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BJ’s Restaurants, Inc. Reports Fiscal 2018 First Quarter Results
First Quarter 2018 Highlights Compared to First Quarter 2017
“The sales building initiatives we implemented last year continue to resonate with our guests, leading to strong 2018 first quarter revenue, comparable restaurant sales, restaurant and consolidated operating margins, and diluted net income per share,” commented
“Over the last year, BJ’s team members mastered new cooking methods, became proficient taking orders on handheld devices, and streamlined processes to bring efficiencies to our growing off-premise revenue stream. As a result, our slow roasted prime rib special has become a weekend guest favorite and our Daily Brewhouse Specials continue to build mid-week restaurant traffic, while our growing off-premise channel is providing our guests with the convenience of enjoying BJ’s high quality food and beverages at home, at work or on the go. We are also very excited about our upgraded BJ’s Premier Rewards Plus loyalty program, which launched in all of our restaurants in February. We are already seeing a very positive guest response to our upgraded program which simplifies our reward structure, making it easier for guests to be rewarded for choosing BJ’s. We believe these sales building initiatives have further differentiated and elevated BJ’s already high quality menu offerings, strong value proposition, and culture of service and hospitality, which collectively have positioned BJ’s to continue gaining share in the casual dining space.”
In the first quarter of fiscal 2018, BJ’s opened its 198th restaurant in
During the 2018 first quarter, the Company adopted ASU 2016-10, an amendment to ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which impacts the way we account for our loyalty program. ASU 2016-10 provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In accordance with ASU 2016-10, we now use loyalty points earned to allocate the transaction price between the goods delivered and the future goods that will be delivered, on a relative standalone selling price basis. As a result of the adoption of this standard,
During the first quarter of 2018, the Company repurchased and retired approximately 0.1 million shares of its common stock at a cost of approximately
Investor Conference Call and Webcast
Forward-Looking Statements Disclaimer
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute “forward-looking” statements for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales and margin growth in future periods, total potential domestic capacity, the success of various sales-building and productivity initiatives, future guest traffic trends, construction cost savings initiatives and the number and timing of new restaurants expected to be opened in future periods. These “forward-looking” statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) increases in minimum wage and other employment related costs, including compliance with the Patient Protection and Affordable Care Act and minimum salary requirements for exempt team members, (v) the effect of credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (vi) food quality and health concerns and the effect of negative publicity about us, our restaurants, other restaurants, or others across the food supply chain, due to food borne illness or other reasons, whether or not accurate, (vii) factors that impact
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Percentages reflected above may not reconcile due to rounding.
(1) Percentages represent percent of total revenues.
Restaurant Level Operating Margin
Restaurant level operating margin, a non-GAAP financial measure, is equal to the revenues generated by our restaurants less their direct operating costs which consist of cost of sales, labor and benefits, and occupancy and operating costs. This performance measure includes only the costs that restaurant level managers can directly control and excludes other operating costs that are essential to conduct the Company’s business, as detailed in the table below. Management uses restaurant level operating margin as a supplemental measure of restaurant performance. Management believes restaurant level operating margin is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate restaurant level margin differently than we do, restaurant level margin as presented herein may not be comparable to similarly titled measures reported by other companies.
A reconciliation of income from operations to restaurant level operating margin for the first quarter ended
Percentages above represent percent of total revenues and may not reconcile due to rounding.
ASU 2016-10 Reconciliation
The following tables illustrate the impact from the adoption of ASU 2016-10 on our first quarter ended
(1) Amount represents approximately
Source: BJ's Restaurants, Inc.