BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial
results for its fiscal 2024 first quarter ended Tuesday, April
2, 2024.
Fiscal First Quarter 2024 Compared to
First Quarter 2023
- Total revenues decreased 1.2% to
$337.3 million
- Comparable restaurant sales
declined 1.7%
- Total restaurant operating weeks
increased by one week
- Net income of $7.7 million,
compared to $3.5 million; diluted net income per share of $0.32,
compared to $0.15
- Adjusted EBITDA of $29.4 million,
compared to $25.0 million, as described below in the reconciliation
between GAAP and non-GAAP adjusted financial measures
“Our strong first quarter results demonstrate
the momentum building in our business from our growth and
productivity initiatives, especially when considering the extent of
weather impacts early in the quarter,” commented Greg Levin, Chief
Executive Officer and President. “The commitment by our restaurant
team members to deliver gracious hospitality and serve memorable
brewhouse experiences to our guests, coupled with these growth and
productivity initiatives, drove restaurant level operating margin
to 15.0%, a 240 basis point improvement compared to last year.
Following heavier than usual winter storms impacting industrywide
sales in January, our comparable restaurant sales improved through
the quarter. Despite the sales headwinds from winter weather, we
made meaningful year-over-year improvements in restaurant margins,
Adjusted EBITDA and net income. These improvements demonstrate the
solid foundation we are building for continued growth, and we
remain confident that our restaurant level margins will approach
pre-pandemic levels by year-end 2024,” continued Levin.
“Late in the first quarter, we opened our 217th
restaurant in Brookfield, Wisconsin, our first restaurant in the
state. We remain on track to open two additional restaurants in the
second half of 2024 and are actively building our development
pipeline for 2025 and beyond. All future BJ’s will feature our new
prototype that will cost approximately $1 million less to build,
provide greater operating efficiencies, and incorporate the best
elements of our ongoing restaurant remodel initiative, including a
new bar statement with the guest-favorite 130" television as a
centerpiece. Our 2024 new restaurant openings are complemented by
our ongoing remodel initiative, which continues to deliver positive
guest responses and attractive financial returns. By the end of
2024, we expect approximately half of our restaurants to be either
a newer prototype or recently remodeled, further elevating the
attractiveness of our concept to current and new guests,” concluded
Levin.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference
call on its first quarter 2024 earnings release today, May 2, 2024,
at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Management will
discuss the financial results and host a question and answer
session. In addition, a live audio webcast of the call will be
accessible to the public on the “Investors” page of the Company’s
website located at http://www.bjsrestaurants.com, and a recording
of the webcast will be archived on the site for 30 days following
the live event. Please allow 15 minutes to register and download
and install any necessary software.
About BJ’s Restaurants,
Inc.
BJ’s Restaurants, Inc. is a national brand with
brewhouse roots where Craft Matters®. BJ’s broad menu has something
for everyone: slow-roasted entrees, like prime rib, BJ’s
EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon,
signature deep-dish pizza and the often imitated, but never
replicated world-famous Pizookie® dessert. The winner of the 2024
Vibe Vista Award for Best Overall Beverage Program for Multi-Unit
Chain Restaurants and the most decorated restaurant-brewery in the
country, BJ’s has been a pioneer in the craft brewing world since
1996 and takes pride in serving BJ’s award-winning proprietary
handcrafted beers, brewed at its brewing operations in four states
and by independent third-party craft brewers. The BJ’s experience
offers high-quality ingredients, bold flavors, moderate prices,
sincere service, and a cool, contemporary atmosphere. Founded in
1978, BJ’s owns and operates over 200 casual dining restaurants in
31 states. All restaurants offer dine-in, take-out, delivery and
large party catering. For more BJ’s information, visit
http://www.bjsrestaurants.com.
