Buffalo Wild Wings 2011 Annual Report Download - page 27

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The number of company-owned and franchised restaurants open are as follows:
As of
Dec. 25,
2011
Dec. 26,
2010
Dec. 27,
2009
Company-owned restaurants 319 259 232
Franchised restaurants 498 473 420
The restaurant sales for company-owned and franchised restaurants are as follows (amounts in thousands):
Fiscal Years Ended
Dec. 25,
2011
Dec. 26,
2010
Dec. 27,
2009
Company-owned restaurant sales $ 717,395 555,184 488,702
Franchised restaurant sales 1,326,213 1,147,848 992,043
Increases in comparable same-store sales are as follows (based on restaurants operating at least fifteen months):
Fiscal Years Ended
Dec. 25,
2011
Dec. 26,
2010
Dec. 27,
2009
Company-owned same-store sales 6.1% 0.6% 3.1%
Franchised same-store sales 3.6 (0.2) 3.4
The annual average prices paid per pound for chicken wings for company-owned restaurants are as follows:
Fiscal Years Ended
Dec. 25,
2011
Dec. 26,
2010
Dec. 27,
2009
Average price per pound $ 1.21 1.58 1.70
Fiscal Year 2011 Compared to Fiscal Year 2010
Restaurant sales increased by $162.2 million, or 29.2%, to $717.4 million in 2011 from $555.2 million in 2010. The
increase in restaurant sales was due to a $131.2 million increase associated with 50 new company-owned restaurants that
opened in 2011, 18 franchised locations that were acquired in 2011 and 84 company-owned restaurants opened before 2011
that did not meet the criteria for same-store sales for all or part of the year, and $31.1 million related to a 6.1% increase in
same-store sales.
Franchise royalties and fees increased by $9.0 million, or 15.5%, to $67.1 million in 2011 from $58.1 million in 2010.
The increase was due primarily to additional royalties collected from the 53 new franchised restaurants that opened in 2011
and a full year of operations for the 60 franchised restaurants that opened in 2010. Same-store sales for franchised restaurants
increased 3.6% in 2011.
Cost of sales increased by $42.4 million, or 26.4%, to $203.3 million in 2011 from $160.9 million in 2010 due
primarily to more restaurants being operated in 2011. Cost of sales as a percentage of restaurant sales decreased to 28.3% in
2011 from 29.0% in 2010, primarily due to lower chicken wing prices partially offset by a sales mix shift to appetizers. In
2011, the cost of chicken wings averaged $1.21 per pound which was a 23.4% decrease compared to 2010.
Labor expenses increased by $48.5 million, or 29.0%, to $215.6 million in 2011 from $167.2 million in 2010 due
primarily to more restaurants being operated in 2011. Labor expenses as a percentage of restaurant sales remained steady at
30.1% in 2011 and 2010. Cost of labor as a percentage of restaurant sales was primarily affected by higher hourly labor costs
partially offset by lower management labor costs.
Operating expenses increased by $21.0 million, or 23.6%, to $109.7 million in 2011 from $88.7 million in 2010 due
primarily to more restaurants being operated in 2011. Operating expenses as a percentage of restaurant sales decreased to
15.3% in 2011 from 16.0% in 2010. The decrease in operating expenses as a percentage of restaurant sales was primarily due
to lower utility and insurance costs.
Occupancy expenses increased by $7.5 million, or 20.6%, to $44.0 million in 2011 from $36.5 million in 2010 due
primarily to more restaurants being operated in 2011. Occupancy expenses as a percentage of restaurant sales decreased to