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Category: Stock Market and BJ's Restaurants (BJRI)
Date: 27 July 2020 Stock Price of BJ's Restaurants: $20.94 We take a look at the 2nd quarter earnings report of their 2020 fiscal year of BJ's Restaurants with brewhouse roots and a menu with over 140 offerings where craft matters. During the 2nd quarter of the 2020 the group's revenues declined by 57.5% and they reported a loss of -$29 million as Covid-19 related lockdowns and stay at home orders hit the group's business hard.
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The character and talent of our restaurant teams continue to amaze me as our team members remain flexible and committed to building sales and taking care of our guests throughout this unprecedented time - Greg Trojan, BJ’s Chief Executive Officer. "
About BJ's Restaurant
BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots and a menu where craft matters. BJ’s broad menu with over 140 offerings has something for everyone: slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon, signature deep dish pizza and the often imitated, but never replicated world-famous Pizookie® dessert. BJ’s has been a pioneer in the craft brewing world since 1996, and takes pride in serving BJ’s award-winning proprietary handcrafted beers, brewed at its brewing operations in five states and by independent third party craft brewers. The BJ’s experience offers high-quality ingredients, bold flavors, moderate prices, sincere service and a cool, contemporary atmosphere. Founded in 1978, BJ’s owns and operates 209 casual dining restaurants in 29 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington. All restaurants offer dine-in, take-out, delivery and large party catering. Due to the COVID-19 pandemic, one of our restaurants remains temporarily closed, and dine-in service is currently limited or not available and menu offerings and hours are limited in our remaining 208 restaurants
Overview of BJ's Restaurants 2nd quarter 2020 earnings report
Data below refers to quarterly data unless specified otherwise:
- Revenues: $278.739 million (up from $270.268 million for the same period of the previous year)
- Revenues increased by 3.1% over the last 12 months
- Total costs and expenses: $275.469 million (up from $262.378 million for the same period of the previous year)
- Total costs and expenses by 4.9% over the last 12 months
- Net income: $3.671 million (up $8.561 million from for the same period of the previous year)
- Diluted earnings per share: $0.18 (down from $0.39 for the same period of the previous year)
- Diluted weighted-average shares outstanding:20,441 million (down from $21.807 million for the same period of the previous year)
- Cash and cash equivalents: $24.373 million
- Cash and cash equivalents per share: $1.19
- Cash and cash equivalents makes up 2.7% of BJ's Restaurants market capital
- Cash and cash equivalents makes up 2.3% of BJ's Restaurants total assets
- Stockholders equity in BJ's Restaurants: $286.565 million
- Stockholders equity per share in BJ's Restaurants: $14.10
- So BJ's Restaurants is trading at 3.07 times its stockholders equity per share which is within the expected range of between 2 and 4 most firms tend to trade at
BJ's Restaurants management commentary on their 2nd quarter 2020 results
HUNTINGTON BEACH, Calif., July 23, 2020 (GLOBE NEWSWIRE) -- BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its 2020 second quarter ended June 30, 2020 and provided a business update given the continued impact of the COVID-19 pandemic
“The character and talent of our restaurant teams continue to amaze me as our team members remain flexible and committed to building sales and taking care of our guests throughout this unprecedented time,” commented Greg Trojan, BJ’s Chief Executive Officer. “Since the COVID-19 outbreak began in March, we have taken active measures to ensure the safety of our guests and team members. Beginning in late March and in April, we closed our dining rooms and transitioned to a take-out and delivery only operating model. During that period, we expanded our average weekly off-premise sales per restaurant to more than $30,000 a week by late April, a threefold increase from pre-COVID levels. Throughout May and June, we reopened the majority of our dining rooms with capacity limitations for social distancing. By late June, our weekly sales average per restaurant improved to approximately $75,000, and we generated restaurant level cash flow margin percentages in the mid-teens range. Though below historical levels, these sales volumes and margins demonstrate the strength of the BJ’s brand and operating model, including our ability to drive efficiencies in our restaurants.”
