Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Executives

Mary J. Twinem - Chief Financial Officer, Principal Accounting Officer, Executive Vice President and Treasurer

Sally J. Smith - Chief Executive Officer, President, Director and Member of Executive Committee

James M. Schmidt - Chief Operating Officer and Member of Compliance Committee

Analysts

Jeffrey D. Farmer - Wells Fargo Securities, LLC, Research Division

Brian J. Bittner - Oppenheimer & Co. Inc., Research Division

John S. Glass - Morgan Stanley, Research Division

Jeffrey Andrew Bernstein - Barclays Capital, Research Division

Jonathan R. Komp - Robert W. Baird & Co. Incorporated, Research Division

Bryan C. Elliott - Raymond James & Associates, Inc., Research Division

Alvin C. Concepcion - Citigroup Inc, Research Division

Alexander Slagle - Jefferies LLC, Research Division

Jason West - Deutsche Bank AG, Research Division

Will Slabaugh - Stephens Inc., Research Division

Alton K. Stump - Northcoast Research

Christopher T. O'Cull - KeyBanc Capital Markets Inc., Research Division

Robert M. Derrington - Wunderlich Securities Inc., Research Division

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Mark E. Smith - Feltl and Company, Inc., Research Division

Conrad Lyon - B. Riley Caris, Research Division

Nick Setyan - Wedbush Securities Inc., Research Division

Buffalo Wild Wings (BWLD) Q3 2013 Earnings Call October 29, 2013 5:00 PM ET

Operator

Good day, ladies and gentlemen. Welcome to the Buffalo Wild Wings Third Quarter 2013 Conference Call. [Operator Instructions] I would to remind everyone that this conference call is being recorded.

I will now turn the call over to Mary Twinem, Chief Financial Officer and Executive Vice President of Buffalo Wild Wings. Please go ahead.

Mary J. Twinem

Good afternoon, and thank you for joining us as we review our third quarter 2013 results. I'm Mary Twinem, Chief Financial Officer and Executive Vice President of Buffalo Wild Wings. Joining me today is Sally Smith, our President and Chief Executive Officer. By now everyone should have access to our third quarter earnings release.

Before we get started, I remind you that during the course of today's call, various remarks we make about future expectations, plans and prospects for the company constitute forward-looking statements. Actual results may vary materially from those contained in forward-looking statements based on a number of factors, including but not limited to, our ability to achieve and manage our planned expansion; the sales and other growth factors at are company-owned and franchised locations; our ability to successfully operate in new markets, including non-U.S. markets; unforeseen obstacles in developing sites, including non-traditional and non-U.S. locations; success of acquired restaurants and investments in new or emerging concept; the cost of commodities; the success of our key initiatives and our advertising and marketing campaigns; our ability to control restaurant labor and other restaurant operating costs; economic conditions, including changes in consumer preferences or consumer discretionary spending; and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission.

On today's call, Sally will provide an overview of our performance for the third quarter. After that, I will provide further detail on the quarter and comment on trends to date in the fourth quarter. Finally, Sally will share some additional thoughts about the fourth quarter of 2013, as well as next year. We will then answer questions.

So with that, I'll turn things over to Sally.

Sally J. Smith

Good afternoon, everyone. We're proud to share this quarter's results as we approach our 10-year anniversary as a public company. Revenue increased 27.9%, which helps fuel impressive net earnings growth. We increased the number of company-owned restaurants by 21%, with continued new unit growth and franchise acquisitions compared to third quarter last year and same-store sales increased 4.8% at company-owned restaurants and 3.9% at franchised locations.

The cost per pound for traditional chicken wings was lower than the last year, and our cost of sales percentage was 30%, the lowest percentage since fourth quarter of 2011. As a result, we grew our net earnings 66.9%, achieving earnings per diluted share of $0.95 for the third quarter.

Same-store sales and company-owned locations improved in the quarter from 1.5% in the first 4 weeks of July to 4.8% for the quarter. We partnered with Yahoo! Sports and hosted Fantasy Football National Draft Day Parties in our restaurant. Same-store sales gained momentum in August and September, demonstrating we are a destination for football fans.

For the quarter, franchised same-store sales increased 3.9%. Same-store sales for both company-owned and franchised locations outpaced the casual dining category, and this growth is on top of same-store sales in the prior year of 6.2% and 5.8%, respectively.

On July 15, we transitioned to our new way of serving our traditional and boneless wings by portion: snack, small, medium and large. Guests now receive a more consistent amount of chicken in their order rather than a fixed number of wings. Team members were well trained to speak to our guest regarding this transition to wings by the portion and overall, we're pleased.

Our summer menu panel featured a selection of great salads. They included a Spicy Bloody Mary Chicken Salad, a Mediterranean Salad and a Chicken Chop Salad. Our second menu in panel in the quarter began September 2 and featured appetizers perfect for sharing with friends while watching a football game. They include your -- not your ordinary ring, cheese curls and the garden crasher platter.

Game Changer, a craft beer brewed by Redhook also launched in our restaurants on July 15. This beer was developed with guests’ feedback and was made to perfectly pair with wings and sports. The launch of Game Changer exceeded our estimates, and it was in the top 5 selling draft beers in the third quarter in our company-owned restaurants.

Beginning September 3, guests are playing the Big Kick challenge in our restaurants on their mobile devices for chances to win a trip to the second Buffalo Wild Wings Bowl and other prizes. The number of downloads and plays is ahead of plan, supporting our strategy to create new ways for guests to interact with our brand.

In summary, we're very pleased with the results we achieved for our third quarter. Sales were robust and traditional wing costs have abated from last year, resulting in considerable net earnings growth.

Mary will now provide additional details on the third quarter, as well as the fourth quarter to date. Then I'll return to talk more about the fourth quarter and our initial thoughts for 2014.

Mary J. Twinem

Thank you, Sally. Our revenue in the third quarter reached $315.8 million, increasing 27.9% over last year. Company-owned restaurant sales for the third quarter increased to $295.7 million, a 29.5% increase over the same period in the prior year. Same-store sales were 1.5% in the first 4 weeks of the third quarter. For the quarter, same-store sales increased to 4.8%, up over same-store sales in the prior year's quarter of 6.2%. Same-store sales outpaced menu price changes taken during the past 12 months of 2.9%.

