BJ's Q3 2022 Earnings Report
Key Takeaways
BJ's Restaurants reported solid third-quarter sales, with comparable restaurant sales increasing by 8.9% compared to Q3 2021. The company opened a new restaurant in Las Vegas and expects to open two more in Q4 2022. BJ's Restaurants also repurchased approximately 91,000 shares of its common stock during the quarter.
Comparable restaurant sales increased 8.9% compared to the third quarter of 2021.
Restaurant level operating margins were impacted by inflationary pressures but benefited from labor management efficiencies.
The company opened a new restaurant in Las Vegas and expects to open two additional new restaurants in the fourth quarter.
BJ's Restaurants repurchased approximately 91,000 shares of its common stock at a cost of approximately $2.4 million.
BJ's
BJ's
Forward Guidance
BJ's Restaurants expects to continue its sales-building and margin improvement initiatives. The company plans to open two additional new restaurants in the fourth quarter and remodel more restaurants in 2023.
Positive Outlook
- Sales building initiatives are progressing well.
- Guests have a strong affinity for the BJ's brand.
- Labor management efficiencies are improving.
- Margin improvement initiative is showing early successes.
- Restaurant remodel initiative continues to deliver strong sales growth and financial returns.
Challenges Ahead
- Restaurant level operating margins remain impacted by inflationary pressures.
- Construction delays have pushed back the opening of two restaurants to the first quarter of 2023.
- The company is facing ongoing effects of the COVID-19 pandemic on its operations, labor and staffing, and supply chain.
- There is a risk of being unable to successfully and sufficiently raise menu prices to offset rising costs.
- The company faces potential labor shortages and increases in minimum wage and other employment-related costs.