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Bj's Restaurants (BJRI)
NASDAQ:BJRI
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BJ's Restaurants
(NASDAQ:BJRI)
67Neutral
Positive Factors
Marketing and Sales
Targeted marketing efforts drove a solid traffic response in key markets, with an encouraging lift in TX and FL.
Strategic Initiatives
Management's recent strategic efforts have shown material margin progress and generated operating results that exceeded consensus on all metrics.
Negative Factors
Labor and Cost Challenges
Margin downside and EBITDA miss were driven by elevated discounting, promotional actions, and incremental labor and marketing investment.
Weather Impact
Weather-related pressure has muted February results, and management expects full 1Q SSS results to be adversely impacted.
BJ's Restaurants (BJRI) vs. S&P 500 (SPY)
Market Cap
$721.98M
Dividend YieldN/A
Average Volume (3M)345.57K
Price to Earnings (P/E)46.8
Beta (1Y)1.18
Revenue Growth1.81%
EPS Growth-15.53%
CountryUS
Employees21,230
SectorConsumer Cyclical
Sector Strength64
IndustryRestaurants
Share Statistics
EPS (TTM)0.68
Shares Outstanding22,718,160
10 Day Avg. Volume362,423
30 Day Avg. Volume345,566
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)N/A
Price to Sales (P/S)0.57
Price to Cash Flow (P/CF)6.10
P/FCF Ratio11.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.00Price Target Upside28.49% Upside
Rating ConsensusHold
Number of Analyst Covering6
BJ's Restaurants Business Overview & Revenue Model
Company DescriptionBJ's Restaurants, Inc. (BJRI) is an American restaurant chain known for its diverse menu that includes deep-dish pizza, craft beers, and a variety of American-style meals. The company operates in the casual dining sector and is recognized for its unique dining experience, which combines high-quality food with a lively atmosphere. BJ's Restaurants are primarily located in the United States, serving a broad demographic of diners seeking a casual yet engaging dining experience.
How the Company Makes MoneyBJ's Restaurants, Inc. generates revenue primarily through the sale of food and beverages at its restaurant locations. The company's revenue streams are predominantly derived from dine-in services, takeout, and delivery options. Additionally, BJ's benefits from its in-house brewery operations, producing and selling a selection of craft beers under the BJ's Brewhouse brand. While the core of its earnings comes from direct restaurant sales, BJ's occasionally engages in strategic partnerships and promotional activities aimed at enhancing brand visibility and attracting more customers. The company also leverages its loyalty programs and marketing initiatives to drive repeat visits and increase average customer spend.
BJ's Restaurants Financial Statement Overview
Summary
BJ's Restaurants demonstrates solid revenue growth and effective cost management, with a strong gross profit margin. While profitability remains a challenge, the company has shown improvement in cash flow generation. The balance sheet is conservatively leveraged but could benefit from enhanced profitability and shareholder returns. Overall, BJ's Restaurants is in a stable financial position with opportunities for further growth and efficiency gains.Income Statement
BJ's Restaurants has demonstrated consistent revenue growth with a 5.9% increase from 2023 to 2024. The company maintains a healthy gross profit margin of 74.2%, indicating strong cost management. However, the net profit margin of 1.2% suggests tight profitability, reflecting industry challenges. The EBIT and EBITDA margins are modest at 1.0% and 5.6%, respectively, pointing to potential improvements in operational efficiency.74
Positive
Balance Sheet
The balance sheet shows a debt-to-equity ratio of 1.35, indicating a moderate level of leverage. The equity ratio stands at 35.5%, suggesting a stable capital structure. Return on equity is modest at 4.5%, highlighting the need for improved profitability to enhance shareholder returns. Overall, the balance sheet reflects a cautiously leveraged position with room for optimization.68
Positive
Cash Flow
The company shows a positive free cash flow growth rate of 254.8% from 2023 to 2024, indicating improved cash generation capacity. The operating cash flow to net income ratio of 6.1 suggests strong cash earnings relative to reported profits. The free cash flow to net income ratio of 1.5 further supports healthy cash flow management, though improvements can still be made in capital expenditure efficiency.70
Positive
| Breakdown | ||||
| Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.36B | 1.33B | 1.28B | 1.09B | 778.51M | Gross Profit |
| 1.01B | 177.79M | 144.76M | 129.63M | 56.42M | EBIT |
| 14.08M | 13.76M | 780.00K | -10.23M | -68.02M | EBITDA |
| 86.49M | 86.01M | 67.79M | 60.19M | 5.11M | Net Income Common Stockholders |
| 16.69M | 19.66M | 4.08M | -3.61M | -57.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.10M | 29.07M | 24.87M | 38.53M | 54.01M | Total Assets |
| 1.04B | 1.06B | 1.05B | 1.04B | 1.06B | Total Debt |
| 500.61M | 519.50M | 532.71M | 525.26M | 610.48M | Net Debt |
| 474.51M | 490.43M | 507.84M | 486.73M | 556.47M | Total Liabilities |
| 671.05M | 692.69M | 700.41M | 701.39M | 765.64M | Stockholders Equity |
| 370.02M | 365.76M | 345.51M | 333.77M | 293.79M |
| Cash Flow | Free Cash Flow | |||
| 24.57M | 6.92M | -27.48M | 22.10M | -2.78M | Operating Cash Flow |
| 101.47M | 105.84M | 51.12M | 64.28M | 40.54M | Investing Cash Flow |
| -76.89M | -98.91M | -71.91M | -42.17M | -35.72M | Financing Cash Flow |
| -27.55M | -2.73M | 7.13M | -35.25M | 24.45M |
BJ's Restaurants Technical Analysis
Negative
31.91
Price Trends
34.97
Negative
35.36
Negative
34.29
Negative
Market Momentum
-0.07
Negative
53.25
Neutral
64.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BJRI, the sentiment is Negative. The current price of 31.91 is below the 20-day moving average (MA) of 33.53, below the 50-day MA of 34.97, and below the 200-day MA of 34.29, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 64.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BJRI.
