by our company-owned and franchised restaurants is fresh chicken wings. We purchase
fresh chicken wings based on current market prices that are subject to fluctuations. A material increase in fresh chicken wings
costs may adversely affect our operating results. Fresh chicken wing prices in 2006 averaged 3% lower than 2005 as the
average price per pound dropped to $1.17 in 2006 from $1.20 in 2005. If there is a significant rise in the price of fresh
chicken wings, and we are unable to successfully adjust menu prices or menu mix or otherwise make operational adjustments
to account for the higher wing prices, our operating results could be adversely affected. For example, fresh chicken wings
accounted for approximately 24%, 27%, and 34% of our cost of sales in 2006, 2005, and 2004, respectively, with an annual
average price per pound of $1.17, $1.20, and $1.39, respectively. A 10% increase in the fresh chicken wing costs for 2006
would have increased restaurant cost of sales by approximately $1.8 million. If the avian flu were to affect our supply of
chicken wings, our operations may be negatively impacted, as prices may rise due to limited supply. Additional information
related to chicken wing prices is included in Item 7 under “Results of Operations.”
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