Core Viewpoint - Investors in BJ's Restaurants, Inc. (BJRI) should closely monitor the stock due to significant implied volatility in the options market, particularly the Jul 19, 2024 $20 Put option, which indicates expectations of a substantial price movement [1]. Company Analysis - BJ's Restaurants is currently rated as Zacks Rank 3 (Hold) within the Retail - Restaurants industry, which is positioned in the bottom 35% of the Zacks Industry Rank [3]. - Over the past 30 days, no analysts have raised their earnings estimates for the current quarter, while five analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 51 cents per share to 49 cents [3]. Options Market Insights - The high implied volatility surrounding BJ's Restaurants suggests that options traders anticipate a significant price movement, which could indicate an upcoming event that may lead to either a rally or a sell-off [2][4]. - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4].

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 [3] - 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 [3] - Founded in 1978, BJ's operates over 200 casual dining restaurants across 31 states, offering dine-in, take-out, delivery, and catering services [3] Upcoming Events - Management will participate in a fireside chat at the Oppenheimer 24th Annual Consumer Growth and E-Commerce Conference on June 11, 2024, at approximately 1:30 p.m. (Eastern) [1] - BJ's Management will also engage with institutional investors during this event [1] Investor Relations - A live webcast of the presentation will be available on the company's "Investors" page, with a replay archived for later access [2]

Core Insights - BJ's Restaurants, Inc. (BJRI) has experienced a 16.3% increase in its shares over the past six months, outperforming the stagnant growth of the industry due to menu innovation, expansion initiatives, remodeling projects, and strong digitalization efforts [1] Financial Performance - The company reported first-quarter fiscal 2024 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, reflecting a positive trajectory in its business [2] - Comparable restaurant sales decreased by 1.7% year over year during the fiscal first quarter, contrasting with a 9% increase in the prior-year quarter [9] Growth Drivers - BJRI's focus on refining its menu, including daily Brewhouse Specials, has been a key driver for improved customer traffic [4] - The company opened one new restaurant in Brookfield, WI, during the first quarter of fiscal 2024 and plans to open three additional restaurants in the fiscal year, aiming for over 425 locations domestically [6] - BJRI has completed 13 remodels year to date and expects to initiate 10 more in fiscal 2024 to drive sales and foot traffic [7] - The company is investing in technology-driven initiatives, such as digital ordering and promotions, to enhance customer engagement and sales [8] Challenges - Increased marketing spend and commodity inflation are concerns for the company, with management anticipating negative comparable sales for the fiscal second quarter [3][11] - Adverse weather conditions at the beginning of the quarter negatively impacted sales trends, leading to a decline in comparable restaurant traffic of approximately 9% in January [9] - Inflation has affected operations and new restaurant development, prompting management to raise menu prices and implement cost-saving measures to mitigate these pressures [10]

[Report Overview](index=1&type=section&id=Report%20Overview) This section provides an overview of the Form 10-Q quarterly report, detailing filer status and outstanding common stock - This is a **Form 10-Q quarterly report** filed by BJ'S RESTAURANTS, INC. for the period ended April 2, 2024[1](index=1&type=chunk)[2](index=2&type=chunk) - BJ'S RESTAURANTS, INC. is a **large accelerated filer** and has filed all required reports[2](index=2&type=chunk)[4](index=4&type=chunk) - As of May 3, 2024, there were **23,383,119 shares** of Common Stock of the Registrant outstanding[4](index=4&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part contains the company's unaudited consolidated financial statements and management's discussion and analysis [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements, including balance sheets, operations, equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity Consolidated Balance Sheets (in thousands) | Metric | April 2, 2024 (Unaudited) | January 2, 2024 | | :------------------------------------ | :------------------------ | :---------------- | | Total Assets | $1,044,922 | $1,058,454 | | Total Current Assets | $65,645 | $83,021 | | Total Liabilities | $669,570 | $692,693 | | Total Current Liabilities | $186,554 | $199,325 | | Total Shareholders' Equity | $375,352 | $365,761 | [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section presents the company's financial performance, detailing revenues, expenses, and net income Unaudited Consolidated Statements of Operations (in thousands, except per share data) | Metric | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :------------------------------------ | :--------------------------------- | :--------------------------------- | | Revenues | $337,334 | $341,280 | | Income from operations | $8,258 | $2,616 | | Net income | $7,723 | $3,481 | | Basic Net income per share | $0.33 | $0.15 | | Diluted Net income per share | $0.32 | $0.15 | [Unaudited Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section details changes in the company's equity over specific periods Unaudited Consolidated Statements of Shareholders' Equity (in thousands) | Metric | April 2, 2024 | April 4, 2023 | | :------------ | :------------ | :------------ | | Total Shareholders' Equity | $375,352 | $351,234 | | Retained Earnings (April 2, 2024) | $305,139 | $280,199 | | Net Income (Thirteen Weeks Ended) | $7,723 | $3,481 | [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports cash generated and used across operating, investing, and financing activities Unaudited Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :------------------------------------ | :--------------------------------- | :--------------------------------- | | Net cash provided by operating activities | $22,330 | $31,899 | | Net cash used in investing activities | $(21,882) | $(26,962) | | Net cash used in financing activities | $(10,698) | $(512) | | Net (decrease) increase in cash and cash equivalents | $(10,250) | $4,425 | | Cash and cash equivalents, end of period | $18,820 | $29,298 | - Cash paid for income taxes increased significantly from **$2 thousand** in **Q1 2023** to **$1,437 thousand** in **Q1 2024**[34](index=34&type=chunk) - Cash paid for interest, net, increased from **$858 thousand** in **Q1 2023** to **$1,204 thousand** in **Q1 2024**[34](index=34&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures on accounting policies and financial items [1. BASIS OF PRESENTATION](index=8&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note describes the accounting principles and assumptions used in preparing the unaudited interim financial statements - The financial statements are **unaudited**, prepared in accordance with **U.S. GAAP** for interim financial information, and include all material adjustments[57](index=57&type=chunk) - The preparation of financial statements requires management to make certain estimates and assumptions, which may differ from actual amounts[57](index=57&type=chunk) [2. REVENUE RECOGNITION](index=8&type=section&id=2.%20REVENUE%20RECOGNITION) This note details the company's policies for recognizing revenue from food and beverage sales, gift cards, and loyalty programs - Revenues are primarily from **food and beverage sales**, recognized upon payment. **Gift card sales** are recorded as a liability and recognized upon redemption, with estimated breakage recognized proportionally[58](index=58&type=chunk)[74](index=74&type=chunk) - The '**BJ's Premier Rewards Plus**' **guest loyalty program** defers revenue allocated to points until redemption[58](index=58&type=chunk)[74](index=74&type=chunk) Gift Card and Loyalty Program Liabilities and Recognized Revenue (in thousands) | Metric | April 2, 2024 | January 2, 2024 | | :-------------------------------------- | :------------ | :-------------- | | Gift card liability | $10,615 | $14,380 | | Deferred loyalty revenue | $2,723 | $2,510 | | | | | | **Thirteen Weeks Ended** | April 2, 2024 | April 4, 2023 | | Revenue recognized from gift card liability | $5,863 | $6,245 | | Revenue recognized from guest loyalty program | $4,318 | $4,083 | [3. LEASES](index=8&type=section&id=3.%20LEASES) This note outlines the company's accounting treatment for operating leases, including lease and variable lease costs - All restaurant and office space leases are classified as **operating leases**, with lease and non-lease components accounted for as a single lease component for office and beverage gas equipment[59](index=59&type=chunk)[60](index=60&type=chunk) Lease Costs (in thousands) | Lease Cost Type | April 2, 2024 | April 4, 2023 | | :---------------- | :------------ | :------------ | | Lease cost | $14,389 | $14,896 | | Variable lease cost | $795 | $989 | | Total lease costs | $15,184 | $15,885 | [4. LONG-TERM DEBT](index=10&type=section&id=4.