BJ's Restaurants (BJRI) Beats Q1 Earnings & Revenue Estimates

BJ’s Restaurants, Inc. BJRI reported better-than-expected earnings and revenues in first-quarter 2018.

Adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 54 cents by 24.1%. The bottom line surged 59.5% year over year on the back of improved comps and restaurant operating margins. Quarterly revenues of $278.5 million topped the consensus estimate of $274.5 million by 1.5%. Revenues also grew 8% year over year, driven by growth in traffic and comps.

The company’s diverse sales-driving efforts bolstered top-line performance. BJ Restaurants’ high-quality slow-roasted menu has been favoring growth in foot traffic, while daily Brewhouse Specials have contributed directly to the company’s top line.

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise

 

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise | BJ's Restaurants, Inc. Quote

Although there was no share price movement in afterhours trading, BJ’s Restaurants’ shares have returned 9.9% in the past year, outperforming the industry’s 4.6% rise.

Let’s delve deeper into the numbers.

Comps, Expenses & Operating Margins

Comps in the first quarter grew 4.2%, comparing favorably with 1.6% increase in the fourth quarter of 2017 and year-ago quarter’s decline of 1.3%. Comps grew on strong traffic gains of 0.4% in the quarter.

Labor costs, as a percentage of sales, increased 30 basis points (bps) in the reported quarter to 36.1%, whereas operating costs were 20.6% of net sales, down 30 bps year over year.

Restaurant-level operating margin was 18.2%, up 30 bps from the year-ago quarter’s tally. In order to counter high costs prevalent in the industry, the company is undertaking various cost- savings and efficiency initiatives to drive margins.

Balance Sheet

As of Apr 3, 2018, cash and cash equivalents totaled $28.7 million, compared with $24.3 million as of Jan 2, 2018.

Total debt declined to $158.5 million at the end of first-quarter 2018, from $163.5 million at the end of fourth-quarter 2017.

During the first quarter, the company repurchased approximately 0.1 million shares of its common stock at approximately $5.6 million. Additionally, the company declared a cash dividend of 11 cents per share of common stock payable on Mar 28, 2018, to shareholders of record at the close of business on Mar 14, 2018.

Zacks Rank & Peer Releases

BJ’s Restaurants carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Darden DRI reported mixed third-quarter fiscal 2018 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues lagged the same. Adjusted earnings of $1.71 per share increased 29.5% year over year on the back of higher revenues.

Restaurant Brands’ QSR first-quarter 2018 earnings and revenues surpassed the Zacks Consensus Estimate. Earnings under the previous accounting standard came in at 67 cents, growing 86.1% year over year.

Chipotle’s CMG first-quarter 2018 earnings surpassed analysts’ expectations while revenues were in line with the same. Adjusted earnings of $2.13 grew 33.1% from the year-ago quarter driven by higher revenues and lower food costs.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
 
BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
 
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
 
Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research