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

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During the quarter, the company reported benefits from increased guest traffic across all dayparts and channels. Sales-driving initiatives like the Pizookie Meal Deal and holiday large party offerings, supported by targeted marketing, boosted brand awareness and traffic momentum. Solid sales combined with the effective implementation of restaurant efficiency initiatives paved a path for a 100-basis-point year-over-year improvement in restaurant-level operating profit margin.

Going forward, the management remains optimistic about BJ’s growth prospects in 2025. It emphasizes core sales strategies, brand positioning and operational simplification to drive growth.

Following the results, the company shares gained 8.7% during the post-market trading session yesterday.

BJRI’s Q4 Earnings & Revenues

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

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

In the quarter under review, the company reported an adjusted earnings per share (EPS) of 47 cents, beating the Zacks Consensus Estimate of 35 cents. In the year-ago quarter, it recorded an adjusted EPS of 45 cents.

Total revenues of $344.3 million beat the consensus mark of $337 million by 2.1%. The top line increased 6.4% year over year. The upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Comparable restaurant sales increased 5.5% year over year compared with a 0.6% rise reported in the prior-year quarter. Our model predicted the metric to increase by 3.6% from the year-ago levels.

BJRI Expenses & Operating Margins

During the quarter under review, labor costs — as a percentage of sales — were 35.8%, compared with 36.5% reported in the year-ago quarter. Our estimate was 36.4%.

Occupancy and operating costs (as a percentage of sales) were 22.9% compared with 23.6% reported in the year-ago quarter. We estimated the metric to be 23.1%.

General and administrative expenses (as a percentage of sales) of 6.9% increased by 20 bps on a year-over-year basis. Our prediction was 6.2%.

Restaurant-level operating margin was 15.4%, compared with 14.4% reported in the year-earlier quarter. We estimated the metric to be 14.9%.

Balance Sheet

As of Dec. 31, 2024, cash and cash equivalents totaled $26.1 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 2024 Highlights

Total revenues in fiscal 2024 amounted to $1.36 billion compared with $1.33 billion in fiscal 2023.

Net income in fiscal 2024 totaled $16.7 million compared with $19.7 million reported in fiscal 2023.

In fiscal 2024, adjusted EPS came in at $1.47 compared with $1.08 reported in the previous year.

2025 Outlook

For fiscal 2025, the company expects comparable restaurant sales to increase by 2% to 3% year over year. Management anticipates restaurant-level operating profit to range between $205 million and $215 million, while Adjusted EBITDA is forecasted at $127 million to $137 million. Capital expenditures are expected to be between $65 million and $75 million. The company anticipates share repurchases to be in the range of $40 million to $50 million.

BJRI’s Zacks Rank

BJ's Restaurants currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Restaurant Releases

Restaurant Brands International, Inc. QSR reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

During the quarter, consolidated comps increased 2.5% year over year, and net restaurants grew 3.4%. Global system-wide sales rose 5.6% year over year. QSR unveiled its long-term consolidated performance expectations from 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least a 5% net restaurant increase.

McDonald's Corporation MCD reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate, but revenues missed the same. Both top and bottom lines decreased year over year. Its Accelerating-the-Arches strategy remains the right approach for expanding market share.

At company-operated restaurants, sales were $2.31 billion, down 7% year over year. Sales at franchise-operated restaurants amounted to $3.95 billion, which increased 2% year over year. The global comps increased 0.4% compared with 3.4% growth in the prior-year quarter. MCD’s comps increased after witnessing a decline in the preceding two quarters.

YUM! Brands, Inc. YUM reported fourth-quarter 2024 results, with adjusted earnings and total revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

The company’s top-line performance reflected solid contributions from the KFC, Pizza Hut and Taco Bell divisions. YUM reported progress in the digital space, with digital sales rising approximately 15% and the digital mix surpassing 50%, moving closer to its long-term goal of 100% digital sales. Worldwide system sales, excluding foreign currency translation, grew 8% year over year, with Taco Bell increasing 14% and KFC rising 6%. The metric rose 3% year over year for Pizza Hut.

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