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BJ's Restaurants (BJRI) Stock Up on Q1 Earnings & Revenues Beat
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BJ's Restaurants, Inc. (BJRI - Free Report) reported first-quarter fiscal 2024 (ended Apr 2, 2024) results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Earnings surpassed estimates for the second straight quarter, whereas revenues beat after missing in the trailing three quarters.
Greg Levin, BJ's Restaurants' CEO and president, noted that the company's impressive performance in the first quarter reflects positive trajectory of its business. He highlighted the impact of BJRI's growth strategies and productivity efforts, which have helped to offset challenges such as adverse weather conditions at the beginning of the quarter.
BJRI’s continuous focus on increasing guest traffic and driving sales along with cross-functional cost savings initiatives positions it well to realize benefits in the near term.
Following the announcement, shares of the company rose 10.5% in the after-hours trading session on May 2.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 32 cents, which beat the Zacks Consensus Estimate of 15 cents. In the year-ago quarter, it recorded adjusted EPS of 15 cents.
Total revenues of $337.3 million beat the consensus estimate of $336 million. However, the top line declined 1.2% on a year-over-year basis.
Comparable restaurant sales decreased 1.7% year over year against a rise of 9% reported in the prior-year quarter. Our model predicted the metric to decline 2.1% from the year-ago levels.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
During the quarter under review, labor costs — as a percentage of sales — were 37.1%, down 50 basis points (bps) year over year. Our estimate was 38.1%.
Occupancy and operating costs (as a percentage of sales) were 22.8% compared with 23.2% reported in the year-ago quarter. We estimated the metric to be 23.8%.
General and administrative expenses (as a percentage of sales) of 6.8% rose 100 bps on a year-over-year basis. Our prediction was 5.9%.
Restaurant-level operating margin was 15%, up from 12.6% reported in the year-earlier quarter. BJRI’s restaurant staff's dedication to providing warm hospitality and unforgettable dining experiences for guests, alongside their efforts to enhance growth and productivity, significantly boosted restaurant-level operating margin. Our was anticipated the metric to be 12.8%.
Store Count
In the latter part of the first quarter, BJ's Restaurants opened its 217th establishment in Brookfield, WI, marking its debut in the state. It remains on track to launch two more restaurants in the latter half of 2024 and is actively expanding its development plans for 2025 and beyond.
All upcoming BJ's Restaurants’ locations will showcase a new prototype, designed to be approximately $1 million cheaper to construct while enhancing operational efficiencies. These prototypes will integrate the most popular elements of the ongoing restaurant remodeling project, including a revamped bar area featuring a crowd-favorite 130-inch television as its centerpiece.
BJRI’s 2024 restaurant launches are complemented by its ongoing remodeling efforts, which continue to receive positive feedback from guests and deliver strong financial results. By the close of 2024, management anticipates that about half of its restaurants will either feature the new prototype or have undergone recent renovations, further enhancing the appeal of its concept to both existing and prospective guests.
Balance Sheet
As of Apr 2, 2024, cash and cash equivalents totaled $18.8 million compared with $29.1 million as of fiscal 2023-end. Total debt amounted to $58 million compared with $68 million in fiscal 2023-end.
Zacks Rank & Key Picks
BJ's Restaurants currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests growth of 21.7% and 22.2%, respectively, from the year-ago levels.
Brinker International, Inc. (EAT - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 213.4%, on average. Shares of EAT have risen 40.2% in the past year.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS suggests an improvement of 4.9 and 33.9%, respectively, from the year-earlier numbers.
Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 8.3%, on average. CMG’s shares have risen 52.7% in the past year.
The Zacks Consensus Estimate for CMG’s 2024 sales and EPS indicates a rise of 14.8% and 22.8%, respectively, from the prior-year actuals.
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BJ's Restaurants (BJRI) Stock Up on Q1 Earnings & Revenues Beat
BJ's Restaurants, Inc. (BJRI - Free Report) reported first-quarter fiscal 2024 (ended Apr 2, 2024) results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Earnings surpassed estimates for the second straight quarter, whereas revenues beat after missing in the trailing three quarters.
Greg Levin, BJ's Restaurants' CEO and president, noted that the company's impressive performance in the first quarter reflects positive trajectory of its business. He highlighted the impact of BJRI's growth strategies and productivity efforts, which have helped to offset challenges such as adverse weather conditions at the beginning of the quarter.
BJRI’s continuous focus on increasing guest traffic and driving sales along with cross-functional cost savings initiatives positions it well to realize benefits in the near term.
Following the announcement, shares of the company rose 10.5% in the after-hours trading session on May 2.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 32 cents, which beat the Zacks Consensus Estimate of 15 cents. In the year-ago quarter, it recorded adjusted EPS of 15 cents.
Total revenues of $337.3 million beat the consensus estimate of $336 million. However, the top line declined 1.2% on a year-over-year basis.
Comparable restaurant sales decreased 1.7% year over year against a rise of 9% reported in the prior-year quarter. Our model predicted the metric to decline 2.1% from the year-ago levels.
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
During the quarter under review, labor costs — as a percentage of sales — were 37.1%, down 50 basis points (bps) year over year. Our estimate was 38.1%.
Occupancy and operating costs (as a percentage of sales) were 22.8% compared with 23.2% reported in the year-ago quarter. We estimated the metric to be 23.8%.
General and administrative expenses (as a percentage of sales) of 6.8% rose 100 bps on a year-over-year basis. Our prediction was 5.9%.
Restaurant-level operating margin was 15%, up from 12.6% reported in the year-earlier quarter. BJRI’s restaurant staff's dedication to providing warm hospitality and unforgettable dining experiences for guests, alongside their efforts to enhance growth and productivity, significantly boosted restaurant-level operating margin. Our was anticipated the metric to be 12.8%.
Store Count
In the latter part of the first quarter, BJ's Restaurants opened its 217th establishment in Brookfield, WI, marking its debut in the state. It remains on track to launch two more restaurants in the latter half of 2024 and is actively expanding its development plans for 2025 and beyond.
All upcoming BJ's Restaurants’ locations will showcase a new prototype, designed to be approximately $1 million cheaper to construct while enhancing operational efficiencies. These prototypes will integrate the most popular elements of the ongoing restaurant remodeling project, including a revamped bar area featuring a crowd-favorite 130-inch television as its centerpiece.
BJRI’s 2024 restaurant launches are complemented by its ongoing remodeling efforts, which continue to receive positive feedback from guests and deliver strong financial results. By the close of 2024, management anticipates that about half of its restaurants will either feature the new prototype or have undergone recent renovations, further enhancing the appeal of its concept to both existing and prospective guests.
Balance Sheet
As of Apr 2, 2024, cash and cash equivalents totaled $18.8 million compared with $29.1 million as of fiscal 2023-end. Total debt amounted to $58 million compared with $68 million in fiscal 2023-end.
Zacks Rank & Key Picks
BJ's Restaurants currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail – Restaurants industry are:
Wingstop Inc. (WING - Free Report) sports a Zacks Rank #1 (Strong Buy). WING has a trailing four-quarter earnings surprise of 21.4%, on average. The stock has risen 75.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests growth of 21.7% and 22.2%, respectively, from the year-ago levels.
Brinker International, Inc. (EAT - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 213.4%, on average. Shares of EAT have risen 40.2% in the past year.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS suggests an improvement of 4.9 and 33.9%, respectively, from the year-earlier numbers.
Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 8.3%, on average. CMG’s shares have risen 52.7% in the past year.
The Zacks Consensus Estimate for CMG’s 2024 sales and EPS indicates a rise of 14.8% and 22.8%, respectively, from the prior-year actuals.