We have 72 additional company-owned restaurants in operation at the end of this quarter versus third quarter last year, a 21% unit increase. Average weekly sales increased 5.8% in the third quarter, 100 basis points higher than our same-store sales percentage. The average weekly sales calculation benefited by 70 basis points from newly opened locations during the last 15 months, and the remaining 30 basis point increase is from the closing of older lower volume locations during the last 12 months.

Revenue and franchise fee revenue -- royalty and franchise fee revenue for the third quarter grew 9% to $20.1 million versus $18.4 million last year, with an additional 23 franchised units in operation at the end of the third quarter versus a year ago. Same-store sales at franchised locations increased 3.9% in the quarter, compared to 5.8% last year.

Franchise average weekly sales for the quarter increased 6%, a 210 basis point increase over same-store sales. Franchised locations opened during the last 15 months contributed 150 basis points -- 140 basis points of the increase, store closures of older lower volume locations contributed 40 basis points, and the sale of franchised units to the company contributed the remaining 30 basis points.

The following comments will focus on the performance of our company-owned restaurants. Cost of sales for the third quarter was 30% of restaurant sales compared to 31.2% in the third quarter last year, a 120 basis point decrease. This is the lowest cost of sales percentage since the fourth quarter of 2011. We estimate that the launch of wings by the portion contributed 40 basis points of the year-over-year improvement.

Traditional wings were $1.71 per pound this quarter, $0.26 or 13% lower than last year's average of $1.97. Food and nonalcoholic beverage sales were 79% of restaurant sales in the third quarter of both years. Traditional wings accounted for 20% of sales in the third quarter compared to 21% last year, and boneless wings were 21% of sales, up from 19% last year. Cost of labor for the third quarter was 30.3% of restaurant sales, 20 basis points higher than the third quarter last year. Hourly labor increased 70 basis points compared to the prior year, as we added Guest Experience Captains and have additional Canadian locations. This increase was partially offset by the benefit we received as we transition to the new manager structure.

As a reminder, our Guest Experience Business Model is a comprehensive approach to restaurant operations, which includes not only the addition of Guest Experience Captains, but also a refined manager structure with clearly defined roles and the introduction of new guest technology, including unique tabletop tablets and developments of a proprietary TV network.

In the third quarter, restaurant operating expenses as a percentage of restaurant sales was 15.1%, a decrease of 10 basis points from the prior year. Occupancy costs were 5.8% as a percentage of restaurant sales, which was a 10 basis point decrease from last year.

In summary, restaurant level cash flow which was calculated before depreciation and preopening expenses, was $55.3 million or 18.7% of restaurant sales versus $40.3 million or 17.6% in the third quarter last year, a 110 basis point improvement.

Depreciation and amortization for the third quarter was 6.8% of total revenue, flat compared to the prior year. General and administrative expenses were $24.7 million in the third quarter or 7.8% of total revenue, compared to $21.8 million or 8.8% in the prior year. Excluding stock-based compensation of $3.3 million in the third quarter and $2.3 million in the prior year, general and administrative expenses for the third quarter totaled $21.4 million or 6.8% of total revenue compared to 7.9% last year.

Third quarter stock-based compensation of $3.3 million was $500,000 higher than estimated, reflecting our new expectation of stronger net earnings performance for the current year.

We opened 8 company-owned restaurants in North America during the third quarter, compared to 15 new locations in the third quarter of 2012. Preopening expenses for the quarter totaled $3 million versus 4.4 -- $4.5 million last year. The $3 million includes $1.3 million of preopening expenses for future openings that are under construction. And in the third quarter last year, we incurred $1.4 million related to future openings.

Preopening costs averaged $268,000 per restaurant during the third quarter and $304,000 per restaurant during the first 9 months of 2013. The loss on asset disposals and store closures for the third quarter totaled $902,000 compared to $788,000 last year.

We reported investment income of $383,000 for the quarter compared to investment income of $418,000 in the third quarter of last year. The effective tax rate during the third quarter was 30.4% compared to 29.4% in the prior year. We estimate the effective tax rate for the full year 2013 will be approximately 30%.

In summary, we achieved record net earnings in the third quarter of $17.9 million, a 66.9% increase over $10.7 million last year. Earnings per diluted share increased $0.38 over the prior year to $0.95 in the quarter.

On our balance sheet on September 29, 2013, cash totaled $36.7 million compared to $21.3 million at the end of our fiscal 2012. We ended the third quarter with $632 million in total assets and $442 million in stockholders' equity. Cash flow from operations was $122.4 million for the first 9 months of the year. We estimate that capital spending for the full year of 2013 will be about $153 million, which does not include funds that we have spent or may spend for franchised acquisitions or emerging brand investment. As of September 29, we have spent $96.6 million for property and equipment, and $10.3 million for franchised acquisitions and our equity investment in PizzaRev.

Now I will highlight trends and provide some comments on the fourth quarter of 2013. For the first 4 weeks of the fourth quarter, same-store sales are trending at 5.3% at company-owned restaurants and 3% at franchised locations. For comparison purposes, same-store sales trends for the first 4 weeks in the fourth quarter of last year were 3.8% at company-owned restaurants and 5.6% at franchised locations. And for the full fourth quarter of 2012, were 5.8% at company-owned and 7.4% at franchised locations. The potential menu price benefit in the last 12 months is about 1.3% for company-owned restaurants in the fourth quarter.

We expect to open 22 company-owned restaurants in the U.S. and Canada during the fourth quarter, which includes the relocation of an older unit. Six of these units have already opened. As a reference point, in the fourth quarter of 2012, we opened 22 company-owned locations and closed 2 older locations. We also acquired 18 locations from franchisees in the fourth quarter last year. We also expect that our franchisees will open about 22 restaurants in the United States during the fourth quarter, with 4 already opened. Franchisees opened 18 and closed 1 restaurant in the fourth quarter last year.

In addition to this growth, we expect our franchisees in Mexico to open 2 locations in the fourth quarter, the first restaurants to open outside of the United States and Canada.

The cost of sales -- the cost of chicken wings for the first 2 months of the fourth quarter will average about $1.75 per pound. Our monthly cost is calculated on the average of the prior month's wing market plus markup for processing and distribution. Recently, the wing market has shown weakness with current prices below $1.60 per pound. As a reference point, last year, the average cost for the fourth quarter was $2.07.

Regarding other commodities, we anticipate the cost of beer will increase in the fourth quarter. Our chicken breast meat contract, which include boneless wings, extends through March of 2015 at flat pricing. For food commodities other than traditional wings, we foresee minimal cost increases in 2014.

