Back to top

Image: Bigstock

BJ's Restaurants' (BJRI) Q3 Earnings Top Estimates, Stock Up

Read MoreHide Full Article

BJ's Restaurants, Inc. (BJRI - Free Report) reported third-quarter fiscal 2022 (ended Sep 27, 2022) results, with its earnings and revenues beating the Zacks Consensus Estimate. The top line rose year over year, while the bottom line declined year over year. Following the results, the company’s shares increased 5.1% during the after-hours trading session on Oct 20.

Earnings & Revenues

In the quarter under review, the company reported an adjusted loss per share of 25 cents, narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the prior-year quarter, the company reported an adjusted loss of 13 cents per share.

Total revenues of $311.3 million beat the Zacks Consensus Estimate of $304 million by 2.4%. The top line increased 10.3% on a year-over-year basis.

Comparable restaurant sales in the fiscal third quarter increased 8.9% year over year compared with a rise of 41.8% reported in the prior-year quarter. However, it increased 8.2% from the 2019 levels. The company stated that the positive momentum continued into the fiscal fourth quarter, with period-to-date comps growth increasing by nearly 8% and 6% compared to the same periods in 2021 and 2019, respectively.

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise BJ's Restaurants, Inc. Price, Consensus and EPS Surprise

BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote

Expenses & Operating Margins

For the fiscal third quarter, labor costs — as a percentage of sales — came in at 37.7%, up 50 basis points (bps) year over year. Occupancy and operating costs (as a percentage of sales) came in at 24.7%, up from 24.4% reported in the year-ago quarter. General and administrative expenses (as a percentage of sales) came in at 6.1% in the quarter, flat year over year.

During the quarter, restaurant-level operating margin came in at 10.3% compared with the 11.2% reported in the year-ago quarter.

Store Count

As of Sep 27, 2022, BJ’s Restaurants owned and operated 214 casual dining restaurants (in 29 states). Last week, the company opened its newest restaurant in Las Vegas. The two restaurants, which were scheduled to open in 2022 are now scheduled to open in the fiscal first quarter of 2023 due to construction delay. The company remains steadfast in its commitment to expand its presence to at least 425 restaurants domestically.

Balance Sheet

As of Sep 27, 2022, cash and cash equivalents totaled $19.2 million compared with $38.5 million as of Dec 28, 2021. Total debt as of Sep 27, 2022, amounted to $50 million, in line with the previous quarter’s estimates.

Zacks Rank & Key Picks

BJ's Restaurants has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector are Wingstop Inc. (WING - Free Report) , Yum China Holdings, Inc. (YUMC - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .

Wingstop currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth of 11%. Shares of the company have declined 32.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Wingstop’s 2023 sales and earnings per share (EPS) suggests growth of 17.7% and 17.4%, respectively, from the year-ago period’s levels.

Yum China carries a Zacks Rank #2 at present. Yum China has a long-term earnings growth of 10%. Shares of the company have declined 25.1% in the past year.

The Zacks Consensus Estimate for Yum China's 2023 sales and EPS suggests growth of 19.9% and 86.8%, respectively, from the year-ago period’s levels.

Sprouts Farmers Market currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 15.6%, on average. Shares of the company have increased 17.5% in the past year.

The Zacks Consensus Estimate for Sprouts Farmers Market’s 2023 sales and EPS suggests growth of 5.9% and 7.9%, respectively, from the year-ago period’s levels.

Published in