BJ’s Restaurants, Inc. (NASDAQ:BJRI) today reported financial
results for its fiscal 2016 first quarter ended Tuesday, March
29, 2016.
First Quarter 2016 Highlights Compared
to First Quarter 2015
- Total revenues grew 8.1% to $243.4 million
- Total restaurant operating weeks increased approximately
9%
- Comparable restaurant sales rose 0.6%
- Net income increased 21.1% to $11.6 million
- Diluted net income per share grew 32.0% to $0.47
“BJ’s generated solid first quarter 2016 top and
bottom line results as we again delivered positive comparable
restaurant sales while improving efficiencies and executing our
long-term new restaurant opening plan,” commented Greg Trojan,
President and CEO. “The 0.6% increase in first quarter
comparable restaurant sales marks our seventh consecutive quarter
of positive comparable sales and is notable given last year’s 3.2%
first quarter increase. The increase in comparable restaurant
sales, combined with the ongoing success of our productivity
initiatives, led to impressive four-wall restaurant level operating
margins of 20.1%. This 120 basis point year-over-year
improvement is also the seventh consecutive quarterly restaurant
margin increase. Additionally, revenue growth drove another
period of general and administrative expense operating efficiencies
and, despite a first quarter 2016 $0.4 million legal settlement
charge, we achieved a 90 basis point year-over-year improvement in
operating income margins to 6.7%. Our strong bottom line
results extend the positive trend of the last year and half, as
comparable restaurant sales growth, productivity initiatives and
newly opened restaurants resulted in a 21% rise in net income while
diluted EPS grew 32% reflecting the additional benefits from our
share repurchase program.”
Trojan continued, “Our committed and passionate
team members continue making great strides toward our goal of being
the best casual dining concept ever and have amassed a multi-year
track record of significant operational and financial
accomplishments through the execution of our proven strategy.
With an estimated national capacity for at least 425 BJ’s
restaurants, we have an exciting platform for ongoing organic
company growth. We have a lot of work ahead of us to
capitalize on our unique growth opportunity and are confident that
we are well positioned to enhance shareholder value by continuing
to leverage our broad menu of great, unique food at an
extraordinary value while further enhancing our productivity and
efficiency.”
In the first quarter of fiscal 2016, BJ’s opened
four new restaurants in Victorville, California, Lafayette,
Louisiana, Beavercreek, Ohio and Winston-Salem, North Carolina.
To date, in the second quarter, the Company has opened a new
restaurant in Pensacola, Florida. Trojan added, “Our 2016 new
restaurant pipeline is in excellent shape, and we remain on track
to open 18 to 19 new restaurants this year. We expect to open
a total of three new restaurants in the second quarter, and up to
twelve new restaurants in the second half of fiscal 2016. At
the same time, our development team is building a solid pipeline
for our fiscal 2017 and 2018 new restaurant openings as we remain
committed to our long-term annual goal of a 10% increase in
operating weeks through new restaurant openings.”
Share Repurchase Program
UpdateDuring the first quarter of 2016, the Company
repurchased and retired approximately 0.6 million shares of its
common stock for approximately $24.5 million. Since the
Company’s first share repurchase authorization was approved in
April 2014, BJ’s has repurchased and retired approximately 5.5
million shares for approximately $220.1 million. The Company
currently has approximately $29.9 million available under its
authorized $250 million share repurchase program.
Investor Conference Call and
WebcastBJ’s Restaurants, Inc. will conduct a conference
call on its first quarter 2016 earnings release today, April 21,
2016, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Senior management will discuss the financial results and host a
question and answer session. In addition, a live audio
webcast of the call will be accessible to the public on the
“Investors” page of the Company’s website located at
http://www.bjsrestaurants.com and a recording of the webcast will
be archived on the site for 30 days following the live event.
Please allow 15 minutes to register and download and install any
necessary software.
BJ’s Restaurants, Inc. currently owns and
operates 175 casual dining restaurants under the BJ’s Restaurant
& Brewhouse®, BJ’s Restaurant & Brewery®, BJ’s Pizza &
Grill® and BJ’s Grill® brand names. BJ’s Restaurants offer an
innovative and broad menu featuring award-winning, signature
deep-dish pizza complemented with generously portioned salads,
appetizers, sandwiches, soups, pastas, entrees and desserts,
including the Pizookie® dessert. Quality, flavor, value,
moderate prices and sincere service remain distinct attributes of
the BJ’s experience. All restaurants feature BJ’s critically
acclaimed proprietary craft beers, which are produced at several of
the Company’s Restaurant & Brewery locations, its two brewpubs
in Texas and by independent third party craft brewers. The
Company’s restaurants are located in the 23 states of Alabama,
Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas,
Kentucky, Louisiana, Maryland, Nevada, New Mexico, New York, North
Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas,
Virginia and Washington. Visit BJ’s Restaurants, Inc. on the Web at
http://www.bjsrestaurants.com for locations and additional
information.