We anticipate higher fourth quarter labor costs as a percentage of restaurant sales compared to prior year, with an increase of 30 to 40 basis points. Guest Experience Captains will be added to company-owned restaurants opening in the fourth quarter and at 20 of our existing training restaurants.

We anticipate that G&A expenses in the fourth quarter, exclusive of stock-based compensation, will be $21 million to $22 million. Fourth quarter stock-based compensation expense is estimated to be $3 million compared to $1.9 million last year, and will vary depending on the level of net earnings achieved for 2013, as well as for estimates of net earnings in future years.

In July, we reaffirmed our net earnings growth goal of 17% for 2013 when calculated on full year 2012, equating to 25% on a 52-week basis. For the first 9 months of the year, earnings per diluted share totaled $2.69 and net earnings have grown 25%. Based on the results of the first 9 months and the comments we shared about the fourth quarter, we now expect to exceed the 2013 goal and anticipate net earnings growth of 20% for 2013 when calculated on a full year 2012, equating to 28% on a 52-week basis.

Please review the risk sections outlined in our SEC filings, including our 10-Q for the third quarter, which will be filed shortly, as well as our safe harbor statement for factors affecting our forward-looking statements.

Now Sally will share some additional thoughts about the fourth quarter and 2014.

Sally J. Smith

Thank you, Mary. We had a great third quarter. Revenue and net earnings grew significantly and our restaurants continue to focus on providing a great game day experience and maximizing sales opportunities throughout the football season.

Our new menu panel launched yesterday and features 4 specialty burgers including the Stampede Burger and the Hail Mary Burger, all sure to satisfy the hunger of football fanatics. And for longtime fans, we've brought back an updated version of the 1982 pepperoni pockets, an old appetizer favorite.

Our new television commercials, featuring Inner Coach, are now on air and keep our brands top of mind during football season. And we're preparing for our second Buffalo Wild Wings Bowl, and are excited that guests can win a trip to the Bowl.

We'll also begin our in-store holiday gift card promotion in November, offering guests a blazing bonus reward when a $25 gift card is purchased. We believe gift cards drive incremental visits in the following year.

As we look beyond 2013, we'll continue to build Buffalo Wild Wings into an even stronger brand. We'll remain focused on providing a unique, compelling and social sports viewing experience for our guests through our Guest Experience Business model. We'll continue to focus on providing a fun, rewarding and competitive work environment for our team members. Our restaurant teams will remain dedicated to operational excellence, and we will create more community connections, including our team-up for kids initiative to bring team sports into the lives of kids who need it most.

In 2014, we'll invest in more advertising for a stronger media presence. We'll continue to optimize our partnership with the NCAA for new co-branding opportunities. As we look forward to 2014, we plan on approximately 45 company-owned restaurant openings, and we expect our franchisees in the United States to open around 40 locations. We are pleased with the prospects internationally for Buffalo Wild Wings, and we believe our franchisees will open at least 10 locations in Mexico, United Arab Emirates, Saudi Arabia and the Philippines next year.

Buffalo Wild Wings is a growth company, and we've begun implementing strategies to build an enduring, diversified portfolio of restaurant brands to sustain long-term growth. Our equity investment in PizzaRev is an example of how we're evaluating emerging brands to fuel our future growth. We expect to open 2 of our own PizzaRev locations in the Minneapolis metro area in the first quarter of 2014, and anticipate several more by year end.

With our planned unit growth, ongoing operational diligence and our comments regarding minimal commodity pressure next year, we believe we can achieve 20% net earnings growth in 2014.

This call marks our 40th earnings call since Buffalo Wild Wings went public in November 2003. While Mary and I were on the roadshow for the initial public offering in 2003, we shared our goal to be a national owner and franchisor of 1,000 restaurants in the next 10 years. In the first quarter of 2014, we will achieve this exciting milestone.

We're committed to opening 1,700 Buffalo Wild Wings locations in the United States and Canada, and believe that we will achieve this goal within the next 10 years. Our journey as a public company started with 220 locations and $365 million of systemwide sales. Today, there are 955 Buffalo Wild Wings in the United States and Canada, with systemwide sales approaching $3 billion. All I can say is woo-hoo. As we near our 10-year anniversary as a public company, we want to pause for a few thank yous.

First, thank you, to our amazing guests. You are the essence of Buffalo Wild Wings. Thank you to our team members for your diligence everyday in keeping Buffalo Wild Wings a vibrant company. Thank you to our franchisees who have joined in our journey to become a national brand. Thank you to our vendor partners who have helped us achieve our growth. Thank you to our shareholders who have trusted us with their investment. And thank you to the many analysts who write coverage on BWLD and always have one more question about the fascinating world of wings, beer and sports. To all, we couldn't have built a brand during the past 10 years and achieve the financial success without you, a very heartfelt thank you.

Let's now move to the question-and-answer session. Jim Schmidt, our Chief Operating Officer, will join Mary and me in responses. [Operator Instructions] We will end the call promptly at the top of the hour. So operator, if you will please open the call to questions.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question is from the line of Jeff Farmer with Wells Fargo.

Jeffrey D. Farmer - Wells Fargo Securities, LLC, Research Division

As you guys push the Guest Experience Captain position into the balance of the company-owned system by, it looks like, the end of '14, how should we be thinking about the change in headcount and the potential impact on the labor line as a percentage of revenue as you get out into '14? Do you expect to see a sizable impact on that line, some significant pressure or will you be able to control that through, again, some headcount control?

Sally J. Smith

I think we have a couple of different opportunities. From a headcount control, I assume you're meaning the home office or home and field management. I think that we'll continue to invest in labor as we roll out the Guest Experience Captain model in the remaining, I suppose at the end of the store -- in the remaining 50% of the stores that we have. New restaurant openings will continue to -- or new restaurants will continue to open with it. And as I think we mentioned on the last call, we're working on the labor model and we think we've got that pretty well executed. We'll always look at ways to control labor, certainly. And I think the new management structure gives us that opportunity to invest in the hourly labor we need, while still -- but providing relief on overall costs.

Jeffrey D. Farmer - Wells Fargo Securities, LLC, Research Division

And just a quick follow-up on that. Would you then -- would you expect to delever that line based on the rollout of that position to the balance of the company-owned system in '14?

Mary J. Twinem

We do believe for fourth quarter, we are going to be up year-over-year about 30 to 40 basis points, the hourly labor piece being a little bit higher than that and then some savings from the manager structure, reducing it down to the 30, 40 basis points. We will continue to roll throughout 2014 with incremental locations on that model. We continue to refine it as we roll. And so we hit a point, sometime next year when labor, we would hope, would be neutral year-over-year.