“The character and talent of our restaurant teams continue to amaze me as our team members remain flexible and committed to building sales and taking care of our guests throughout this unprecedented time,” commented Greg Trojan, BJ’s Chief Executive Officer. “Since the COVID-19 outbreak began in March, we have taken active measures to ensure the safety of our guests and team members. Beginning in late March and in April, we closed our dining rooms and transitioned to a take-out and delivery only operating model. During that period, we expanded our average weekly off-premise sales per restaurant to more than $30,000 a week by late April, a threefold increase from pre-COVID levels. Throughout May and June, we reopened the majority of our dining rooms with capacity limitations for social distancing. By late June, our weekly sales average per restaurant improved to approximately $75,000, and we generated restaurant level cash flow margin percentages in the mid-teens range. Though below historical levels, these sales volumes and margins demonstrate the strength of the BJ’s brand and operating model, including our ability to drive efficiencies in our restaurants.”
Beginning the first week in July, certain counties throughout California and elsewhere ordered rollbacks of their dine-in re-opening plans. As a result, approximately 70% of our restaurant dining rooms are open today, in a limited capacity, compared to 95% in late June. “The entrepreneurial spirit of our restaurant operators was on full display as teams acted swiftly to create welcoming and comfortable outdoor seating areas around the perimeter of our restaurants as well as under large and lighted tents in our parking lots. These efforts have allowed us to continue to serve our guests in locations where indoor dining is not currently permitted and to expand our seating where dine-in capacity is limited. As a result, our restaurants are currently maintaining approximately 60% of historical business volumes compared to June when our restaurants recaptured more than 70% of historical business volumes,” added Trojan.
Trojan further noted, “We have recalled approximately 10,000 of our team members as we welcomed our guests back to our dining rooms and patios. We look forward to welcoming more team members back as we are solidly positioned to recapture our historical sales, margins and cash flow as the nation overcomes the pandemic and our restaurants return to more normal operations.”
The Company expects to open one more restaurant, in Orange Village, Ohio during the fourth quarter of this year. “While we have canceled or delayed all but one of our remaining new restaurant openings for fiscal 2020 due to the effects of the COVID-19 pandemic, we remain confident in the long-term opportunity to expand the BJ’s concept to at least 425 restaurants nationally. Our balanced approach between new restaurant growth and overall quality and hospitality, coupled with the strength of our balance sheet, positions us to resume our restaurant expansion program at the appropriate time,” concluded Trojan.
Trojan further noted, “We have recalled approximately 10,000 of our team members as we welcomed our guests back to our dining rooms and patios. We look forward to welcoming more team members back as we are solidly positioned to recapture our historical sales, margins and cash flow as the nation overcomes the pandemic and our restaurants return to more normal operations.”
The Company expects to open one more restaurant, in Orange Village, Ohio during the fourth quarter of this year. “While we have canceled or delayed all but one of our remaining new restaurant openings for fiscal 2020 due to the effects of the COVID-19 pandemic, we remain confident in the long-term opportunity to expand the BJ’s concept to at least 425 restaurants nationally. Our balanced approach between new restaurant growth and overall quality and hospitality, coupled with the strength of our balance sheet, positions us to resume our restaurant expansion program at the appropriate time,” concluded Trojan.
BJ's Restaurants (NASDAQ: BJRI) stock price history
The image below, obtained from Google, shows the stock price history of BJ's Restaurants over the last 5 years. And it's not been a good time for BJ's Restaurants stockholders. 5 years ago the stock was trading at around $51.60 a stock and its currently trading at $20.94 a stock. That's a loss of -59.4% suffered by BJ's Restaurants stockholders over the last 5 years.
The stock of BJ's Restaurants is trading at a lot closer to its 52 week low of $6.01 than it is to its 52 week high of $44.46 which to us is a clear indication that the short term sentiment and momentum of BJ's Restaurants stock is negative.
The stock of BJ's Restaurants is trading at a lot closer to its 52 week low of $6.01 than it is to its 52 week high of $44.46 which to us is a clear indication that the short term sentiment and momentum of BJ's Restaurants stock is negative.
BJ's Restaurants (BRJI) stock vs Darden Restaurants (DRI) stock
The image below shows the stock price history f BJ's Restaurants (BJRI) and Darden Restaurants (DRI) over the last 5 years. And as the image shows both restaurant groups saw significant stock price declines since the start of 2020 as the impact of Covid-19 on their businesses started being felt. While Darden declined a lot more sharply it has also recovered a lot quicker than that of BJ's Restaurants. Below a summary of the stock price returns provided by these two restaurant groups over the last 5 years.
