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

Are you an investor keeping a close watch on the restaurant industry? Ever wonder about the financial stability and future prospects of a popular dining chain? Let's dive into a detailed analysis of BJ's Restaurants, Inc. (BJRI), examining key financial data from fiscal year 2024. Despite a challenging year, the company reported total revenues of $1.4 billion, marking a 1.8% increase from the previous year. While diluted net income per share saw a 14.6% decrease to $0.70, the adjusted diluted net income per share actually rose by 36.5% to $1.47. What do these figures really tell us about the company's financial health and what strategic moves are they planning for 2025? Read on to uncover the insights.

BJ's Restaurants, Inc. (BJRI) Revenue Analysis

Understanding BJ's Restaurants, Inc. (BJRI)'s financial health requires a close examination of its revenue streams. A detailed look into where the company's money comes from, how these sources have changed over time, and their relative importance can provide valuable insights for investors. Here’s a breakdown of what to consider:

Breakdown of Primary Revenue Sources:

BJ's Restaurants, Inc. primarily generates revenue through:

• Restaurant sales, encompassing food and beverage sales from its various restaurant locations.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides a view of BJ's Restaurants, Inc.'s performance over time. Examining historical trends and percentage increases or decreases can highlight periods of strong growth or potential challenges. For instance, one can look at the trend from 2023 to 2024 to see if the company is experiencing growth, stagnation, or decline.

In the fiscal year 2024, BJ's Restaurants, Inc. reported total revenues of $1.34 billion, marking an increase of 3.3% compared to the $1.30 billion reported in 2023.

Contribution of Different Business Segments to Overall Revenue:

For BJ's Restaurants, Inc., substantially all revenues are derived from restaurant sales. Breaking down the contribution of different menu categories (e.g., entrees, appetizers, beverages) can offer a more granular view, although this level of detail is not always publicly disclosed. Understanding which menu items drive the most sales can inform decisions about menu optimization and marketing strategies.

Analysis of Any Significant Changes in Revenue Streams:

Identifying and understanding significant changes in revenue streams is crucial. This involves looking for:

• New menu offerings that have gained traction.
• Changes in customer preferences.
• The impact of promotional activities.
• The influence of external factors like economic conditions or health crises.

For example, the increase in revenue in 2024 was primarily driven by:

• Comparable restaurant sales growth of 1.7%.
• Additional sales from new restaurant openings.

Here's a summary of BJ's Restaurants, Inc.'s revenue data for fiscal year 2024:

For further insights into BJ's Restaurants, Inc.'s financial health, you can explore: Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors

BJ's Restaurants, Inc. (BJRI) Profitability Metrics

Assessing the financial health of BJ's Restaurants, Inc. (BJRI) requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Key indicators include gross profit, operating profit, and net profit margins, which reveal different aspects of the company's financial performance.

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross Profit Margin is gross profit divided by revenue. BJ's Restaurants, Inc.'s gross profit margin can highlight how efficiently the company manages its cost of goods sold (COGS). Analyzing this margin over time can reveal trends in operational efficiency and cost management. The trend of gross profit gives investors insight into how well BJ's Restaurants, Inc. (BJRI) manages production costs and pricing strategies.

Operating profit, calculated as gross profit less operating expenses, indicates the profit earned from the company's core business operations. The Operating Profit Margin, which is operating profit divided by revenue, illustrates how much profit BJ's Restaurants, Inc. (BJRI) makes from each dollar of sales, before interest and taxes. A rising operating profit margin suggests improved operational efficiency, while a declining margin may signal rising costs or pricing pressures. For example, effective cost control measures and optimized pricing strategies can positively influence the operating profit margin.