Operator

Our next question is from the line of Brian Bittner with Oppenheimer.

Brian J. Bittner - Oppenheimer & Co. Inc., Research Division

On the COGS margin, so we have the new menu, some of the things you've been doing on the distribution side, I believe are done so at 30.0%. Just kind of how we should think about it going forward or what's your COGS margin now under $1.60 wing price going forward?

Mary J. Twinem

Well, we hit almost exactly 30% in the third quarter. In July, we thought we would be under 30%, but as we went through the third quarter, wings did trend up so that the average change from the $1.64 back in July, to being an average from the third quarter of $1.71. When we're looking at the fourth quarter, we shared that the wing market has dropped. We were in the $1.75 range for October, November. And hopefully, the wing market will continue to weaken and we'll have some pretty nice price increment into our restaurant in December. And our feeling right now is that we will be hovering right around that 30% cost of sales mark.

Brian J. Bittner - Oppenheimer & Co. Inc., Research Division

Okay. And just a quick follow-up on the unit growth. You talked about getting the 1,700 over the next 10 years, so I guess about 70 a year. Will that be -- will we see kind of the 85 mark that you're going to do next year similar to that over the next couple of years and then you'll kind of start dipping down as we get to out years, and I guess growing with some new concepts more rapidly, thinking about 3, 4 years down the road? Just how do we think about the domestic growth of this concept over the next couple of years?

James M. Schmidt

Yes. I would anticipate that you will see next year's base hold up for several years. Then, obviously, as you get out closer to full penetration, I think the rate will slow somewhat in later years. We're always looking for ways to accelerate that growth but at the same time, maintain our discipline in site selection.

Sally J. Smith

And you were talking about investments in emerging brands, and that's precisely why we have chosen this strategy and earlier probably than -- well, not earlier, but really by the time you ramp-up. So our -- we would anticipate that should PizzaRev prove successful and/or we add other emerging brands to our portfolio, that will help continue to drive unit growth and thus revenue growth.

Brian J. Bittner - Oppenheimer & Co. Inc., Research Division

Is the strategy to see if PizzaRev is successful and then use that as the next growth vehicle or is there already plans to buy more concepts?

Sally J. Smith

I think we've said in earlier conference calls, that we'd like to acquire several small emerging concepts. PizzaRev, certainly, has that ability to be the next growth vehicle. We will open 2 company restaurants here in Minneapolis, the first out of the L.A. market, which should provide some confidence of its ability to move across the country and they have other franchising in process. But we are also evaluating other concepts that we could add for the portfolio and test them out and really provide that growth momentum that we love.

Brian J. Bittner - Oppenheimer & Co. Inc., Research Division

Okay. And is there any target that you can give us as to how you're thinking about PizzaRev as the potential size in the United States or is it just way too early to even ask that question?

Sally J. Smith

I think it's way too early to ask the question. I think that one of the -- we're using a set of criteria, one that it has the ability to be a national concept and is franchisable. So rate into that or calculate what you want but obviously, if successful, it could provide that growth we want.

Operator

Our next question is from the line of John Glass with Morgan Stanley.

John S. Glass - Morgan Stanley, Research Division

Could I just go back to the unit question? I think you said 45 company that's in '14, which is I think well below what you've done for the last 3 years. Could you just comment on that, is that accurate or you're just being conservative or why -- why would you step down in the rate of development from '14 versus the prior 3 years?

Mary J. Twinem

Okay. And so I just -- will remind everybody what we think our -- what we're going to open up for 2013, 54 company-owned restaurants, about 53 franchised restaurants and then 2 international franchised restaurants. And then we did share in the call for 2014, we think about 45 company-owned, 40 franchised in the U.S. and then an additional 10 that would be international franchisees. And then Sally mentioned that at least 2 PizzaRev locations here in the Minneapolis market.

John S. Glass - Morgan Stanley, Research Division

Yes. And why would that slow down then?

Sally J. Smith

The question was why would that slow down?

John S. Glass - Morgan Stanley, Research Division

Yes. Why are you opening fewer in '14 than '13?

Sally J. Smith

Well, as the country becomes more and more built out, we could certainly open the same number in 2013 -- 2014 if we really didn't care what location it was. But we turn -- we want to make sure that it has the same ability to be successful as our other restaurants, and so we anticipated kind of a reduced number, not necessarily each year, but next year obviously one, and then probably at that same pace for a couple of years. But gradually, as you have less and less potential location, you have -- it just takes a little longer to find the right location.

John S. Glass - Morgan Stanley, Research Division

Okay. Just a follow-up to that, because I think this is a step in not only absolute, but obviously percentage as well. Has this been an anticipated step down here for a long time? Has this sort of been in your longer-term planning or this has this been a more recent development where you've decided good will is just not as available as it used to be and you'd rather be more conservative?

Sally J. Smith

No. We talked about this on the last conference call. I think that, obviously, there's a couple of things you just -- you want to be careful about the cannibalization, making sure, again, that you do put that right location. We really ramped up our unit growth when we were able to take advantage of some of the weaker real estate markets in 2009 and '10. I think as been discussed with other companies, certainly a slowdown in development by developers makes that finding that exact site, the right one. And of course, given the size that we are, making sure that it is the right site, whether it's for the franchisee or company stores are important, but we have talked about this in the past.

John S. Glass - Morgan Stanley, Research Division

Okay. And then just -- if I could just -- lastly, what's the traffic implied in the fourth quarter at your corporate to-date comp and what was it in the third quarter? Just to make sure I'm not getting mix or other things in there.

Mary J. Twinem

Right. Well, traffic being something we sort of back into when we look at our menu price increase to get to that, our menu price increase in the third quarter is 2.9% and our menu increase remaining in the fourth quarter is 1.3%. And so then, the delta for same-store sales is either check or traffic.

Operator

Our next question is from the line of Jeff Bernstein with Barclays.

Jeffrey Andrew Bernstein - Barclays Capital, Research Division

Just 2 follow-ups. First, on the unit side of things. From a productivity standpoint, it seems like the new units are doing fairly well in terms of AWS [ph] versus comp. I'm just wondering if you could talk about the new units versus the existing, assuming more of the new units are more coastal and more bigger market? So can you talk to me about the learnings you're just seeing from those kind of coastal or bigger markets, whether it be sales, margins or returns versus what you were seeing kind of more middle of America as we look out over the next few years or presumably more of them will be coastal in bigger cities?

