BJ's Restaurants, Inc. (Nasdaq:BJRI) today reported financial
results for the third quarter of fiscal 2010 that ended on
September 28, 2010.
Highlights for the third quarter compared to the same quarter
last year were as follows:
- Total revenues increased 24% to $128.8 million
- Comparable restaurant sales increased 6.7%
- Net income increased 75% to $5.5 million
- Diluted net income per share increased 67% to $0.20
Results for the third quarter include a pre-tax charge of
$884,000, or approximately $0.02 per diluted share, related to the
disposal of certain unproductive restaurant assets in connection
with the Company's ongoing productivity/efficiency initiatives and
facility image enhancement activities.
"Our leadership team was pleased to deliver a strong financial
performance for the third quarter," commented Jerry Deitchle,
Chairman and Chief Executive Officer. "We continue to make
prudent investments in the very core of the BJ's concept to more
solidly position our restaurants as a higher quality, more
differentiated 'dining out for fun' experience with outstanding
value, while keeping BJ's exceptionally approachable by all
consumers. As a result of our relentless focus on quality and
differentiation, coupled with steadily improving execution by our
restaurant operators, we achieved our third consecutive quarter of
increases in both comparable restaurant sales and guest traffic.
We also achieved measurable leverage in our operating margins
during the quarter. While our recent financial results
reflect the success of our competitive positioning strategy and
many of our current tactical initiatives, we intend to continue to
implement new initiatives in 2011 with the goal to further
strengthen the quality, differentiation and productivity of the
BJ's restaurant concept."
Four new restaurants were opened during the third quarter of
2010 (Daytona Beach, FL; Tucson, AZ; Colorado Springs, CO; Sparks,
NV). The Company currently expects to open two new restaurants
during the fourth quarter, of which one has already opened in
Puente Hills, CA (in the Los Angeles market). "Initial sales
volumes for all of our 2010 new restaurant openings to date
continue to exceed our expectations," commented Deitchle. The
final new restaurant opening for 2010 is expected to occur before
Thanksgiving in The Woodlands, TX (in the Houston market). As
a result, the Company will successfully achieve its stated goal to
open 10 new restaurants during 2010.
Based on the current status of the Company's restaurant
development pipeline, as many as 12 to 13 new restaurants are
expected to be opened during fiscal 2011. "Our development
team has been able to secure several high-quality sites in mature
trade areas with proven, stable levels of retail sales and with the
demographics and co-tenancies that we seek for the BJ's concept,"
said Deitchle. "We are looking forward to executing another
year of profitable expansion for the BJ's concept, principally
focused within our current 13-state geographical footprint to more
effectively leverage our brand awareness, our supply chain and our
supervision and managerial resources." Investors are reminded
that the actual number and timing of new restaurant openings is
subject to a number of factors outside of the Company's control,
including weather conditions and factors under the control of
landlords, contractors and regulatory/licensing authorities.
Investor Conference Call and Webcast
BJ's Restaurants, Inc. will conduct a conference call on its
third quarter earnings release today, October 21, 2010, at 2:00
p.m. (Pacific Time). The Company will provide an Internet
simulcast, as well as a replay of the conference call. To
listen to the conference call, please visit the "Investors" page of
the Company's website located at http://www.bjsrestaurants.com
several minutes prior to the start of the call to register and
download any necessary audio software. An archive of the
presentation will be available for 30 days following the call.
BJ's Restaurants, Inc. currently owns and operates 101 casual
dining restaurants under the BJ's Restaurant & Brewery, BJ's
Restaurant & Brewhouse or BJ's Pizza & 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. Quality, flavor, value, moderate prices and
sincere service remain distinct attributes of the BJ's experience.
The Company operates several microbreweries which produce and
distribute BJ's critically acclaimed handcrafted beers throughout
the chain. The Company's restaurants are located in California
(51), Texas (19), Arizona (6), Colorado (4), Oregon (2), Nevada
(4), Florida (6), Ohio (2), Oklahoma (2), Kentucky (1), Indiana
(1), Louisiana (1) and Washington (2). Visit BJ's Restaurants,
Inc. on the Web at http://www.bjsrestaurants.com.
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 growth in
future periods, those regarding the effect of new sales-building
initiatives, as well as those regarding the number of restaurants
expected to be opened in future periods and the timing and location
of such openings. 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 effect of recent credit
and equity market disruptions on our ability to finance our
continued expansion on acceptable terms, (ii) our ability to manage
an increasing number of new restaurant openings, (iii) construction
delays, (iv) labor shortages, (v) minimum wage increases, (vi) food
quality and health concerns, (vii) factors that impact California,
where 51 of our current 101 restaurants are located, (viii)
restaurant and brewery industry competition, (ix) impact of certain
brewery business considerations, including without limitation,
dependence upon suppliers and related hazards, (x) consumer
spending trends in general for casual dining occasions, (xi)
potential uninsured losses and liabilities, (xii) fluctuating
commodity costs and availability of food in general and certain raw
materials related to the brewing of our handcrafted beers and
energy, (xiii) trademark and service-mark risks, (xiv) government
regulations, (xv) licensing costs, (xvi) beer and liquor
regulations, (xvii) loss of key personnel, (xviii) inability to
secure acceptable sites, (xix) limitations on insurance coverage,
(xx) legal proceedings, (xxi) other general economic and regulatory
conditions and requirements, (xxii) the success of our key
sales-building and related operational initiatives and (xxiii)
numerous other matters discussed in the Company's filings with the
Securities and Exchange Commission. 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.
