BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial
results for its fiscal 2023 third quarter ended
Tuesday, October 3, 2023.
Fiscal Third Quarter 2023 Compared to
Fiscal Third Quarter 2022
- Total revenues increased 2.3% to
$318.6 million
- Comparable restaurant sales
increased 0.4%
- Total restaurant operating weeks increased 0.8%
- Net loss of $3.8 million, compared
to a net loss of $1.6 million; diluted net loss per share of $0.16,
compared to diluted net loss of $0.07 per share
- The 2022 third quarter net loss and diluted net loss per share
are inclusive of a $4.1 million, or $0.18 per share, income tax
benefit which reflected the Company’s estimated annual effective
tax rate.
- Restaurant level operating margin of 11.9%, compared to
10.3%
- Adjusted EBITDA of $19.6 million,
compared to $15.2 million
“Our third quarter results mark further progress
with our sales building programs and cost savings initiatives,
which enabled us to expand restaurant operating margin and Adjusted
EBITDA,” commented Greg Levin, Chief Executive Officer and
President. “We improved restaurant level operating margin by 160
basis points and increased Adjusted EBITDA by approximately 30%
from prior year. We remain focused on growing guest traffic and
sales through gracious hospitality and a culinary strategy of
elevating familiar foods made brewhouse fabulous. Additionally, we
continue progressing with our cross-functional cost savings
initiative to improve operating margins without compromising our
quality standards. We have now realized more than $30 million of
annualized savings to date and anticipate capturing additional
savings in the fourth quarter.
“Our sales further normalized during the third
quarter to a more typical seasonal pattern with lower sales volumes
in August and September, consistent with industry trends in our
markets. This resulted in comparable restaurant sales softening
later in the quarter, compared to last year when sales did not
follow the same historical pattern. As we exited September and
seasonality normalized in the fourth quarter, comparable restaurant
sales for the first three weeks of October are trending in the low
single digits, an improvement of more than 500 basis points from
September levels,” continued Levin.
During the third quarter BJ’s relocated the
Chandler, Arizona restaurant to a new location in Chandler and
opened additional restaurants in Rochester, New York and Grand
Rapids, Michigan. “We are pleased with the class of 2023’s
fantastic start and the strong sales from our new restaurants.
Looking forward to 2024, our new restaurant pipeline is in
excellent shape. We are currently targeting four to six new
restaurants for 2024, of which most will be our new prototype that
is expected to cost approximately $1 million less to build than our
recent new restaurants. Our 2024 new restaurant openings will be
complemented by our ongoing remodel initiative, which continues to
deliver positive guest responses and attractive financial returns,”
Levin added.
The Company reactivated its share repurchase
program in the third quarter to resume returning capital to
shareholders. The resumption of share repurchases reflects
management’s belief that the Company’s shares are currently
undervalued and their confidence in the Company’s longer-term
prospects. During the third quarter of 2023, BJ’s repurchased and
retired approximately 164,000 shares of its common stock at a cost