James M. Schmidt

Well, yes, I mean, most of our development in the last year or so or the majority has been along the coast. I think we do see good strong volumes along the coast. Flow-through can depend. You have some states that are more expensive than others to operate in. But I think we feel confident as we continue to build out along the coast that we will see good, strong sales numbers out of those markets and areas.

Jeffrey Andrew Bernstein - Barclays Capital, Research Division

Got you. And then just kind of on the flexible portion rollout, it seems like it went fairly well relative to expectation. I'm just wondering where there were any common themes in terms on where the rollout did well versus maybe where there was more challenges, whether it'd be regional or some other thread of theme between where it's working and where it's been a little bit tougher?

James M. Schmidt

Well, it's -- our teams were -- I complement our teams. The home office and field were incredibly well prepared for this rollout. I don't think we've ever executed a rollout better than we did. And really, we haven't seen any issues with its acceptance any -- in any particular area at all. Overall, it's been extremely well received. We have no evidence -- we see no evidence of any adverse impact either on same-store sales or our wing sales; we captured the COGS improvement that we hoped to capture as a result of the rollout; and guest loyalty and value perception across our system have held fairly steady. We had a few negative guest comments starting out. Those have dwindled and we're barely receiving any. So overall, it was incredibly well executed and well received by our guests.

Jeffrey Andrew Bernstein - Barclays Capital, Research Division

Got it. You mentioned the wing cost and how things maybe dipped a little bit more recently. I'm just wondering what your suppliers or others are telling you, whether we should presume that this is the kind of the normal seasonal ramp-up in the coming months, or whether there's some new impetus that might lead to that lower levels, or whether you expect to get back to $2, kind of what you're hearing over the next 6 months or so?

Mary J. Twinem

Well, for the near-term, what we're hearing is that there's weakness in the wing market, and so there is plenty of supply out there, which isn't typical for this time of year. So how long we'll see the lower prices and whether we'll see any further depth is hard to say. But there isn't any immediate stimulus out there for wings, either on corn prices or on reduction of supply. That makes us think that it will see a big bounce back up like it did last year.

Operator

Our next question is from the line of Jonathan Komp with Robert W. Baird.

Jonathan R. Komp - Robert W. Baird & Co. Incorporated, Research Division

I just want to ask, first of all, about the recent comp trends that you've seen over the last 3 months or so. Obviously, it appeared to be pretty encouraging, especially in October since you have the lower pricing contribution. So I just want to ask maybe if you have any thoughts or color on what maybe has driven the strength?

Mary J. Twinem

Well, we can talk about the third quarter. So we started out July at the 1.5% at company-owned restaurants, but we were missing 1 UFC fight during that period of time that we quantified at being about 120 basis points. So from that time, as we went through the quarter, obviously, we had pretty strong same-store sales, finishing the quarter at 4.8%. There are 2 things to call out on that. We did have an extra week of NFL in our third quarter, and there was also the Mayweather fight which we showed at most of our restaurants and we did see some nice same-store sales trends come out of that. And I mean, I'm obviously pleased with where our sales are for the first 4 weeks in October with company stores at 5.3%.

Jonathan R. Komp - Robert W. Baird & Co. Incorporated, Research Division

Okay, great. And then maybe a broader question on 2014, and I know you provided the initial guidance for 20% earnings growth, which seems to be pretty close to -- in line with what the typical guidance range might be. And just want to maybe walk through a few of the moving parts, and if you could give some more color it would be great. I know, if you look at the wing market today, obviously, would suggest maybe some potential tailwinds from lower wing costs are possible next year. On the flip side of that, you might have some incremental labor investments and also, if you could maybe comment on any G&A investments. But when you look at all that together and the potential level of pricing that you might take, do you think 20% earnings growth is realistic at this point? Do you think it's conservative as if you can see wings tailwinds? Or how are you thinking about growth for the year at this point?

Mary J. Twinem

We do think it's realistic for next year, and I think that there's several factors you can look at and obviously can run the model in many different ways. But if we have modest same-store sales and wing prices don't go crazy, and we open the stores that we intend to open, and we leverage G&A and operate our company responsibly like we always do, we do think 20% is achievable for next year.

Jonathan R. Komp - Robert W. Baird & Co. Incorporated, Research Division

Okay. Just one last follow-up to that. Given where corn prices are today, if you were to see a wing tailwind, if you were to see meaningful lowered wing prices next year, do you have other sources of investments that you can make and maybe plow some of that back into investments in labor or some of the new concepts that you're looking at? Or how do you think about if you were to see some wing tailwinds next year?

Mary J. Twinem

Well, from a use of cash, we're always open for franchise acquisitions. We had -- we purchased 3 stores earlier this year. We have not -- we don't have any other deals in process right now, but we would be open to that obviously next year. Sally had mentioned our emerging brands, and we are looking for additional concepts that we think could have great potential across the United States, so we would be open for those investments next year as well. From an operation standpoint, I think we have invested in labor in the recent quarters and we'll continue to roll out our Guest Experience business model, and that does have some incremental costs, too, but I think we're doing that responsibly. And I think we think over the -- as we roll it out, that these investments we're making will pay back in stronger same-store sales.

Jonathan R. Komp - Robert W. Baird & Co. Incorporated, Research Division

Okay. Maybe just last one quickly for me. Sally, I just want to follow up maybe once more on the 1,700 unit target for the U.S. and Canada. I just wanted to ask, I think when you unveiled that target last year at this time, you maybe said 5 to 7 years was a possible time frame. You might reach that target. And now this year, you're saying it might take 10 years to reach that. So just to clarify, is there anything that's changed in your thinking, the pace, and how quickly you get to that target? Or maybe can you help reconcile that?

Sally J. Smith

No, I don't know that it significantly changed. I think it is getting -- it takes a little bit longer to get a deal done all the way through from the minute you find the site to get actually open, the permitting process is taking significantly longer. And so we wanted to build in enough cushion so that it's an achievable goal. I think we have some opportunity and something that we'll think about over the next few years on, are there other markets where you can have a much smaller Buffalo Wild Wings? There's nothing in the works right now, but we're always looking at is 1,700 realistic for, are there other markets we can add to? And -- but as we saw -- as we looked at the real estate and we work on different sites and the whole process, it's taking longer. And development has not been -- development, high developers, new shopping centers, et cetera, has not been robust.

Operator

Our next question is from the line of Bryan Elliott with Raymond James.

