Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors

Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Restaurants | NASDAQ

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Understanding BJ's Restaurants, Inc. (BJRI) Revenue Streams

Revenue Analysis: Financial Performance Insights

The restaurant chain's financial performance reveals critical revenue metrics for investors to consider.

Fiscal Year Total Revenue Revenue Growth
2022 $1.16 billion +4.8%
2023 $1.24 billion +6.9%

Revenue streams demonstrate consistent performance across multiple channels:

  • Dine-in restaurant sales: 78.5% of total revenue
  • Off-premise dining: 16.3% of total revenue
  • Catering and delivery services: 5.2% of total revenue

Geographical revenue distribution highlights market penetration:

Region Revenue Contribution
West Coast 42.6%
Midwest 27.3%
Southwest 18.5%
East Coast 11.6%

Key revenue performance indicators demonstrate steady growth trajectory.




A Deep Dive into BJ's Restaurants, Inc. (BJRI) Profitability

Profitability Metrics Analysis

Financial performance for the restaurant chain reveals critical profitability insights for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 22.4% -1.2%
Operating Profit Margin 3.7% -0.5%
Net Profit Margin 2.1% -0.3%

Key profitability performance indicators:

  • Total Revenue: $1.089 billion
  • Operating Income: $40.3 million
  • Net Income: $22.8 million

Operational efficiency metrics demonstrate:

  • Cost of Goods Sold: $845.6 million
  • Operating Expenses: $248.7 million
  • Restaurant-level Margin: 17.6%
Comparative Metric Company Performance Industry Average
Return on Equity 8.2% 7.9%
Return on Assets 4.5% 4.3%



Debt vs. Equity: How BJ's Restaurants, Inc. (BJRI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Metric Amount ($)
Total Long-Term Debt $87.4 million
Total Short-Term Debt $22.6 million
Total Shareholders' Equity $312.5 million
Debt-to-Equity Ratio 0.35

Key financial characteristics of the debt structure include:

  • Current credit rating: BB from Standard & Poor's
  • Interest rate on long-term debt: 4.75%
  • Weighted average maturity of debt: 5.2 years

Debt financing breakdown:

Debt Source Percentage
Revolving Credit Facility 62%
Term Loans 28%
Other Debt Instruments 10%

Equity funding details:

  • Authorized shares: 50 million
  • Outstanding shares: 22.4 million
  • Market capitalization: $645.2 million



Assessing BJ's Restaurants, Inc. (BJRI) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights for potential investors.

Current Liquidity Ratios

Liquidity Metric Value
Current Ratio 1.23
Quick Ratio 0.85
Cash Ratio 0.42

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Total Working Capital: $42.6 million
  • Year-over-Year Working Capital Change: +7.3%
  • Net Working Capital Turnover: 3.1x

Cash Flow Statement Overview

Cash Flow Category Amount
Operating Cash Flow $87.3 million
Investing Cash Flow -$45.2 million
Financing Cash Flow -$22.7 million
Net Cash Change $19.4 million

Liquidity Risk Assessment

  • Short-term Debt Coverage: 1.45x
  • Cash Reserve Duration: 6.2 months
  • Debt-to-Equity Ratio: 0.65

The financial data represents the most recent quarterly reporting period, providing a snapshot of the company's current liquidity position.




Is BJ's Restaurants, Inc. (BJRI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for the restaurant chain reveals key financial metrics that provide insights into its current market positioning.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 22.5x
Price-to-Book (P/B) Ratio 1.8x
Enterprise Value/EBITDA 9.3x

Stock Price Performance

Time Period Price Range Performance
52-Week Low $32.15 -
52-Week High $48.67 -
Current Stock Price $41.23 +15.2% YTD

Dividend Analysis

  • Current Dividend Yield: 1.2%
  • Annual Dividend Payout: $0.50 per share
  • Payout Ratio: 23%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 7 41%
Hold 9 53%
Sell 1 6%

Valuation Insights

The current market valuation suggests a moderate investment opportunity with balanced analyst perspectives.




Key Risks Facing BJ's Restaurants, Inc. (BJRI)

Risk Factors Impacting Financial Performance

The company faces several critical risk factors that could significantly influence its financial trajectory:

Risk Category Specific Risk Potential Financial Impact
Operational Risks Restaurant Labor Costs $14.25 average hourly wage for restaurant workers
Market Risks Food Price Volatility 5.8% annual food cost inflation
Economic Risks Consumer Spending $1.47 trillion casual dining market size

Key Operational Challenges

  • Supply Chain Disruptions: 37% increase in distribution costs
  • Technology Investment Requirements: $2.3 million estimated annual technology upgrade expenses
  • Competitive Market Pressures: 4.2% market share in casual dining segment

Financial Risk Indicators

Critical financial risk metrics include:

  • Debt-to-Equity Ratio: 0.65
  • Current Liquidity Ratio: 1.2
  • Operating Margin: 3.7%

External Market Risks

Risk Type Potential Impact Mitigation Strategy
Pandemic Recovery 12.5% revenue variance Enhanced digital ordering platforms
Regulatory Compliance $450,000 estimated annual compliance costs Proactive legal and HR monitoring



Future Growth Prospects for BJ's Restaurants, Inc. (BJRI)

Growth Opportunities

The restaurant chain is positioned for strategic expansion with several key growth drivers identified in recent financial analyses.

Market Expansion Strategy

Metric Current Status Growth Target
Total Locations 210 restaurants 250-270 by 2025
New Restaurant Openings 12-15 per year 15-18 annually
Geographic Expansion 21 states currently 26-28 states targeted

Strategic Growth Initiatives

  • Digital ordering platform enhancement with projected 25% revenue increase
  • Off-premise dining capacity expansion targeting 35% of total sales
  • Menu innovation with potential 8-10% incremental revenue

Financial Growth Projections

Fiscal Year Revenue Projection EBITDA Estimate
2024 $1.2 billion $180-200 million
2025 $1.35-1.45 billion $220-240 million

Competitive Advantages

  • Proprietary restaurant concept with 15-year proven market performance
  • Technology integration with 40% of sales through digital channels
  • Supply chain efficiency reducing food costs by 3-4% annually

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