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BJ's Restaurants, Inc. (BJRI - Free Report) reported fourth-quarter fiscal 2023 (ended Jan 2, 2024) results, wherein earnings beat the Zacks Consensus Estimate and increased year over year. On the other hand, revenues missed the consensus mark and declined from the year-ago quarter’s figure.
The company is benefiting from productivity and margin enhancement initiatives, and operational excellence across its restaurants. Also, its menu simplification consideration is reflected in improved labor efficiencies and high team member retention. However, the top line was largely affected by consumer softness, which started in November 2023.
Nonetheless, the company’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 fell 1.9% in the after-hours trading session on Feb 15.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings of 34 cents per share, which beat the Zacks Consensus Estimate of 27 cents. In the year-ago quarter, the company reported an adjusted earnings per share of 7 cents.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
Total revenues of $323.6 million missed the consensus estimate of $329.9 million by 1.9%. The top line declined 6% on a year-over-year basis.
Comparable restaurant sales in the fiscal fourth quarter increased 0.6% year over year compared with a rise of 6.6% reported in the prior-year quarter. Our estimate for the metric was 1.9%. The softness was mainly due to lower sales volumes (started in November 2023).
Expenses & Operating Margins
During the fiscal fourth quarter, labor costs — as a percentage of sales — were 36.5%, down 30 basis points (bps) year over year. Our estimate for the metric was 36.2%.
Occupancy and operating costs (as a percentage of sales) were 23.6% compared with 23.5% reported in the year-ago quarter. Our estimate for the metric was 23.5%.
General and administrative expenses (as a percentage of sales) were 6.7% in the quarter, up 110 bps on a year-over-year basis. Our estimate for the metric was 5.9%.
During the quarter, the restaurant-level operating margin was 14.4%, up from 12.9% reported in the year-ago quarter. The upside was driven by comps growth, improving operational execution and cost-savings initiatives. Our estimate for restaurant-level operating margin was 14.2%.
2023 Highlights
Total revenues of BJRI increased 3.8% to $1.33 billion compared with $1.28 billion reported in the year-ago period. For the full fiscal year, earnings were 82 cents per share, up from the fiscal 2022 reported adjusted figure of 7 cents.
For fiscal 2023, comparable restaurant sales increased 3.7% compared with 14% in fiscal 2022.
Adjusted EBITDA increased to $103.8 million from $77.9 million reported in the prior year.
Store Count
During fiscal 2023, BJ's Restaurants opened five new restaurants, including its debut location in Illinois. The company reported closing five underperforming restaurants during the year as part of its portfolio review process.
The company expects to open three new restaurants and remodel 20 existing restaurants in fiscal 2024. The first new restaurant of the year is slated to open in April, marking the company’s debut in Brookfield, WI. It also emphasized its remodeling initiative.
Balance Sheet
As of Jan 2, 2024, cash and cash equivalents totaled $29.1 million compared with $24.9 million as of fiscal 2022-end. Total debt amounted to $68 million compared with $60 million in fiscal 2022-end.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2023 results, with earnings and revenues beating their respective Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.
The upside was driven by strong system-wide sales growth and the passing on of elevated commodity prices to franchisees. On a reported basis, this was partially offset by unfavorable foreign exchange movements. Yet, an uncertain operating environment because of inflationary pressures, foreign exchange volatility, rising interest rates and general softening in the consumer environment (impacted by the conflict in the Middle East) are concerns.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Revenues missed the consensus estimate for the third straight quarter.
Worldwide system sales — excluding foreign currency translation — increased 5% year over year, with Taco Bell, KFC and Pizza Hut rising 6%, 7% and 1%, respectively, year over year. In the quarter under review, the KFC division opened 1,067, the Pizza Hut division opened 575, and Taco Bell opened 201 gross new restaurants.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with both earnings and revenues beating their respective Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.
YUMC achieved record-breaking revenues and profits and returned substantial value to shareholders through cash dividends and share repurchases. During the year, the company returned $833 million to shareholders, up 25% year over year. YUMC is optimistic about expanding its footprint in China by 2026. It emphasizes on strategic store openings in lower-tier cities to tap into long-term consumption trends. It also intends to introduce innovative products and marketing campaigns to drive sales across different city tiers.
