Fiscal Fourth Quarter 2023 Compared to Fourth Quarter 2022
- Total revenues decreased 6.0% to
$323.6 million (13 weeks vs. 14 weeks)- Excluding the extra operating week in fiscal 2022, fourth quarter 2023 revenues increased 0.9% compared to the same quarter in the prior year
- Comparable restaurant sales increased 0.6% (13 weeks vs. 13 weeks)
- Total restaurant operating weeks decreased 6.1% (13 weeks vs. 14 weeks)
- Net income of
$8.1 million , compared to$4.0 million ; diluted net income per share of$0.34 , compared to$0.17 (13 weeks vs. 14 weeks) - Adjusted EBITDA of
$27.3 million , compared to$26.1 million , as described below in the reconciliation between GAAP and non-GAAP adjusted financial measures (13 weeks vs. 14 weeks)
Fourth quarter 2022 includes gift card breakage revenue of
Fiscal 2023 Compared to Fiscal 2022
- Total revenues increased 3.8% to
$1.3 billion (52 weeks vs. 53 weeks)- Excluding the extra operating week, fiscal 2023 total revenues increased 5.5% compared to the prior year
- Comparable restaurant sales increased 3.7% (52 weeks vs. 52 weeks)
- Total restaurant operating weeks decreased 0.5% (52 weeks vs. 53 weeks)
- Net income of
$19.7 million , compared to$4.1 million ; diluted net income per share of$0.82 , compared to$0.17 (52 weeks vs. 53 weeks) - Adjusted EBITDA of
$103.8 million , compared to$77.9 million , as described below in the reconciliation between GAAP and non-GAAP adjusted financial measures (52 weeks vs. 53 weeks)
Fiscal 2022 includes gift card breakage revenue of
“BJ’s solid fourth quarter results demonstrate the operational excellence being delivered in our restaurants and the significant progress we are making with productivity and margin enhancement initiatives,” commented
In fiscal 2023, BJ’s opened five new restaurants, including its first in the state of
Capital Expenditures, Capital Allocation and Share Repurchases
The Company is focused on delivering value to its shareholders through its disciplined approach to capital allocation, new restaurant growth, restaurant remodels, and sales and productivity initiatives. “Consistent with the strategy outlined during our November Investor Day, we continue to take a disciplined approach to capital allocation, including new restaurant growth relative to new restaurant costs, with our overall restaurant economics guiding the timing for accelerated growth and related capital expenditures. This approach serves BJ’s, our guests and shareholders well while allowing us to use our growing cash flows to enhance shareholder value through share repurchases and debt reduction,” continued Levin.
“During 2024, we expect total capital expenditures of approximately
During the fourth quarter of 2023, the Company repurchased and retired approximately 0.3 million shares of its common stock at a cost of approximately
Investor Conference Call and Webcast
BJ’s
About BJ’s
BJ’s
Forward-Looking Statements Disclaimer
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute “forward-looking” statements for purposes of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales and margins, total potential domestic capacity, the success of various sales-building and productivity initiatives, future guest traffic trends, on and off-premise sales trends, cost savings initiatives and the number and timing of new restaurants expected to be opened in future periods. These “forward-looking” statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) the effects of another pandemic on our operations, labor and staffing, guest traffic, our supply chain and the ability of our suppliers to continue to timely