BJs Restaurants Reports Modest Revenue Growth and Improved Profitability in Latest Quarter

BJ's Restaurants, Inc. reported its financial results for the thirteen and thirty-nine weeks ended October 1, 2024, showing a modest increase in revenues and significant improvements in profitability compared to the previous fiscal period.

For the thirteen weeks ended October 1, 2024, total revenues reached $325.7 million, up $7.1 million or 2.2% from $318.6 million in the same period of 2023. This growth was driven by a 1.7% increase in comparable restaurant sales, contributing $5.2 million, and $5.4 million from new restaurant openings. However, this was partially offset by a $2.7 million decline from closed restaurants and a $0.7 million decrease related to gift card breakage and loyalty redemptions. Guest traffic rose by approximately 1.3%, while the average check increased by 0.4% due to menu price adjustments.

In terms of profitability, BJ's reported a net loss of $2.9 million for the thirteen weeks ended October 1, 2024, an improvement from a net loss of $3.8 million in the prior year. The basic and diluted net loss per share for this period was $(0.13), compared to $(0.16) in the same quarter of 2023. For the thirty-nine weeks ended October 1, 2024, the company achieved a net income of $22.0 million, significantly higher than the $11.6 million reported for the same period in 2023, resulting in basic and diluted net income per share of $0.94 and $0.92, respectively.

Total current assets decreased to $64.5 million as of October 1, 2024, from $83.0 million at the beginning of the year, while total assets slightly declined to $1.04 billion. Total shareholders’ equity increased to $376.2 million, up from $365.8 million.

Operating expenses reflected a mixed trend. Cost of sales rose by $4.0 million, or 4.9%, to $86.7 million, primarily due to higher commodity costs. Labor and benefit costs increased by $2.5 million, maintaining a consistent percentage of revenues. General and administrative expenses rose by $1.5 million, or 7.6%, attributed to higher legal fees and personnel costs.

The company also reported a decrease in net cash used in investing activities to $61.0 million from $82.0 million in the previous year, with capital expenditures for fiscal 2024 estimated at approximately $75 million. Additionally, BJ's repurchased approximately $17.1 million worth of shares during the thirty-nine weeks ended October 1, 2024, with $44.0 million remaining under its share repurchase program.

Overall, BJ's Restaurants demonstrated resilience in revenue growth and profitability improvements, despite facing challenges such as rising commodity costs and operational expenses.