BJ's Restaurants' (BJRI) Q4 Earnings Top Estimates, Rise Y/Y
BJ's Restaurants, Inc. BJRI reported impressive fourth-quarter fiscal 2022 (ended Jan 3, 2023) results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Greg Levin, chief executive officer and president, BJ's Restaurants, stated, “We are encouraged by the strong sales trends and growth in our dining room guest traffic in fiscal 2023 to date, which are helping offset ongoing inflationary pressures on food, labor, utilities, and other restaurant costs. Our restaurant level margin growth was driven by higher sales, additional progress with our margin enhancement initiatives and, to a lesser extent, the extra operating week in fiscal 2022.”
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 17 cents, surpassing the Zacks Consensus Estimate of 7 cents. In the prior-year quarter, the company reported an adjusted EPS of (20) cents.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote
Total revenues of $344.2 million beat the Zacks Consensus Estimate of $344 million. The top line increased 18.2% on a year-over-year basis.
Comparable restaurant sales in the fiscal fourth quarter increased 6.6% year over year compared with a rise of 45.6% reported in the prior-year quarter. The increase was primarily backed by growth in the dining room guest traffic and incremental menu pricing. For the fiscal first quarter, the company anticipates comps in the high single-digits.
Expenses & Operating Margins
For the fiscal fourth quarter, labor costs — as a percentage of sales — came in at 36.8%, down 110 basis points (bps) year over year. Occupancy and operating costs (as a percentage of sales) came in at 23.5%, down from 24.6% reported in the year-ago quarter. General and administrative expenses (as a percentage of sales) came in at 5.6% in the quarter compared with 6.3% reported in the prior-year quarter.
During the quarter, the restaurant-level operating margin came in at 12.9% compared with the 10.1% reported in the year-ago quarter.
As of Jan 3, 2023, BJ’s Restaurants owned and operated 216 casual dining restaurants (in 29 states). In fiscal 2022, the company opened six new restaurants and reported solid sales with respect to the same. In fiscal 2023, the company intends to open five new restaurants (including one relocation). It also emphasized on expanding its remodel initiative to more than 30 restaurants. The company remains steadfast in its commitment to expand its presence to at least 425 restaurants domestically.
As of Jan 3, 2023, cash and cash equivalents totaled $24.9 million compared with $38.5 million as of Dec 28, 2021. Total debt as of Jan 3, 2023, amounted to $60 million compared with $50 million reported in the previous quarter.
Total revenues in 2022 amounted to $1,283.9 million compared with $1,087 million in 2021.
Adjusted EBITDA in 2022 came in at $77.9 million compared with $70.5 million in 2021.
In 2022, diluted EPS came in at 17 cents against (16) cents reported in the previous year.
Zacks Rank & Key Picks
BJ's Restaurants has 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 Zacks Retail – Restaurants industry are Arcos Dorados Holdings Inc. ARCO, Yum China Holdings, Inc. YUMC and Darden Restaurants, Inc. DRI.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth of 11.6%. Shares of the company have increased 22.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 8.1% and 4.2%, respectively, from the year-ago period’s levels.
Yum China carries a Zacks Rank #2. YUMC has a long-term earnings growth rate of 19.5%. The stock has gained 16.3% in the past year.
The Zacks Consensus Estimate for Yum China’s 2023 sales and EPS suggests growth of 21% and 70.5%, respectively, from the year-ago period’s reported levels.
Darden carries a Zacks Rank #2. DRI has a long-term earnings growth rate of 9.8%. Shares of DRI have gained 2% in the past year.
The Zacks Consensus Estimate for Darden’s 2023 sales and EPS suggests growth of 7.9% and 5.4%, respectively, from the year-ago period’s reported levels.
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