Further information concerning the Company's results of
operations for the third quarter 2010 will be provided in the
Company's Form 10-Q filing, to be filed with the Securities and
Exchange Commission by November 8, 2010.
BJ's Restaurants,
Inc. |
Unaudited Consolidated
Statements of Income |
(Dollars in thousands
except for per share data) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Thirty-Nine Weeks
Ended |
|
September
28, |
September
29, |
September
28, |
September
29, |
|
2010 |
2009 |
2010 |
2009 |
|
|
|
|
|
|
|
|
|
Revenues |
$128,781 |
100.0% |
$103,904 |
100.0% |
$380,964 |
100.0% |
$314,072 |
100.0% |
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
31,358 |
24.3 |
26,087 |
25.1 |
93,129 |
24.4 |
78,352 |
24.9 |
Labor and benefits |
44,260 |
34.4 |
35,996 |
34.6 |
132,775 |
34.9 |
109,719 |
34.9 |
Occupancy and
operating |
27,426 |
21.3 |
22,781 |
21.9 |
81,293 |
21.3 |
67,606 |
21.5 |
General and
administrative |
8,256 |
6.4 |
7,054 |
6.8 |
25,691 |
6.7 |
21,790 |
6.9 |
Depreciation and
amortization |
7,366 |
5.7 |
6,104 |
5.9 |
21,127 |
5.5 |
17,705 |
5.6 |
Restaurant
opening |
1,799 |
1.4 |
1,481 |
1.4 |
4,218 |
1.1 |
3,153 |
1 |
Loss on disposal of
assets |
884 |
0.7 |
– |
– |
1,024 |
0.3 |
– |
– |
Total costs and expenses |
121,349 |
94.2 |
99,503 |
95.7 |
359,257 |
94.2 |
298,325 |
94.8 |
Income from operations |
7,432 |
5.8 |
4,401 |
4.3 |
21,707 |
5.8 |
15,747 |
5.2 |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
32 |
– |
58 |
0.1 |
92 |
– |
254 |
0.1 |
Interest expense |
(23) |
– |
(4) |
– |
(66) |
– |
(57) |
– |
Other income, net |
147 |
0.1 |
50 |
0.1 |
491 |
0.1 |
246 |
0.1 |
Total other income |
156 |
0.1 |
104 |
0.2 |
517 |
0.1 |
443 |
0.2 |
Income before income tax
expense |
7,588 |
5.9 |
4,505 |
4.5 |
22,224 |
5.9 |
16,190 |
5.4 |
|
|
|
|
|
|
|
|
|
Income tax expense |
2,047 |
1.6 |
1,336 |
1.3 |
5,999 |
1.6 |
4,873 |
1.6 |
|
|
|
|
|
|
|
|
|
Net income |
$5,541 |
4.3% |
$3,169 |
3.2% |
$16,225 |
4.3% |
$11,317 |
3.8% |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$0.20 |
|
$0.12 |
|
$0.60 |
|
$0.42 |
|
|
|
|
|
|
|
|
|
|
Diluted |
$0.20 |
|
$0.12 |
|
$0.58 |
|
$0.42 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
27,113 |
|
26,756 |
|
27,009 |
|
26,742 |
|
|
|
|
|
|
|
|
|
|
Diluted |
28,102 |
|
27,232 |
|
27,943 |
|
27,084 |
|
Selected Consolidated Balance Sheet
Information
|
(Dollars in
thousands) |
|
|
|
|
September 28, |
December 29, |
|
2010 |
2009 |
Balance Sheet Data (end of
period): |
(unaudited) |
(audited) |
|
|
|
Cash, cash equivalents and short-term
investments |
$29,927 |
$44,906 |
|
|
|
Investments |
$9,178 |
$ – |
|
|
|
Total assets |
$398,711 |
$381,122 |
|
|
|
Total long-term debt, including current
portion |
$ – |
$5,000 |
|
|
|
Shareholders' equity |
$276,834 |
$252,979 |
Supplemental Information |
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended |
Thirty-Nine Weeks
Ended |
|
September
28, |
September
29, |
September
28, |
September
29, |
|
2010 |
2009 |
2010 |
2009 |
Stock-based compensation
(1) |
|
|
|
|
|
|
|
|
Labor and benefits (2) |
$341 |
0.3% |
($130) |
(0.1%) |
$772 |
0.2% |
$371 |
0.1% |
General and administrative |
661 |
0.5 |
517 |
0.5 |
2,178 |
0.6 |
1,725 |
0.6 |
Total stock based compensation |
$1,002 |
0.80% |
$387 |
0.40% |
$2,950 |
0.80% |
$2,096 |
0.70% |
|
|
|
|
|
|
|
|
|
Unaudited Operating
Data |
|
|
|
|
|
|
|
|
Comparable restaurant sales % change |
6.7% |
|
(1.6%) |
|
5.8% |
|
(1.0%) |
|
Restaurants opened during period |
4 |
|
2 |
|
8 |
|
5 |
|
Restaurants open at period-end |
100 |
|
87 |
|
100 |
|
87 |
|
Restaurant operating weeks |
1,272 |
|
1,116 |
|
3,707 |
|
3,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percentages represent
percent of total revenues. |
|
|
|
|
|
|
|
(2) Decrease in 2009 is
related to a favorable forfeiture rate adjustment. |
|
|
|
|
|
|
CONTACT: BJ's Restaurants, Inc.
Greg Levin
(714) 500-2400
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