BJ’S RESTAURANTS, INC. PROVIDES BUSINESS UPDATE
March 23 2020 - 5:00PM
BJ’s Restaurants, Inc. (NASDAQ: BJRI) (“the Company”) today
announced a range of actions that management and the Board of
Directors are implementing to enhance the Company’s liquidity given
the business disruptions resulting from the efforts to contain the
rapid nationwide spread of COVID-19 including the vast mandated
self-quarantines and closures of non-essential business throughout
the United States. These actions include the Board of Directors’
decision to defer the Company’s previously declared quarterly
dividend payment of $0.13 per share of common stock payable March
24, 2020, for shareholders of record as of March 10, 2020. Payment
of such dividend is being deferred until such time that the Board
of Directors determines such payment is prudent in light of the
Company’s capital needs. In addition, the Board of Directors has
suspended future quarterly dividends until the significant
uncertainty of the current situation has passed and it is
determined that resumption of dividend payments is in the best
interest of the Company and its shareholders.
“Our ability to operate at full capacity has
been impacted as numerous states and local governments have
effected ordinances to protect the public through social
distancing,” commented Greg Trojan, CEO of BJ’s Restaurants, Inc.
“All of our restaurants currently remain open and continue serving
the communities where they operate through take-out and delivery.
In these early days with mandated dining room closures, our off
premise sales through takeout and delivery channels have increased
as our guests are shifting how they enjoy our food. In the current
environment, our focus is on continuing to drive growth in our off
premise business while prudently managing costs. The number of
restaurants remaining open may change due to the fluidity of the
situation and changing ordinances.
“In these unprecedented times, management is
taking all necessary and appropriate steps to maximize our
liquidity as we manage our business through the current
environment,” commented Greg Trojan. “These actions include
stopping all capital spending, including delaying or cancelling our
new restaurant openings for 2020, and significantly reducing our
operating expenses to reflect reduced sales volumes as well as the
elimination of all non-essential spending. In an abundance of
caution, we have drawn down all remaining amounts under our $250
million line of credit and currently have over $95 million of cash
on our balance sheet. While we believe we have sufficient liquidity
with our current capital position, we will continue to monitor and
evaluate all financing alternatives as these unprecedented events
evolve.”
"We believe the combination of these actions
positions us well to manage the near term volatility presented by
current market conditions," commented Greg Levin, President and
CFO. “In a scenario where all of our restaurants are closed, we
estimate that our ongoing weekly operating costs would be
approximately $5 million based on current assumptions which include
complete retention of our restaurant management, field operations
and support teams. BJ’s has always been a leader in average unit
volumes with a broad and flexible menu that travels well. As such,
our objective is to extend our ability to fund the business by
generating incremental cash flow through efficiently operating our
restaurants at reduced off premise sales levels.”
Trojan concluded, “As we rapidly adjust to
day-to-day changes, I join the executive leadership team in
thanking our restaurant and operating teams for their unique
ability to deliver BJ’s gold standard level of guest service and
find new ways to support the needs of the people in the communities
where we operate regardless of the circumstances. We stand by each
one of our team members and loyal guests and look forward to
resuming normal operations as conditions permit.”
About BJ’s Restaurants,
Inc.
BJ’s Restaurants, Inc. (“BJ’s”) is a national
brand with brewhouse roots and a menu where craft matters. BJ’s
broad menu with over 140 offerings has something for everyone:
slow-roasted entrees like prime rib, BJ’s EnLIGHTened Entrees®
including Cherry Chipotle Glazed Salmon, signature deep dish pizza
and the often imitated, but never replicated world-famous Pizookie®
dessert. BJ’s has been a pioneer in the craft brewing world since
1996, and takes pride in serving BJ’s award-winning proprietary
handcrafted beers, brewed at its brewing operations in five states
and by independent third-party craft brewers. The BJ’s experience
offers high-quality ingredients, bold flavors, moderate prices,
sincere service and a cool, contemporary atmosphere. Founded in
1978, BJ’s owns and operates 209 casual dining restaurants. All
restaurants offer dine-in, take-out, delivery and large party
catering. BJ’s restaurants are located in 29 states: Alabama,
Arizona, Arkansas, California, Colorado, Connecticut, Florida,
Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts,
Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina,
Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
Tennessee, Texas, Virginia and Washington. For more BJ’s
information, visit http://www.bjsrestaurants.com.
Forward-Looking Statements
Disclaimer
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 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 our
expected weekly operating costs and capital expenditures, our
available liquidity, our cost cutting and capital preservation
measures, and effects of the Covid-19 pandemic on our business.
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) the length and severity of the current Covid-19
pandemic and its effect on restaurant sales and operations, (ii)
the effect of any governmental action or mandated employer-paid
benefits in response to the Covid-19 pandemic, (iii) our ability to
manage costs and reduce expenditures in a low or zero revenue
environment, (iv) the availability of additional financing if and
when required, and (v) 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.
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