BJ's Q4 2022 Earnings Report
Key Takeaways
BJ's Restaurants, Inc. reported improved top-line sales, guest traffic, and restaurant-level operating margins in Q4 2022. The company opened three new restaurants during the quarter and is planning further expansion and remodels in 2023. Despite ongoing inflationary pressures, restaurant margins improved year over year by 250 basis points to 12.1%.
Top-line sales, guest traffic, and restaurant-level operating margins improved.
Restaurant margins improved year over year by 250 basis points to 12.1% excluding benefits from gift card breakage estimates in 2022 and the Employee Retention Tax Credit in 2021.
Three new restaurants were opened in the fourth quarter, contributing to a total of six new restaurants in fiscal 2022.
Plans for 2023 include opening five new restaurants, remodeling over 30 restaurants, and closing three legacy restaurants.
BJ's
BJ's
Forward Guidance
BJ's Restaurants expects continued sales growth and margin expansion in 2023, driven by sales initiatives, menu pricing, and margin improvements. First quarter comparable restaurant sales are expected to be in the high single-digits.
Positive Outlook
- Generating profitable sales growth
- Expanding restaurant margins
- Strong sales trends in fiscal 2023 to date
- Growth in dining room guest traffic
- First quarter comparable restaurant sales should be in the high single-digits
Challenges Ahead
- Ongoing inflationary pressures on food
- Ongoing inflationary pressures on labor
- Ongoing inflationary pressures on utilities
- Ongoing inflationary pressures on other restaurant costs
- Closing three legacy restaurants this year