Buffalo Wild Wings saw a 62.9 percent decrease in net earnings during the second quarter of fiscal year 2017, and the company’s CEO said that poor performance is partially because of high chicken wing prices.
The company released its quarterly results on July 26. The period ended on June 25. It’s net earnings dropped to $8.8 million for the quarter, down from the $23.7 million recorded in the second quarter of fiscal year 2016.
“During the second quarter, we continued to work on stabilizing the business in the challenging restaurant environment,” Buffalo Wild Wings CEO Sally J. Smith said in a press release. “Our profitability was pressured this quarter driven by historically high wing costs, a mix shift to our promotional days, lower-than expected same-store sales, and higher operating expenses.”
Same-store sales decreased 1.2 percent at company-owned restaurants.
Smith said that as a way to mitigate the high wing prices, Buffalo Wild Wings is now adapting its value day on Tuesday to feature boneless wings at company-owned restaurants.
“We are optimistic about the transition to boneless wings which provides a more stable promotional platform for the future,” she said.
The company is hoping for a financial turnaround, as it also reported a decline in earnings during the first quarter. During that period, net earnings decreased 34.2 percent when compared to the same quarter of fiscal year 2016.
Upcoming leadership changes
Smith has announced that she will retire from Buffalo Wild Wings before the end of the year. The company is presently in the process of seeking a successor.
James Schmidt, chief operating officer of Buffalo Wild Wings, has also announced his retirement. During the company's quarterly earnings call, it was revealed that his retirement will be effective August 14.