Bryan C. Elliott - Raymond James & Associates, Inc., Research Division

I wanted to go back, and Sally, I think I heard you say that you're looking at developing a proprietary TV network or that's in process from your prepared remarks?

Sally J. Smith

Sure, Bryan. I can give you a little color on that. I wouldn't call it a network. I would say it's a proprietary within stores running specialized content, some things with the different partners that we're partnering with, whether it be -- I can't really give any example -- I mean, I've got some examples, but I'm not ready to share those. That's what you can only see in Buffalo Wild Wings. So almost like a closed circuit. But yes, things that we pull off from vendors or with help in our vendors.

James M. Schmidt

Yes, it would -- so it would be some content that may be exclusive to us. We hope to have it in test and pilot in 8 restaurants before year end. And then you'll see it on a limited basis next year as we continue to pilot it in about 16 restaurants, we anticipate.

Bryan C. Elliott - Raymond James & Associates, Inc., Research Division

All right, fair enough. And the tabletop tablets, so how -- are they everywhere now? Or is that part of the Captain's rollout? Are they -- with that tied with that?

James M. Schmidt

Somewhat tied to it. But right now, we've got them in about 45 locations that is really being piloted mostly in Dallas and Philadelphia areas and new restaurants that have recently opened. We plan to get it to about 100 locations, company locations, by year end, and then we'll continue to roll it to company locations throughout 2014, and start to roll it to franchise -- the franchise system here at the end of the year. And its progressive functionality will be added to these tablets. As they went into the restaurants, they started out with arcade, trivia and poker. We've just added functionality that allows us to now push content to the restaurants. We'll be adding over the next 2 quarters additional functionality, such as music service and then, ultimately, also order and pay at the table. So we'll be rolling over the next year, and the functionality will be increasing at the same time.

Bryan C. Elliott - Raymond James & Associates, Inc., Research Division

And are they the size of an iPad or closer to an iPhone?

James M. Schmidt

About an iPad.

Operator

Our next question is from the line of Alvin Concepcion with Citi.

Alvin C. Concepcion - Citigroup Inc, Research Division

And as the U.S. becomes more built out, I'm wondering if you could provide thoughts on how large the potential is for international stores? And what are your thoughts about emerging markets, such as China, longer-term, granted now might not be the best time to move in with chicken there, but just wanted to get some thoughts there?

Sally J. Smith

Sure. So I can give you some general comments. We think that the international market is tremendous. We've done a lot of investigation of a variety of markets, met with a lot of people, a lot of our vendors who are in country have provided us with understanding of the country. I just returned from India, where we met with potential franchisees. And then there's -- obviously, with 1 billion people, there are -- again, the world is pretty large, and we think that wings and pork certainly is welcome everywhere. It's really hard to say. You have to look at their -- the distribution and the quality of the franchisees, all things that will depth [ph] through our process. But if the U.S. can hold 1,700 and you have to factor in the development of countries and Mexico, we have agreements, not even including Mexico City of over 30 units. It's hard to put a number on it, but we have some goals.

Alvin C. Concepcion - Citigroup Inc, Research Division

Okay, great. And then just wanted to talk a little bit more about same-store sales. The growth has been pretty impressive in light of a negative casual dining environment. I mean, if you assume a flat kind of environment for casual dining, I mean, what kind of same-store sales growth is realistic for you? I know you're -- it sounds like you're modeling modest same-store sales growth in 2014, and I'm just wondering what a good long-term growth rate is for you.

Mary J. Twinem

Well, we always think we used to be positive same-store sales, and that we should beat our menu price increase that's in effect. So if you assume that we have modest menu price increase like we've had through most of this year, then 1% to 2%, we would think that in the future, we should be able to drive same-store sales higher than that.

Operator

Our next question is from the line of Alex Slagle with Jefferies & Company.

Alexander Slagle - Jefferies LLC, Research Division

Wanted to get your perspective on the fourth quarter same-store sales comparisons getting more difficult in November and December, and if there's anything we should think about in terms of back-end loaded media spend last year or any impact from the Christmas calendar shift?

Mary J. Twinem

Yes, there is a little bit of an impact or a difference as you look at the calendar for fourth quarter versus last year. So last year, Christmas was in the 14th week of the fourth quarter, so it didn't go into our same-store sales calculation. This year, Christmas will be in the 13th week, so we'll have 1 day that we're close that we're -- we'll be comping over. One of -- kind of the -- I'd say on the flip side of that is that we do have a UFC fight in that 13th week where, last year, it was in the 14th week. So it's in -- so we do expect to have better sales on that day. And then it is a full week, and typically, the days after Christmas are pretty heavy shopping days and heavy eating-out days. So a week as a whole, excluding Christmas, that actually is a pretty decent week for us. I think one reminder, too, on fourth quarter last year when we had the higher same-store sales, we also had menu price increases of about 6% in fourth quarter last year versus very modest 1.3% this year.

Operator

Our next question is from the line of Jason West with Deutsche Bank.

Jason West - Deutsche Bank AG, Research Division

Just want to follow up. I think, Mary, you said pricing, you were thinking kind of holding in the 1 to 2 range for next year. Is that sort of the base case that you're looking at now, given the inflation outlook that you see?

Mary J. Twinem

Well, we haven't made any decisions as it relates to what we will do for share next year, our menu price increases, but I would say that our thought process is that typically it's better to take a little menu price increase than to hold with 0 pricing and then have to take bigger increases later on. Again, depending on what wings end up doing next year, we may have a different thought on that for 2014.

Jason West - Deutsche Bank AG, Research Division

Okay, got it. And then with the lower unit openings on the company side, can you give us some color on where CapEx will be for next year? And then along those same lines, just will you need to kind of start stepping up some of the remodel CapEx as the systems getting a little bit older?

Mary J. Twinem

Well, from the new restaurant development standpoint, I would say that a new restaurant typically averages around $2 million, $2.2 million to build it out, so that would be a good basis to use for the 45 company stores that we're building. And then from a remodel standpoint, we do have an ongoing remodel process or pace, and so we don't anticipate a large increase in the number of remodels. But this year, I believe, we're in about the 15 to 20 remodel range. And I would anticipate, based on our -- having more locations, that we would be, at most, at a 20 or 30 remodels next year.

Jason West - Deutsche Bank AG, Research Division

Okay, got it. But you don't expect some of the -- I mean, know these things are going to show up somewhat in a somewhat lumpy manner, but the growth, unlike PizzaRev, I would assume is not going to be a significant as opening another 10 or so BWLD stores, so CapEx probably comes down a little bit?

