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BJ's Restaurants, Inc. BJRI reported solid first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis.
Following the results, the company’s shares gained 6.6% during the post-market trading session yesterday. Positive investor sentiments were witnessed as BJRI provided a better-than-expected outlook for 2025. Management also increased expectations for capital returns to its shareholders, citing the strong momentum of first-quarter results and progress on key initiatives.
BJRI’s Q1 Earnings & Revenues
For the quarter under review, the company reported adjusted earnings per share (EPS) of 59 cents, beating the Zacks Consensus Estimate of 40 cents. In the year-ago quarter, it recorded an adjusted EPS of 35 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues of $348 million beat the consensus mark by 0.1%. The top line increased 3.2% year over year. The upside was backed by strong guest traffic and Pizookie Meal Deal performance.
BJ's Restaurants, Inc. Price, Consensus and EPS Surprise
BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote
Comparable restaurant sales increased 1.7% year over year against a 1.7% decline in the prior-year quarter. Our model predicted the metric to increase 1.8% from the year-ago level.
BJRI’s Q1 Expenses & Operating Margins
During the quarter under review, labor costs, as a percentage of sales, were 36.1% compared with 37.1% in the year-ago quarter. Our estimate was 37.1%.
Occupancy and operating costs (as a percentage of sales) were 23% compared with 22.8% reported in the year-ago quarter. We estimated the metric to be 22.3%.
General and administrative expenses (as a percentage of sales) of 6.3% declined 50 basis points on a year-over-year basis. Our prediction was 6.4%.
Restaurant-level operating margin was 16%, compared with 15% reported in the year-earlier quarter. We estimated the metric to be 15.8%.
Balance Sheet
As of April 1, 2025, cash and cash equivalents totaled $19 million, compared with $26.1 million as of fiscal 2024 end. Total debt amounted to $85.5 million compared with $66.5 million in fiscal 2024 end.
BJ's Restaurants’ FY25 Outlook
For fiscal 2025, the company expects comparable restaurant sales to increase by 2% to 3% year over year. Management anticipates restaurant-level operating profit to range between $210 million and $219 million compared with the previous expectation of $205 million and $215 million.
Adjusted EBITDA is forecast to be $131-$140 million compared with the previous expectation of $127-$137 million. Capital expenditure is expected between $65 million and $75 million. The company anticipates share repurchases of $45 million to $55 million, up from the previous expectation of $40-$50 million.