%20LONG-TERM%20DEBT) This note details the company's credit facility, outstanding borrowings, available capacity, and weighted average interest rates - The company has a **Credit Facility** maturing **November 3, 2026**, providing **$215 million** in **revolving loan commitments**, extendable up to **$315 million**[61](index=61&type=chunk) - As of April 2, 2024, **$58.0 million** was borrowed, **$17.2 million** in **letters of credit** were outstanding, leaving **$139.8 million** available[61](index=61&type=chunk) - The **weighted average interest rate** for the thirteen weeks ended April 2, 2024, was approximately **6.9%**, up from **6.4%** in the prior year[61](index=61&type=chunk) [5. NET INCOME PER SHARE](index=10&type=section&id=5.%20NET%20INCOME%20PER%20SHARE) This note provides a reconciliation of basic and diluted net income per share, including the impact of equity awards Net Income Per Share Reconciliation (in thousands, except per share data) | Metric | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :------------------------------------ | :--------------------------------- | :--------------------------------- |\n| Net income | $7,723 | $3,481 | | Weighted-average shares outstanding – basic | 23,318 | 23,481 | | Dilutive effect of equity awards | 647 | 445 | | Weighted-average shares outstanding – diluted | 23,965 | 23,926 | | Net income per share: Basic | $0.33 | $0.15 | | Net income per share: Diluted | $0.32 | $0.15 | - Approximately **0.9 million equity awards** were excluded from diluted EPS calculation for both periods due to being anti-dilutive[63](index=63&type=chunk) [6. STOCK-BASED COMPENSATION](index=11&type=section&id=6.%20STOCK-BASED%20COMPENSATION) This note details the stock-based compensation expense recognized and the unrecognized expense related to equity awards - Total **stock-based compensation** recognized was **$2.561 million** for **Q1 2024**, down from **$2.735 million** for **Q1 2023**[64](index=64&type=chunk)[88](index=88&type=chunk) Stock-Based Compensation Expense (in thousands) | Category | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :------------------------- | :--------------------------------- | :--------------------------------- | | Labor and benefits | $508 | $866 | | General and administrative | $1,969 | $1,776 | | Capitalized | $84 | $93 | | Total | $2,561 | $2,735 | - Total **unrecognized stock-based compensation expense** related to non-vested stock options, **RSUs**, and **market/performance-based RSUs** is approximately **$20.2 million**, expected to be recognized over the next **three to five years**[91](index=91&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk) [7. INCOME TAXES](index=15&type=section&id=7.%20INCOME%20TAXES) This note explains the effective income tax rate and details unrecognized tax benefits, including their impact on the rate - The **effective income tax rate** for **Q1 2024** was a benefit of **2.4%**, significantly lower than the **105.9% benefit rate** for **Q1 2023**, primarily due to **FICA tax tip credits**[7](index=7&type=chunk)[122](index=122&type=chunk) - **Unrecognized tax benefits** as of April 2, 2024, were approximately **$1.0 million**, with **$0.9 million** impacting the effective tax rate if reversed[7](index=7&type=chunk) Reconciliation of Unrecognized Tax Benefits (in thousands) | Metric | April 2, 2024 | April 4, 2023 | | :-------------------------------------- | :------------ | :------------ | | Beginning gross unrecognized tax benefits | $967 | $1,249 | | Increases for tax positions taken in current year | $26 | — | | Decreases due to lapse of statute of limitations | — | $(236) | | Ending gross unrecognized tax benefits | $993 | $1,031 | [8. LEGAL PROCEEDINGS](index=15&type=section&id=8.%20LEGAL%20PROCEEDINGS) This note describes the company's involvement in ordinary course lawsuits and administrative proceedings, and its self-insurance policies - The company is subject to ordinary course lawsuits and administrative proceedings, and is **self-insured** for a portion of general liability, workers' compensation, and employment practice liability[70](index=70&type=chunk) - Management believes the final disposition of these claims will not have a material adverse effect on financial position, results of operations, or liquidity[70](index=70&type=chunk) [9. SHAREHOLDERS' EQUITY](index=17&type=section&id=9.%20SHAREHOLDERS'%20EQUITY) This note details share repurchase activities, available program amounts, and the company's dividend policy - **No shares of common stock were repurchased during Q1 2024**. The Board approved a **$50 million increase** in the **share repurchase program** in **February 2024**, leaving approximately **$61.1 million** available under the **$550 million program**[99](index=99&type=chunk)[117](index=117&type=chunk) - The company currently does not pay **cash dividends**, with any future payments subject to Board approval[100](index=100&type=chunk) [10. RELATED PARTY TRANSACTIONS](index=17&type=section&id=10.