BJ's Restaurants (BJRI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $349.9 million, up 0.1% year-over-year, with comparable sales down 0.6% but improving month-over-month and record-setting weeks during key holidays.

• Net income rose to $17.2 million from $11.9 million year-over-year, driven by improved cost controls and a payroll tax credit.

• Adjusted EBITDA grew 13% to $36.1 million (10.3% of sales), with restaurant-level margins expanding by 100 basis points to 15.5%.

• Continued rollout of service and remodel initiatives, with 19 remodels completed year-to-date and two new prototype restaurants opening soon.

• For the first half of 2024, revenues were $687.3 million, with net income rising to $24.9 million.

Financial highlights

• Q2 2024 EPS was $0.74 (basic) and $0.72 (diluted), both up over 40% year-over-year.

• Income from operations was $13.2 million (3.8% of revenue), up from $10.2 million (2.9%).

• Cost of sales was 25.7% of sales, 20 basis points favorable year-over-year; labor and benefits were 36.1% of sales, 10 basis points favorable.

• Cash and cash equivalents at quarter-end were $16.2 million; net debt was $47.3 million; total debt was $63.5 million.

• Set a new weekly sales average record of over $141,000 during Mother's Day week.

Outlook and guidance

• Q3 comparable sales expected to grow 1%-2%, with restaurant-level cash flow margin projected in the mid-12% range due to seasonality and higher marketing spend.

• Margins expected to continue expanding in Q4, with a goal to close the gap to 2019 margin levels.

• Capital expenditures for 2024 are targeted at $70–$75 million, funded by cash, operations, and credit.

• Two to three new restaurants are planned to open in the second half of 2024, with all locations secured.

• Menu pricing to increase by about 90 basis points in late September, with Q3 pricing in the low 3% area and Q4 in the mid 2% area.