deliver food and other supplies necessary for the operation of our restaurants, the ability to manage costs and reduce expenditures and the availability of additional financing, (ii) any inability or failure to successfully and sufficiently raise menu prices to offset rising costs, (iii) any inability to manage new restaurant openings, (iv) construction delays, (v) wage inflation and competitive labor market conditions which may result in staffing shortages, (vi) the impact of any union organizing efforts at our restaurants and our responses to such efforts, (vii) increases in minimum wage and other employment related costs, including compliance with the Patient Protection and Affordable Care Act and minimum salary requirements for exempt team members, (viii) the effect of credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (ix) food quality and health concerns and the effect of negative publicity about us, our restaurants, other restaurants, or others across the food supply chain, due to food borne illness or other reasons, whether or not accurate, (x) factors that impact
For further information, please contact
BJ’s | |||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||
(Dollars in thousands except for per share data) | |||||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
Revenues | $ | 323,635 | 100.0 | % | $ | 344,152 | 100.0 | % | $ | 1,333,229 | 100.0 | % | $ | 1,283,926 | 100.0 | % | |||||
Restaurant operating costs (excluding depreciation and amortization): | |||||||||||||||||||||
Cost of sales | 82,426 | 25.5 | 92,241 | 26.8 | 346,569 | 26.0 | 349,645 | 27.2 | |||||||||||||
Labor and benefits | 118,261 | 36.5 | 126,494 | 36.8 | 491,314 | 36.9 | 483,367 | 37.6 | |||||||||||||
Occupancy and operating | 76,481 | 23.6 | 80,958 | 23.5 | 317,559 | 23.8 | 306,150 | 23.8 | |||||||||||||
General and administrative | 21,730 | 6.7 | 19,290 | 5.6 | 82,103 | 6.2 | 73,333 | 5.7 | |||||||||||||
Depreciation and amortization | 17,793 | 5.5 | 17,488 | 5.1 | 70,992 | 5.3 | 70,385 | 5.5 | |||||||||||||
Restaurant opening | 207 | 0.1 | 1,534 | 0.4 | 2,808 | 0.2 | 3,644 | 0.3 | |||||||||||||
Loss on disposal and impairment of assets, net | 3,419 | 1.1 | 5,226 | 1.5 | 8,125 | 0.6 | 6,200 | 0.5 | |||||||||||||
Gain on lease transactions, net | - | - | (3,318) | (1.0) | - | - | (3,318) | (0.3) | |||||||||||||
Total costs and expenses | 320,317 | 99.0 | 339,913 | 98.8 | 1,319,470 | 99.0 | 1,289,406 | 100.4 | |||||||||||||
Income (loss) from operations | 3,318 | 1.0 | 4,239 | 1.2 | 13,759 | 1.0 | (5,480) | (0.4) | |||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense, net | (1,673) | (0.5) | (1,173) | (0.3) | (4,915) | (0.4) | (2,888) | (0.2) | |||||||||||||
Other income, net | 441 | 0.1 | 578 | 0.2 | 1,256 | 0.1 | 60 | - | |||||||||||||
Total other expense | (1,232) | (0.4) | (595) | (0.2) | (3,659) | (0.3) | (2,828) | (0.2) | |||||||||||||
Income (loss) before income taxes | 2,086 | 0.6 | 3,644 | 1.1 | 10,100 | 0.8 | (8,308) | (0.6) | |||||||||||||
Income tax benefit | (5,965) | (1.8) | (317) | (0.1) | (9,560) | (0.7) | (12,384) | (1.0) | |||||||||||||
Net income | $ | 8,051 | 2.5 | % | $ | 3,961 | 1.2 | % | $ | 19,660 | 1.5 | % | $ | 4,076 | 0.3 | % | |||||
Net income per share: | |||||||||||||||||||||
Basic | $ | 0.35 | $ | 0.17 | $ | 0.84 | $ | 0.17 | |||||||||||||
Diluted | $ | 0.34 | $ | 0.17 | $ | 0.82 | $ | 0.17 | |||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||
Basic | 23,245 | 23,386 | 23,452 | 23,405 | |||||||||||||||||
Diluted | 23,722 | 23,762 | 23,923 | 23,662 |
Percentages reflected above may not reconcile due to rounding.
