BJ's Restaurants Inc (BJRI) Reports Fiscal Third Quarter 2023 Results
BJ's Restaurants Inc (NASDAQ:BJRI) reported a 2.3% increase in total revenues to $318.6 million in Q3 2023.
Comparable restaurant sales increased by 0.4% compared to the same period last year.
The company reported a net loss of $3.8 million, compared to a net loss of $1.6 million in Q3 2022.
BJ's Restaurants Inc (NASDAQ:BJRI) also reported an increase in Adjusted EBITDA by approximately 30% from the prior year.
BJ's Restaurants Inc (NASDAQ:BJRI) released its fiscal third quarter 2023 results on October 26, 2023. The company reported a 2.3% increase in total revenues to $318.6 million, compared to $311.3 million in the same period last year. Comparable restaurant sales also saw a slight increase of 0.4%.
Financial Highlights
The company reported a net loss of $3.8 million, or $0.16 per diluted share, compared to a net loss of $1.6 million, or $0.07 per diluted share, in the third quarter of 2022. The 2022 third quarter net loss included a $4.1 million income tax benefit. The restaurant level operating margin was 11.9%, compared to 10.3% in the same period last year. Adjusted EBITDA was $19.6 million, compared to $15.2 million in Q3 2022.
Company Commentary
Our third quarter results mark further progress with our sales building programs and cost savings initiatives, which enabled us to expand restaurant operating margin and Adjusted EBITDA," commented Greg Levin, Chief Executive Officer and President. "We improved restaurant level operating margin by 160 basis points and increased Adjusted EBITDA by approximately 30% from prior year."
Future Outlook
The company has plans to open four to six new restaurants in 2024, most of which will be their new prototype that is expected to cost approximately $1 million less to build than their recent new restaurants. The company also reactivated its share repurchase program in the third quarter, reflecting managements belief that the companys shares are currently undervalued and their confidence in the companys longer-term prospects.
Financial Tables
The company's total assets as of October 3, 2023, stood at $1,037,136, with total debt at $60,000 and shareholders' equity at $360,970. The company's net loss income per share for the third quarter ended October 3, 2023, was $0.16, compared to $0.07 for the same period in 2022.
Conclusion
Despite the challenges, BJ's Restaurants Inc (NASDAQ:BJRI) has shown resilience with a slight increase in total revenues and comparable restaurant sales. The company's focus on cost-saving initiatives and sales building programs has also resulted in an improved restaurant level operating margin and Adjusted EBITDA. With plans for new restaurant openings and a reactivated share repurchase program, the company is well-positioned for future growth.
Explore the complete 8-K earnings release (here) from BJ's Restaurants Inc for further details.
This article first appeared on GuruFocus.
