Cheap and delicious food is here during the economic crisis. Buffalo Wild Wings (BWLD) will fly in the face of the recession. Its profits jumped 29 percent in the last quarter.
Katherine Schildt of Investment U says “there are still some restaurant chains that are doing something right.”

Good Food, Plenty of Beer AND Profits?

At a time when most consumers are pinching pennies by forgoing dinners out, there are still some restaurant chains that are doing something right.

Put Buffalo Wild Wings (Nasdaq: BWLD) at the top of that list. Beating Wall Street’s expectations caused the stock to shoot up close to 35% yesterday.

Despite a failing economy – and the rising price of chicken wings – this restaurant has obviously been well received by hungry patrons.

Based in Minneapolis, Buffalo Wild Wings specializes in chicken and beer, a favorite combination among many Americans. Throw in a ton of jumbo TVs (usually tuned to a big-time sporting event) and you have the perfect all-American atmosphere.

That’s likely what led to the earnings surprise. Its fourth-quarter earnings beat analysts’ profit estimates by four cents per share.

Net income increased 28.7% to $7.7 million, or 43 cents per share. Total revenue increased 32.6% to $121.2 million. Same-restaurant sales (the key metric for gauging restaurant health) jumped 4.5% at company-owned stores and 2.5% at franchise restaurants.

The best news by far, and what’s really riled up the analysts, is that the company also announced that it expects to meet its goals of 15% unit growth, 25% revenue growth, and 20% to 25% net earnings growth in 2009.

Are you kidding me? In this market?

Throw in their nonexistent debt and plenty of cash on hand, and you can see why the CEO is optimistic…

CEO, Sally Smith, accredits much of its increasing numbers to highly disciplined management and constant customer feedback. She says the company will rely on much of the same in the coming quarters.

“We realize these are challenging economic times. Changes in commodity prices and tightening of credit markets are just a few of the many variables that are present in our business.”

The above-mentioned variables haven’t been a problem (so far).

Taking Wednesday’s surge into account, along with its impressive growth and yearly earnings increase – and don’t forget it’s affordable prices and delicious food – Buffalo Wild Wings is a stock worthy of anyone’s Watch List.

Source: Buffalo Wild Wings (Nasdaq: BWLD): Stock of the Day