Darden Restaurants (DRI): 9.82%
BJ's Restaurants (BJRI):-54.22%
Darden Restaurants (DRI): 9.82%
BJ's Restaurants (BJRI):-54.22%
Recent coverage of BJ's Restaurants
The extract below discusses the latest news regarding BJ's Restaurants as obtained from Fool,com
Sports, craft beer, and a Pizookie dessert. What could possibly go wrong? As it turns out, a pandemic could.
Except for a run higher in 2018, shares of BJ's Restaurants (NASDAQ:BJRI) have been stuck in sideways action for years. And now, with shelter-in-place orders to fight COVID-19 limiting restaurants' ability to operate, BJ's stock has slumped over 50% so far in 2020. The chain, along with its peers, has at times started to rally on much-needed news of a treatment for the virus and reopening plans. But the depression oppressing restaurants won't end until the world starts to normalize. And there's also the "new normal" that will favor digital operations that will need to be dealt with once the dust settles. This stock could be a big winner in the years ahead, but then again, it could be dead weight in a portfolio if things don't go as smoothly as necessary for BJ's to mount a comeback. Digging deeper into the numbers will help in making an educated decision.
Not exactly a historical industry outperformer
When BJ's reported its first-quarter results, the show stopper was an 81.7% year-over-year comparable-sales decline for the week ended March 24. Business gradually improved to a 67.6% drubbing by the week ended May 5, and it further recovered to a 42.6% decline the week of June 9 (as some 85% of dining rooms had been reopened at that point). Nevertheless, it's an ugly picture for the sports bar chain to have to manage, and the threat of some states backtracking on their reopening plans doesn't help the situation.
That's only part of the story, though. Even though a tilt toward the previously fast-growing craft brew industry has worked in its favor, BJ's plays in a competitive space. That's reflected in the chain's comparable sales. BJ's has grown its store count over the years, but comps is an important metric that helps lift profitability. And excluding a solid run in 2018 (which accounts for the stock's good returns that year before reversing course in 2019), BJ's has put up unimpressive growth overall.
Read the full article here
Sports, craft beer, and a Pizookie dessert. What could possibly go wrong? As it turns out, a pandemic could.
Except for a run higher in 2018, shares of BJ's Restaurants (NASDAQ:BJRI) have been stuck in sideways action for years. And now, with shelter-in-place orders to fight COVID-19 limiting restaurants' ability to operate, BJ's stock has slumped over 50% so far in 2020. The chain, along with its peers, has at times started to rally on much-needed news of a treatment for the virus and reopening plans. But the depression oppressing restaurants won't end until the world starts to normalize. And there's also the "new normal" that will favor digital operations that will need to be dealt with once the dust settles. This stock could be a big winner in the years ahead, but then again, it could be dead weight in a portfolio if things don't go as smoothly as necessary for BJ's to mount a comeback. Digging deeper into the numbers will help in making an educated decision.
Not exactly a historical industry outperformer
When BJ's reported its first-quarter results, the show stopper was an 81.7% year-over-year comparable-sales decline for the week ended March 24. Business gradually improved to a 67.6% drubbing by the week ended May 5, and it further recovered to a 42.6% decline the week of June 9 (as some 85% of dining rooms had been reopened at that point). Nevertheless, it's an ugly picture for the sports bar chain to have to manage, and the threat of some states backtracking on their reopening plans doesn't help the situation.
That's only part of the story, though. Even though a tilt toward the previously fast-growing craft brew industry has worked in its favor, BJ's plays in a competitive space. That's reflected in the chain's comparable sales. BJ's has grown its store count over the years, but comps is an important metric that helps lift profitability. And excluding a solid run in 2018 (which accounts for the stock's good returns that year before reversing course in 2019), BJ's has put up unimpressive growth overall.
Read the full article here
BJ's Restaurants (NASDAQ: BJRI) latest stock valuation
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target (full value) price for BJ's Restaurants stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Next earnings release date for BJ's Restaurants
It is expected that BJ's Restaurants (BJRI) will release their 3rd quarter 2020 earnings report towards the end of October 2020.