BJ’s Restaurants, Inc. Reports Fiscal First Quarter 2024 Results
BJ’s Restaurants, Inc. reported a 1.2% decrease in total revenues for the first quarter of fiscal year 2024 compared to the same quarter in 2023. Despite a decline in comparable restaurant sales by 1.7%, the net income increased to $7.7 million from $3.5 million. Adjusted EBITDA also rose to $29.4 million from $25.0 million. The company's CEO expressed confidence in the business's growth and productivity initiatives, highlighting the opening of a new restaurant in Wisconsin and plans for additional openings in 2024. BJ’s Restaurants aims to enhance operating efficiencies with a new prototype and remodel initiative to attract new guests.
Net income increased to $7.7 million from $3.5 million.
Adjusted EBITDA rose to $29.4 million from $25.0 million.
Restaurant level operating margin improved to 15.0%, a 240 basis point increase compared to last year.
Meaningful year-over-year improvements in restaurant margins, Adjusted EBITDA, and net income were achieved despite sales headwinds from winter weather.
Plans to open new restaurants in Wisconsin and additional locations in 2024, with a focus on cost efficiencies and enhanced guest experiences.
Total revenues decreased by 1.2% compared to the first quarter of 2023.
Comparable restaurant sales declined by 1.7%.
Weather impacts early in the quarter affected industrywide sales.
Despite sales headwinds from winter weather, improvements in financial metrics were made.
HUNTINGTON BEACH, Calif., May 02, 2024 (GLOBE NEWSWIRE) -- 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
“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
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. | |||||||||||
FAQ
What were BJ's Restaurants, Inc. total revenues for the first quarter of fiscal year 2024?
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