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BJ's 1Q net income more than doubles

BJ's 1Q net income more than doubles

Sales growth, cost efficiencies drive higher profits

BJ’s Restaurants Inc. more than doubled its net income during the first quarter due to a combination of higher sales and cost savings initiatives, the company said Thursday.

Net income in the quarter ended March 31 increased 106 percent, to $9.6 million, or 37 cents per share, from $4.7 million, or 16 cents per share.

Same-store sales at the Huntington Beach, Calif.-based chain rose 3.2 percent in the quarter.

“The continued success from our sales-driving initiatives combined with our cost containment programs and efficiencies derived from Project Q resulted in a solid start to fiscal 2015 and record first-quarter results,” BJ’s CEO Greg Trojan said in a statement. He noted that the same-store sales growth was the company’s third straight increase.

“Our new menu offerings and food innovation combined with our focus on affordability, speed and hospitality are being well received by guests,” Trojan added.

Project Q is an effort to improve kitchen efficiency and reduce operating and occupancy costs. Trojan said the efforts generated restaurant-level operating margins of 18.9 percent, a 180-basis-point improvement over the previous year.

Revenue rose 9.4 percent, to $225.1 million, in the quarter, the company said. Operating income more than doubled, to $13.1 million, from $5.8 million the previous year. The company’s operating margin of 5.8 percent was a 300-basis-point increase over the year before.

1Q NET INCOME

Result: $9.6 million, or 37 cents per share
% Increase: 106% (from $4.7 million, or 16 cents per share)

1Q REVENUE

Result: $225.1 million
% Increase: 9.4% (from $205.8 million)

1Q SAME-STORE SALES

% Increase: 3.2%

Source: Company report

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BJ's expects 4Q same-store sales to rise 1.2%
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Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze

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