We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BJ's Restaurants (BJRI) Q2 Earnings Top Estimates, Revenues Lag
Read MoreHide Full Article
BJ's Restaurants, Inc. (BJRI - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company stated benefits from culinary initiatives, enhancing brand awareness, improving operational excellence through a people-centered approach and upgrading ambiance through remodeling efforts.
The company anticipates generating substantial free cash flow from its 2024 capital expenditures (target of $70 to $75 million). This free cash flow will be directed toward growth initiatives, boosting financial returns and shareholders’ value (through share repurchases).
In second-quarter 2024, BJRI repurchased and retired approximately 255,000 shares of common stock worth $8.8 million. The company currently has approximately $52 million remaining under its authorized $550-million share repurchase program.
Earnings & Revenues
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
In the quarter under review, the company reported adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 49 cents. In the year-ago quarter, it recorded an adjusted EPS of 50 cents.
Total revenues of $349.9 million missed the consensus mark by 0.7%. However, the top line inched up 0.1% on a year-over-year basis.
Comparable restaurant sales dropped 0.6% year over year against a rise of 4.7% reported in the prior-year quarter. Our model predicted the metric to decline 0.2% from the year-ago levels.
Expenses & Operating Margins
During the quarter under review, labor costs — as a percentage of sales — were 36.1%, down 10 basis points (bps) year over year. Our estimate was 36.3%.
Occupancy and operating costs (as a percentage of sales) were 22.7% compared with 23.4% reported in the year-ago quarter. We estimated the metric to be 23.3%.
General and administrative expenses (as a percentage of sales) of 5.9% fell 20 bps on a year-over-year basis. Our prediction was 6%.
Restaurant-level operating margin was 15.5%, up from 14.5% reported in the year-earlier quarter. The metric was in line with our expectations.
Store Count
BJRI opened one new restaurant have opened one new restaurant in Brookfield, Wisconsin and is set to open two more in August and September 2024. The new locations will feature a new prototype, costing approximately $1 million less than the previous design, offering greater operational efficiency and incorporating elements from BJ’s remodel initiative. The ongoing remodel initiative continues to drive favorable financial returns and improved guest traffic trends.
By 2024-end, 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 Jul 2, 2024, cash and cash equivalents totaled $16.2 million compared with $29.1 million as of fiscal 2023-end. Total debt amounted to $63.5 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 EAT’s 2024 sales and EPS indicates 5.4% and 46.6% growth, respectively, from year-earlier actuals.
Texas Roadhouse, Inc. (TXRH - Free Report) carries a Zacks Rank #2 (Buy). TXRH has a long-term earnings growth rate of 17.2%. Shares of TXRH have gained 47% in the past year.
The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS indicates a rise of 15.3% and 33.7%, respectively, from the year-ago period’s levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) carries a Zacks Rank #2. LOCO has a trailing four-quarter earnings surprise of 19.4%, on average. The stock has moved up 12% in the past year.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS suggests growth of 3.8% and 9.9%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BJ's Restaurants (BJRI) Q2 Earnings Top Estimates, Revenues Lag
BJ's Restaurants, Inc. (BJRI - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company stated benefits from culinary initiatives, enhancing brand awareness, improving operational excellence through a people-centered approach and upgrading ambiance through remodeling efforts.
The company anticipates generating substantial free cash flow from its 2024 capital expenditures (target of $70 to $75 million). This free cash flow will be directed toward growth initiatives, boosting financial returns and shareholders’ value (through share repurchases).
In second-quarter 2024, BJRI repurchased and retired approximately 255,000 shares of common stock worth $8.8 million. The company currently has approximately $52 million remaining under its authorized $550-million share repurchase program.
Earnings & Revenues
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote
In the quarter under review, the company reported adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 49 cents. In the year-ago quarter, it recorded an adjusted EPS of 50 cents.
Total revenues of $349.9 million missed the consensus mark by 0.7%. However, the top line inched up 0.1% on a year-over-year basis.
Comparable restaurant sales dropped 0.6% year over year against a rise of 4.7% reported in the prior-year quarter. Our model predicted the metric to decline 0.2% from the year-ago levels.
Expenses & Operating Margins
During the quarter under review, labor costs — as a percentage of sales — were 36.1%, down 10 basis points (bps) year over year. Our estimate was 36.3%.
Occupancy and operating costs (as a percentage of sales) were 22.7% compared with 23.4% reported in the year-ago quarter. We estimated the metric to be 23.3%.
General and administrative expenses (as a percentage of sales) of 5.9% fell 20 bps on a year-over-year basis. Our prediction was 6%.
Restaurant-level operating margin was 15.5%, up from 14.5% reported in the year-earlier quarter. The metric was in line with our expectations.
Store Count
BJRI opened one new restaurant have opened one new restaurant in Brookfield, Wisconsin and is set to open two more in August and September 2024. The new locations will feature a new prototype, costing approximately $1 million less than the previous design, offering greater operational efficiency and incorporating elements from BJ’s remodel initiative. The ongoing remodel initiative continues to drive favorable financial returns and improved guest traffic trends.
By 2024-end, 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 Jul 2, 2024, cash and cash equivalents totaled $16.2 million compared with $29.1 million as of fiscal 2023-end. Total debt amounted to $63.5 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 include:
Brinker International, Inc. (EAT - Free Report) flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 213.4%, on average. EAT’s shares have surged 60.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS indicates 5.4% and 46.6% growth, respectively, from year-earlier actuals.
Texas Roadhouse, Inc. (TXRH - Free Report) carries a Zacks Rank #2 (Buy). TXRH has a long-term earnings growth rate of 17.2%. Shares of TXRH have gained 47% in the past year.
The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS indicates a rise of 15.3% and 33.7%, respectively, from the year-ago period’s levels.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) carries a Zacks Rank #2. LOCO has a trailing four-quarter earnings surprise of 19.4%, on average. The stock has moved up 12% in the past year.
The Zacks Consensus Estimate for LOCO’s 2025 sales and EPS suggests growth of 3.8% and 9.9%, respectively, from the year-ago period’s levels.