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BJRI Earnings
BJRI is short, and nothing in the earnings release changes that opinion.
BJRI 2Q2 GAAP EPS of $0.01 misses by $0.25, and Revenue of $329.7M (+13.6% Y/Y) beats by $1.22M; Comparable restaurant sales increased 11.7%.
Key metrics: Comps +11.7% vs FactSet +11.6%; Cost of sales 27.6% vs FS 27.1% and year-ago 26%; Restaurant margin 11.9% vs FS 13.6% and year-ago 14.8%; Operating margin 1.0% vs FS 2.1% and year-ago 2.3%.
Notable comments:
- "Our sales performance has continued into July with period-to-date comparable weekly sales improving 4.0% compared to 2019." Nobody invests or builds a model based on 2019 revenues.
- "The good news is that to date through July, we have not yet found any measurable changes in our guest behavior. In fact, traffic patterns are following a typical seasonal trend, and our guests are continuing to enjoy the usual amount of appetizers, drinks and desserts in our restaurants. And we haven't seen any uptick in the usage of our value offerings, including our happy hour and daily brewhouse special menus. If a consumer pullback does occur and it impacts the industry, we expect that BJ's strong value proposition would lead to a better overall relative performance."
- Menu pricing is 4.6% and going higher.
- The restaurant-level margin of 10% in 3Q22
- "Furthermore, we expect that any broad decline in demand would be accompanied by relief in input costs, which could benefit margins. So as I've just outlined, we have not seen any changes in our guest behavior to date, but we'll continue to monitor and if need be, take appropriate action to effectively manage any changes in the environment." This is good news?
- "With respect to food costs, beginning in July, we changed certain pack sizes for some items to more common sizes, which brings cost savings. Also, we are testing slow roasting our own chicken wings to drive cost savings. Let me tell you, because of our slow-roast ovens, these products are delicious and early guest feedback is very positive. We are also evaluating different sizes and cuts of key inputs such as chicken breasts, salmon, and avocados that would be less expensive to procure."
