|BJ’s Restaurants, Inc. Reports Fiscal 2016 Third Quarter Results|
Third Quarter 2016 Highlights Compared to Third Quarter 2015
“Industry-wide third quarter comparable restaurant sales were soft as businesses dependent on consumer discretionary spending were challenged by a variety of macro factors including the timing of the Summer Olympics as well as the current economic uncertainty arising from the political elections,” commented
“In light of the uncertain macro environment we are also taking other near-term measures intended to manage risk, improve future returns and maintain BJ’s strong brand while driving shareholder value. As such, we are reducing the number of planned fiscal 2017 restaurant openings to 10 to 15 compared to the 17 restaurant openings this year. We believe the sales headwinds in the industry call for greater resource allocation toward traffic and sales building initiatives. We anticipate that the expanded free cash flow related to the revised 2017 new restaurant opening schedule will provide added flexibility to our already solid financial foundation and will allow for margin leverage, strategic growth investments in our platform, and the continued return of capital to shareholders. We also believe the temporary reduction in new openings positions BJ’s to take advantage of potential real estate opportunities in the form of reduced rent and/or better locations over the next 12 to 18 months as a result of several announced restaurant bankruptcies and closures by other concepts. Given our current robust real estate pipeline and the opportunities we expect to be presented over the next 12 to 18 months, we believe we can quickly increase unit growth once we see improvements in the macro environment. More importantly, with the continued success of our new restaurants over the last several years, and with only 185 restaurants opened today, we remain confident in the estimated national capacity for 425 BJ’s restaurants, providing a long-term runway for the growth of our concept and the Company.”
In the third quarter of fiscal 2016, BJ’s opened five new restaurants in
During the third quarter of 2016, the Company repurchased and retired approximately 0.6 million shares of its common stock for approximately
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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 GAAP results and the reconciliations to 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 fiscal year 2015, non-GAAP adjusted net income and non-GAAP adjusted diluted net income per share exclude a lease termination gain related to the closure of the Company’s
Per share amounts and percentages reflected above may not reconcile due to rounding.
(1) The tax effect is based on the Company’s annual estimated effective tax rate 26.3% for the third quarter and nine months ended
Restaurant Level Operating Margin
The Company uses restaurant level operating margin to help analyze the performance of its core business. Restaurant level operating margin for the third quarter and nine months ended
Percentages above represent percent of total revenues and may not reconcile due to rounding.