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BJ’s Restaurants, Inc. Reports Fiscal 2018 Second Quarter Results
Second Quarter 2018 Highlights Compared to Second Quarter 2017
“Our sales building and hospitality initiatives drove strong second quarter growth in guest traffic and comparable restaurant sales,” commented
“During the quarter, 42 of our restaurants set daily sales records and 23 of our restaurants set weekly sales records, demonstrating robust and consistent growth across our entire restaurant base. These results are a testament to the strength of the BJ’s brand, the broad attraction to our unique concept, and the continued execution by our team members in delivering Gold Standard service and hospitality for our guests every day. As we move into the second half of 2018, we remain focused on driving sales and traffic and taking market share in the casual dining segment of the restaurant industry. We plan on testing new Brewhouse Specials and Slow Roast menu items, further optimizing our off-premise sales channel and leveraging the data from our upgraded Premier Rewards loyalty program. Further refining these initiatives will provide us a solid foundation to drive continued sales growth.”
In the second quarter of 2018, BJ’s opened new restaurants in
During the second quarter of 2018, the Company repaid
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 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.
Reconciliation of Selected GAAP Financial Measures to Non-GAAP Adjusted Financial Measures
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 second quarter and six months ended
Per share amounts and percentages reflected above may not reconcile due to rounding.
(1) The tax effect is based on the Company’s annual effective tax rate of 22.5% for the six months ended
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 second quarter and six months 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 results for the second quarter and six months ended
(1) Amount represents approximately
(1) Amount represents approximately
Source: BJ's Restaurants, Inc.