Core Viewpoint - BJ's Restaurants, Inc. reported Q2 results that exceeded Wall Street expectations, showcasing improved profitability despite a challenging industry backdrop and cost inflation [5][10][15]. Financial Performance - Revenues for Q2 2024 were reported at $349.9 million, slightly above the previous year's $349.7 million, with comparable restaurant sales declining by 0.6% [20]. - Income from operations increased to $13.2 million from $10.2 million in the prior year's Q2, reflecting effective cost management [8][10]. - Total costs and expenses were $336.7 million, down from $339.5 million year-on-year, indicating improved cost control [4]. Cost Management Initiatives - The company has implemented significant cost management initiatives, aiming for $50 million in savings from general and administrative expenses, labor, and purchasing [9]. - Occupancy and operating costs were effectively managed, showing a 0.7 percentage point decrease year-on-year [8]. Growth Strategy - BJ's has grown its total units from 29 in 2000 to 216 by Q2 2024, with a long-term goal of reaching 425 units [7]. - The company plans to focus on restaurant-level improvements and has remodeled several locations based on customer feedback [7][19]. Future Outlook - Long-term targets include annual sales growth of 7-10% and EPS growth of 12-15%, with expectations for an acceleration in new unit openings from 2025 [19]. - The stock is estimated to be slightly undervalued, with a fair value estimate of $39.71, 8% above the current stock price [12][23].

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. 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 an ...

Financial Data and Key Metrics Changes - The company reported total sales of $349.9 million for Q2 2024, with comparable sales slightly negative at 0.6% [19][53] - Adjusted EBITDA increased to $36.1 million, a 13% rise year-over-year, with a margin of 10.3% [20][54] - Restaurant-level cash flow margin improved to 15.5%, up 100 basis points from the previous year [29][44] - Net income for the quarter was $17.2 million, with diluted net income per share of $0.72, both up over 40% from a year ago [54] Business Line Data and Key Metrics Changes - The company initiated an enhanced service model in April, aimed at improving pace and throughput in restaurants [21][24] - Food costs increased by more than 2% quarter-over-quarter, driven by inflation on key items such as chicken wings and avocados [32][135] - Labor and benefits expenses were 36.1% of sales, which was 10 basis points favorable compared to the same quarter last year [32] Market Data and Key Metrics Changes - The company experienced month-over-month improvement in comparable sales throughout Q2, driven by consumer affinity for the BJ's concept [19] - The average weekly sales per restaurant exceeded $124,000, with a record of over $141,000 during the week including Mother's Day [30][53] - The company expects Q3 comparable sales to be in the 1% to 2% range, considering recent trends and seasonal patterns [84] Company Strategy and Development Direction - The long-term model aims for 8% to 10% top-line sales growth through a combination of over 5% unit growth and low to mid-single-digit comparable restaurant sales [27] - The company is focused on enhancing brand awareness and operational excellence through various initiatives, including remodels and new restaurant prototypes [18][25] - The company plans to continue investing in marketing to drive traffic and brand awareness, with an expected increase in marketing costs for Q3 [58][172] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains stable, with adjustments needed due to external factors like minimum wage increases [2][19] - The company is optimistic about closing the gap to 2019 margin levels by year-end, despite challenges in the operating environment [34][167] - Management highlighted the importance of maintaining quality while pursuing growth, indicating a cautious approach to unit expansion [71][100] Other Important Information - The company completed 19 remodels year-to-date and plans to complete approximately five more by the end of the year [49] - The new restaurant prototype is expected to cost about $1 million less to build, enhancing operating efficiencies [26] - The company repurchased approximately 255,000 shares at a cost of $8.8 million during the quarter [57] Q&A Session Summary Question: Can you elaborate on the restaurant-level margin levels compared to 2019? - Management indicated that they aim to close the gap to 2019 levels, with a focus on improving operational efficiencies [4][167] Question: What are the dynamics affecting labor costs and training investments? - Management acknowledged that the new service model introduced one-time training costs, impacting margins slightly [32][62] Question: How do you view the sales outlook for Q3, considering the calendar shifts? - Management expects Q3 comparable sales to be modestly positive, with some challenges due to the holiday calendar [64][84] Question: What is the company's strategy for unit growth moving forward? - Management emphasized a cautious approach to unit growth, aiming for quality over quantity, with a goal of gradually increasing to 5% growth [71][100] Question: How is the company addressing food cost inflation? - Management noted that food costs have increased, particularly for chicken wings and avocados, and they are monitoring these trends closely [32][135]

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. View all Key Company Metrics for BJ's Restaurants here>>> The reported revenue compares to the Zacks Consensus Estimate of $350.18 million, representing a surprise of -0.07%. The company delivered an EPS surprise of +46.94%, with the consensus EPS estimate being $0.49. Comparable restau ...