BJ’s | |||||
Selected Consolidated Balance Sheet Information | |||||
(Dollars in thousands) | |||||
(unaudited) | |||||
Cash and cash equivalents | $ | 29,070 | $ | 24,873 | |
Total assets | $ | 1,058,454 | $ | 1,045,922 | |
Total debt | $ | 68,000 | $ | 60,000 | |
Shareholders’ equity | $ | 365,761 | $ | 345,515 | |
BJ’s | ||||||||||||||||||||||||
Unaudited Supplemental Information | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | |||||||||||||||||||||||
Stock-based compensation (1) | ||||||||||||||||||||||||
Labor and benefits | $ | 730 | 0.2 | % | $ | 842 | 0.2 | % | $ | 2,583 | 0.2 | % | $ | 2,886 | 0.2 | % | ||||||||
General and administrative | 2,083 | 0.6 | 1,647 | 0.5 | 8,319 | 0.6 | 7,212 | 0.6 | ||||||||||||||||
Total stock-based compensation | $ | 2,813 | 0.9 | % | $ | 2,489 | 0.7 | % | $ | 10,902 | 0.8 | % | $ | 10,098 | 0.8 | % | ||||||||
Operating Data | ||||||||||||||||||||||||
Comparable restaurant sales % change | 0.6% (2) | 6.6% (2) | 3.7% (2) | 14.0% (2) | ||||||||||||||||||||
Restaurants opened during period | - | 3 | 5 | 6 | ||||||||||||||||||||
Restaurants open at period-end | 216 (3) | 216 (3) | 216 (4) | 216 (5) | ||||||||||||||||||||
Restaurant operating weeks | 2,821 (6) | 3,004 (6) | 11,242 (6) | 11,295 (6) |
(1) | Percentages represent percent of total revenues. | |
(2) | Comparable restaurant sales are presented on a 13-week vs. 13-week and 52-week vs. 52-week basis. | |
(3) | During the period, one restaurant was permanently closed. | |
(4) | During the period, five restaurants were permanently closed. | |
(5) | During the period, two restaurants were permanently closed. | |
(6) | Fourth quarter and fiscal year ended |
Note Regarding Non-GAAP Financial Measures
The Company is reporting below certain non-GAAP financial results and related reconciliations to the corresponding GAAP financial measures. These non-GAAP measures are not in accordance with, or a substitute for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. These measures should only be used to evaluate the Company’s results of operations in conjunction with corresponding GAAP measures.
Reconciliation of Selected GAAP Financial Measures to Non-GAAP Adjusted Financial Measures
To supplement the consolidated financial statements presented in accordance with
For the fourth quarter and fiscal year ended
Reconciliation of Non-GAAP Adjusted Financial Measures | |||||||||||||||||
(Unaudited, dollars in thousands except for per share data) | |||||||||||||||||
Fourth Quarter Ended | |||||||||||||||||
$ | % | Per Share | $ | % | Per Share | ||||||||||||
Net income & diluted net income share, as reported | $ | 8,051 | 2.5 | % | $ | 0.34 | $ | 3,961 | 1.2 | % | $ | 0.17 | |||||
Gift card breakage estimate change (1) | - | - | - | (3,186 | ) | (0.9 | ) | (0.13 | ) | ||||||||
Tax effect – Gift card breakage estimate change (2) | - | - | - | 771 | 0.2 | 0.03 | |||||||||||
Non-GAAP adjusted net income & diluted net income per share | $ | 8,051 | 2.5 | % | $ | 0.34 | $ | 1,546 | 0.4 | % | $ | 0.07 | |||||
Fiscal Year Ended | |||||||||||||||||
$ | % | Per Share | $ | % | Per Share | ||||||||||||
Net income & diluted net income per share, as reported | $ | 19,660 | 1.5 | % | $ | 0.82 | $ | 4,076 | 0.3 | $ | 0.17 | ||||||
Gift card breakage estimate change (1) | - | - | - | (3,186 | ) | (0.2 | ) | (0.13 | ) | ||||||||
Tax effect – Gift card breakage estimate change (2) | - | - | - | 771 | 0.1 | 0.03 | |||||||||||
Non-GAAP adjusted net income & diluted net income per share | $ | 19,660 | 1.5 | % | $ | 0.82 | $ | 1,661 | 0.1 | % | $ | 0.07 |
Per share amounts and percentages reflected above may not reconcile due to rounding.
Percentages represent percent of total revenues.
