(WTVG) - Buffalo Wild Winds is ending its half-priced wing deal on Tuesdays for its corporate locations.
A spokesperson tells 13abc "(The Toledo) market is franchised and the locations will continue to offer the same offer Tuesday half price traditional wing offer. "
During an earnings call with investors, Sally Smith, President and Chief Executive Officer, commented, "During the second quarter, we continued to work on stabilizing the business in the challenging restaurant environment. 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."
Ms. Smith concluded, "As traditional chicken wing costs remain at historically high levels, we're adapting our value day on Tuesday to feature our boneless wings at company-owned restaurants. In addition, we continue to implement our cost savings plan to improve margins and profitability in areas we can control. Due to our disappointing second quarter earnings and an outlook for slowing traffic as we manage through the Tuesday promotional change, we are lowering our 2017 earnings outlook. We are optimistic about the transition to boneless wings which provides a more stable promotional platform for the future."
The company says the promotion will be replaced with a buy one, get one boneless wing deal.
The company also talked about expanding delivery locations. Buffalo Wild Wings is discussing adding delivery ordering to ots mobile app later this year, It is also working on a pilot beer delivery program, where legal, and says it anticipates restaurants in Ohio and in Wisconsin to be among the first markets.
During the call, the company outlined its second-quarter situation:
Total revenue increased 2.0% to $500.0 million.
Company-owned restaurant sales increased 1.9% to $475.7 million.
Same-store sales decreased 1.2% at company-owned restaurants.
Net earnings decreased 62.9% to $8.8 million from $23.7 million, and earnings per diluted share decreased 57.0% to $0.55 from $1.27.
Adjusted net earnings decreased 57.6% to $10.6 million from $25.0 million, and adjusted earnings per diluted share decreased 50.7% to $0.66 from $1.34.
The full earnings report can be found at: http://ir.buffalowildwings.com/releasedetail.cfm?ReleaseID=1034576