BJ's Restaurants (BJRI) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates three times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) BJ's Restaurants reported a slight revenue increase to $349.9 million, with net income up 44.5% to $17.2 million and diluted EPS at $0.72, driven by improved operating margins Q2 2024 Key Financial Metrics vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $349.9 million | $349.7 million | +0.1% | | Comparable Restaurant Sales | -0.6% | +4.7% | -5.3 p.p. | | Net Income | $17.2 million | $11.9 million | +44.5% | | Diluted Net Income per Share | $0.72 | $0.50 | +$0.22 | | Adjusted EBITDA | $36.1 million | $31.8 million | +13.5% | - After a soft start in April, comparable restaurant sales trends improved throughout the second quarter, with approximately half of the restaurants setting sales records around Mother's Day, Father's Day, and graduations[2](index=2&type=chunk) - Productivity initiatives led to a **100 basis point** year-over-year increase in restaurant-level operating margins, which reached **15.5%**[2](index=2&type=chunk) [Business Update & Outlook](index=1&type=section&id=Business%20Update%20%26%20Outlook) The company is expanding with new, cost-effective restaurant prototypes and remodels, targeting $70-$75 million in 2024 capital expenditures, prioritizing growth and shareholder returns - The company opened one new restaurant in H1 2024 and plans to open two more in H2 2024. Future restaurants will use a new prototype that costs approximately **$1 million less** to build[3](index=3&type=chunk) - By the end of 2024, about **50% of BJ's restaurants** will either be a newer prototype or have been recently remodeled, enhancing the brand's appeal[3](index=3&type=chunk) - Capital allocation priorities are focused on growth initiatives and returning capital to shareholders. In Q2 2024, the company repurchased **255,000 shares for $8.8 million**, with **$52 million** remaining under its repurchase program[17](index=17&type=chunk)[18](index=18&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed unaudited financial results for Q2 and H1 2024, including statements of operations, balance sheet data, and key operating metrics [Unaudited Consolidated Statements of Operations](index=2&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Q2 2024 total revenues were $349.9 million, with improved cost management leading to increased income from operations of $13.2 million and net income of $17.2 million, or $0.72 diluted EPS Q2 Statement of Operations Highlights (in thousands) | Account | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Revenues | $349,927 | $349,670 | | Cost of Sales | $89,836 | $90,614 | | Labor and Benefits | $126,309 | $126,522 | | Income from Operations | $13,221 | $10,212 | | Net Income | $17,157 | $11,932 | | Diluted EPS | $0.72 | $0.50 | Six Months Statement of Operations Highlights (in thousands) | Account | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | | Total Revenues | $687,261 | $690,950 | | Income from Operations | $21,479 | $12,828 | | Net Income | $24,880 | $15,413 | | Diluted EPS | $1.04 | $0.64 | [Selected Consolidated Balance Sheet Information](index=3&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Information) As of July 2, 2024, the company reported total assets of $1.044 billion, total debt of $63.5 million, and shareholders' equity of $386.5 million, an increase from fiscal 2023 Balance Sheet Data (in thousands) | Account | July 2, 2024 | 2023 Year-End | | :--- | :--- | :--- | | Total Assets | $1,044,136 | $1,058,454 | | Total Debt | $63,500 | $68,000 | | Shareholders' Equity | $386,489 | $365,761 | [Operating Data](index=4&type=section&id=Operating%20Data) Q2 2024 comparable restaurant sales declined by 0.6%, a shift from prior year growth, with a 1.1% decline for the first six months, and one new restaurant opened, totaling 216 locations Key Operating Metrics | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Comparable restaurant sales % change | (0.6)% | 4.7% | (1.1)% | 6.8% | | Restaurants opened during period | - | 1 | 1 | 2 | | Restaurants open at period-end | 216 | 216 | 216 | 216 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section presents non-GAAP financial measures, including Restaurant Level Operating Margin and Adjusted EBITDA, with detailed reconciliations to GAAP measures, offering insights into core business trends - The company uses non-GAAP measures like Restaurant Level Operating Margin and Adjusted EBITDA as supplemental tools to evaluate performance, highlighting trends that may not be apparent from GAAP measures alone[10](index=10&type=chunk)[11](index=11&type=chunk)[26](index=26&type=chunk) [Restaurant Level Operating Margin](index=4&type=section&id=Restaurant%20Level%20Operating%20Margin) Q2 2024 non-GAAP Restaurant Level Operating Margin improved by 100 basis points to **15.5%**, reaching **$54.2 million**, demonstrating enhanced restaurant-level efficiency Reconciliation to Restaurant Level Operating Margin (in thousands) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Income from operations | $13,221 | $10,212 | $21,479 | $12,828 | | **Restaurant level operating margin** | **$54,216** | **$50,622** | **$104,718** | **$93,546** | | *as a % of revenues* | *15.5%* | *14.5%* | *15.2%* | *13.5%* | [Adjusted EBITDA](index=5&type=section&id=Adjusted%20EBITDA) Q2 2024 Adjusted EBITDA increased **13.4%** to **$36.1 million** (10.3% of revenues), reflecting higher net income and non-cash expense adjustments Reconciliation to Adjusted EBITDA (in thousands) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $17,157 | $11,932 | $24,880 | $15,413 | | **Adjusted EBITDA** | **$36,078** | **$31,828** | **$65,470** | **$56,844** | | *as a % of revenues* | *10.3%* | *9.1%* | *9.5%* | *8.2%* | [Other Information](index=1&type=section&id=Other%20Information) This section provides supplementary company details, investor relations activities, and legal disclaimers, including a corporate profile, earnings call information, and forward-looking statements - BJ's Restaurants, Inc. is a national brand founded in 1978 that owns and operates over **200 casual dining restaurants** across **31 states**[5](index=5&type=chunk)[20](index=20&type=chunk) - The company conducted a conference call and live audio webcast on **July 25, 2024**, to discuss the financial results[28](index=28&type=chunk) - The report includes forward-looking statements concerning expected sales, margins, and growth initiatives, which are subject to various business and economic risks[6](index=6&type=chunk)