Mary J. Twinem

Based on the new units, correct. We will have other investments that we're doing as it relates to technology, and we can give a clearer picture on what we think our CapEx fund will be for 2014 when we have our February earnings call.

Operator

Our next question is from the line of Will Slabaugh with Stephens.

Will Slabaugh - Stephens Inc., Research Division

I want to ask you about the cost of sales really quickly. It sounds like the goal, as you've talked about before, there is to keep that line around that 30% mark. And as we get into next year, just assuming wings, let's say, were to stay roughly where they were for 3Q and then considering the pricing discussion you had 1 minute ago around 1.2% or potentially right around there, is that a good number to think about the 30% number for next year?

Mary J. Twinem

I would say, typically, we have a goal of being in that 30% cost of sales or slightly under there. Will that work out on a quarter-to-quarter basis in 2014 is unsure. But when you look at where we are today and we're at menu -- when you have wings that are in the $1.70 to $1.80 range, you can come pretty close to hitting a 30% cost of sales.

Will Slabaugh - Stephens Inc., Research Division

Got it. And one quick follow-up on pre-opening, if I could. As we think about the company unit growth coming down just a little bit for next year, could you help us on with what that might look like on a line item basis as we go through next year?

Mary J. Twinem

So we talked about our average and pre-opening expenses for this year. In the third quarter, we ran about $268,000, and for the year, we averaged about $304,000. But that had a fair amount of Canadian openings which run a little higher in it. So if you took something in between there as your average for what we would spend on our stores that we're opening in 2014, it would be pretty close.

Operator

Our next question is from the line of Alton Stump with Northcoast Research.

Alton K. Stump - Northcoast Research

Just a quick question, Mary, it's awfully hard to find anything to complain about in, obviously, a great result for the quarter. But just sort of the comments about how you're seeing some market, maybe is it more difficult to build new stores? And is there anything on the West Coast? Obviously, one of the competitors I've talked about in a more intense environment in California that I saw in new markets, any commentaries on how that region is doing comparing as you search the rest of the country?

Sally J. Smith

We still have a lot of opportunity in California that continue to build out. Again, that probably has a little longer permitting process than some areas of the country. But dense population and I certainly think, as Jim mentioned earlier, our development on both coasts have helped pushed our average unit daily volume, and we would anticipate that would continue as we continue to grow that area.

Operator

Our next question is from the line of Chris O'Cull with KeyBanc.

Christopher T. O'Cull - KeyBanc Capital Markets Inc., Research Division

Could you tell us how much do you expect to increase TV advertising next year? And how does that compare to the increase you had this year?

Sally J. Smith

Well, I don't know if I have the specifics about TV advertising only. Just a reminder that we contribute 3% to a national ad fund actually and with a little bit more for co-op, and a portion of that does go to TV advertising. I think we'll -- every year, we'll take a look at the mix between TV, national TV, cable or network cable, national radio, local radio, and then what you spend digitally. I would -- I'd be making a guess if I had anything that I -- to say about TV, but know that the percent that we spend or the percent of revenue will remain about the same.

Christopher T. O'Cull - KeyBanc Capital Markets Inc., Research Division

Okay. The increase you were mentioning, I thought you mentioned that you were going to be increasing advertising in 2014. That's not the contribution rate from the stores?

Mary J. Twinem

It is not. Yes, it's that we have unit growth that allows us to have more dollars to spend on media.

Christopher T. O'Cull - KeyBanc Capital Markets Inc., Research Division

Ah, great. And then, okay. And then, did you mention, Mary, what the extra NFL week benefit was during the quarter? And will it have the opposite effect in the fourth?

Mary J. Twinem

No, I did not mention it, but I'm happy to. The -- we think the NFL accounted for about 50 basis points with same-store sales in third quarter, and we have equal amounts of NFL weeks in the fourth quarter because of the 14th week last year dropped off. So we do have 13 weeks of NFL in both calculations for same-store sales.

Operator

Our next question is from the line of Bob Derrington with Wunderlich Securities.

Robert M. Derrington - Wunderlich Securities Inc., Research Division

Sally, when you think about international development, does it take a little bit of pressure, given that it seems to be building pretty nicely, does it take some domestic pressure off at trying to keep the pedal to the medal at opening new stores?

Sally J. Smith

Yes, I don't know that it takes the pressure off, because we set the goal of 1,700 units. I think the reason that we expanded from 5 to 7 years up to 10 has really more to do with the domestic development. I think international has an exciting component. And as we think about the total number of units that Buffalo Wild Wings can -- Buffalo Wild Wings could have internationally, it certainly takes some of the pressure off.

Robert M. Derrington - Wunderlich Securities Inc., Research Division

Okay. And then thinking about the, I guess, limited time offer which you began yesterday, the gourmet burgers, can you give us a little bit of thought around that strategy, especially given that wing prices certainly seemed to be pretty favorable right now? What's your thought around the 4, I guess, gourmet burgers? Do you expect to get some check average lift? Or what's your strategy there, if you could help us?

Sally J. Smith

I think it's always important to offer new items to people that come into Buffalo Wild Wings. We have very frequent loyal guests, and we know that they're going to -- it almost doesn't matter what they order, they're probably going to get wings with it. I think it's our ability to highlight our sauces across multiple menu items, be it the salad, which we've incorporated some of our sauces into the dressing or our chicken sandwiches. This is just one more vehicle to highlight our sauces and, again, showcase some really craveable flavors, besides wings, because we know they come for wings, and maybe they'll track somebody else in that maybe didn't want wings or has had wings a couple of nights that week, and now they want to come back for the burger.

Robert M. Derrington - Wunderlich Securities Inc., Research Division

Got you. And then lastly, if you could, could you give us a little bit color to the cadence of new unit development in this new year, company franchise international?

Mary J. Twinem

From a timing by quarter?

Robert M. Derrington - Wunderlich Securities Inc., Research Division

Yes.

Mary J. Twinem

We have a pretty nice first quarter for our company store development and the rest of the quarters, I've said -- yes, I think...

Sally J. Smith

Yes, I think as we've said, first quarter looks really good. And then, I think second and third quarter just tend to be late. It happened at part of the development cycle. And then fourth quarter, try as we might and to even it out throughout the year, it never quite works that way. So it's usually first and fourth quarter, and I don't think 2014 will be any different.

