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BJ's Restaurants (BJRI) to Post Q3 Earnings: What's in Store?
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BJ’s Restaurants, Inc. (BJRI - Free Report) is scheduled to report its third-quarter 2022 results on Oct 20, after market close. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 56.5%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 27 cents per share compared with a loss of 13 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $303.9 million, suggesting an increase of 7.7% from the prior-year quarter.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors at Play
BJ's Restaurants’ third-quarter top line is likely to have benefited from solid off-premise sales, an increase in comparable restaurant sales and technology-driven initiatives. The company’s focus on new restaurant openings and remodeling initiatives is likely to have aided the results. Per the Zacks Consensus Estimate, comparable restaurant revenues are likely to witness 6.2% year-over-year growth.
The company has been gaining traction with its Beer Club subscription services in California. Notably, high customer engagement is being witnessed on the back of new beer releases along with program benefits.
However, BJ’s Restaurants is consistently bearing increased expenses, which has been affecting margins of late. Higher food inflationary costs, marketing expenses and costs related to sales-boosting initiatives are weighing on the company’s margins. In the second quarter, the company’s cost of sales, as a percentage of revenues, came in at 27.6% compared with the 26% reported in the prior-year quarter. The company has also been facing high labor and benefit expenses.
Our proven model conclusively predicts an earnings beat for BJ's Restaurants this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: BJ's Restaurants has an Earnings ESP of +1.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported:
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #2.
Shares of Kroger have increased 8.6% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank #2.
Shares of Chipotle have declined 17.1% in the past year. CMG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.2%, on average.
Restaurant Brands International Inc. (QSR - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank #3.
Shares of Restaurant Brands have declined 15.1% in the past year. QSR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.1% on average.
Image: Bigstock
BJ's Restaurants (BJRI) to Post Q3 Earnings: What's in Store?
BJ’s Restaurants, Inc. (BJRI - Free Report) is scheduled to report its third-quarter 2022 results on Oct 20, after market close. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 56.5%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 27 cents per share compared with a loss of 13 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $303.9 million, suggesting an increase of 7.7% from the prior-year quarter.
Let’s analyze the factors that are likely to make an impact this earnings season.
Factors at Play
BJ's Restaurants’ third-quarter top line is likely to have benefited from solid off-premise sales, an increase in comparable restaurant sales and technology-driven initiatives. The company’s focus on new restaurant openings and remodeling initiatives is likely to have aided the results. Per the Zacks Consensus Estimate, comparable restaurant revenues are likely to witness 6.2% year-over-year growth.
The company has been gaining traction with its Beer Club subscription services in California. Notably, high customer engagement is being witnessed on the back of new beer releases along with program benefits.
However, BJ’s Restaurants is consistently bearing increased expenses, which has been affecting margins of late. Higher food inflationary costs, marketing expenses and costs related to sales-boosting initiatives are weighing on the company’s margins. In the second quarter, the company’s cost of sales, as a percentage of revenues, came in at 27.6% compared with the 26% reported in the prior-year quarter. The company has also been facing high labor and benefit expenses.
BJ's Restaurants, Inc. Price and EPS Surprise
BJ's Restaurants, Inc. price-eps-surprise | BJ's Restaurants, Inc. Quote
What Our Model Says
Our proven model conclusively predicts an earnings beat for BJ's Restaurants this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: BJ's Restaurants has an Earnings ESP of +1.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported:
The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +0.75% and a Zacks Rank #2.
Shares of Kroger have increased 8.6% in the past year. KR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 15.7%, on average.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank #2.
Shares of Chipotle have declined 17.1% in the past year. CMG’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.2%, on average.
Restaurant Brands International Inc. (QSR - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank #3.
Shares of Restaurant Brands have declined 15.1% in the past year. QSR’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 6.1% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.