BJ's Restaurants Inc.
(
BJRI
) reported fourth-quarter 2011 adjusted earnings of 34 cents per
share, surpassing the Zacks Consensus Estimate of 32 cents as well
as the prior-year earnings of 24 cents. The upside was attributable
to double-digit growth in the top line and strong comparable
restaurant sales growth. One extra operating week in the fourth
quarter of 2011 also led to an easy comparison. In full-fiscal
2011, earnings were $1.08 versus 82 cents recorded in the previous
year.
Inside the Headline Numbers
Revenues in the reported quarter grew 29.3% year over year to
$171.8 million. The increase was attributable to solid increases in
both comparable restaurant sales and new restaurant openings.
Revenue increased 20.8% year over year in full-fiscal 2011.
BJ's sustained its top-line growth momentum in the fourth
quarter on the back of operating efficiencies, innovative offerings
and expansion, which have helped the casual dining restaurant
operator to drive traffic.
Comparable restaurant sales grew 5.1% compared with 5.9% in the
prior-year quarter. Operating margin was up 120 basis points (bps)
year over year at 7.6%, reflecting a 50-bp drop in cost of sales,
fall of 100 bps in occupancy and operating costs and 40 bps in
general and administrative expenses, as well as a 40 bp reduction
in depreciation and amortization, partially offset by a 40-bp spike
in restaurant opening and a 50-bp rise in labor and benefits
costs.
Store Update
The company opened 4 restaurants during the fourth quarter of
2011.
For fiscal 2012, the company plans to open 15 restaurants
compared with 13 in fiscal 2011.
Financial Position
BJ's ended the quarter with cash and cash equivalents of $45.4
million and shareholders equity of $332.4 million. As of September
27, 2011, BJ's long-term debt liability was nil.
Outlook
We expect estimates to go up in the coming days as the company
posted strong results. Moreover, we see the company as well
positioned to sustain its growth momentum and generate improved
earnings in future.
BJ's Restaurants competes with
Darden Restaurants Inc.
(
DRI
) and currently retains the Zacks #1 Rank, which translates into a
short-term 'Strong Buy' rating. We are also maintaining our
long-term Outperform recommendation on the stock.
BJ'S RESTAURANT (
BJRI
): Free Stock Analysis Report
DARDEN RESTRNT (
DRI
): Free Stock Analysis Report
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