Operator

Our next question is from the line of Greg McKinley with Dougherty & Company.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Could you just go over real quickly the holiday gift card program this year maybe compare it to what you've done in the past? As I recall last year, you may have had some significant distribution expansion. Maybe just recount for us how that sales performance occurred last year and your distribution plans this year.

Sally J. Smith

Yes, from a sales standpoint, I don't think we released what our total gift card sales were last year. We have very much a similar plan this year in terms of distribution, number of outlets. I believe, last year was the first year we were in a cup in maybe supermarkets. Having a second year, I think, if they performed well in those locations, chances of getting a higher slot or a more eye-level slot, that's really usually based upon individual stores. So I think our performance last year, which we felt was strong, should help us on the visibility and the desire of different supermarket retailers, pharmacies securing Buffalo Wild Wings.

Mary J. Twinem

And we do have some incremental placements within those existing units that we do expect to have year-over-year increases in our gift cards.

Operator

Our next question is from the line of Mark Smith with Feltl and Company.

Mark E. Smith - Feltl and Company, Inc., Research Division

I just want to dig into your net earnings growth guidance for this year at 20%. Given what you've done the last 3 quarters, maybe a wing benefit, and then you can tell me if hockey makes any big difference having it this year where you didn't last year. How conservative is that 20% guidance versus what you've been doing?

Mary J. Twinem

Oh, you're going to have to clarify because I was a little confused. So you're looking at the 20% number on the 53-week basis for this year?

Mark E. Smith - Feltl and Company, Inc., Research Division

Yes.

Mary J. Twinem

Okay, yes, versus 2014, because we have 2 20%s we're working with here. We think -- obviously, we think it's doable. At the end of October, we have strong same-store sales. We know we're going to be spending -- or we feel we're going to be spending a little more on labor, but we see wing prices that look like they're being reasonable for the near term, so we do feel comfortable that we can hit that 20% for this year.

Mark E. Smith - Feltl and Company, Inc., Research Division

Does hockey give you much of a bump this year compared to last year?

Mary J. Twinem

It's incremental in the markets that follow hockey. So yes, we've enjoyed additional nights of people watching hockey in the month of October.

Operator

Our next question is from the line of Conrad Lyon with B. Riley & Co.

Conrad Lyon - B. Riley Caris, Research Division

A question on COGS in 2014. How much of it do you anticipate being fixed? It sounds like at least 40%? And then can you ballpark what that inflation might be with that, that will be fixed?

Mary J. Twinem

Oh, you're -- okay. As it relates to cost of sales, so we do that? For next year, we think there'll be minimal increases again on boneless wings and all of our breast meat product, that is all flat pricing year-over-year. We talked about expecting a little bit of beer price increases here in the fourth quarter, how much in that we end up reflecting an additional menu price next year, we haven't determined yet. And then you have the wing piece, which is showing weakness now. Hopefully, will show weakness into next year. So we haven't given specifics on the rest of it, but there aren't other commodity pressures that were seen, that it would be pushing potatoes or burgers or some of our other stuff or cheese much higher than it is today.

Conrad Lyon - B. Riley Caris, Research Division

Okay. But the fixed component will most likely -- the major ones will be your chicken breasts and your alcohol, correct?

Mary J. Twinem

Correct.

Conrad Lyon - B. Riley Caris, Research Division

Okay. And so, is it safe to say close to 40% of your spend will be fixed?

Sally J. Smith

Alcohol isn't fixed. Beer could -- or alcohol per costs of sales for alcohol could go up.

Conrad Lyon - B. Riley Caris, Research Division

Okay. So it was beer contracts, got you. Okay.

Sally J. Smith

There is no beer contracts.

Mary J. Twinem

No. So they -- most beer or a lot of the big beer makers take their price increases into the fourth quarter.

Conrad Lyon - B. Riley Caris, Research Division

Okay, helpful. Okay. So let me switch over real quick and follow up on the advertising. With the entry into the international markets, how does your marketing plan factor into that? Do you anticipate being -- allowing yourself with some of the major networks over there? Is it going to be the same dynamic where those franchises contribute the same amount? Or do you see some sort of ramp to really get mind share over there?

Sally J. Smith

Probably, very similar to what we did in the United States, I mean, we really couldn't even advertise for many years of our existence. The international group will contribute to -- I wouldn't -- not our national ad fund, but they will contribute to a group so that they can pool their dollars. Again, they'll start probably with very local spend, TV where they can, radio where they can and then just community marketing. Eventually, we'd love to be able to, as TV develops in some of the countries and areas, as sports develop, how do we have some local sports marketing, which we do a significant amount of in the United States that will do the same thing in -- internationally. I mean, I think about Mexico and sponsoring some teams locally, and that's how they'll develop. And certainly, social media is a new vehicle that we didn't have 10 years ago before we were on TV, and they're connected to their phones, so how do we reach them mobily, and that's something that we're working on with them and with some agencies in that area.

Operator

Our final question is from the line of Nick Setyan with Wedbush Securities.

Nick Setyan - Wedbush Securities Inc., Research Division

Just quickly, what were the wings as a percentage of COGS in the quarter?

Mary J. Twinem

They were 23.7%.

Nick Setyan - Wedbush Securities Inc., Research Division

Okay. And then as you think about modeling PizzaRev unit growth here or I guess contribution from PizzaRev starting next year. Can you at least talk about the CapEx associated with PizzaRev or any other metrics that we should think about in terms of maybe revenue contribution?

Sally J. Smith

What we would anticipate for contribution margin is pretty minimal next year. We opened 2 in the first quarter and we opened a couple more between now and the end of the year. I don't anticipate it adding much of anything. The buildout, I believe, is disclosed in their franchising disclosure document, and it's somewhere in the, I don't know, $500,000 to $700,000 range depending upon the number -- the square footage. So it's a pretty low cost buildout, pretty low risk from our standpoint and opening 2 to 6 next year.

Operator

There are no further questions at this time. I'd now like to turn the call back over to management for closing remarks.

Sally J. Smith

Okay. Well, once again, you all did not disappoint with many questions on our 40th conference call. We look forward to sharing our year-end results with you in February, and where we'll be providing some additional information about 2014. Thank you so much for taking the time to call.

Operator

Ladies and gentlemen, that does conclude the Buffalo Wild Wings Third Quarter 2013 Conference Call. Thank you for your participation. You may now disconnect.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Buffalo Wild Wings Management Discusses Q3 2013 Results - Earnings Call Transcript
This Transcript
All Transcripts