BJ's Earnings: What To Look For From BJRI

Max Juang /
2024/05/01 3:07 am EDT

American restaurant chain BJ’s Restaurants (NASDAQ:BJRI) will be reporting results tomorrow after market close. Here's what to look for.

BJ's missed analysts' revenue expectations by 1.7% last quarter, reporting revenues of $323.6 million, down 6% year on year. It was a mixed quarter for the company, with a decent beat of analysts' earnings estimates. On the other hand, its revenue unfortunately missed thanks to lower-than-expected same-store sales growth (0.6% vs estimates of 2.0%). 

Is BJ's a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting BJ's revenue to decline 1.7% year on year to $335.4 million, a reversal from the 14.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

BJ's Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BJ's has missed Wall Street's revenue estimates three times over the last two years.

Looking at BJ's peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 3.4%, meeting analysts' expectations, and Denny's reported a revenue decline of 6.4%, falling short of estimates by 4.5%.

Read our full analysis of Brinker International's results here and Denny's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. BJ's is down 7.9% during the same time and is heading into earnings with an average analyst price target of $36.9 (compared to the current share price of $32.59).

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