BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Following the results, the company shares fell 5% during the post-market trading session on Oct. 31. Negative investor sentiments were witnessed as the company reported that it had not fully leveraged its traffic growth due to higher-than-anticipated restaurant costs. Consequently, its restaurant-level operating margin (in percentage terms) declined from the prior year's quarter levels.

BJRI’s Q3 Earnings & Revenues

In the quarter under review, the company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of earnings of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents.

BJ's Restaurants, Inc. Price, Consensus and EPS Surprise

BJ's Restaurants, Inc. price-consensus-eps-surprise-chart | BJ's Restaurants, Inc. Quote

Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. The upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Comparable restaurant sales increased 1.7% year over year compared with a 0.4% rise reported in the prior-year quarter. Our model predicted the metric to increase by 1.9% from the year-ago levels.

Expenses & Operating Margins

During the quarter under review, labor costs — as a percentage of sales — were 37.1%, flat year over year. Our estimate was 36.7%.

Occupancy and operating costs (as a percentage of sales) were 24.7% compared with 25.1% reported in the year-ago quarter. We estimated the metric to be 24.7%.

General and administrative expenses (as a percentage of sales) of 6.4% increased by 30 bps on a year-over-year basis. Our prediction was 6.2%.

Restaurant-level operating margin was 11.7%, compared with 11.9% reported in the year-earlier quarter. We estimated the metric to be 12.5%.

Balance Sheet

As of Oct. 1, 2024, cash and cash equivalents totaled $18.4 million, compared with $29.1 million as of fiscal 2023 end. Total debt amounted to $66.5 million compared with $68 million in fiscal 2023 end.

BJRI’s Zacks Rank & Key Picks

BJ's Restaurants currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Retail-Wholesale sector include Chipotle Mexican Grill, Inc. CMG, Shake Shack Inc. SHAK and Yum China Holdings, Inc. YUMC, each carrying a  Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chipotle has a trailing four-quarter earnings surprise of 9.8%, on average. The stock has gained 37% in the past year. The Zacks Consensus Estimate for CMG’s 2024 sales and earnings per share (EPS) indicate 14.9% and 22.2% growth, respectively, from the year-earlier actuals.

Shake Shack has a trailing four-quarter earnings surprise of 18.3%, on average. SHAK’s shares have risen 115.4% in the past year. The Zacks Consensus Estimate for SHAK’s 2024 sales and EPS indicate 14.1% and 100% growth, respectively, from the year-earlier actuals.

Yum China has a trailing four-quarter earnings surprise of 26.6%, on average. YUMC’s shares have risen 4% so far this year. The Zacks Consensus Estimate for YUMC’s 2024 sales and EPS indicate 4.5% and 11.5% growth, respectively, from the prior-year figures.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

Shake Shack, Inc. (SHAK) : Free Stock Analysis Report

Yum China (YUMC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research