Certain statements in the preceding paragraphs
and all other statements that are not purely historical constitute
“forward-looking” statements for purposes of the Securities Act of
1933 and the Securities and Exchange Act of 1934, as amended, and
are intended to be covered by the safe harbors created
thereby. Such statements include, but are not limited to,
those regarding expected comparable restaurant sales and margin
growth in future periods, total potential domestic capacity, the
success of various sales-building and productivity initiatives,
future guest traffic trends, construction cost savings initiatives
and the number and timing of new restaurants expected to be opened
in future periods. These “forward-looking” statements involve
known and unknown risks, uncertainties and other factors which may
cause actual results to be materially different from those
projected or anticipated. Factors that might cause such
differences include, but are not limited to: (i) our ability to
manage an increasing number of new restaurant openings,
(ii) construction delays, (iii) labor shortages, (iv)
increases in minimum wage and other employment related costs,
including the Patient Protection and Affordable Care Act, (v) the
effect of credit and equity market disruptions on our ability to
finance our continued expansion on acceptable terms, (vi) food
quality and health concerns and the effect of negative publicity
about us, our restaurants, other restaurants, or others across the
food supply chain, due to food borne illness or other reasons,
whether or not accurate, (vii) factors that impact California,
where 62 of our current 175 restaurants are located, (viii)
restaurant and brewery industry competition, (ix) impact of
certain brewing business considerations, including without
limitation, dependence upon suppliers, third party contractors and
related hazards, (x) consumer spending trends in general for casual
dining occasions, (xi) potential uninsured losses and liabilities
due to limitations on insurance coverage, (xii) fluctuating
commodity costs and availability of food in general and certain raw
materials related to the brewing of our craft beers and energy,
(xiii) trademark and service-mark risks, (xiv) government
regulations and licensing costs, (xv) beer and liquor regulations,
(xvi) loss of key personnel, (xvii) inability to secure acceptable
sites, (xviii) legal proceedings, (xix) other general economic and
regulatory conditions and requirements, (xx) the success of our key
sales-building and related operational initiatives, and (xxi)
numerous other matters discussed in the Company’s filings with the
Securities and Exchange Commission, including its recent reports on
Forms 10-K, 10-Q and 8-K. The “forward-looking” statements
contained in this press release are based on current assumptions
and expectations, and BJ’s Restaurants, Inc. undertakes no
obligation to update or alter its “forward-looking” statements
whether as a result of new information, future events or
otherwise.
For further information, please contact Greg
Levin of BJ’s Restaurants, Inc. at (714) 500-2400 or JCIR at (212)
835-8500 or at bjri@jcir.com.
BJ’s Restaurants,
Inc. |
Unaudited Consolidated Statements of
Income |
(Dollars in thousands except for per share
data) |
|
|
|
First Quarter Ended |
|
March 29, 2016 |
March 31, 2015 |
Revenues |
$ |
243,401 |
|
|
100.0 |
% |
$ |
225,069 |
|
|
100.0 |
% |
Costs and
expenses: |
|
|
|
|
Cost of sales |
|
60,640 |
|
|
24.9 |
|
|
56,171 |
|
|
25.0 |
|
Labor and benefits |
|
84,778 |
|
|
34.8 |
|
|
79,695 |
|
|
35.4 |
|