of $4.3 million. As of October 3, 2023, the Company had
approximately $17.8 million remaining on its authorized share
repurchase program. “As our initiatives continue to drive our
business forward, we are well positioned to achieve our near- and
mid-term sales and margin growth objectives. This will allow us to
prudently add new restaurants, remodel existing restaurants and
return capital to our shareholders,” concluded Levin.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference
call on its third quarter 2023 earnings release today, October 26,
2023, 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. A winner of the 2023
Vibe Vista Award in the Best Spirits Program category 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 30 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) the effects of another pandemic on our
operations, labor and staffing, guest traffic, our supply chain and
the ability of our suppliers to continue to timely deliver food and
other supplies necessary for the operation of our restaurants, the
ability to manage costs and reduce expenditures and the
availability of additional financing, (ii) any inability or failure
to successfully and sufficiently raise menu prices to offset rising
costs, (iii) any inability to manage new restaurant openings,
(iv) construction delays, (v) wage inflation and competitive
labor market conditions which may result in staffing shortages,
(vi) the impact of any union organizing efforts at our restaurants
and our responses to such efforts, (vii) 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, (viii) the effect of credit
and equity market disruptions on our ability to finance our
continued expansion on acceptable terms, (ix) 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 reasons, whether or not
accurate, (x) factors that impact California, Texas and Florida,
where a substantial number of our restaurants are located, (xi)
restaurant and brewery industry competition, (xii) impact of
certain brewing business considerations, including without
limitation, dependence upon suppliers, third party contractors and
distributors, and related hazards, (xiii) consumer spending trends
in general for casual dining occasions, (xiv) potential uninsured
losses and liabilities due to limitations on insurance coverage,
(xv) fluctuating commodity costs and availability of food in
general and certain raw materials related to the brewing of our
craft beers and energy requirements, (xvi) trademark and
service-mark risks, (xvii) government regulations and licensing
costs, including beer and liquor regulations, (xviii) loss of key
personnel, (xix) inability to secure acceptable sites, (xx) legal
proceedings, (xxi) the success of our key sales-building and
related operational initiatives, (xxii) any failure of our
information technology or security breaches with respect to our
electronic systems and data, and (xxiii) 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. |
Unaudited Consolidated Statements of
Operations |
(Dollars in thousands except for per share
data) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 3, 2023 |
September 27, 2022 |
|
October 3, 2023 |
September 27, 2022 |
Revenues |
$ |
318,644 |
|
100.0 |
% |
$ |
311,348 |
|
100.0 |
% |
|
$ |
1,009,594 |
|
100.0 |
% |
$ |
939,774 |
|
100.0 |
% |
Restaurant operating costs
(excluding depreciation and amortization): |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