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses equity method investments with related parties and the associated net losses recognized - The company holds a **20% equity method investment** in a company where its recently retired CEO and current Board member has a less than **1%** interest[101](index=101&type=chunk) - A **net loss** of **$147,000** related to this investment was recorded in **Q1 2024**, compared to **$40,000** in **Q1 2023**[101](index=101&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition and results of operations, covering revenue, costs, liquidity, and capital [STATEMENT REGARDING FORWARD-LOOKING DISCLOSURE](index=17&type=section&id=STATEMENT%20REGARDING%20FORWARD-LOOKING%20DISCLOSURE) This statement clarifies that the report contains forward-looking statements subject to risks and uncertainties, with no obligation to update - The report contains **forward-looking statements** regarding performance trends, growth plans, and business goals, which are subject to risks and uncertainties[102](index=102&type=chunk) - These statements are based on information available as of the date made, and the company assumes no obligation to update them[102](index=102&type=chunk) [GENERAL](index=17&type=section&id=GENERAL) This section provides an overview of BJ's Restaurants' business, including its operations, menu offerings, and revenue sources - BJ's Restaurants is a leading casual dining brand operating **217 restaurants** in **31 states** as of **May 6, 2024**[73](index=73&type=chunk) - The company offers a broad menu including **deep-dish pizza**, **slow-roasted entrees**, and **craft beers** produced at in-house facilities and by third-party brewers[73](index=73&type=chunk) - Revenues are primarily from **food and beverage sales**, including takeout, delivery, and catering. All restaurants are **Company-owned**[73](index=73&type=chunk)[74](index=74&type=chunk) [RESULTS OF OPERATIONS](index=20&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, comparing revenues, costs, and profitability for the current and prior periods [Thirteen Weeks Ended April 2, 2024 Compared to Thirteen Weeks Ended April 4, 2023](index=20&type=section&id=Thirteen%20Weeks%20Ended%20April%202%2C%202024%20Compared%20to%20Thirteen%20Weeks%20Ended%20April%204%2C%202023) This section provides a detailed comparative analysis of the company's operational results for the specified thirteen-week periods Consolidated Statements of Operations as Percentages of Total Revenues | Metric | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :-------------------------------------------- | :--------------------------------- | :--------------------------------- | | Revenues | 100.0 % | 100.0 % | | Cost of sales | 25.2 % | 26.6 % | | Labor and benefits | 37.1 % | 37.6 % | | Occupancy and operating | 22.8 % | 23.2 % | | General and administrative | 6.8 % | 5.8 % | | Depreciation and amortization | 5.3 % | 5.2 % | | Restaurant opening | 0.2 % | 0.2 % | | Loss on disposal and impairment of assets, net | 0.2 % | 0.6 % | | Total costs and expenses | 97.6 % | 99.2 % | | Income from operations | 2.4 % | 0.8 % | | Net income | 2.3 % | 1.0 % | - **Total revenues** decreased by **1.2%** to **$337.3 million**, driven by a **1.7% decline** in **comparable restaurant sales** (**5.8% decrease** in **guest traffic**, offset by **4.1% increase** in **average check**) and **$5.2 million** from **closed restaurants**, partially offset by **$7.1 million** from **new restaurants**[106](index=106&type=chunk) - **Cost of sales** decreased by **6.5%** to **$85.0 million**, and as a percentage of revenues, decreased to **25.2%** from **26.6%**, due to lower **commodity costs**, **cost savings**, and **menu price increases**[106](index=106&type=chunk) - **Labor and benefit costs** decreased by **2.6%** to **$125.0 million**, and as a percentage of revenues, decreased to **37.1%** from **37.6%**, primarily due to improved **labor efficiency** and **cost savings**[106](index=106&type=chunk) - **Occupancy and operating expenses** decreased by **2.9%** to **$76.9 million**, and as a percentage of revenues, decreased to **22.8%** from **23.2%**, mainly due to improved **operational efficiency** and **cost savings**[21](index=21&type=chunk)[106](index=106&type=chunk) - **General and administrative expenses** increased by **16.7%** to **$23.0 million**, and as a