Forward-Looking Statements
Disclaimer
Certain statements in the preceding paragraphs
and all other statements that are not purely historical constitute
“forward-looking” statements for purposes of the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended, and are
intended to be covered by the safe harbors created thereby. Such
statements include, but are not limited to, those regarding
expected comparable restaurant sales and margins, total potential
domestic capacity, the success of various sales-building and
productivity initiatives, future guest traffic trends, on and
off-premise sales trends, cost savings initiatives and the number
and timing of new restaurants expected to be opened in future
periods. These “forward-looking” statements involve known and
unknown risks, uncertainties and other factors which may cause
actual results to be materially different from those projected or
anticipated. Factors that might cause such differences include, but
are not limited to: (i) any inability or failure to successfully
and sufficiently raise menu prices to offset rising costs, (ii) any
inability to manage new restaurant openings,
(iii) construction delays, (iv) wage inflation and competitive
labor market conditions which may result in staffing shortages, (v)
the impact of any union organizing efforts at our restaurants and
our responses to such efforts, (vi) increases in minimum wage and
other employment related costs, including compliance with the
Patient Protection and Affordable Care Act and minimum salary
requirements for exempt team members, (vii) the effect of credit
and equity market disruptions on our ability to finance our
continued expansion on acceptable terms, (viii) food quality and
health concerns and the effect of negative publicity about us, our
restaurants, other restaurants, or others across the food supply
chain, due to food borne illness or other illnesses or other
reasons, whether or not accurate, (ix) factors that impact
California, Texas and Florida, where a substantial number of our
restaurants are located, (x) restaurant and brewery industry
competition, (xi) impact of certain brewing business
considerations, including without limitation, dependence upon
suppliers, third party contractors and distributors, and related
hazards, (xii) consumer spending trends in general for casual
dining occasions, (xiii) potential uninsured losses and liabilities
due to limitations on insurance coverage, (xiv) fluctuating
commodity costs and availability of food in general and certain raw
materials related to the brewing of our craft beers and energy
requirements, (xv) trademark and service-mark risks, (xvi)
government regulations and licensing costs, including beer and
liquor regulations, (xvii) loss of key personnel, (xviii) inability
to secure acceptable sites, (xix) legal proceedings, (xx) the
success of our key sales-building and related operational
initiatives, (xxi) any failure of our information technology or
security breaches with respect to our electronic systems and data,
and (xxii) numerous other matters discussed in the Company’s
filings with the Securities and Exchange Commission, including its
recent reports on Forms 10-K, 10-Q and 8-K. The “forward-looking”
statements contained in this press release are based on current
assumptions and expectations, and BJ’s Restaurants, Inc. undertakes
no obligation to update or alter its “forward-looking” statements
whether as a result of new information, future events or
otherwise.
For further information, please contact Tom
Houdek of BJ’s Restaurants, Inc. at (714) 500-2400 or JCIR at (212)
835-8500 or at bjri@jcir.com.