(1) | Included in “Revenues” on the Consolidated Statements of Operations. | |
(2) | The tax effect is based on the Company’s annual effective tax rate of 24.2% for fiscal year ending |
Restaurant Level Operating Margin
Restaurant level operating margin, a non-GAAP financial measure, is equal to the revenues generated by our restaurants less their direct operating costs which consist of cost of sales, labor and benefits, and occupancy and operating costs. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other operating costs that are essential to conduct the Company’s business, as detailed in the table below. Management uses restaurant level operating margin as a supplemental measure of restaurant performance. Management believes restaurant level operating margin is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate restaurant level operating margin differently than we do, restaurant level operating margin as presented herein may not be comparable to similarly titled measures reported by other companies.
A reconciliation of income (loss) from operations to restaurant level operating margin for the fourth quarter and fiscal year ended
Supplemental Financial Information – Restaurant Level Operating Margin | |||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||||
Income (loss) from operations | $ | 3,318 | 1.0 | % | $ | 4,239 | 1.2 | % | $ | 13,759 | 1.0 | % | $ | (5,480 | ) | (0.4 | )% | ||
General and administrative | 21,730 | 6.7 | 19,290 | 5.6 | 82,103 | 6.2 | 73,333 | 5.7 | |||||||||||
Depreciation and amortization | 17,793 | 5.5 | 17,488 | 5.1 | 70,992 | 5.3 | 70,385 | 5.5 | |||||||||||
Restaurant opening | 207 | 0.1 | 1,534 | 0.4 | 2,808 | 0.2 | 3,644 | 0.3 | |||||||||||
Loss on disposal and impairment of assets, net | 3,419 | 1.1 | 5,226 | 1.5 | 8,125 | 0.6 | 6,200 | 0.5 | |||||||||||
Gain on lease transactions, net | - | - | (3,318 | ) | (1.0 | ) | - | - | (3,318 | ) | (0.3 | ) | |||||||
Restaurant level operating margin (1) | $ | 46,467 | 14.4 | % | 44,459 | 12.9 | % | $ | 177,787 | 13.3 | % | $ | 144,764 | 11.3 | % |
Percentages above represent percent of total revenues and may not reconcile due to rounding.
(1) | The fourth quarter and fiscal year ended |
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
Adjusted EBITDA is a non-GAAP financial measure that represents the sum of net income adjusted for certain expenses and gains/losses detailed within the reconciliation below. Management uses Adjusted EBITDA as a supplemental measure of our performance. Management believes these measures are useful to investors in that they highlight cash flow and trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate these measures differently than we do, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.
A reconciliation of net income to Adjusted EBITDA for the fourth quarter and fiscal year ended
Supplemental Financial Information – Net Income to Adjusted EBITDA | |||||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||||||
Net income (1) | $ | 8,051 | 2.5 | % | $ | 3,961 | 1.2 | % | $ | 19,660 | 1.5 | % | $ | 4,076 | 0.3 | % | |||||
Interest expense, net | 1,673 | 0.5 | 1,173 | 0.3 | 4,915 | 0.4 | 2,888 | 0.2 | |||||||||||||
Income tax benefit | (5,965) | (1.8) | (317) | (0.1) | (9,560) | (0.7) | (12,384) | (1.0) | |||||||||||||
Depreciation and amortization | 17,793 | 5.5 | 17,488 | 5.1 | 70,992 | 5.3 | 70,385 | 5.5 | |||||||||||||
Stock-based compensation expense | 2,813 | 0.9 | 2,489 | 0.7 | 10,902 | 0.8 | 10,098 | 0.8 | |||||||||||||
Other income, net | (441) | (0.1) | (578) | (0.2) | (1,256) | (0.1) | (60) | - | |||||||||||||
Loss on disposal and impairment of assets, net | 3,419 | 1.1 | 5,226 | 1.5 | 8,125 | 0.6 | 6,200 | 0.5 | |||||||||||||
Gain on lease transactions, net | - | - | (3,318) | (1.0) | - | - | (3,318) | (0.3) | |||||||||||||
Adjusted EBITDA | $ | 27,343 | 8.4 | % | $ | 26,124 | 7.6 | % | $ | 103,778 | 7.8 | % | $ | 77,885 | 6.1 | % |
Percentages above represent percent of total revenues and may not reconcile due to rounding.
(1) | The fourth quarter and fiscal year ended |
Source:
2024 GlobeNewswire, Inc., source