• Comparable Same Restaurant Sales: Increased by 5.5% in Q4, driven primarily by guest traffic.
• Restaurant Level Margins: Improved to 15.4%, up 100 basis points from last year.
• Restaurant Level Operating Profit: Reached $52.9 million, a 14% increase from the previous year.
• Adjusted EBITDA: $33.1 million in Q4, a 21% increase from the prior year, with a margin of 9.6%.
• Net Loss: Reported a net loss of $5.3 million, or $0.23 per share on a GAAP basis.
• Adjusted Diluted Net Income Per Share: Grew 5.1% to $0.47 per share compared to $0.45 last year.
• Cost of Sales: 25.9% in the quarter, 40 basis points higher than the previous year.
• Labor and Benefits Expenses: 35.8% of sales in the quarter.
• Occupancy and Operating Expenses: 22.9% in the quarter, 70 basis points favorable compared to last year.
• G&A Expenses: $23.7 million in Q4, including costs related to brand positioning and leadership changes.
• Share Repurchase: Repurchased approximately 230,000 shares at a cost of $8 million.
• Net Debt: Ended Q4 with net debt of $40.4 million.
• 2025 Financial Outlook: Anticipates full-year comparable restaurant sales growth of 2% to 3%.
• Capital Expenditures for 2025: Expected to be $65 million to $75 million, with plans to open one new restaurant and remodel up to 30 existing locations.

• Warning! GuruFocus has detected 7 Warning Sign with BJRI.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BJ's Restaurants Inc (NASDAQ:BJRI) reported strong comparable same restaurant sales growth of 5.5% in Q4 2024, driven primarily by increased guest traffic.
• The company achieved a record Q4 restaurant-level operating profit of $52.9 million, marking a 14% increase from the previous year.
• Adjusted EBITDA for the fourth quarter was $33.1 million, a 21% increase from the prior year, with a margin improvement of 120 basis points.
• BJ's Restaurants Inc (NASDAQ:BJRI) successfully implemented margin enhancement initiatives, resulting in a restaurant-level margin of 15.4%, up 100 basis points from last year.
• The company is making strategic investments in brand positioning and growth initiatives, including a focus on simplifying operations and enhancing team member training.

Negative Points

• BJ's Restaurants Inc (NASDAQ:BJRI) faced increased food cost inflation of approximately 3.5% year over year, which was not fully recaptured.
• The company reported a net loss of $5.3 million for the quarter, including charges related to asset disposals and leadership transition costs.
• Weather-related impacts in certain markets contributed to a softening of sales trends from Q4 2024 levels.
• The company experienced a 40 basis point increase in cost of sales due to higher food costs associated with specific promotions.
• BJ's Restaurants Inc (NASDAQ:BJRI) anticipates a cautious consumer environment in 2025, with potential impacts on sales growth.

Q & A Highlights

Q: Can you clarify the restaurant-level profit guidance and the implications for restaurant-level margins? A: Thomas Houdek, CFO, explained that they see a path to expand margins. Even at the lower end of their guidance, there is some margin expansion expected. They see opportunities across categories like food costs and labor, and while there is some reinvestment happening, they are planning for margin expansion.

Q: How are you thinking about using marketing to drive traffic in fiscal 2025? A: Lyle Tick, President and Chief Concept Officer, stated that they are still learning from their Q4 performance, especially in media markets. They plan to be strategic and efficient with their marketing spend, focusing on accelerating performance in core markets without competing with large national media spenders.

Q: Are you planning to streamline the menu, and if so, what is the scope and timeline? A: Lyle Tick mentioned that they see an opportunity to streamline the menu by removing items that do not deliver from a commercial or brand equity perspective. They aim to simplify the menu to bring new innovations and focus on core platforms. This process is expected to start in the second half of the year.

Q: What are your thoughts on the current service levels in stores, and do you plan to adjust labor hours? A: Lyle Tick noted that while service can be a differentiator, they need to deliver it more consistently. They are focusing on process simplification and training to make it easier for team members to deliver great experiences. They see opportunities to optimize labor by adjusting hours to match peak times without a net increase in labor costs.

Q: Can you provide more details on the updated criteria for opening new units and your future real estate pipeline? A: Lyle Tick explained that they are focusing on markets with existing brand awareness and strong human capital. They plan to prioritize infilling existing markets over entering new ones in the short term, as this strategy has shown success in recent openings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.