U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.85
    -0.50 (-2.44%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.54%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.59%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.41%)
     
  • BTC-USD

    19,100.18
    -133.29 (-0.69%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     

BJ's Restaurants (BJRI) Q1 Earnings Top Estimates, Stock Up

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

BJ's Restaurants, Inc. BJRI reported first-quarter fiscal 2022 (ended Mar 29, 2022) results, with earnings and revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis. The results were mainly driven by solid guest demand, improved restaurant staffing levels and strong off-premise sales.

BJ's Restaurants’ president and chief financial officer, Greg Levin, stated, “It is evident that guest affinity for our brand, menu offerings and gold standard level of execution are driving the trajectory in our business and, coupled with our current sales growth and efficiency initiatives, will enable us to achieve attractive near- and mid-term growth objectives.”

Following the results, shares of the company gained 5.6% during the after-hours trading session on Apr 21.

Earnings & Revenues

For the quarter under review, the company reported adjusted earnings per share of 6 cents beating the Zacks Consensus Estimate of a loss of 26 cents. In the prior-year quarter, BJRI incurred an adjusted loss of 14 cents per share.

Total revenues of $298.7 million beat the Zacks Consensus Estimate of $298 million by 0.3%. The top line increased 33.8% on a year-over-year basis. Comparable restaurant sales in the fiscal first quarter surged 33.9% against a decline of 13% reported in the year-ago quarter.

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise

BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote

Management stated that it witnessed sequential improvements in terms of comparable restaurant sales. Comps as of January, February and March 2022 came in at (6.4%), (0.6%) and 1.2% compared with 2019 levels. The momentum continued into April, with comps growth reported at positive mid-single-digit from 2019 levels.

Expenses & Operating Margins

For the fiscal first quarter, labor costs — as a percentage of sales — came in at 38.9%, down 230 basis points (bps) year over year. Occupancy and operating costs (as a percentage of sales) came in at 24%, down from 26.8% reported in the year-ago quarter. General and administrative expenses (as a percentage of sales) fell 70 bps year over year to 6.1% in the quarter.

Restaurant-level operating margin came in at 9.8% compared with 11.5% reported in the year-ago quarter.

Store Count

As of Mar 29, 2022, BJ’s Restaurants owned and operated 212 casual dining restaurants (in 29 states). During the quarter, the company opened a new restaurant in Charlotte, NC. It also opened a new restaurant in San Antonio, TX. Overall, the company plans to open eight new restaurants in fiscal 2022. It remains steadfast in its commitment to expand presence to at least 425 restaurants domestically.

The company made solid progress with respect to its two pilot remodels concerning dining room capacity expansion and new design elements. With positive customer feedback and increased sales levels generated from the remodeled locations, the company remains optimistic and expects to proceed with this initiative in the upcoming periods.

Balance Sheet

As of Mar 29, 2022, cash and cash equivalents totaled $27.2 million compared with $38.5 million on Dec 28, 2021. Total debt as of Mar 29, 2022, amounted to $50 million in line with the previous quarter’s estimates.

Zacks Rank & Key Picks

BJ's Restaurants currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Some better-ranked stocks in the same space are BBQ Holdings, Inc. BBQ, Dave & Buster's Entertainment, Inc. PLAY and Arcos Dorados Holdings Inc. ARCO.

BBQ Holdings sports a Zacks Rank #1. BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 7.7% in the past year.

The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and earnings per share (EPS) suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.

Dave & Buster's sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 212%, on average. Shares of the company have increased 1.7% in the past year.

The Zacks Consensus Estimate for Dave & Buster's current-year sales and EPS suggests growth of 24.4% and 49.3%, respectively, from the year-ago period’s levels.

Arcos Dorados carries a Zacks Rank #2 (Buy). Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 48.9% in the past year.

The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report

Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report

Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report

BBQ Holdings, Inc. (BBQ) : Free Stock Analysis Report

To read this article on Zacks.com click here.