|
BJ’s Restaurants, Inc. |
Consolidated Statements of Operations |
(Dollars in thousands except for per share
data) |
|
|
|
First Quarter Ended |
|
April 2, 2024(unaudited) |
April 4, 2023(unaudited) |
Revenues |
$ |
337,334 |
|
100.0 |
% |
$ |
341,280 |
|
100.0 |
% |
Restaurant operating costs
(excluding depreciation and amortization): |
|
|
|
|
Cost of sales |
|
84,953 |
|
25.2 |
|
|
90,877 |
|
26.6 |
|
Labor and benefits |
|
125,021 |
|
37.1 |
|
|
128,333 |
|
37.6 |
|
Occupancy and operating |
|
76,858 |
|
22.8 |
|
|
79,146 |
|
23.2 |
|
General and
administrative |
|
22,997 |
|
6.8 |
|
|
19,706 |
|
5.8 |
|
Depreciation and
amortization |
|
17,873 |
|
5.3 |
|
|
17,612 |
|
5.2 |
|
Restaurant opening |
|
590 |
|
0.2 |
|
|
844 |
|
0.2 |
|
Loss on disposal and
impairment of assets, net |
|
784 |
|
0.2 |
|
|
2,146 |
|
0.6 |
|
Total costs and expenses |
|
329,076 |
|
97.6 |
|
|
338,664 |
|
99.2 |
|
Income from operations |
|
8,258 |
|
2.4 |
|
|
2,616 |
|
0.8 |
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
Interest expense, net |
|
(1,411 |
) |
(0.4 |
) |
|
(1,121 |
) |
(0.3 |
) |
Other income, net |
|
696 |
|
0.2 |
|
|
196 |
|
0.1 |
|
Total other expense |
|
(715 |
) |
(0.2 |
) |
|
(925 |
) |
(0.3 |
) |
Income before income taxes |
|
7,543 |
|
2.2 |
|
|
1,691 |
|
0.5 |
|
|
|
|
|
|
Income tax benefit |
|
(180 |
) |
(0.1 |
) |
|
(1,790 |
) |
(0.5 |
) |
Net income |
$ |
7,723 |
|
2.3 |
% |
$ |
3,481 |
|
1.0 |
% |
|
|
|
|
|
Net income per share: |
|
|
|
|
Basic |
$ |
0.33 |
|
|
$ |
0.15 |
|
|
Diluted |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
Weighted average number of
shares outstanding: |
|
|
|
|
Basic |
|
23,318 |
|
|
|
23,481 |
|
|
Diluted |
|
23,965 |
|
|
|
23,926 |
|
|
|
Percentages reflected above may not reconcile due to rounding. |
|
BJ’s Restaurants, Inc. |
Selected Consolidated Balance Sheet
Information |
(Dollars in thousands) |
|
|
April 2, 2024(unaudited) |
|
January 2, 2024 |
Cash and cash equivalents |
$ |
18,820 |
|
|
$ |
29,070 |
|
Total assets |
$ |
1,044,922 |
|
|
$ |
1,058,454 |
|
Total debt |
$ |
58,000 |
|
|
$ |
68,000 |
|
Shareholders’ equity |
$ |
375,352 |
|
|
$ |
365,761 |
|
|
BJ’s Restaurants, Inc. |
Unaudited Supplemental Information |
(Dollars in thousands) |
|
|
|
First Quarter Ended |
|
April 2, 2024 |
April 4, 2023 |
Stock-based
compensation (1) |
|
|
|
|
Labor and benefits |
$ |
508 |
|
0.2 |
% |
$ |
866 |
|
0.3 |
% |
General and
administrative |
|
1,969 |
|
0.6 |
|
|
1,776 |
|
0.5 |
|
Total stock-based
compensation |
$ |
2,477 |
|
0.7 |
% |
$ |
2,642 |
|
0.8 |
% |
|
|
|
|
|
Operating
Data |
|
|
|
|
Comparable restaurant sales %
change |
|
(1.7 |
)% |
|
|
9.0 |
% |
|
Restaurants opened during
period |
|
1 |
|
|
|
1 |
|
|
Restaurants open at
period-end |
|
217 |
|
|
|
216 (2) |
|
|
Restaurant operating
weeks |
|
2,808 |
|
|
|
2,807 |
|
|
(1) |
Percentages represent percent of total revenues and may not
reconcile due to rounding. |
(2) |
The Company owned and operated 216 restaurants as of April 4, 2023,
including one which was closed during the quarter and one which was
opened during the quarter. |
|
|
Note Regarding Non-GAAP Financial Measures
The Company is reporting certain non-GAAP
financial results and related reconciliations to the corresponding
GAAP financial measures. These non-GAAP measures are not in
accordance with, or a substitute for, measures prepared in
accordance with GAAP, and may be different from non-GAAP measures
used by other companies. These measures should only be used to
evaluate the Company’s results of operations in conjunction with
corresponding GAAP measures.