82,652 |
|
25.9 |
|
|
85,010 |
|
27.3 |
|
|
|
264,143 |
|
26.2 |
|
|
257,404 |
|
27.4 |
|
Labor and benefits |
|
118,198 |
|
37.1 |
|
|
117,476 |
|
37.7 |
|
|
|
373,053 |
|
37.0 |
|
|
356,873 |
|
38.0 |
|
Occupancy and operating |
|
80,020 |
|
25.1 |
|
|
76,931 |
|
24.7 |
|
|
|
241,078 |
|
23.9 |
|
|
225,192 |
|
24.0 |
|
General and administrative |
|
19,473 |
|
6.1 |
|
|
18,885 |
|
6.1 |
|
|
|
60,373 |
|
6.0 |
|
|
54,043 |
|
5.8 |
|
Depreciation and amortization |
|
17,879 |
|
5.6 |
|
|
17,356 |
|
5.6 |
|
|
|
53,199 |
|
5.3 |
|
|
52,897 |
|
5.6 |
|
Restaurant opening |
|
1,379 |
|
0.4 |
|
|
482 |
|
0.2 |
|
|
|
2,601 |
|
0.3 |
|
|
2,110 |
|
0.2 |
|
Loss on disposal and impairment of assets |
|
1,430 |
|
0.4 |
|
|
379 |
|
0.1 |
|
|
|
4,706 |
|
0.5 |
|
|
974 |
|
0.1 |
|
Total costs and expenses |
|
321,031 |
|
100.7 |
|
|
316,519 |
|
101.7 |
|
|
|
999,153 |
|
99.0 |
|
|
949,493 |
|
101.0 |
|
(Loss) income from operations |
|
(2,387 |
) |
(0.7 |
) |
|
(5,171 |
) |
(1.7 |
) |
|
|
10,441 |
|
1.0 |
|
|
(9,719 |
) |
(1.0 |
) |
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(1,013 |
) |
(0.3 |
) |
|
(645 |
) |
(0.2 |
) |
|
|
(3,242 |
) |
(0.3 |
) |
|
(1,715 |
) |
(0.2 |
) |
Other (expense) income, net |
|
(3 |
) |
- |
|
|
57 |
|
- |
|
|
|
815 |
|
0.1 |
|
|
(518 |
) |
(0.1 |
) |
Total other expense |
|
(1,016 |
) |
(0.3 |
) |
|
(588 |
) |
(0.2 |
) |
|
|
(2,427 |
) |
(0.2 |
) |
|
(2,233 |
) |
(0.2 |
) |
(Loss) income before income taxes |
|
(3,403 |
) |
(1.1 |
) |
|
(5,759 |
) |
(1.8 |
) |
|
|
8,014 |
|
0.8 |
|
|
(11,952 |
) |
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
401 |
|
0.1 |
|
|
(4,117 |
) |
(1.3 |
) |
|
|
(3,595 |
) |
(0.4 |
) |
|
(12,067 |
) |
(1.3 |
) |
Net (loss) income |
$ |
(3,804 |
) |
(1.2 |
)% |
$ |
(1,642 |
) |
(0.5 |
)% |
|
$ |
11,609 |
|
1.1 |
% |
$ |
115 |
|
- |
% |
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.16 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
0.49 |
|
|
$ |
0.00 |
|
|
Diluted |
$ |
(0.16 |
) |
|
$ |
(0.07 |
) |
|
|
$ |
0.48 |
|
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
23,542 |
|
|
|
23,427 |
|
|
|
|
23,521 |
|
|
|
23,413 |
|
|
Diluted |
|
23,542 |
|
|
|
23,427 |
|
|
|
|
23,986 |
|
|
|
23,628 |
|
|
Percentages reflected above may not reconcile due
to rounding.
|
|
BJ’s Restaurants, Inc. |
|
Selected Consolidated Balance Sheet
Information |
|
(Dollars in thousands) |
|
|
|
|
October 3, 2023(unaudited) |
|
January 3, 2023 |
|
Cash and cash equivalents |
$ |
11,965 |
|
$ |
24,873 |
|
Total assets |
$ |
1,037,136 |
|
$ |
1,045,922 |
|
Total debt |
$ |
60,000 |
|
$ |
60,000 |
|
Shareholders’ equity |
$ |
360,970 |
|
$ |
345,515 |
|
|
|
BJ’s Restaurants, Inc. |
Unaudited Supplemental Information |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 3, 2023 |
September 27, 2022 |
|
October 3, 2023 |
September 27, 2022 |
Stock-based
compensation(1) |
|
|
|
|
|
|
|
|
|
Labor and benefits |
$ |
577 |
|
0.2 |
% |
$ |
653 |
|
0.2 |
% |
|
$ |
1,853 |
|
0.2 |
% |
$ |
2,043 |
|
0.2 |
% |
General and
administrative |
|
2,092 |
|
0.7 |
|
|
1,957 |
|
0.6 |
|
|
|
6,236 |
|
0.6 |
|
|
5,565 |
|
0.6 |
|
Total stock-based
compensation |
$ |
2,669 |
|
0.8 |
% |
$ |
2,610 |
|
0.8 |
% |
|
$ |
8,089 |
|
0.8 |
% |
$ |
7,608 |
|
0.8 |
% |
Operating
Data |
|
|
|
|
|
|
|
|
|
Comparable restaurant sales %
change |
|
0.4 |
% |
|
|
8.9 |
% |
|
|
|
4.7 |
% |
|
|
16.9 |
% |
|
