We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BJ's Restaurants (BJRI) Q1 Earnings & Sales Top, Stock Up
Read MoreHide Full Article
Shares of BJ’s Restaurants, Inc. (BJRI - Free Report) rallied over 7% in afterhours trading on Apr 27, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenue Discussion
Adjusted earnings of 42 cents per share surpassed the Zacks Consensus Estimate of 34 cents by 23.5%. However, earnings decreased 10.6% from the year-ago figure of 47 cents, primarily due to higher revenues.
Revenues of $257.8 million were up nearly 6% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $256.1 million by 0.7%.
Inside the Headline Numbers
Comps in the quarter declined 1.3% in comparison with the prior-quarter comps decrease of 2.2 % and the year-ago quarter comps growth of 0.6%.
Restaurant level margin was 17.9%, down 220 basis points (bps) year over year. Moreover, operating margin decreased 170 bps to 5%. Notably, a 40 bps decrease in general and administrative expenses, as a percentage of total revenue, was more than offset by 50 bps and 70 bps decline in cost of sales as well as occupancy and operating costs, respectively. Additionally, labor and benefits charges increased 100 bps, thereby putting pressure on the operating margin.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
In order to navigate the challenging macro environment, the company has implemented several major sales building initiatives, which have been tested over the past year.
Firstly, it has completed the installation of new slow roasting ovens in its restaurants and now has this new cooking equipment at all its locations. Secondly, BJ’s Restaurants has rolled out new server hand-held ordering tablets in 86 of its restaurants, with the aim of completing the installation at all of its locations soon. Thirdly, given the fact that off-premise sales represent a considerable revenue growth opportunity, BJ’s Restaurants continued to test its third-party delivery services. These services are likely to leverage its existing mobile app and online ordering system. Finally, the company’s February roll-out of its daily Brewhouse specials that showcase several of its most popular signature menu items at attractive prices is gaining ground.
Along with these four strategic initiatives, the company has developed a deep pipeline of new menu items, loyalty program enhancements and other productivity initiatives that will be executed in 2017.
Zacks Rank & Stocks to Consider
BJ’s Restaurants carries a Zacks Rank #3 (Hold). Better-ranked stocks in the restaurants space include:
YUM! China Holdings, Inc. (YUMC - Free Report) has seen current quarter and current year earnings estimates rise 4.5% and 5.2%, respectively, over the last 60 days. It is also sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Papa Murphy’s Holdings, Inc. (FRSH - Free Report) is another Zacks Rank #1 company. It has seen current year and next year earnings estimates rise 50% and 500%, respectively, in the past two months.
Darden Restaurants, Inc.’s (DRI - Free Report) earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. It currently holds a Zacks Rank #2 (Buy).
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BJ's Restaurants (BJRI) Q1 Earnings & Sales Top, Stock Up
Shares of BJ’s Restaurants, Inc. (BJRI - Free Report) rallied over 7% in afterhours trading on Apr 27, after the company reported better-than-expected first-quarter 2017 results.
Earnings and Revenue Discussion
Adjusted earnings of 42 cents per share surpassed the Zacks Consensus Estimate of 34 cents by 23.5%. However, earnings decreased 10.6% from the year-ago figure of 47 cents, primarily due to higher revenues.
Revenues of $257.8 million were up nearly 6% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $256.1 million by 0.7%.
Inside the Headline Numbers
Comps in the quarter declined 1.3% in comparison with the prior-quarter comps decrease of 2.2 % and the year-ago quarter comps growth of 0.6%.
Restaurant level margin was 17.9%, down 220 basis points (bps) year over year. Moreover, operating margin decreased 170 bps to 5%. Notably, a 40 bps decrease in general and administrative expenses, as a percentage of total revenue, was more than offset by 50 bps and 70 bps decline in cost of sales as well as occupancy and operating costs, respectively. Additionally, labor and benefits charges increased 100 bps, thereby putting pressure on the operating margin.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise | BJ's Restaurants, Inc. Quote
Going Forward
In order to navigate the challenging macro environment, the company has implemented several major sales building initiatives, which have been tested over the past year.
Firstly, it has completed the installation of new slow roasting ovens in its restaurants and now has this new cooking equipment at all its locations. Secondly, BJ’s Restaurants has rolled out new server hand-held ordering tablets in 86 of its restaurants, with the aim of completing the installation at all of its locations soon. Thirdly, given the fact that off-premise sales represent a considerable revenue growth opportunity, BJ’s Restaurants continued to test its third-party delivery services. These services are likely to leverage its existing mobile app and online ordering system. Finally, the company’s February roll-out of its daily Brewhouse specials that showcase several of its most popular signature menu items at attractive prices is gaining ground.
Along with these four strategic initiatives, the company has developed a deep pipeline of new menu items, loyalty program enhancements and other productivity initiatives that will be executed in 2017.
Zacks Rank & Stocks to Consider
BJ’s Restaurants carries a Zacks Rank #3 (Hold). Better-ranked stocks in the restaurants space include:
YUM! China Holdings, Inc. (YUMC - Free Report) has seen current quarter and current year earnings estimates rise 4.5% and 5.2%, respectively, over the last 60 days. It is also sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Papa Murphy’s Holdings, Inc. (FRSH - Free Report) is another Zacks Rank #1 company. It has seen current year and next year earnings estimates rise 50% and 500%, respectively, in the past two months.
Darden Restaurants, Inc.’s (DRI - Free Report) earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. It currently holds a Zacks Rank #2 (Buy).
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>