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As a showdown with an activist investor looms, Buffalo Wild Wings on Wednesday reported another quarterly drop in profits and a plan to slash $40 million to $50 million in costs over the next two years.

The Golden Valley-based chain already has begun implementing some of the cuts, such as eliminating the guest experience captain position at most of its stores earlier this month, and streamlining some of its management structure in the field. Other cost savings executives outlined to analysts on a conference call include more efficiently scheduling employee hours and reducing waste in sides and condiments.

The new cost-cutting program, devised with the help of a major consulting firm that conducted a review of the business, comes as Buffalo Wild Wings is preparing for a showdown at its annual meeting in June. Activist investor Mick McGuire of Marcato Capital Management has proposed that shareholders add him to the board after he criticized the current management team for becoming too complacent while the company's once eye-popping growth leveled off. He has also suggested that Sally Smith, the chain's CEO, should step down.

Meanwhile, the company has been encouraging shareholders to stick with Smith and its slate of eight board members, two of whom would be new to the board and three of whom joined last year.

"The Buffalo Wild Wings board and management team continue to innovate and pursue cost-savings initiatives in the face of challenging market conditions in order to remain a distinct experience and stay ahead of the competition," Smith told analysts on the Wednesday conference call.

Executives also said the company plans to sell 80, or 13 percent, of its company-owned restaurants to franchisees, instead of 60 as initially announced earlier this year. McGuire has been pushing the company to sell most of its locations to franchisees in order to cut own on corporate costs.

Buffalo Wild Wings continues to face a number of challenges including a slowing restaurant and casual dining industry, higher costs for chicken wings and labor, and trends such as consumers being more interested in promotions and delivery. Executives said Wednesday recent promotions such as half-priced wings on Tuesday have helped drive traffic and sales while pressuring the bottom line.

The chain announced its earnings after the markets closed on Wednesday. Its stock ended the day down 40 cents to $162.40 a share.

In the first quarter ended March 26, Buffalo Wild Wings' net earnings dropped 34 percent to $21.5 million, or $1.25 a share, down from $32.8 million, or $1.73 a share, in the same quarter a year ago. Traditional wings were 4 percent more expensive than the same quarter a year ago, the company said.

Total revenue rose 5.2 percent to $534.8 million, up from $508.3 million, with same-store sales growing about 0.5 percent. For the upcoming year, executives said they expect same-store sales growth to be about 1 percent.

This year, executives said they plan to have delivery options from more locations through third-party partners. At the same time, the company will test later this year ordering delivery directly through the chain's app or website.

The chain also is looking for growth internationally. Franchisees recently opened locations in Mexico and Saudi Arabia, and there are plans for other new locations in India and Vietnam later this year, Smith said. The company plans to open 20 new locations abroad this year, she added.

Kavita Kumar • 612-673-4113