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BJ's Restaurants (BJRI) Q4 Earnings Beat, Comps Increase Y/Y
BJ's Restaurants, Inc. (BJRI - Free Report) reported fourth-quarter fiscal 2023 (ended Jan 2, 2024) results, wherein earnings beat the Zacks Consensus Estimate and increased year over year. On the other hand, revenues missed the consensus mark and declined from the year-ago quarter’s figure.
The company is benefiting from productivity and margin enhancement initiatives, and operational excellence across its restaurants. Also, its menu simplification consideration is reflected in improved labor efficiencies and high team member retention. However, the top line was largely affected by consumer softness, which started in November 2023.
Nonetheless, the company’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 fell 1.9% in the after-hours trading session on Feb 15.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings of 34 cents per share, which beat the Zacks Consensus Estimate of 27 cents. In the year-ago quarter, the company reported an adjusted earnings per share of 7 cents.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote
Total revenues of $323.6 million missed the consensus estimate of $329.9 million by 1.9%. The top line declined 6% on a year-over-year basis.
Comparable restaurant sales in the fiscal fourth quarter increased 0.6% year over year compared with a rise of 6.6% reported in the prior-year quarter. Our estimate for the metric was 1.9%. The softness was mainly due to lower sales volumes (started in November 2023).
Expenses & Operating Margins
During the fiscal fourth quarter, labor costs — as a percentage of sales — were 36.5%, down 30 basis points (bps) year over year. Our estimate for the metric was 36.2%.
Occupancy and operating costs (as a percentage of sales) were 23.6% compared with 23.5% reported in the year-ago quarter. Our estimate for the metric was 23.5%.
General and administrative expenses (as a percentage of sales) were 6.7% in the quarter, up 110 bps on a year-over-year basis. Our estimate for the metric was 5.9%.
During the quarter, the restaurant-level operating margin was 14.4%, up from 12.9% reported in the year-ago quarter. The upside was driven by comps growth, improving operational execution and cost-savings initiatives. Our estimate for restaurant-level operating margin was 14.2%.
2023 Highlights
Total revenues of BJRI increased 3.8% to $1.33 billion compared with $1.28 billion reported in the year-ago period. For the full fiscal year, earnings were 82 cents per share, up from the fiscal 2022 reported adjusted figure of 7 cents.
For fiscal 2023, comparable restaurant sales increased 3.7% compared with 14% in fiscal 2022.
Adjusted EBITDA increased to $103.8 million from $77.9 million reported in the prior year.
Store Count
During fiscal 2023, BJ's Restaurants opened five new restaurants, including its debut location in Illinois. The company reported closing five underperforming restaurants during the year as part of its portfolio review process.
The company expects to open three new restaurants and remodel 20 existing restaurants in fiscal 2024. The first new restaurant of the year is slated to open in April, marking the company’s debut in Brookfield, WI. It also emphasized its remodeling initiative.
Balance Sheet
As of Jan 2, 2024, cash and cash equivalents totaled $29.1 million compared with $24.9 million as of fiscal 2022-end. Total debt amounted to $68 million compared with $60 million in fiscal 2022-end.
Zacks Rank & Recent Retail-Wholesale Releases
BJ's Restaurants currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restaurant Brands International, Inc. (QSR - Free Report) reported fourth-quarter 2023 results, with earnings and revenues beating their respective Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.
The upside was driven by strong system-wide sales growth and the passing on of elevated commodity prices to franchisees. On a reported basis, this was partially offset by unfavorable foreign exchange movements. Yet, an uncertain operating environment because of inflationary pressures, foreign exchange volatility, rising interest rates and general softening in the consumer environment (impacted by the conflict in the Middle East) are concerns.
YUM! Brands, Inc. (YUM - Free Report) reported fourth-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Revenues missed the consensus estimate for the third straight quarter.
Worldwide system sales — excluding foreign currency translation — increased 5% year over year, with Taco Bell, KFC and Pizza Hut rising 6%, 7% and 1%, respectively, year over year. In the quarter under review, the KFC division opened 1,067, the Pizza Hut division opened 575, and Taco Bell opened 201 gross new restaurants.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with both earnings and revenues beating their respective Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.
YUMC achieved record-breaking revenues and profits and returned substantial value to shareholders through cash dividends and share repurchases. During the year, the company returned $833 million to shareholders, up 25% year over year. YUMC is optimistic about expanding its footprint in China by 2026. It emphasizes on strategic store openings in lower-tier cities to tap into long-term consumption trends. It also intends to introduce innovative products and marketing campaigns to drive sales across different city tiers.