Net profit represents the actual profit earned by BJ's Restaurants, Inc. (BJRI) after deducting all expenses, including interest and taxes. Net Profit Margin, net profit divided by revenue, is a critical measure of overall profitability and reflects the percentage of revenue that ultimately becomes profit for the company. BJ's Restaurants, Inc.'s net profit margin is influenced by various factors, including operational efficiency, interest expenses, and tax rates. Monitoring the trend in net profit margin helps investors understand the company's ability to generate profits consistently.

Here are some factors that affect operational efficiency:

• Cost Management: Efficiently managing and controlling costs, including food and labor costs, is crucial for maintaining and improving profitability.
• Gross Margin Trends: Monitoring gross margin trends helps in assessing the effectiveness of cost management and pricing strategies.

A comparison of BJ's Restaurants, Inc.'s profitability ratios with industry averages provides valuable context. If BJ's Restaurants, Inc. (BJRI) ratios are higher than the industry average, it indicates superior performance. Conversely, lower ratios may signal areas of concern. Here’s a look at some key financial data for BJ's Restaurants, Inc.:

For further insights into the investors of BJ's Restaurants, Inc., explore Exploring BJ's Restaurants, Inc. (BJRI) Investor Profile: Who’s Buying and Why?.

BJ's Restaurants, Inc. (BJRI) Debt vs. Equity Structure

Understanding how BJ's Restaurants, Inc. (BJRI) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its business.

As of fiscal year 2024, BJ's Restaurants, Inc. (BJRI) has a mix of both short-term and long-term debt. Analyzing the specifics:

• Short-Term Debt: This includes obligations due within the next 12 months.
• Long-Term Debt: This consists of debt that matures beyond one year.

The balance between these two types of debt can indicate the company's financial flexibility and its ability to meet upcoming obligations while investing in long-term growth.

The debt-to-equity ratio is a key metric to assess BJ's Restaurants, Inc. (BJRI) financial leverage. It indicates how much debt the company is using to finance its assets relative to the value of shareholders' equity. A high ratio suggests the company relies more on debt, which can amplify both returns and risks. Conversely, a lower ratio indicates a more conservative approach with greater reliance on equity.

To provide a clear picture, here's a hypothetical debt-to-equity ratio comparison:

In this example, BJ's Restaurants, Inc. (BJRI) has a debt-to-equity ratio of 1.5, while the industry average is 1.0. This suggests that the company is more leveraged than its peers.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, provide insights into BJ's Restaurants, Inc. (BJRI) strategy for managing its capital structure. For example:

• Debt Issuances: Any new bonds or loans issued to raise capital.
• Credit Ratings: Ratings from agencies like Standard & Poor's or Moody's, which reflect the company's creditworthiness.
• Refinancing: Actions taken to replace existing debt with new debt, often to secure better terms or extend the repayment period.

Understanding these activities helps investors gauge the company's financial risk and its ability to access capital markets.

BJ's Restaurants, Inc. (BJRI) must strategically balance debt financing and equity funding. Debt can provide a cost-effective way to finance growth, especially when interest rates are low. However, excessive debt can increase financial risk and limit the company's flexibility.

Equity funding, on the other hand, does not require repayment and can provide a cushion during downturns. However, it can dilute existing shareholders' ownership and may be more expensive than debt in certain market conditions.

A balanced approach ensures that BJ's Restaurants, Inc. (BJRI) can sustain its growth while maintaining a healthy financial position. More information about the company's strategic direction can be found here: Mission Statement, Vision, & Core Values of BJ's Restaurants, Inc. (BJRI).

BJ's Restaurants, Inc. (BJRI) Liquidity and Solvency

When evaluating the financial health of BJ's Restaurants, Inc. (BJRI), understanding its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Analyzing various financial ratios and statements provides insights into these aspects.

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

Several key ratios help in assessing the liquidity position of BJ's Restaurants, Inc. (BJRI):

• Current Ratio: The current ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: The quick ratio is similar to the current ratio but excludes inventory, providing a more conservative measure of liquidity.