percentage of revenues, increased to **6.8%** from **5.8%**, primarily due to increased **corporate expenses**, **legal fees** related to **shareholder cooperation agreements**, and **deleveraging from lower revenue**[107](index=107&type=chunk) - **Depreciation and amortization** increased by **1.5%** to **$17.9 million**, and as a percentage of revenues, increased to **5.3%** from **5.2%**, mainly due to new restaurant depreciation and a lower revenue base[107](index=107&type=chunk) - **Restaurant opening expense** decreased by **30.1%** to **$0.6 million** due to timing of openings[79](index=79&type=chunk) - **Loss on disposal and impairment of assets, net**, decreased to **$0.8 million** from **$2.1 million**, primarily related to asset disposals for restaurant updates[79](index=79&type=chunk) - **Interest expense, net**, increased by **$0.3 million** to **$1.4 million** due to an increase in the weighted average interest rate[79](index=79&type=chunk) - **Other income, net**, increased by **$0.5 million** to **$0.7 million**, primarily from gains on **cash surrender value of life insurance policies**[79](index=79&type=chunk) - **Effective income tax rate** was a benefit of **2.4%** for **Q1 2024**, compared to **105.9%** for **Q1 2023**, primarily due to **FICA tax tip credits**[122](index=122&type=chunk) [LIQUIDITY AND MATERIAL CASH REQUIREMENTS](index=22&type=section&id=LIQUIDITY%20AND%20MATERIAL%20CASH%20REQUIREMENTS) This section discusses the company's cash position, funding sources, capital expenditure plans, and ability to meet financial obligations - The company's financial objective is to improve **total shareholder return** through new restaurant expansion, existing restaurant enhancements, and share repurchases[10](index=10&type=chunk) - **Capital requirements** are funded by **operating cash flows**, **debt**, **landlord allowances**, and **stock option exercises**[10](index=10&type=chunk) - Current cash, cash from operations, and credit agreement availability are expected to meet **capital expenditure** and **working capital needs** for at least the **next twelve months**[10](index=10&type=chunk) Key Liquidity Measurements (in thousands) | Metric | April 2, 2024 | January 2, 2024 | | :------------------------ | :------------ | :-------------- | | Cash and cash equivalents | $18,820 | $29,070 | | Net working capital | $(120,909) | $(116,304) | | Current ratio | 0.4:1.0 | 0.4:1.0 | - The company plans to open **three new restaurants** in fiscal 2024, with anticipated capital expenditures of **$70 million to $75 million**, funded by cash, operations, and line of credit[111](index=111&type=chunk) [CASH FLOWS](index=24&type=section&id=CASH%20FLOWS) This section provides a detailed breakdown of cash generated and used across operating, investing, and financing activities [Operating Cash Flows](index=24&type=section&id=Operating%20Cash%20Flows) This section details the cash generated or used from the company's primary business activities - **Net cash provided by operating activities** decreased by **$9.6 million** to **$22.3 million** for **Q1 2024**, from **$31.9 million** in **Q1 2023**, primarily due to timing of payments for accrued expenses and accounts receivable receipts, offset by net income[110](index=110&type=chunk) [Investing Cash Flows](index=24&type=section&id=Investing%20Cash%20Flows) This section details the cash used for capital expenditures, including new restaurants and remodels - **Net cash used in investing activities** decreased by **$5.1 million** to **$21.9 million** for **Q1 2024**, from **$27.0 million** in **Q1 2023**, primarily due to timing of restaurant construction and remodel activity[82](index=82&type=chunk)[110](index=110&type=chunk) Components of Capital Expenditures (in thousands) | Category | Thirteen Weeks Ended April 2, 2024 | Thirteen Weeks Ended April 4, 2023 | | :------------------------------------------ | :--------------------------------- | :--------------------------------- | | New restaurants | $9,197 | $10,934 | | Restaurant maintenance and remodels, and key productivity initiatives | $12,150 | $15,723 | | Restaurant and corporate systems | $535 | $309 | | Total capital expenditures | $21,882 | $26,966 | [Financing Cash Flows](index=26&type=section&id=Financing%20Cash%20Flows) This section details the cash flows related to debt, equity, and other financing activities - **Net cash used in financing activities** increased by **$10.2 million** to **$10.7 million** for **Q1 2024**, from **$0.5 million** in **Q1 2023**, primarily due to payments on the line of credit[112](index=112&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=26&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) This