Restaurant Level Operating Margin
Restaurant level operating margin, a non-GAAP
financial measure, is equal to the revenues generated by our
restaurants less their direct operating costs which consist of cost
of sales, labor and benefits, and occupancy and operating costs.
This performance measure primarily includes the costs that
restaurant level managers can directly control and excludes other
operating costs that are essential to conduct the Company’s
business, as detailed in the table below. Management uses
restaurant level operating margin as a supplemental measure of
restaurant performance. Management believes restaurant level
operating margin is useful to investors in that it highlights
trends in our core business that may not otherwise be apparent to
investors when relying solely on GAAP financial measures. Because
other companies may calculate restaurant level operating margin
differently than we do, restaurant level operating margin as
presented herein may not be comparable to similarly titled measures
reported by other companies.
A reconciliation of income from operations to
restaurant level operating margin for the first quarter ended April
2, 2024, and April 4, 2023, is set forth below:
Supplemental Financial Information – Restaurant Level
Operating Margin |
(Unaudited, dollars in thousands) |
|
|
|
First Quarter Ended |
|
April 2, 2024 |
April 4, 2023 |
Income from operations |
$ |
8,258 |
|
2.4 |
% |
$ |
2,616 |
|
0.8 |
% |
General and administrative |
|
22,997 |
|
6.8 |
|
|
19,706 |
|
5.8 |
|
Depreciation and amortization |
|
17,873 |
|
5.3 |
|
|
17,612 |
|
5.2 |
|
Restaurant opening |
|
590 |
|
0.2 |
|
|
844 |
|
0.2 |
|
Loss on disposal and impairment of assets, net |
|
784 |
|
0.2 |
|
|
2,146 |
|
0.6 |
|
Restaurant level operating
margin |
$ |
50,502 |
|
15.0 |
% |
$ |
42,924 |
|
12.6 |
% |
|
Percentages above represent percent of total revenues and may not
reconcile due to rounding. |
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization (“Adjusted EBITDA”)
Adjusted EBITDA is a non-GAAP financial measure
that represents the sum of net income adjusted for certain expenses
and gains/losses detailed within the reconciliation below.
Management uses Adjusted EBITDA as a supplemental measure of our
performance. Management believes these measures are useful to
investors in that they highlight cash flow and trends in our core
business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures. Because other companies
may calculate these measures differently than we do, Adjusted
EBITDA as presented herein may not be comparable to similarly
titled measures reported by other companies.
A reconciliation of net income to Adjusted
EBITDA for the first quarter ended April 2, 2024, and April 4,
2023, is set forth below:
Supplemental Financial Information – Net Income to Adjusted
EBITDA |
(Unaudited, dollars in thousands) |
|
|
|
First Quarter Ended |
|
April 2, 2024 |
April 4, 2023 |
Net income |
$ |
7,723 |
|
2.3 |
% |
$ |
3,481 |
|
1.0 |
% |
Interest expense, net |
|
1,411 |
|
0.4 |
|
|
1,121 |
|
0.3 |
|
Income tax benefit |
|
(180 |
) |
(0.1 |
) |
|
(1,790 |
) |
(0.5 |
) |
Depreciation and amortization |
|
17,873 |
|
5.3 |
|
|
17,612 |
|
5.2 |
|
Stock-based compensation expense |
|
2,477 |
|
0.7 |
|
|
2,642 |
|
0.8 |
|
Other income, net |
|
(696 |
) |
(0.2 |
) |
|
(196 |
) |
(0.1 |
) |
Loss on disposal and impairment of assets, net |
|
784 |
|
0.2 |
|
|
2,146 |
|
0.6 |
|
Adjusted EBITDA |
$ |
29,392 |
|
8.7 |
% |
$ |
25,016 |
|
7.3 |
% |
|
Percentages above represent percent of total revenues and may not
reconcile due to rounding. |
|
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