For the fiscal year 2024, BJ's Restaurants, Inc. (BJRI) reported the following:

• A current ratio of 0.73, down from 0.81 in the previous year.
• A quick ratio of 0.62, also down from 0.70 in the previous year.

These ratios suggest a slightly weakened short-term liquidity position compared to the previous year, indicating that the company has fewer liquid assets available to cover its short-term liabilities.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is an essential metric for evaluating liquidity. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Monitoring the trends in working capital provides insights into the company's operational efficiency and liquidity management.

As of fiscal year 2024, BJ's Restaurants, Inc. (BJRI) reported a working capital of -$29.2 million, which is a decrease compared to the working capital of -$17.9 million in the prior year.

Cash Flow Statements Overview:

The cash flow statement provides a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing the trends in these cash flows helps in understanding the company's ability to generate cash and meet its obligations.

Here's an overview of BJ's Restaurants, Inc.'s (BJRI) cash flow activities for the fiscal year 2024:

• Net Cash from Operating Activities: Was $141.3 million in 2024.
• Net Cash used in Investing Activities: Was -$43.8 million in 2024.
• Net Cash used in Financing Activities: Was -$86.7 million in 2024.

Potential Liquidity Concerns or Strengths:

While BJ's Restaurants, Inc. (BJRI) demonstrates positive cash flow from operating activities, the negative working capital and decreasing liquidity ratios could raise concerns about its short-term financial health. However, the ability to generate cash from operations provides a buffer, indicating a capacity to meet immediate obligations. Prudent management of current assets and liabilities is essential to maintain a healthy liquidity position.

You might also be interested in the Mission Statement, Vision, & Core Values of BJ's Restaurants, Inc. (BJRI).

BJ's Restaurants, Inc. (BJRI) Valuation Analysis

Determining whether BJ's Restaurants, Inc. (BJRI) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

As of April 2025, here's a breakdown of these indicators:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a key indicator, reflects the amount investors are willing to pay for each dollar of earnings. BJ's Restaurants' TTM P/E ratio is 24.24, which can be compared to industry averages to gauge relative valuation.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. BJ's Restaurants' most recent P/B ratio is 3.42.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess valuation, taking into account the company's debt. As of January 2025, BJ's Restaurants' EV/EBITDA ratio was 8.8.

Analyzing these ratios in isolation is not sufficient. They should be compared against industry peers and the company's historical averages to provide a more meaningful perspective.

Stock Price Trends: Reviewing the stock price trends of BJ's Restaurants, Inc. (BJRI) over the past year provides insights into market sentiment and investor confidence.

• Over the last year, the stock has shown considerable volatility. As of April 18, 2025, BJRI's stock price was $40.43.
• The 52-week range provides context:
  • 52 Week High: $44.74
  • 52 Week Low: $26.34

Significant price appreciation could suggest overvaluation, while a substantial decline might indicate undervaluation, provided the company's fundamentals remain strong.

Dividend Yield and Payout Ratios: As of April 2025, BJ's Restaurants does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus: Analyst ratings provide a summarized view of professional opinions on the stock. The consensus is derived from ratings given by various analysts covering the company.

• As of April 2025, the analyst consensus on BJ's Restaurants' stock is a 'Hold.'
• The consensus price target is around $42.00, suggesting a modest potential upside from the current price of $40.43.

Here is a summary of analysts' recommendations and price targets for BJ's Restaurants, Inc.:

Based on these valuations, it's essential to consider a holistic view, blending quantitative metrics with qualitative insights about the company's future prospects and industry dynamics. No single metric should dictate the conclusion; instead, a synthesis of multiple factors will provide a more informed assessment of whether BJ's Restaurants, Inc. is overvalued, undervalued, or fairly priced.

To gain further insights, you might find this resource helpful: Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors

BJ's Restaurants, Inc. (BJRI) Risk Factors

BJ's Restaurants, Inc. (BJRI) faces a variety of internal and external risks that could significantly impact its financial health. These risks span from industry competition and regulatory changes to market conditions and specific operational challenges.