section confirms the absence of any off-balance sheet arrangements as of the reporting date - As of April 2, 2024, the company is not involved in any **off-balance sheet arrangements**[11](index=11&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=26&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section highlights key accounting policies requiring significant management estimates and assumptions - The preparation of financial statements requires estimates and assumptions, which are continually reviewed. No significant changes in **critical accounting policies** occurred during **Q1 2024**[130](index=130&type=chunk) [IMPACT OF INFLATION](index=26&type=section&id=IMPACT%20OF%20INFLATION) This section discusses how inflation affects operations and construction, and the company's mitigation strategies - **Inflation** has impacted operations and new restaurant construction. The company has partially offset this through **menu price increases**, **cost savings**, and **productivity improvements**[113](index=113&type=chunk) - There is no assurance that the company can continue to offset inflation, and macroeconomic conditions could limit future menu price increases[113](index=113&type=chunk) [SEASONALITY AND ADVERSE WEATHER](index=26&type=section&id=SEASONALITY%20AND%20ADVERSE%20WEATHER) This section explains how seasonal factors and adverse weather conditions can impact restaurant sales and quarterly results - Business is impacted by **weather and seasonal factors**, including holidays and severe weather, which can affect restaurant sales volumes[85](index=85&type=chunk) - Quarterly results are significantly impacted by the timing of new restaurant openings and associated expenses[85](index=85&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section outlines the company's exposure to market risks, focusing on interest rates and commodity prices [Interest Rate Risk](index=26&type=section&id=Interest%20Rate%20Risk) This section details the company's exposure to interest rate fluctuations on its floating-rate credit facility - The company is exposed to interest rate risk due to its **$215 million Credit Facility**, of which **$58.0 million** is outstanding and carries a **floating interest rate**[115](index=115&type=chunk) - A hypothetical **1% change** in interest rates under the Credit Facility would have an approximate **$0.4 million annual impact** on net income[115](index=115&type=chunk) [Food, Supplies and Commodity Price Risks](index=28&type=section&id=Food%2C%20Supplies%20and%20Commodity%20Price%20Risks) This section discusses the company's reliance on commodity deliveries and strategies to manage price volatility - The business is dependent on frequent and consistent deliveries of **food, supplies, and commodities**, which are subject to price volatility due to market factors and government regulation[133](index=133&type=chunk) - The company attempts to manage this risk through **fixed-price purchase commitments** (typically up to **one year**) for some commodity requirements and has flexibility to adjust menu prices or items[133](index=133&type=chunk) - The company does not use **financial instruments to hedge commodity prices**[133](index=133&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes legal proceedings, risk factors, equity sales, controls, and exhibits [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed discussion of legal proceedings in the notes to the financial statements - Refer to **Note 8** of the Notes to Unaudited Consolidated Financial Statements in Part I, Item 1 of this report for a summary of legal proceedings[137](index=137&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no **material changes** from the risk factors previously disclosed in the **Annual Report on Form 10-K** for the year ended January 2, 2024[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details share repurchase activities, noting no repurchases this quarter but an increased authorized program - **No shares were repurchased during the thirteen weeks ended April 2, 2024**[117](index=117&type=chunk) - Cumulatively, shares valued at approximately **$488.9 million** have been repurchased since the program's inception in **2014**[117](index=117&type=chunk) - As of April 2, 2024, **$61.1 million** remains available under the authorized **$550 million share repurchase program**, following a **$50 million increase** approved in **February 2024**[117](index=117&type=chunk)[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms management's evaluation of disclosure controls and procedures, concluding effectiveness and no material changes [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms management's conclusion on the effectiveness of disclosure controls and procedures as of the reporting date - Management, including the **CEO and CFO**, concluded that **disclosure controls and procedures were effective** as of **April 2, 2024**, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[134](index=134&type=chunk) [Changes in Internal Control Over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section states that no material changes occurred in internal control over financial reporting during the fiscal quarter - No **material changes** in **internal control over financial reporting** occurred during the first fiscal quarter[135](index=135&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) This section indicates no other information to disclose under this item for the reporting period - This section is marked as '**None**' in the report, indicating no other information to disclose under this item[24](index=24&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including corporate governance documents and certifications - The report includes a list of exhibits, such as **Amended and Restated Articles of Incorporation**, **Bylaws**, **Cooperation Agreements**, and **Section 302/906 Certifications**[141](index=141&type=chunk) - Also includes **Inline XBRL Instance Document** and **Taxonomy Extension files**[141](index=141&type=chunk) [SIGNATURES](index=32&type=section&id=SIGNATURES) This section lists the principal executive, financial, and accounting officers who signed the report - The report is signed by **Gregory S. Levin** (**Chief Executive Officer and President**), **Thomas A. Houdek** (**Senior Vice President and Chief Financial Officer**), and **Jacob J. Guild** (**Senior Vice President and Chief Accounting Officer**)[14](index=14&type=chunk)[121](index=121&type=chunk)[142](index=142&type=chunk)

helen89 Introduction Before we start breaking down BJ's (NASDAQ:BJRI) first quarter 2024 results, I would like to highlight that this is an analysis intended to place greater emphasis on short-term operational patterns. Therefore, if you are interested in a more complete analysis, which aims to closely investigate both profitability, capital structure and other factors, I recommend reading my latest analysis of BJ's. For those who remember, I recommended "Buy" in my last review of BJ's Restaurants, mainly e ...

Financial Data and Key Metrics Changes - For Q1 2024, the company reported sales of $337 million, a decrease of 1.2% compared to the previous year, with comparable restaurant sales down 1.7% due to adverse weather conditions in January [36][16][18] - Adjusted EBITDA rose to $29.4 million, which is approximately 25% higher than the prior year, representing 9.2% of sales [18][47] - Restaurant-level cash flow margin improved to 15%, an increase of 240 basis points from the previous year [17][46] Business Line Data and Key Metrics Changes - The on-premise business remains the strongest and most profitable channel, with comparable sales slightly negative for the quarter but positive when excluding January's weather impact [50] - The late-night business continues to outperform other dayparts, contributing positively to overall sales [48][103] Market Data and Key Metrics Changes - Comparable restaurant traffic declined approximately 9% in January but improved to negative mid-single digits in February and March, indicating a recovery trend [24][49] - Guest value scores improved by 300 basis points from Q4 levels, reflecting enhanced brand health [43] Company Strategy and Development Direction - The company aims to expand its restaurant count to 425 or more, nearly doubling its current count, with a focus on new prototypes that reduce build costs and enhance operational efficiency [32][33] - Strategic initiatives include a culinary strategy focused on value offerings and enhancing guest experience through remodels and improved service models [27][30][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming January's weather challenges and expects continued margin growth through productivity and cost-saving initiatives [54][57] - The company anticipates slightly negative comparable sales in Q2 but remains optimistic about driving traffic during peak celebration periods [55][146] Other Important Information - The company completed 13 remodels year-to-date and plans to complete approximately 10 more by the end of the year, enhancing the dining experience [31] - G&A expenses for Q1 were $23 million, including one-time charges, but are expected to normalize around $21 million in Q2 [40][60] Q&A Session All Questions and Answers Question: What