BJ’s(BJRI) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights 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] - Productivity initiatives led to a 100 basis point year-over-year increase in restaurant-level operating margins, which reached 15.5%[2] Business Update & Outlook 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] - 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] - 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][18] Consolidated Financial Statements 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 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 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 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 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][11][26] Restaurant Level Operating Margin 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 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 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][20] - The company conducted a conference call and live audio webcast on July 25, 2024, to discuss the financial results[28] - The report includes forward-looking statements concerning expected sales, margins, and growth initiatives, which are subject to various business and economic risks[6]