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What's in Store for BJ's Restaurants (BJRI) in Q2 Earnings?
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BJ's Restaurants, Inc. (BJRI - Free Report) is likely to deliver earnings growth in its second-quarter fiscal 2023 results. In the last reported quarter, BJRI delivered an earnings surprise of 275%.
How Are Estimates Placed?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, indicating growth of 230% from 10 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $350.5 million, suggesting an increase of 6.3% from the prior-year quarter’s figure.
Let’s analyze the factors that are likely to impact this earnings season.
Factors at Play
BJ's Restaurants’ fiscal second-quarter performance is likely to have gained from new restaurant openings, remodeling initiatives, pricing management and re-staffing initiatives. Its focus on menu rationalization, inventory reduction and streamlining kitchen operations are likely to have aided the company’s performance in the to-be-reported quarter.
During the previous quarter, the company stated that it had completed 14 remodels and reported solid performance with respect to the same. BJRI reported increased sales (more than $1500 on average) from the remodeled locations. Also, it recorded significant contributions from renovations with broader scopes, including bar modifications. Given the increased visitation and a strong developmental pipeline, the momentum is likely to have persisted in the to-be-reported quarter.
A rise in average weekly restaurant sales backed by strategic initiatives, cost savings efforts and menu pricing strategy are likely to have aided the top line of BJRI’s fiscal second quarter. The company expects the fiscal second quarter’s average weekly restaurant sales to be up 4% to 5% on a year-over-year basis.
However, elevated expenses on account of labor, commodities, marketing and sales-boosting initiatives are likely to have hurt margins in the fiscal second quarter. For the fiscal second quarter, the company expects marketing spend (as a percentage of sales) to be 2.1% compared with 1.4% reported in the previous quarter. Per our model, total costs and expenses in the fiscal second quarter are anticipated to rise 3.8% year-over-year to $339 million.
What Our Model Says
Our proven model 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 +17.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank #2.
Shares of Chipotle have gained 55.8% in the past year. CMG’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.7%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2.
Shares of McDonald's have increased 16.8% in the past year. MCD’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 6.9%.
Domino's Pizza, Inc. (DPZ - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
Shares of Domino's have declined 5.5% in the past year. DPZ’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 3.9%.
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What's in Store for BJ's Restaurants (BJRI) in Q2 Earnings?
BJ's Restaurants, Inc. (BJRI - Free Report) is likely to deliver earnings growth in its second-quarter fiscal 2023 results. In the last reported quarter, BJRI delivered an earnings surprise of 275%.
How Are Estimates Placed?
The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, indicating growth of 230% from 10 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $350.5 million, suggesting an increase of 6.3% from the prior-year quarter’s figure.
BJ's Restaurants, Inc. Price and EPS Surprise
BJ's Restaurants, Inc. price-eps-surprise | BJ's Restaurants, Inc. Quote
Let’s analyze the factors that are likely to impact this earnings season.
Factors at Play
BJ's Restaurants’ fiscal second-quarter performance is likely to have gained from new restaurant openings, remodeling initiatives, pricing management and re-staffing initiatives. Its focus on menu rationalization, inventory reduction and streamlining kitchen operations are likely to have aided the company’s performance in the to-be-reported quarter.
During the previous quarter, the company stated that it had completed 14 remodels and reported solid performance with respect to the same. BJRI reported increased sales (more than $1500 on average) from the remodeled locations. Also, it recorded significant contributions from renovations with broader scopes, including bar modifications. Given the increased visitation and a strong developmental pipeline, the momentum is likely to have persisted in the to-be-reported quarter.
A rise in average weekly restaurant sales backed by strategic initiatives, cost savings efforts and menu pricing strategy are likely to have aided the top line of BJRI’s fiscal second quarter. The company expects the fiscal second quarter’s average weekly restaurant sales to be up 4% to 5% on a year-over-year basis.
However, elevated expenses on account of labor, commodities, marketing and sales-boosting initiatives are likely to have hurt margins in the fiscal second quarter. For the fiscal second quarter, the company expects marketing spend (as a percentage of sales) to be 2.1% compared with 1.4% reported in the previous quarter. Per our model, total costs and expenses in the fiscal second quarter are anticipated to rise 3.8% year-over-year to $339 million.
What Our Model Says
Our proven model 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 +17.59%. 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 #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank #2.
Shares of Chipotle have gained 55.8% in the past year. CMG’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.7%.
McDonald's Corporation (MCD - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2.
Shares of McDonald's have increased 16.8% in the past year. MCD’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 6.9%.
Domino's Pizza, Inc. (DPZ - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
Shares of Domino's have declined 5.5% in the past year. DPZ’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 3.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.