BJ’s(US:BJRI)2025-11-05 17:28Revenue and Sales Performance - Total revenues increased by $4.5 million, or 1.4%, to $330.2 million during the thirteen weeks ended September 30, 2025, compared to $325.7 million in the same period of 2024[83]. - Total revenues for the thirty-nine weeks ended September 30, 2025, increased by $30.8 million, or 3.0%, to $1.04 billion[94]. - Comparable restaurant sales increased by 1.8%, or $17.7 million, with guest traffic up approximately 2.2%[94]. Cost of Sales and Expenses - Cost of sales decreased by $1.8 million, or 2.0%, to $84.9 million, representing 25.7% of revenues, down from 26.6% in the prior year[84]. - Cost of sales for the thirty-nine weeks increased by $1.1 million, or 0.4%, to $262.5 million[95]. - Labor and benefit costs increased by $1.6 million, or 1.3%, to $122.3 million, maintaining a consistent percentage of 37.1% of revenues[85]. - Labor and benefit costs increased by $5.3 million, or 1.4%, to $377.4 million, with labor costs as a percentage of revenues decreasing to 36.2% from 36.7%[97]. - Occupancy and operating expenses rose by $1.3 million, or 1.6%, to $81.6 million, remaining at 24.7% of revenues[86]. - Occupancy and operating expenses rose by $8.1 million, or 3.4%, to $244.8 million, with these expenses as a percentage of revenues increasing to 23.5% from 23.4%[98]. - General and administrative expenses increased by $1.5 million, or 7.0%, to $22.4 million, with a percentage of revenues rising to 6.8% from 6.4%[87]. - General and administrative expenses increased by $1.4 million, or 2.1%, to $65.9 million, with these expenses as a percentage of revenues decreasing to 6.3% from 6.4%[99]. - Depreciation and amortization increased by $1.1 million, or 6.1%, to $19.3 million, accounting for 5.8% of revenues[88]. Net Income and Cash Flow - Net income for the thirteen weeks ended September 30, 2025, was 0.1%, compared to a loss of (0.9)% in the prior year[82]. - Net cash provided by operating activities was $91.96 million, a $22.1 million increase from the prior year[110]. - Net cash used in investing activities was $58.5 million, a $2.6 million decrease from the prior year, with total capital expenditures for fiscal 2025 anticipated to be approximately $65 million to $75 million[111]. - Net cash used in financing activities increased by $14.7 million to $34.2 million, primarily due to increased share repurchases[113]. Tax and Future Plans - The effective income tax rate for the thirty-nine weeks ended September 30, 2025, was an expense of 0.5%, compared to a benefit of 15.0% for the prior year[105]. - The company plans to open two new restaurants in the second half of 2026 and remodel approximately 20 existing locations in fiscal 2025[106]. Financial Position and Risks - Cash and cash equivalents decreased to $25.4 million from $26.1 million, with a current ratio of 0.4:1.0[106]. - The company has a $215 million Credit Facility, with $89.5 million outstanding as of September 30, 2025, which carries a floating interest rate[121]. - A hypothetical 1% change in interest rates under the Credit Facility would impact the company's net income by approximately $0.7 million annually[121]. - The company is exposed to risks related to food, supplies, and commodity prices due to market price fluctuations and potential supply chain disruptions[122]. - The company attempts to manage commodity price risks by entering into fixed-price purchase commitments, typically up to one year[122]. - The company believes that substantially all food and supplies are available from multiple sources, helping to diversify overall commodity cost risk[122]. - The company has some flexibility to increase menu prices or vary menu items in response to food commodity price increases[122]. - Certain commodity purchase arrangements may include contractual features that establish price floors or caps[122]. - The company does not use financial instruments to hedge commodity prices, relying instead on supplier arrangements to control costs[122].