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BJ’s Restaurants, Inc. Reports Fiscal 2018 Fourth Quarter and Fiscal 2018 Results
Fourth Quarter 2018 Highlights Compared to Fourth Quarter 2017
Fiscal 2018 Highlights Compared to Fiscal 2017
“BJ’s strong fourth quarter and full year revenue, comparable restaurant sales increases and restaurant and operating margin growth reflect the continuing value being derived from our sales, traffic and hospitality initiatives,” commented
“The comprehensive range of sales and hospitality initiatives we implemented over the last several years has continued to drive positive comparable restaurant sales in 2019, despite some recent sales momentum challenges from severe weather throughout much of the country. For 2019, we plan to continue focusing our sales building initiatives around new slow roast menu items, Daily Brewhouse Specials and EnLIGHTened Entrées®, while continuing to grow our off-premise channels through enhanced take-out and delivery technology and large party/catering. We also plan on rolling out a new kitchen and prep efficiency initiative in all of our restaurants, thereby further elevating hospitality levels and creating continued margin improvement opportunities. This new kitchen initiative is not targeted at reducing labor, but will further enhance our higher quality positioning in the casual dining space as we focus on more efficiently allocating kitchen labor to improve our food preparation, kitchen organization, food safety and cook speed. I am confident that the foundation we have built over the last several years will drive another year of growth and success for BJ’s as we are positioned to again drive top line sales and shareholder value,” said Trojan.
In the fourth quarter of fiscal 2018, BJ’s opened one new restaurant in
During the fourth quarter of 2018, the Company repurchased and retired approximately 247,000 shares of its common stock at a cost of approximately
The Company’s Board of Directors declared a cash dividend of
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 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.
Reconciliation of Selected GAAP Financial Measures to Non-GAAP Adjusted Financial Measures
To supplement the consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company has included the following non-GAAP adjusted financial measures. Each of these non-GAAP adjusted financial measures is adjusted from results based on GAAP to exclude certain expenses and benefits. As a general matter, the Company uses these non-GAAP adjusted financial measures in addition to and in conjunction with results presented in accordance with GAAP to help analyze the performance of its core business. The Company believes that such non-GAAP adjusted financial information is used by analysts and others in the investment community to analyze the Company’s results and in formulating estimates of future performance and that failure to report these non-GAAP adjusted measures may result in confusion among analysts and others and a misplaced perception that the Company’s results have underperformed or exceeded expectations.
These non-GAAP adjusted financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with the reconciliation to the corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting the Company’s business. However, these non-GAAP adjusted financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
For the fourth quarter ended
For fiscal year 2017, non-GAAP adjusted net income and non-GAAP adjusted diluted net income per share excludes the write-off of the remaining net book value of certain convection ovens and point of sale terminals, as a result of our new slow roasting oven and server handheld tablet rollouts, natural disaster and related expense resulting from Hurricanes Harvey/Irma, as well as severance related expenses incurred to reorganize the Company’s restaurant support center, offset by the tax benefit resulting from changes in U.S. tax law.
Per share amounts and percentages reflected above may not reconcile due to rounding.
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 fourth quarter and fiscal year ended
Percentages above represent percent of total revenues and may not reconcile due to rounding.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
Adjusted EBITDA represents the sum of net income, interest expense, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, other expense (income), loss on disposal and impairment of assets and certain expenses or benefits detailed within the reconciliation below. Management uses Adjusted EBITDA as a supplemental measure of our performance. Management believes these measures are useful to investors in that they highlight cash flow and 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 these measures differently than we do, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.
ASU 2016-10 Reconciliation
The following tables illustrate the impact from the adoption of ASU 2016-10 on our results for the fourth quarter and fiscal year ended
Source: BJ's Restaurants, Inc.