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BJ's Restaurants (BJRI) Posts Dismal Q4 Preliminary Results

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BJ's Restaurants, Inc. (BJRI - Free Report) reported fourth-quarter 2020 preliminary results. The company is witnessing improving sales in 2021. In the first three weeks of January, comparable restaurant sales improved to (37.2%) from (45.3%) in December 2020.

Comparable restaurant sales for the period ended Oct 27, Nov 27 and Dec 29 declined 20.6%, 27% and 45.3%, respectively. Moreover, for the week ended Jan 5, Jan 12 and Jan 19, 2021 comparable restaurant sales decreased 36.2%, 38.4% and 36.9%, respectively.

Greg Trojan, CEO said “As we manage near-term challenges and demonstrate continuous sales growth in markets that have remained open, we are confident in our ability to outperform the casual dining sector and generate long-term growth through a differentiated dining experience.”

Shares of the company have soared 145.9% in the past six months, compared with the industry’s growth of 19.3%.

 

Q4 Preliminary Results

The company reported preliminary fourth-quarter revenues of $197 million, down 32.3% year over year. Comparable restaurant sales in the quarter declined 32.3%. Moreover, BJ's Restaurants reported restaurant level operating profit in the range of $12.5 million to $13.5 million.

The company anticipates impairment charges for the fourth quarter between $2.5 million and $4.5 million. As of Jan 21, 2021, the company had cash and cash equivalents of roughly $40.8 million.

Off-premise sales continues to be impressive. Off-premise sales have increased more than 2.5 times compared with the pre-pandemic level. In the recent months, the company has invested in its restaurants for upgrading outdoor patios and installing glass dividers to ensure guest safety.

Zacks Rank & Key Picks

BJ's Restaurants has a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the same space include Yum! Brands, Inc. (YUM - Free Report) , Del Taco Restaurants, Inc. (TACO - Free Report) and Jack in the Box Inc. (JACK - Free Report) . All these stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Yum! Brands and Del Taco Restaurants have an impressive long-term earnings growth rate of 12.3% and 15%, respectively.

Jack in the Box fiscal 2021 earnings is expected to witness growth of 20.4%.

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