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) Tops Q4 Earnings & Sales; Stock Up
Read MoreHide Full Article
Shares of BJ’s Restaurants, Inc. (BJRI - Free Report) rose nearly 3% in afterhours trading on Feb 23, after the company reported better-than-expected fourth-quarter 2016 results.
Earnings and Revenue Discussion
Adjusted earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 37.5%. Further, earnings increased 27.9 % from the year-ago figure of 43 cents, primarily due to higher revenues.
Revenues of $265.6 million were up nearly 14% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $264.7 million by 0.3%.
Inside the Headline Numbers
Comps in the quarter declined 2.2% in comparison with the prior-quarter comps decrease of 3.4 % and the year-ago quarter comps growth of 0.7%. Though the company’s comps declined mainly due to a challenging sales environment, it outpaced the industry’s comps in the fourth quarter.
Restaurant level margin was 18.7%, down 120 basis points (bps) year over year. Moreover, operating margin decreased 50 bps to 6.3%. A 100 bps increase in cost of sales, as a percentage of total revenues, was more than offset by a 50 bps and 20 bps decline in occupancy and operating costs as well as general and administrative expenses, respectively.
2016 Results
BJ’s Restaurants’ full-year adjusted earnings of $1.88 came above the Zacks Consensus Estimate of $1.73 by 8.7%. Furthermore, it increased 13.9% from the year-ago quarter figure of $1.65 on the back of higher revenues.
Full-year revenues of $993.1 million slightly topped the Zacks Consensus Estimate of nearly $992 million and increased 8% year over year.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
In order to navigate the challenging macro environment, the company is implementing several major sales building initiatives, which have been tested over the past year.
Firstly, it has begun the installation of new slow roasting ovens in its restaurants and expects to have this new cooking equipment at all its locations by May. Secondly, the company plans to roll out new server hand-held ordering tablets in all its restaurants. Thirdly, given the fact that off-premise sales represent a considerable revenue growth opportunity, BJ’s Restaurants is presently testing third-party delivery services. These services are likely to leverage its existing mobile app and online ordering system. Lastly, the company will be expanding its daily Brewhouse specials, which showcase several of its most popular signature menu items at attractive prices.
Along with these four strategic initiatives, the company has developed a deep pipeline of new menu items, loyalty program enhancements and other productivity initiatives that will be executed in 2017.
Meanwhile, the company has reduced the number of planned restaurant openings to 10 in 2017 compared with 17 restaurant openings in 2016. The reduction is due to the company’s continued belief that the sales headwinds in the industry call for greater focus on traffic and sales building initiatives.
Zacks Rank & Stocks to Consider
BJ’s Restaurants has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Potbelly Corporation (PBPB - Free Report) , Dave & Buster's Entertainment, Inc. (PLAY - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) . While Potbelly sports a Zacks Rank #1 (Strong Buy), Dave & Buster's and Darden carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Potbelly’s 2017 earnings climbed 2.2% over the past 30 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 39.82%.
Dave & Buster's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%. Meanwhile, for fiscal 2017, EPS is expected to improve 35.1%.
Darden’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 2.57%. Further, for fiscal 2017, EPS is expected to grow 11.1%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BJ's Restaurants (BJRI) Tops Q4 Earnings & Sales; Stock Up
Shares of BJ’s Restaurants, Inc. (BJRI - Free Report) rose nearly 3% in afterhours trading on Feb 23, after the company reported better-than-expected fourth-quarter 2016 results.
Earnings and Revenue Discussion
Adjusted earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 37.5%. Further, earnings increased 27.9 % from the year-ago figure of 43 cents, primarily due to higher revenues.
Revenues of $265.6 million were up nearly 14% year over year owing to new restaurant growth. Moreover, revenues topped the consensus mark of $264.7 million by 0.3%.
Inside the Headline Numbers
Comps in the quarter declined 2.2% in comparison with the prior-quarter comps decrease of 3.4 % and the year-ago quarter comps growth of 0.7%. Though the company’s comps declined mainly due to a challenging sales environment, it outpaced the industry’s comps in the fourth quarter.
Restaurant level margin was 18.7%, down 120 basis points (bps) year over year. Moreover, operating margin decreased 50 bps to 6.3%. A 100 bps increase in cost of sales, as a percentage of total revenues, was more than offset by a 50 bps and 20 bps decline in occupancy and operating costs as well as general and administrative expenses, respectively.
2016 Results
BJ’s Restaurants’ full-year adjusted earnings of $1.88 came above the Zacks Consensus Estimate of $1.73 by 8.7%. Furthermore, it increased 13.9% from the year-ago quarter figure of $1.65 on the back of higher revenues.
Full-year revenues of $993.1 million slightly topped the Zacks Consensus Estimate of nearly $992 million and increased 8% year over year.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise | BJ's Restaurants, Inc. Quote
Going Forward
In order to navigate the challenging macro environment, the company is implementing several major sales building initiatives, which have been tested over the past year.
Firstly, it has begun the installation of new slow roasting ovens in its restaurants and expects to have this new cooking equipment at all its locations by May. Secondly, the company plans to roll out new server hand-held ordering tablets in all its restaurants. Thirdly, given the fact that off-premise sales represent a considerable revenue growth opportunity, BJ’s Restaurants is presently testing third-party delivery services. These services are likely to leverage its existing mobile app and online ordering system. Lastly, the company will be expanding its daily Brewhouse specials, which showcase several of its most popular signature menu items at attractive prices.
Along with these four strategic initiatives, the company has developed a deep pipeline of new menu items, loyalty program enhancements and other productivity initiatives that will be executed in 2017.
Meanwhile, the company has reduced the number of planned restaurant openings to 10 in 2017 compared with 17 restaurant openings in 2016. The reduction is due to the company’s continued belief that the sales headwinds in the industry call for greater focus on traffic and sales building initiatives.
Zacks Rank & Stocks to Consider
BJ’s Restaurants has a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include Potbelly Corporation (PBPB - Free Report) , Dave & Buster's Entertainment, Inc. (PLAY - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) . While Potbelly sports a Zacks Rank #1 (Strong Buy), Dave & Buster's and Darden carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Potbelly’s 2017 earnings climbed 2.2% over the past 30 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 39.82%.
Dave & Buster's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 37.81%. Meanwhile, for fiscal 2017, EPS is expected to improve 35.1%.
Darden’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 2.57%. Further, for fiscal 2017, EPS is expected to grow 11.1%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>