BJ's Restaurants Inc.
(
BJRI
) reported first-quarter 2012 earnings of 30 cents per share,
missing the Zacks Consensus Estimate of 31 cents but surpassing the
prior-year earnings of 25 cents a share. The year-over-year upside
was attributable to double-digit growth in the top line.
Inside the Headline Numbers
Revenues in the reported quarter grew 16.0% year over year to
$167.6 million. The increase was attributable to modest increases
in both comparable restaurant sales and new restaurant
openings.
BJ's sustained its top-line growth momentum in the first 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 3.3% compared with 7.8% in the
prior-year quarter. Operation for the first quarter of fiscal 2012
began on January 4, 2012 compared to December 29 last year. Hence,
the first quarter of 2012 saw tougher year-over-year comparison in
the absence of New Year.
Operating margin was up 10 basis points (bps) year over year at
7.1%, reflecting a 10-bp drop in cost of sales, fall of 10 bps in
restaurant opening costs and 40 bps in general and administrative
expenses. These were partially offset by a 50-bp spike in occupancy
and operating costs, 20-bp increase in depreciation and
amortization and a 10-bp rise in labor and benefits costs.
Store Update
The company opened 2 restaurants during the first quarter. At
quarter-end, the company operates 117 units.
BJ's has already chalked out its unit opening plan for the next
three quarters of 2012. Five units are planned for the second
quarter (of which one has already been unveiled at Dublin), six new
units are slated for the third quarter while the fourth quarter
will see three openings.
Financial Position
BJ's ended the quarter with cash and cash equivalents of $43.0
million and shareholders equity of $343.3 million. As of April 3,
2012, BJ's long-term debt liability was nil.
Outlook
Despite a quarterly miss, we remain optimistic on BJ's several
sales-building initiatives planned for 2012, and expansion plan
which will likely support its future comps momentum.
BJ's Restaurants competes with
Darden Restaurants Inc.
(
DRI
) and currently retains the Zacks #2 Rank, which translates into a
short-term 'Buy' rating. We are maintaining our long-term Neutral
recommendation on the stock.
BJ'S RESTAURANT (
BJRI
): Free Stock Analysis Report
DARDEN RESTRNT (
DRI
): Free Stock Analysis Report
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