Restaurants opened during
period |
|
3 |
|
|
|
- |
|
|
|
|
5 |
|
|
|
3 |
|
|
Restaurants open at
period-end |
|
217 (2) |
|
|
|
|
214 |
|
|
|
|
|
217 (3) |
|
|
|
|
214 (4) |
|
|
Restaurant operating
weeks |
|
2,805 |
|
|
|
2,782 |
|
|
|
|
8,421 |
|
|
|
8,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percentages represent percent of total
revenues. |
(2) During the period, two restaurants were
permanently closed. |
(3) During the period, four restaurants were
permanently closed. |
(4) During the period, one restaurant was
permanently closed. |
|
Note Regarding Non-GAAP Financial Measures
The Company is reporting below 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 (loss) income from
operations to restaurant level operating margin for the third
quarter ended October 3, 2023 and September 27, 2022 is set forth
below:
|
Supplemental Financial Information – Restaurant Level
Operating Margin |
(Unaudited, dollars in thousands) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 3, 2023 |
September 27, 2022 |
|
October 3, 2023 |
September 27, 2022 |
(Loss) income from operations |
$ |
(2,387 |
) |
(0.7 |
)% |
$ |
(5,171 |
) |
(1.7 |
)% |
|
$ |
10,441 |
1.0 |
% |
$ |
(9,719 |
) |
(1.0 |
)% |
General and administrative |
|
19,473 |
|
6.1 |
|
|
18,885 |
|
6.1 |
|
|
|
60,373 |
6.0 |
|
|
54,043 |
|
5.8 |
|
Depreciation and amortization |
|
17,879 |
|
5.6 |
|
|
17,356 |
|
5.6 |
|
|
|
53,199 |
5.3 |
|
|
52,897 |
|
5.6 |
|
Restaurant opening |
|
1,379 |
|
0.4 |
|
|
482 |
|
0.2 |
|
|
|
2,601 |
0.3 |
|
|
2,110 |
|
0.2 |
|
Loss on disposal and impairment of assets |
|
1,430 |
|
0.4 |
|
|
379 |
|
0.1 |
|
|
|
4,706 |
0.5 |
|
|
974 |
|
0.1 |
|
Restaurant level operating
margin |
$ |
37,774 |
|
11.9 |
% |
$ |
31,931 |
|
10.3 |
% |
|
$ |
131,320 |
13.0 |
% |
$ |
100,305 |
|
10.7 |
% |
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 (loss) income to
Adjusted EBITDA for the third quarter ended October 3, 2023 and
September 27, 2022 is set forth below:
Supplemental Financial Information – Net (Loss) Income to
Adjusted EBITDA |
(Unaudited, dollars in thousands) |
|
|
|
|
|
Third Quarter Ended |
|
Nine Months Ended |
|
October 3, 2023 |
September 27, 2022 |
|
October 3, 2023 |
September 27, 2022 |
Net (loss) income |
$ |
(3,804 |
) |
(1.2 |
)% |
$ |
(1,642 |
) |
(0.5 |
)% |
|
$ |
11,609 |
|
1.1 |
% |
$ |
115 |
|
- |
% |
Interest expense, net |
|
1,013 |
|
0.3 |
|
|
645 |
|
0.2 |
|
|
|
3,242 |
|
0.3 |
|
|
1,715 |
|
0.2 |
|
Income tax expense (benefit) |
|
401 |
|
0.1 |
|
|
(4,117 |
) |
(1.3 |
) |
|
|
(3,595 |
) |
(0.4 |
) |
|
(12,067 |
) |
(1.3 |
) |
Depreciation and amortization |
|
17,879 |
|
5.6 |
|
|
17,356 |
|
5.6 |
|
|
|
53,199 |
|
5.3 |
|
|
52,897 |
|
5.6 |
|
Stock-based compensation expense |
|
2,669 |
|
0.8 |
|
|
2,610 |
|
0.8 |
|
|
|
8,089 |
|
0.8 |
|
|
7,608 |
|
0.8 |
|
Other expense (income), net |
|
3 |
|
- |
|
|
(57 |
) |
- |
|
|
|
(815 |
) |
(0.1 |
) |
|
518 |
|
0.1 |
|
Loss on disposal and impairment of assets |
|
1,430 |
|
0.4 |
|
|
379 |
|
0.1 |
|
|
|
4,706 |
|
0.5 |
|
|
974 |
|
0.1 |
|
Adjusted EBITDA |
$ |
19,591 |
|
6.1 |
% |
$ |
15,174 |
|
4.9 |
% |
|
$ |
76,435 |
|
7.6 |
% |
$ |
51,760 |
|
5.5 |
% |
Percentages above represent percent of total
revenues and may not reconcile due to rounding.
BJs Restaurants (NASDAQ:BJRI)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
BJs Restaurants (NASDAQ:BJRI)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024