Markets

Why BJ's Restaurants Stock Is Down 10% Today

What happened

Shares in BJ's Restaurants (NASDAQ: BJRI) are down 10% today, after reporting third-quarter earnings that continue to reflect struggles in the sector brought by impacts of the pandemic.

So what

The restaurant and brewhouse chain reported a 30% decline in comparable-restaurant sales, and a 29% drop in total revenue versus the year-ago period. Excluding gains unrelated to the operations, the company lost $0.44 per share in the quarter ended Sept. 29, versus a $0.18 gain in the prior-year period.

empty restaurant table with brick wall in background

Image source: Getty Images.

The results are an improvement over the second quarter, which ended June 30, when dining rooms were closed and the company transitioned to take-out and delivery only, for part of that reporting period. Comps were down almost 60% for that previous quarter.

Now what

Though the company reported improvement in the third quarter, it wasn't enough for investors after the shares had gained more than 80% in the past three months.

CEO Greg Trojan said that third-quarter results were above expectations, however. The company went from about 70% of its dining rooms open at the start of the third quarter, to having 87% currently open, though with limited seating. The company built approximately 100 temporary outdoor patios in response, and weekly sales per restaurant improved by more than 20% through the final weeks of September.

The chain continues to expand as it opened two new restaurants in 2020, and said it plans to announce a moderate increase in new restaurant openings for 2021. It currently has 210 restaurants and has long-term plans to more than double that number.

10 stocks we like better than BJ's Restaurants
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and BJ's Restaurants wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BJRI

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More