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BJ's Restaurants stock up 6.8% as Q1 earnings beat expectations

EditorRachael Rajan
Published 03/05/2024, 06:26 am
© Reuters.
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HUNTINGTON BEACH, Calif. - BJ's Restaurants, Inc. (NASDAQ:BJRI) has surpassed analyst expectations for its fiscal 2024 first quarter, with earnings per share (EPS) of $0.32, notably higher than the consensus estimate of $0.17. Following the announcement, BJRI shares were up 6.8% in premarket trading.

The company's revenue for the quarter was reported at $337.3 million, also exceeding the analyst forecast of $334.97 million. Despite this beat, total revenues saw a slight decline of 1.2% compared to the first quarter of the previous year.

The restaurant chain experienced a modest decrease in comparable restaurant sales, which fell by 1.7%, and a total restaurant operating weeks increase by one week. However, BJ's Restaurants demonstrated a strong financial performance with net income rising to $7.7 million from $3.5 million in the same quarter last year and adjusted EBITDA increasing to $29.4 million from $25.0 million YoY.

CEO Greg Levin credited the positive results to the company's growth and productivity initiatives, especially noteworthy given the impact of severe weather early in the quarter. Levin highlighted a 240 basis point improvement in restaurant-level operating margin, which reached 15.0%. He expressed confidence in the company's foundation for continued growth and the expectation for restaurant-level margins to approach pre-pandemic levels by the end of 2024.

BJ's Restaurants also announced the opening of its 217th restaurant in Brookfield, Wisconsin, marking its first location in the state. The company is on track to open two more restaurants in the second half of 2024 and is actively building its development pipeline for 2025 and beyond. These new restaurants will feature a cost-effective prototype, expected to save approximately $1 million in building costs, and incorporate elements from the company's restaurant remodel initiative.

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