are the assumptions for slightly negative same-store sales in Q2? - Management indicated that the guidance incorporates expectations for the strength of the celebration season, including Mother's Day and graduations, which are critical for driving sales [146][148] Question: How does the company maintain brand equity amid cautious consumer spending? - The company focuses on affordability and value through promotions and a loyalty program, while also enhancing the dining experience to attract guests [84][88] Question: What is the outlook for commodity inflation? - Management expects commodity inflation to remain flat to low single digits for the full year, despite some recent increases in produce and meat costs [127][145]

Revenue and Sales Performance - Total revenues decreased by 1.2% to $337.3 million in Q1 2024 compared to Q1 2023[24] - Comparable restaurant sales declined by 1.7% in Q1 2024[18] Profitability and Margins - Net income increased to $7.7 million in Q1 2024, up from $3.5 million in Q1 2023[24] - Adjusted EBITDA rose to $29.4 million in Q1 2024, compared to $25.0 million in Q1 2023[22] - Restaurant level operating margin improved to 15.0% in Q1 2024, a 240 basis point increase from Q1 2023[27] Expansion and Development - The company opened its 217th restaurant in Brookfield, Wisconsin, marking its first location in the state[14] - The company plans to open two additional restaurants in the second half of 2024 and is building a development pipeline for 2025 and beyond[14] - By the end of 2024, approximately half of the company's restaurants are expected to feature a newer prototype or recent remodel[14] Debt and Cash Position - Total debt decreased to $58.0 million in Q1 2024 from $68.0 million in Q1 2023[6] - Cash and cash equivalents stood at $18.8 million as of April 2, 2024, down from $29.1 million at the start of the year[6] Non-GAAP Financial Measures - The company reports non-GAAP financial results, including restaurant level operating margin, which excludes certain operating costs and is used as a supplemental measure of restaurant performance[30] - Restaurant level operating margin is calculated as revenues less direct operating costs (cost of sales, labor and benefits, and occupancy and operating costs)[30] - Adjusted EBITDA is another non-GAAP financial measure used by the company[32] - A reconciliation of income from operations to restaurant level operating margin for Q1 2024 and Q1 2023 is provided[37] - A reconciliation of net income to Adjusted EBITDA for Q1 2024 and Q1 2023 is provided[38] - Non-GAAP measures are not a substitute for GAAP measures and may differ from those used by other companies[28] - Management believes non-GAAP measures like restaurant level operating margin highlight core business trends not apparent in GAAP measures[30] Operational and Financial Reporting Details - The company operates through dine-in, take-out, delivery, and large party catering services[33] - Financial data is presented in thousands of dollars[35] - Percentages in the financial data represent percent of total revenues and may not reconcile due to rounding[34]

HUNTINGTON BEACH, Calif., May 02, 2024 (GLOBE NEWSWIRE) -- BJ's Restaurants, Inc. (NASDAQ:BJRI) today reported financial results for its fiscal 2024 first quarter ended Tuesday, April 2, 2024. Fiscal First Quarter 2024 Compared to First Quarter 2023 Total revenues decreased 1.2% to $337.3 millionComparable restaurant sales declined 1.7%Total restaurant operating weeks increased by one weekNet income of $7.7 million, compared to $3.5 million; diluted net income per share of $0.32, compared to $0.15Adjusted E ...

BJ's Innovative New Beverage Program Elevates the Beverage Category for Multi-Unit ChainsHUNTINGTON BEACH, Calif., April 18, 2024 /PRNewswire/ -- BJ's Restaurant & Brewhouse® (NASDAQ: BJRI) is feeling the good vibrations after receiving the Vibe Vista Award for Best Multi-Chain Restaurant Group at Questex's 2024 Vibe Conference, the premier conference for on-premise beverage industry executives. Recognizing the top performers in the beverage industry, the Vibe Vista Awards honored BJ's achievements in the c ...

HUNTINGTON BEACH, Calif., April 16, 2024 (GLOBE NEWSWIRE) -- BJ's Restaurants, Inc. (NASDAQ:BJRI) today announced that it will release its first quarter 2024 results after the market closes on Thursday, May 2, 2024. The Company will host an investor conference call at 2:00 p.m. (Pacific) that same day. The conference call will be broadcast live over the Internet. To listen to the conference call, please visit the "Investors" page of the Company's website located at http://www.bjsrestaurants.com several minu ...