BJ's Restaurants Risk Analysis
BJ's Restaurants disclosed 25 risk factors in its most recent earnings report. BJ's Restaurants reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BJ's Restaurants Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $857.18M | 26.21 | 8.16% | ― | 4.51% | 43.99% | |
71 Outperform | $2.28B | 14.39 | 41.18% | 2.34% | 4.13% | 56.76% | |
67 Neutral | $721.98M | 46.80 | 4.54% | ― | 1.81% | -15.53% | |
59 Neutral | $11.48B | 10.33 | -0.84% | 4.02% | 1.25% | -16.06% | |
57 Neutral | $867.61M | 24.32 | 7.80% | 5.00% | 2.26% | -56.99% | |
53 Neutral | $644.34M | 14.87 | -0.64% | ― | -0.88% | -106.84% | |
46 Neutral | $466.37M | ― | 4.15% | 7.12% | -6.02% | -136.86% |
* Consumer Cyclical Sector Average
Performance Comparison
BJRI
BJ's Restaurants
31.91
-0.90
-2.74%
BH
Biglari Holdings
209.68
16.66
8.63%
CBRL
Cracker Barrel
40.97
-18.57
-31.19%
JACK
Jack In The Box
24.73
-32.53
-56.81%
CAKE
Cheesecake Factory
46.08
13.31
40.62%
PTLO
Portillo's
12.00
-0.68
-5.36%
BJ's Restaurants Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -10.72% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong financial performance in Q4 2024, marked by record profitability and successful marketing initiatives. However, there are concerns about weather impacts and consumer spending, as well as challenges with food cost inflation and a net loss in the quarter due to extraordinary items.Highlights
Strong Comparable Sales Growth
Comparable same-restaurant sales increased by 5.5% in Q4 2024, driven primarily by guest traffic, marking the best comp performance since 2018, excluding COVID recovery quarters.
Record Q4 Restaurant Profitability
Restaurant level operating profit reached $52.9 million in Q4, a 14% increase from last year, setting a record for Q4 restaurant profitability.
Adjusted EBITDA Growth
Adjusted EBITDA was $33.1 million in Q4, a 21% increase from the prior year, with a 120 basis points improvement in adjusted EBITDA margin.
Successful Marketing Initiatives
The Pizookie Meal Deal and holiday large party offerings resonated with guests, driving traffic and sales, especially in media markets.
Positive Brand Positioning and Future Growth Plans
Notable progress on brand positioning and growth initiatives, with plans to remodel up to 30 locations in 2025 and open a new restaurant.
Lowlights
Weather and Consumer Spending Concerns
Sales trends softened due to weather impacts in certain markets and general conservatism in consumer spending post-holidays, affecting Q1 expectations.
Food Cost Inflation
Food cost inflation was approximately 3.5% year-over-year, leading to a 40 basis points increase in cost of sales, which outpaced menu pricing.
Net Loss in Q4
Reported a net loss of $5.3 million and diluted net loss per share of $0.23 on a GAAP basis for Q4, including charges for asset disposals and leadership transition costs.
Company Guidance
In the BJ's Restaurants Fourth Quarter 2024 Earnings Release Conference Call, the company reported robust financial performance and provided guidance for 2025. Comparable same-restaurant sales increased by 5.5%, driven primarily by guest traffic across all dayparts and channels. The restaurant-level margins improved to 15.4%, with operating profit reaching $52.9 million, a 14% increase from the previous year, marking a record for Q4 profitability. Adjusted EBITDA was $33.1 million, up 21% from the prior year, with a margin improvement of 120 basis points to 9.6%. For 2025, BJ's Restaurants anticipates comparable sales growth of 2% to 3%, restaurant-level operating profit between $205 million and $215 million, and adjusted EBITDA ranging from $127 million to $137 million. The company plans capital expenditures of $65 million to $75 million, including the opening of one new restaurant and remodeling up to 30 existing locations. Additionally, they expect to repurchase $40 million to $50 million of shares, reflecting confidence in their growth trajectory.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.