HUNTINGTON BEACH, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- BJ's Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2024 second quarter ended Tuesday, July 2, 2024. Fiscal Second Quarter 2024 Compared to Fiscal Second Quarter 2023 Total revenues increased 0.1% to $349.9 million Comparable restaurant sales declined 0.6% Total restaurant operating weeks increased 0.4% Net income of $17.2 million, compared to $11.9 million; diluted net income per share of $0.72, compared to $0.50 ...

Restaurant companies' second-quarter 2024 results are likely to be bolstered by increased menu prices, higher average check sizes and expansion initiatives. Many restaurant companies benefited from partnerships with delivery services and digital platforms. The industry players are likely to have benefited from the rise in off-premise sales, including delivery, takeout, drive-thru, catering, meal kits, and off-site options like kiosks and food trucks in the second quarter. Many operators also tested ghost or ...

Company Overview - BJ's Restaurants, Inc. is a national brand with a focus on craft brewing and a diverse menu that includes slow-roasted entrees, signature deep-dish pizza, and the famous Pizookie® dessert [4] - The company has been recognized for its beverage program, winning the 2024 Vibe Vista Award for Best Overall Beverage Program for Multi-Unit Chain Restaurants [4] - Founded in 1978, BJ's operates over 200 casual dining restaurants across 31 states, offering dine-in, take-out, delivery, and catering services [4] Upcoming Financial Results - BJ's Restaurants, Inc. will release its second quarter 2024 results after the market closes on July 25, 2024 [3] - An investor conference call is scheduled for the same day at 2:00 p.m. (Pacific), which will be broadcast live over the Internet [3] - The presentation will be available for 30 days following the call [3]

Company Overview - BJ's Restaurants, Inc. is a national brand known for its craft brewing roots and diverse menu offerings, including slow-roasted entrees, signature deep-dish pizza, and the famous Pizookie® dessert [1] - The company has been recognized for its beverage program, winning the 2024 Vibe Vista Award for Best Overall Beverage Program for Multi-Unit Chain Restaurants [1] - Founded in 1978, BJ's operates over 200 casual dining restaurants across 31 states, providing dine-in, take-out, delivery, and catering services [1] Upcoming Financial Results - BJ's Restaurants, Inc. will release its second quarter 2024 results after market close on July 25, 2024 [2] - An investor conference call is scheduled for the same day at 2:00 p.m. Pacific Time, which will be broadcast live on the company's website [2] - A recording of the conference call will be available for 30 days following the event [2]