Post this Lagunitas Brewing CompanyLagunitas Brewing Company 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 th ...

Core Insights - BJ's Restaurants has consistently beaten earnings estimates, with an average surprise of 69.63% over the last two quarters [1] - For the last reported quarter, BJ's Restaurants achieved earnings of $0.32 per share, surpassing the Zacks Consensus Estimate of $0.15 per share by 113.33% [2] - The previous quarter also saw a positive surprise, with actual earnings of $0.34 per share against an expected $0.27 per share, resulting in a 25.93% surprise [2] Earnings Estimates and Predictions - Estimates for BJ's Restaurants have been trending higher, supported by its earnings surprise history [3] - The stock has a positive Zacks Earnings ESP of +9.25%, indicating bullish sentiment among analysts regarding the company's earnings prospects [6] - A combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5]

Dreams Come True on June 27 with the $4.99/mo. Pizookie Pass™—a Perfect Way for Guests to Enjoy a Special New Twist on the Beloved S'mores Pizookie® and Eight Other Signature Flavors Graham Cracker S'mores Pizookie® The New Graham Cracker S'mores Pizookie® is even s'more fun this year and will leave fanatics craving one all season long. A Ghirardelli® triple chocolate cookie topped with graham cracker crumbles, gooey perfectly toasted marshmallows, two scoops of rich vanilla bean ice cream, and even more gr ...

BJRI focuses on its culinary strategy and guest satisfaction to drive growth. The company's culinary strategy inclines toward familiarity and quality, resulting in improved operational metrics such as faster service times and higher social sentiment scores compared to the previous year. Initiatives like the gracious hospitality program, including new server scripting, have led to enhanced hospitality scores and laid the groundwork for a newly rolled-out service model. The model optimizes server-to-table rat ...

Industry Overview - The restaurant industry is facing significant challenges as it approaches 2024, including global consumer pressures and increased operational costs, which have impacted the quick-service restaurant sector [1] - Despite these challenges, the industry's resilience and strategic planning indicate a promising future, with a focus on consumer insights and marketing campaigns that connect brands to cultural trends [2] Strategic Approaches - The industry's ability to adapt to changing consumer behaviors and market conditions highlights its resilience, with positive indicators for long-term growth prospects in regions like the Middle East and China [3] - Leading companies such as BJ's Restaurants, The Cheesecake Factory, Brinker International, and Wingstop are implementing strategies to generate profits [4] Company Performance - BJ's Restaurants has seen an increase in earnings estimates, with a focus on refining its menu and expanding its domestic footprint, aiming for over 425 locations [7] - The Cheesecake Factory's growth strategy includes the successful Flower Child restaurants, which reported a 10.2% year-over-year sales increase, supported by operational enhancements [8] - Cheesecake Factory has a 12-month forward P/E ratio of 11.83, significantly lower than the industry's 22.27, indicating better valuation compared to BJRI's 23.55 [9] Comparative Analysis - A comparative analysis shows that Cheesecake Factory has outperformed BJ's Restaurants in share price appreciation and returns to investors, although BJRI has a strong EPS growth rate [10] - The Zacks Consensus Estimate indicates a 65.9% year-over-year rise in BJRI's EPS for 2024, while Cheesecake Factory's EPS is expected to increase by 17.5% [17] Stock Performance - Shares of BJ's Restaurants and Cheesecake Factory have risen 19.2% and 10.1%, respectively, over the past six months, contrasting with a 4.2% decline in the industry [18] - Cheesecake Factory's return on equity stands at 42.2%, outperforming BJ's Restaurants and the industry averages of 6.5% and 4.8% [23] Future Outlook - Wingstop is expanding its delivery channels and focusing on technological advancements to drive growth, while Brinker is enhancing its menu pricing and marketing strategies [11][12] - The restaurant and food service industry is projected to exceed $1 trillion in sales for the first time in 2024, with an expected addition of 200,000 jobs, bringing total employment to 15.7 million [15]

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 ...