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Category: Stock Market and BJ's Restaurants
Date: 26 October 2019 Stock Price: $43.35 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of BJ's Restaurants with brewhouse roots and a menu with over 140 offerings where craft matters.
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About BJ's Restaurant
BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots and a menu with over 140 offerings where craft matters. BJ’s broad menu 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 207 casual dining restaurants. All restaurants offer dine-in, take-out, delivery and large party catering. BJ’s restaurants are located in 27 states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington
Overview of BJ's Restaurants 3rd quarter 2019 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 3rd quarter 2019 results
HUNTINGTON BEACH, Calif., Oct. 24, 2019 (GLOBE NEWSWIRE) -- BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2019 third quarter ended Tuesday, October 1, 2019.
“Third quarter casual dining sales were soft across the industry,” commented Greg Trojan, Chief Executive Officer. “The challenging environment coupled with weakness in certain California markets and the impact of Hurricane Dorian, which affected approximately 10% of our restaurants, led to slightly negative comparable sales. Notwithstanding the challenging environment, our newest restaurants continue to exceed sales and profitability expectations as their weekly sales average outperformed our comparable restaurant sales for the quarter. We believe this is a testament to the strength of the BJ’s concept and brand and our prospects for future growth as we continue our national expansion.
“During the quarter we continued making important investments in the business focused on building future sales and improving our already strong operations-based culture. For example, the recently completed investments in our Gold Standard Kitchen Systems are improving our daily operations as reflected by solid increases in our speed of service and food scores from our guest surveys, increased kitchen labor productivity and recently improved retention rates for our hourly kitchen team members. As expected, the addition of our popular slow roasted tri tip sirloin to our Daily Brewhouse Specials has been well received by guests and has proven effective in building sales and driving value as reflected in a 1.5% rise in our guest survey value scores in the quarter. These investments, coupled with our other ongoing sales and productivity initiatives, will enable us to continue expanding our industry leading guest traffic per square foot.”
During the third quarter, the Company opened its first Connecticut location in the city of Manchester, as well as its sixth restaurant in the state of Indiana in Evansville. “We are on track to open our last two restaurants of the year in the fourth quarter, thereby achieving our goal of opening seven restaurants in fiscal 2019. As we look toward 2020, we currently plan to open eight to ten new restaurants. BJ’s development pipeline is in excellent shape and we remain committed to restaurant quality over restaurant quantity. This commitment combined with our ability to manage capital allocation priorities in the form of share repurchases, quarterly cash dividends, and sales building initiatives support our view of the tremendous value in the BJ’s concept and our ability to drive long-term value for shareholders,” concluded Trojan.
“Third quarter casual dining sales were soft across the industry,” commented Greg Trojan, Chief Executive Officer. “The challenging environment coupled with weakness in certain California markets and the impact of Hurricane Dorian, which affected approximately 10% of our restaurants, led to slightly negative comparable sales. Notwithstanding the challenging environment, our newest restaurants continue to exceed sales and profitability expectations as their weekly sales average outperformed our comparable restaurant sales for the quarter. We believe this is a testament to the strength of the BJ’s concept and brand and our prospects for future growth as we continue our national expansion.
“During the quarter we continued making important investments in the business focused on building future sales and improving our already strong operations-based culture. For example, the recently completed investments in our Gold Standard Kitchen Systems are improving our daily operations as reflected by solid increases in our speed of service and food scores from our guest surveys, increased kitchen labor productivity and recently improved retention rates for our hourly kitchen team members. As expected, the addition of our popular slow roasted tri tip sirloin to our Daily Brewhouse Specials has been well received by guests and has proven effective in building sales and driving value as reflected in a 1.5% rise in our guest survey value scores in the quarter. These investments, coupled with our other ongoing sales and productivity initiatives, will enable us to continue expanding our industry leading guest traffic per square foot.”
During the third quarter, the Company opened its first Connecticut location in the city of Manchester, as well as its sixth restaurant in the state of Indiana in Evansville. “We are on track to open our last two restaurants of the year in the fourth quarter, thereby achieving our goal of opening seven restaurants in fiscal 2019. As we look toward 2020, we currently plan to open eight to ten new restaurants. BJ’s development pipeline is in excellent shape and we remain committed to restaurant quality over restaurant quantity. This commitment combined with our ability to manage capital allocation priorities in the form of share repurchases, quarterly cash dividends, and sales building initiatives support our view of the tremendous value in the BJ’s concept and our ability to drive long-term value for shareholders,” 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 $44 a stock and its currently trading at $43.35 a stock. That's a negative return of -1.4% provided to BJ's Restaurants stockholders over the last 5 years. The opportunity cost of holding BJ's Restaurants stock instead of say Netflix that returned over 300% over a 5 year period becomes significant.
The stock of BJ's Restaurants is trading at a lot closer to its 52 week low of $32.62 than it is to its 52 week high of $70.07 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 $32.62 than it is to its 52 week high of $70.07 which to us is a clear indication that the short term sentiment and momentum of BJ's Restaurants stock is negative.
Recent coverage of BJ's Restaurants
The extract below discusses the latest news regarding BJ's Restaurants as obtained from TheStreet,com
BJ's Restaurants, Inc. (BJRI - Free Report) ) reported third-quarter fiscal 2019 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. This marked the company’s eight straight quarter of revenue beat. Moreover, it came up with an earnings beat, after missing estimates in the preceding quarter. Adjusted earnings of 18 cents per share beat the Zacks Consensus Estimate of 10 cents by 80%. However, the bottom line decreased 53.8% year over year. BJ’s Restaurants’ earnings in the quarter suffered from an expense of $0.03 that is related to the adoption of ASU 2016-02. Moreover, during the reported quarter, the company opened its first Connecticut location in the city of Manchester and sixth restaurant in the state of Indiana.
Read the full article here
BJ's Restaurants, Inc. (BJRI - Free Report) ) reported third-quarter fiscal 2019 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. This marked the company’s eight straight quarter of revenue beat. Moreover, it came up with an earnings beat, after missing estimates in the preceding quarter. Adjusted earnings of 18 cents per share beat the Zacks Consensus Estimate of 10 cents by 80%. However, the bottom line decreased 53.8% year over year. BJ’s Restaurants’ earnings in the quarter suffered from an expense of $0.03 that is related to the adoption of ASU 2016-02. Moreover, during the reported quarter, the company opened its first Connecticut location in the city of Manchester and sixth restaurant in the state of Indiana.
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 $36.60 a stock. We therefore believe that the stock of BJ's Restaurants is overvalued.
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 $36.60. Therefore we believe a good entry point into BJ's Restaurants stock is at $32.90 or below. We expect the stock price of BJ's Restaurants to pull back from current levels to levels closer to our target (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 $36.60. Therefore we believe a good entry point into BJ's Restaurants stock is at $32.90 or below. We expect the stock price of BJ's Restaurants to pull back from current levels to levels closer to our target (full value) price in coming weeks and months.
Next earnings release date for BJ's Restaurants
It is expected that BJ's Restaurants 4th quarter and full year results of their 2019 fiscal year will be released in late January 2020.