BJ's Restaurants, Inc. Reports Fiscal Third Quarter 2024 Results
HUNTINGTON BEACH, Calif., Oct. 31, 2024 (GLOBE NEWSWIRE) -- BJ's Restaurants, Inc. (NASDAQ:BJRI) today reported financial results for its fiscal 2024 third quarter ended Tuesday, October 1, 2024.
Fiscal Third Quarter 2024 Compared to Fiscal Third Quarter 2023
Total revenues increased 2.2% to $325.7 million
Comparable restaurant sales increased 1.7%
Total restaurant operating weeks increased 0.2%
Net loss of $2.9 million, compared to $3.8 million; diluted net loss per share of $0.13, compared to $0.16
Third quarter 2024 net loss includes a $0.4 million pretax, or $0.02 per share, net leadership transition benefit.
Adjusted EBITDA of $18.5 million, compared to $19.6 million
"Our third quarter results mark progress with our sales building initiatives, which drove positive comparable restaurant sales and guest traffic that accelerated through the quarter," commented Brad Richmond, Interim Chief Executive Officer. "In the current competitive environment, BJ's value programs are resonating with guests, demonstrated by our third quarter traffic exceeding the industry by approximately 570 basis points. We did not fully leverage our strong traffic growth due to higher than anticipated restaurant costs, which we are addressing. As a result, we generated modestly higher dollar restaurant level operating margin but lower percentage margin compared to a year ago. As our sales momentum continues to build behind the Pizookie Meal Deal, successful product launches, and a large party initiative going into the holiday season, we are focused on delighting our guests while delivering meaningful profit growth. Restoring higher restaurant level margins is a top priority, which we will accomplish through a disciplined financial approach. As a result, we expect to demonstrate favorable profit momentum in the fourth quarter," continued Richmond.
"Our new President and Chief Concept Officer, Lyle Tick, and I have been immersed in onboarding and spending significant time in our restaurants with BJ's fantastic team members and loyal guests. We are undertaking a comprehensive assessment of BJ's underlying strengths and the opportunities in front of us as we usher in a chapter of renewed growth. We are confident that the strength of our brand and teams, combined with a refined business strategy, will lay the foundation for future sales and earnings growth. We are focused on driving greater awareness of the BJ's brand, while adhering to strict operational and financial discipline to drive improved profitability and position the Company for accelerated new unit restaurant openings in the future. Success on these initiatives will unlock BJ's potential thereby elevating its trajectory as a restaurant growth company and driving long-term shareholder value creation," continued Richmond.
"In the third quarter, we opened two new restaurants for a total of three new restaurants in 2024. Our 2024 restaurant class is off to an encouraging start and demonstrating the strength of the BJ's brand with new and existing guests," continued Richmond. "Our capital allocation strategy will continue to prioritize high-return investments including a mix of new restaurant growth and remodels, as well as returning capital to shareholders through our share repurchase program. The pace of these programs will be shaped by further and ongoing evaluation of unit productivity, financial return performance and future concept refinement," concluded Richmond.
During the third quarter of 2024, the Company repurchased and retired approximately 268,000 shares of its common stock at a cost of approximately $8.2 million. The Company currently has approximately $44 million available under its authorized $550 million share repurchase program.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its third quarter 2024 earnings release today, October 31, 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
BJ's Restaurants, Inc.
Unaudited Consolidated Statements of Operations
(Dollars in thousands except for per share data)
Third Quarter Ended
Nine Months Ended
October 1, 2024
October 3, 2023
October 1, 2024
October 3, 2023
Revenues
$
325,702
100.0
%
$
318,644
100.0
%
$
1,012,963
100.0
%
$
1,009,594
100.0
%
Restaurant operating costs (excluding depreciation and amortization):
Cost of sales
86,673
26.6
82,652
25.9
261,462
25.8
264,143
26.2
Labor and benefits
120,718
37.1
118,198
37.1
372,048
36.7
373,053
37.0
Occupancy and operating
80,322
24.7
80,020
25.1
236,746
23.4
241,078
23.9
General and administrative
20,960
6.4
19,473
6.1
64,561
6.4
60,373
6.0
Depreciation and amortization
18,193
5.6
17,879
5.6
54,229
5.4
53,199
5.3
Restaurant opening
1,115
0.3
1,379
0.4
2,005
0.2
2,601
0.3
Loss on disposal and impairment of assets, net
329
0.1
1,430
0.4
3,041
0.3
4,706
0.5
Total costs and expenses
328,310
100.8
321,031
100.7
994,092
98.1
999,153
99.0
(Loss) income from operations
(2,608
)
(0.8
)
(2,387
)
(0.7
)
18,871
1.9
10,441
1.0
Other (expense) income:
Interest expense, net
(1,342
)
(0.4
)
(1,013
)
(0.3
)
(4,012
)
(0.4
)
(3,242
)
(0.3
)
Other income (expense), net
763
0.2
(3
)
-
4,231
0.4
