Buffalo Wild Wings 2012 Annual Report Download - page 27

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The number of company-owned and franchised restaurants open are as follows:
As of
Dec. 30,
2012
Dec. 25,
2011
Dec. 26,
2010
Company-owned restaurants 381 319 259
Franchised restaurants 510 498 473
The restaurant sales for company-owned and franchised restaurants are as follows (amounts in thousands):
Fiscal Years Ended
Dec. 30,
2012
Dec. 25,
2011
Dec. 26,
2010
Company-owned restaurant sales $ 963,963 717,395 555,184
Franchised restaurant sales 1,510,020 1,326,213 1,147,848
Increases in comparable same-store sales are as follows (based on restaurants operating at least fifteen months):
Fiscal Years Ended
Dec. 30,
2012
Dec. 25,
2011
Dec. 26,
2010
Company-owned same-store sales 6.6% 6.1% 0.6%
Franchised same-store sales 6.5 3.6 (0.2)
The annual average prices paid per pound for chicken wings for company-owned restaurants are as follows:
Fiscal Years Ended
Dec. 30,
2012
Dec. 25,
2011
Dec. 26,
2010
Average price per pound $ 1.97 1.21 1.58
Fiscal Year 2012 Compared to Fiscal Year 2011
Restaurant sales increased by $246.6 million, or 34.4%, to $964.0 million in 2012 from $717.4 million in 2011. The
increase in restaurant sales was due to a $182.7 million increase associated with 69 company-owned restaurants that opened
or were acquired in 2012 and the company-owned restaurants that opened or were acquired before 2012 that did not meet the
criteria for same-store sales for all, or part, of the year. The 53
rd
week of 2012 contributed an additional $22.3 million. A
same-store sales increase of 6.6% accounted for $41.6 million of the increase in restaurant sales.
Franchise royalties and fees increased by $9.5 million, or 14.1%, to $76.6 million in 2012 from $67.1 million in 2011.
The increase was primarily due to royalties related to additional sales at 12 more franchised restaurants in operation at the
end of the period compared to prior year, and an increase in same-store sales for franchised restaurants of 6.5% in 2012. In
the 53
rd
week of fiscal 2012, we recognized $1.5 million in franchise royalties and fees.
Cost of sales increased by $100.4 million, or 49.4%, to $303.7 million in 2012 from $203.3 million in 2011 due
primarily to more restaurants being operated in 2012. Cost of sales as a percentage of restaurant sales increased to 31.5% in
2012 from 28.3% in 2011. Cost of sales as a percentage of restaurant sales increased primarily due to higher chicken wing
prices and a lower wing-per-pound yield. In 2012, chicken wings averaged $1.97 per pound which was a 62.8% increase
compared to 2011.
Labor expenses increased by $73.5 million, or 34.1%, to $289.2 million in 2012 from $215.6 million in 2011 due
primarily to more restaurants being operated in 2012. Labor expenses as a percentage of restaurant sales decreased slightly to
30.0% in 2012 compared to 30.1% in 2011. The decrease in labor expenses as a percentage of restaurant sales is primarily
due to lower management costs and payroll related taxes partially offset by higher hourly labor costs and health insurance
costs.
Operating expenses increased by $31.8 million, or 29.0%, to $141.4 million in 2012 from $109.7 million in 2011 due
primarily to more restaurants being operated in 2012. Operating expenses as a percentage of restaurant sales decreased to
14.7% in 2012 from 15.3% in 2011. The decrease in operating expenses as a percentage of restaurant sales was primarily due
to lower utility costs and credit card fees.