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.

• 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), up from $31.8 million in the prior year.

• 107 restaurants set daily or weekly sales records in Q2, reflecting strong guest affinity and successful special occasion traffic.

• Ongoing remodel initiative with 19 remodels completed YTD and 5 more expected, aiming for half the system remodeled or new prototype by year-end.

Financial highlights

• Q2 sales were $350 million, with average weekly sales per restaurant exceeding $124,000.

• Restaurant-level cash flow margin was 15.5%, up 100 basis points year-over-year.

• Net income margin improved to 4.9% from 3.4% year-over-year; diluted EPS was $0.72, up from $0.50.

• Cost of sales was 25.7% of sales, 20 bps favorable YoY; labor and benefits were 36.1% of sales, 10 bps favorable YoY.

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

Outlook and guidance

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

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

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

• Margins expected to continue expanding in Q4, with cost savings from a new disposables distributor and AI-based labor scheduling.

• Management expects current liquidity and credit availability to be sufficient for at least the next twelve months.