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BJ\'s Restaurants Inc. Reports Operating Results (10-Q)

August 04, 2009 | About:
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BJ\'s Restaurants Inc. (BJRI) filed Quarterly Report for the period ended 2009-06-30.

BJ\'s Restaurants Inc. owns and operates casual dining restaurants under the BJ\'s Restaurant and Brewery BJ\'s Restaurant and Brewhouse or BJ\'s Pizza & Grill brand names. BJ\'s restaurants offer an innovative menu featuring award-winning signature deep dish pizza complemented with generously portioned salads sandwiches soups pastas entrees and desserts. Quality flavor value moderate prices and sincere service remain distinct attributes of the BJ\'s experience. BJ\'s Restaurants Inc. has a market cap of $469.8 million; its shares were traded at around $17.57 with a P/E ratio of 33.8 and P/S ratio of 1.3. BJ\'s Restaurants Inc. had an annual average earning growth of 25.7% over the past 5 years.

Highlight of Business Operations:

Revenues. Total revenues increased by $15.5 million, or 16.8%, to $107.7 million during the thirteen weeks ended June 30, 2009 from $92.2 million during the comparable thirteen week period of 2008. The $15.5 million increase

Cost of Sales. Cost of sales increased by $3.8 million, or 16.5%, to $26.8 million during the thirteen weeks ended June 30, 2009 from $23.0 million during the comparable thirteen week period of 2008. As a percentage of revenues, cost of sales decreased slightly to 24.9% for the current thirteen week period from 25.0% for the prior year comparable thirteen week period. This slight decrease is primarily due to increased revenues from our estimated effective menu price increases and lower cheese costs, partially offset by increased commodity costs for pizza dough, bread and chicken.

General and Administrative. General and administrative expenses increased by $0.6 million, or 8.6%, to $7.6 million during the thirteen weeks ended June 30, 2009 from $7.0 million during the comparable thirteen week period of 2008. Included in general and administrative costs for the thirteen weeks ended June 30, 2009 and July 1, 2008 is $601,000 and $617,000, respectively, of stock-based compensation expense. The increase in general and administrative costs is primarily due to planned increases in field supervision, marketing research, consulting and legal expenses, partially offset by planned salary and related expense reductions related to the departure of our two co-founders at the end of last year. As a percentage of revenues, general and administrative expenses decreased to 7.1% for the current thirteen week period from 7.6% for the prior year comparable thirteen week period. This decrease is primarily due to the leverage of the fixed component of these expenses over a higher revenue base.

Revenues. Total revenues increased by $31.1 million, or 17.4%, to $210.2 million during the twenty-six weeks ended June 30, 2009 from $179.0 million during the comparable twenty-six week period of 2008. The $31.1 million increase in revenues was primarily attributable to an approximate 20% increase in restaurant weeks resulting from the 12 new restaurants that we have opened since the second quarter of 2008, partially offset by a 1.9% decrease in our average weekly sales per restaurant. Comparable restaurant sales decreased approximately 0.7% during the twenty-six weeks ended June 30, 2009. The decrease in comparable restaurant sales resulted from decreased guest traffic, partially offset by an estimated effective menu price increase of approximately 3.4%.

Cost of Sales. Cost of sales increased by $7.3 million, or 16.3%, to $52.3 million during the twenty-six weeks ended June 30, 2009 from $44.9 million during the comparable twenty-six week period of 2008. As a percentage of revenues, cost of sales decreased slightly to 24.9% for the current twenty-six week period from 25.1% for the prior year comparable twenty-six week period. This slight decrease is primarily due to increased revenues from our estimated effective menu price increases and lower cheese costs, partially offset by increased commodity costs for pizza dough, bread and chicken.

Labor and Benefits. Labor and benefit costs for our restaurants increased by $10.6 million, or 16.7%, to $73.7 million during the twenty-six weeks ended June 30, 2009 from $63.2 million during the comparable twenty-six week period of 2008. This increase was primarily due to the opening of 12 new restaurants since the twenty-six weeks ended July 1 2008. As a percentage of revenues, labor and benefit costs decreased to 35.1% for the current twenty-six week period from 35.3% for the prior year comparable twenty-six week period. This percentage decrease is primarily due to lower management labor costs as a result of less new restaurants opened in the twenty-six week period ended June 30, 2009. Included in labor and benefits is approximately $501,000 and $429,000 related to our stock-based compensation plans for both the twenty-six weeks ended June 30, 2009 and July 1, 2008, respectively. See Note 7, Stock-Based Compens

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