One of the primary external risks is intense competition within the restaurant industry. This includes competition from other full-service restaurants, fast-casual dining establishments, and even the increasing popularity of meal delivery services. Changes in consumer preferences and dining trends also pose a risk, requiring BJ's Restaurants, Inc. (BJRI) to adapt its menu and service offerings continually.

Regulatory changes represent another significant external risk. These can include changes in labor laws (such as minimum wage increases), health and safety regulations, and rules related to food sourcing and preparation. Compliance with these regulations can increase operating costs and require adjustments to business practices.

Market conditions, including economic downturns, fluctuations in commodity prices, and changes in consumer spending habits, can also significantly affect BJ's Restaurants, Inc. (BJRI) financial performance. For instance, a rise in the cost of key ingredients or a decrease in disposable income among consumers could negatively impact profitability.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include challenges related to managing supply chains, maintaining consistent food quality, and ensuring efficient restaurant operations. Labor shortages and increasing labor costs are also ongoing concerns.
• Financial Risks: BJ's Restaurants, Inc. (BJRI) carries debt, and its ability to meet its debt obligations depends on its cash flow from operations. Fluctuations in interest rates and credit market conditions could impact the cost of borrowing and the availability of financing.
• Strategic Risks: Strategic risks involve decisions related to expansion, menu innovation, and marketing. Failure to adapt to changing market conditions or to execute strategic initiatives effectively could harm the company's competitive position and financial results.

While specific mitigation strategies are not always detailed in public filings, BJ's Restaurants, Inc. (BJRI) likely employs several common risk management techniques. These may include:

• Diversifying supply chains to reduce reliance on any single supplier.
• Implementing cost control measures to manage expenses.
• Investing in employee training and retention programs to address labor challenges.
• Continuously monitoring and adapting to changes in consumer preferences and market conditions.
• Maintaining insurance coverage to protect against potential liabilities and losses.

Here you can find more information: Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors

BJ's Restaurants, Inc. (BJRI) Growth Opportunities

BJ's Restaurants, Inc. (BJRI) faces a landscape ripe with potential for expansion and increased profitability. Several key factors underpin these future growth prospects, ranging from strategic menu innovations to targeted market penetration and leveraging competitive advantages.

Key growth drivers for BJ's Restaurants, Inc. (BJRI) include:

• Product Innovation: Refreshing and diversifying the menu to attract new customers and retain existing ones. This includes introducing seasonal items, catering to dietary preferences (e.g., gluten-free, vegan options), and innovating on their core offerings.
• Market Expansion: Strategically opening new restaurant locations in underserved markets or expanding within existing high-performing regions.
• Enhanced Digital Capabilities: Investing in technology to improve the customer experience, such as online ordering, mobile apps, and loyalty programs. These initiatives aim to drive sales and build customer loyalty.

While precise revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts' estimates provide a general outlook. Keep in mind that these are estimates and not guarantees.

Strategic initiatives and partnerships that may propel future growth:

• Partnerships with delivery services: Collaborating with third-party delivery platforms to extend reach and cater to the growing demand for off-premise dining.
• Technology investments: Implementing technologies to streamline operations, improve efficiency, and enhance the guest experience.

BJ's Restaurants, Inc. (BJRI) possesses several competitive advantages that position it favorably for future growth:

• Brand Recognition: A well-established brand name with a reputation for quality food and a diverse menu.
• Brewery Operations: In-house brewing capabilities provide a unique selling proposition and contribute to higher margins.
• Loyalty Program: A robust loyalty program that encourages repeat business and provides valuable customer data.

Here's a snapshot of how these advantages might play out:

For more insights into BJ's Restaurants, Inc. (BJRI) financial health, explore this analysis: Breaking Down BJ's Restaurants, Inc. (BJRI) Financial Health: Key Insights for Investors