Occupancy and operating |
|
49,073 |
|
|
20.2 |
|
|
46,590 |
|
|
20.7 |
|
General and administrative |
|
14,362 |
|
|
5.9 |
|
|
13,493 |
|
|
6.0 |
|
Depreciation and amortization |
|
15,598 |
|
|
6.4 |
|
|
14,361 |
|
|
6.4 |
|
Restaurant opening |
|
1,439 |
|
|
0.6 |
|
|
1,284 |
|
|
0.6 |
|
Loss on disposal of assets and
impairments |
|
749 |
|
|
0.3 |
|
|
383 |
|
|
0.2 |
|
Legal and other settlements |
|
369 |
|
|
0.2 |
|
|
- |
|
|
- |
|
Total costs and
expenses |
|
227,008 |
|
|
93.3 |
|
|
211,977 |
|
|
94.2 |
|
Income from operations |
|
16,393 |
|
|
6.7 |
|
|
13,092 |
|
|
5.8 |
|
|
|
|
|
|
Other income: |
|
|
|
|
Interest (expense) income, net |
|
(387 |
) |
|
(0.2 |
) |
|
(241 |
) |
|
(0.1 |
) |
Other income, net |
|
397 |
|
|
0.2 |
|
|
336 |
|
|
0.1 |
|
Total other income |
|
10 |
|
|
- |
|
|
95 |
|
|
- |
|
Income before income taxes |
|
16,403 |
|
|
6.7 |
|
|
13,187 |
|
|
5.9 |
|
|
|
|
|
|
Income tax expense |
|
4,759 |
|
|
2.0 |
|
|
3,572 |
|
|
1.6 |
|
|
|
|
|
|
Net income |
$ |
11,644 |
|
|
4.8 |
% |
$ |
9,615 |
|
|
4.3 |
% |
|
|
|
|
|
Net income per
share: |
|
|
|
|
Basic |
$ |
0.48 |
|
|
$ |
0.37 |
|
|
Diluted |
$ |
0.47 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
Weighted average number
of shares outstanding: |
|
|
|
|
Basic |
|
24,278 |
|
|
|
26,310 |
|
|
Diluted |
|
24,691 |
|
|
|
26,916 |
|
|
|
Percentages reflected above may not reconcile due to
rounding. |
BJ’s Restaurants, Inc. |
Selected Consolidated Balance Sheet
Information |
(Dollars in thousands) |
|
|
March 29,
2016(unaudited) |
|
December 29,
2015(audited) |
Cash and cash
equivalents |
|
$ |
26,950 |
|
|
$ |
34,604 |
|
Total assets |
|
$ |
671,704 |
|
|
$ |
681,665 |
|
Total debt |
|
$ |
95,500 |
|
|
$ |
100,500 |
|
Shareholders’ equity |
|
$ |
305,617 |
|
|
$ |
316,483 |
|
BJ’s Restaurants, Inc. |
Unaudited Supplemental
Information |
(Dollars in thousands) |
|
|
|
|
|
|
First Quarter Ended |
|
March 29, 2016 |
March 31, 2015 |
Stock-based
compensation (1) |
|
|
|
|
Labor and benefits |
$ |
403 |
|
|
0.2 |
% |
$ |
339 |
|
|
0.2 |
% |
General and
administrative |
|
1,147 |
|
|
0.5 |
|
|
920 |
|
|
0.4 |
|
Total stock-based
compensation |
$ |
1,550 |
|
|
0.7 |
% |
$ |
1,259 |
|
|
0.6 |
% |
|
|
|
|
|
Operating
Data |
|
|
|
|
Comparable restaurant
sales % change |
|
0.6 |
% |
|
|
3.2 |
% |
|
Restaurants opened
during the period |
|
4 |
|
|
|
2 |
|
|
Restaurants open at
period end |
|
174 |
|
|
|
158 |
|
|
Restaurant operating
weeks |
|
2,231 |
|
|
|
2,044 |
|
|
|
(1)
Percentages represent percent of total revenues. |
|
Supplemental Financial Information
The Company uses restaurant level operating margin to help
analyze the performance of its core business. Restaurant
level operating margin for the first quarter and fiscal year ended
March 29, 2016 and March 31, 2015, is calculated based on GAAP
financial measures as set forth below:
Supplemental Financial Information –
Restaurant Level Operating Margin |
(Unaudited, dollars in
thousands) |
|
|
|
|
First Quarter Ended |
|
|
March 29, 2016 |
March 31, 2015 |
|
Revenues |
$ |
243,401 |
|
|
100.0 |
% |
$ |
225,069 |
|
|
100.0 |
% |
|
Cost of sales |
|
60,640 |
|
|
24.9 |
|
|
56,171 |
|
|
25.0 |
|
|
Labor and benefits |
|
84,778 |
|
|
34.8 |
|
|
79,695 |
|
|
35.4 |
|
|
Occupancy and operating |
|
49,073 |
|
|
20.2 |
|
|
46,590 |
|
|
20.7 |
|
|
Restaurant level
operating margin |
$ |
48,910 |
|
|
20.1 |
% |
$ |
42,613 |
|
|
18.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages above represent percent of total revenues and may not
reconcile due to rounding. |
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