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BJ’s Restaurants Beats on Earnings and Revenue

Posted by on April 27, 2017 7:47 PM
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Categories: Stocks

April 27, 2017: BJ’s Restaurants reports Q1 EPS of $0.42 versus the $0.34 estimate. Revenue also beat coming in at $258 million versus the $256 million estimate.

The CEO Gregory A. Trojan said, “Our sales momentum in the latter part of the quarter partially offset the impact from extreme California rains and calendar shifts. The ongoing excellent work of our operators, combined with our operating disciplines, industry leading average unit volumes and the operating leverage in our business model, enabled BJ’s to deliver another quarter of solid earnings. The launch of our new handheld server tablets is also on schedule, with 86 restaurants now using the new technology. The handheld server tablets continue to drive improvements in items per order incident rates while speeding up order times, thereby enhancing guest satisfaction ratings. Our tests of third party delivery services also continued during the quarter, and we look forward to launching this offering in our restaurants later this year. Most importantly, our team members are embracing these new initiatives and continue to deliver exceptional guest service every day and on every shift.”

February 24, 2017: BJ’s Restaurants reports Q4 EPS of $0.55 versus the $0.40 estimate. Revenue also beat coming in at $265.6 million versus the $265 million estimate. Same store sales fell -2.2%.

Comments: “Despite a challenging industry-wide operating environment, we continued to increase our market share, as we outpaced the industry in terms of traffic and comparable sales for both the fourth quarter and fiscal 2016,… Our operators did an excellent job managing the many factors that influence our financial results to deliver another period of solid earnings. Notwithstanding the environment, our operating discipline, combined with our ability to consistently generate industry leading average unit volumes and strong new openings, drove solid fourth quarter net income and diluted net income per share.”

Sales Initiative:
“To address the currently soft operating environment, we are implementing several major salesbuilding initiatives which have been tested over the past year… First, we recently began the installation of new slow roasting ovens in our restaurants and expect to have this new cooking equipment in all of our locations by May. These ovens allow us to slow cook meat and poultry, such as prime rib, turkey, pork chops and pork shoulder, which will strengthen and diversify our menu offerings and quality value proposition throughout 2017 and beyond. Our test with a new slow roasted prime rib dinner in a select number of restaurants throughout 2016 was very well received by our guests. Second, we are rolling out new server handheld ordering tablets in all of our restaurants. In tests during 2016, these handheld devices drove an improvement in order times, greater incident rates and improved guest satisfaction ratings. Third, off-premise sales represent a significant revenue growth opportunity, and we are currently testing third party delivery services that leverage our existing mobile app and online ordering system. In fiscal 2016, off-premise sales represented approximately 5% of our revenues, compared to an industry average of approximately 10%. Fourth, we will be expanding our daily ‘Brewhouse’ specials which showcase several of our most popular signature menu items including our signature deep-dish pizza, world-renowned Pizookie® dessert and BJ’s award-winning handcrafted beer, all at attractive prices. In addition to these four strategic initiatives, we’ve also developed a deep pipeline of new menu items, loyalty program enhancements and other productivity initiatives that will be implemented in 2017. Taken together, we believe this to be one of our strongest-ever sales initiative plans.”

February 12, 2017: I’m hearing takeover rumors circulating about BJ’s Restaurants. The rumor is that Darden may be interested in acquiring BJ’s Restaurants. The source of the rumors appears to come from this article: https://www.thestreet.com/story/13993863/1/olive-garden-parent-company-darden-is-ready-for-a-blockbuster-deal.html

I think BJ’s is an excellent takeover candidate right now as its market cap is $901 million and yet the company will do about $960 million in sales in 2016.

February 6, 2017: Keybanc/Pacific Crest reiterates BJ’s Restaurants with an Overweight rating and a price target of $45. Keybanc/Pacific Crest thinks the acquisition of BJRI by DRI could create long-term value for both companies.

BJ’s Restaurants Stock Chart


The Finviz screener settings used to find BJ’s Restaurants are: Forward P/E Under 20, EPS growth this year 75% – 80%, EPS growth past 5 years Over 15%, Sales growth past 5 years Over 10%, Institutional Transactions Positive (>0%)

BJ’s Restaurants, Inc. owns and operates 186 restaurants as of November 2016, located the 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington. Each of our restaurants is operated either as a BJ’s Restaurant & Brewery ® which includes a brewery within the restaurant, a BJ’s Restaurant & Brewhouse ® which receives the beer it sells from one of our breweries or independent third party brewers of our proprietary beer recipes, or a BJ’s Pizza & Grill ® which is a smaller format, full service restaurant with a more limited menu than our other restaurants. Our menu features our BJ’s ® award-winning, signature deep-dish pizza, our own handcrafted beers as well as a wide selection of appetizers, entrees, pastas, sandwiches, specialty salads and desserts including our unique Pizookie ® dessert. Several of our BJ’s Restaurant & Brewery restaurants feature in-house brewing facilities where BJ’s proprietary handcrafted beers are produced for many of our restaurants.

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