BJ’s Restaurants, Inc. Provides Business Update
24 April 2020 - 11:15PM
BJ’s Restaurants, Inc. (NASDAQ: BJRI) today provided an update of
certain business and financial metrics.
“The investments we have made in the last few
years in take-out, delivery and digital ordering capabilities are
providing our guests with the BJ’s menu they crave during these
unprecedented times,” said Greg Trojan, Chief Executive Officer of
BJ’s Restaurants, Inc. “Our team members are successfully
delivering high quality food and gold standard service that our
guests have come to expect from BJ’s as we grow our take-out and
delivery sales in the 205 BJ’s Restaurants which continue to
operate. As a result, we continue to see strong week-over-week
growth in our off-premise channel.
“I would personally like to thank each of our
team members for their incredible contributions as we continue
providing our guests with safe, delicious, high-quality food and
beverages,” said Trojan. “Our team has quickly adapted to the
current environment and is committed to delivering a safe and high
quality off-premise experience with initiatives such as tamper
proof seals, digital payment and touchless curbside pickup.”
Current Trends and Business
Update
- BJ’s comparable restaurant sales declines peaked during the
week ended March 24, 2020 at -82% and have since improved to -70%
during the week ended April 21, 2020. The improvement has been
driven by mid-teens sequential weekly growth in the Company’s
off-premise sales from both take-out and delivery channels.
- Recent average off-premise sales on a weekly basis through
April 21, 2020 were as follows:
|
Week Ended |
|
3/17/2020 |
3/24/2020 |
3/31/2020 |
4/7/2020 |
4/14/2020 |
4/21/2020 |
Weekly Sales Average |
|
$11,402 |
|
$19,458 |
|
$21,563 |
|
$24,667 |
|
$27,981 |
|
$31,716 |
Week-over-Week Change |
N/A |
|
70.7% |
|
10.8% |
|
14.4% |
|
13.4% |
|
13.3% |
- Off-premise sales growth has been driven by both traffic and
check, with check growth resulting from more items per order and
growth in certain menu items, such as our Family Feast offerings
that feed 4 to 6 guests and our to-go beverages that include BJ’s
award winning craft beer in six packs and growlers, bottles of wine
and recently launched margaritas to-go.
- Growth in sales levels along with further cost reductions taken
across the organization, the Company has reduced its burn rate to
approximately $2.5 million per week. This includes approximately
$1.2 million of weekly cash rent payments, which are currently
planned for or are already under discussion with the Company’s
landlords for deferral or abatement. In addition, the Company has
the ability to further reduce operating and other expenses should
these sales levels continue for a prolonged period of time.
The Company currently has $70 million of cash on
its balance sheet, reflecting its previously announced draw on its
revolving credit facility. Trojan added, “Our management team is
taking all necessary and appropriate steps to control costs,
maximize liquidity, and evaluate additional sources of capital out
of an abundance of caution, including filing an S-3ASR to sell
additional shares of common stock or other securities as the
Company deems appropriate.”
“Despite the current short term challenges we
face due to mandated dining room closures, our teams are preparing
to begin reopening restaurants once state and local officials allow
us,” commented Trojan. “We are working intently to develop social
distancing and other protocols to ensure that we deliver a safe
experience for both our team members and our guests. We believe our
large restaurants and flexible seating layout will provide us a
strong advantage to take care of our guests' needs and grow sales
as we transition back to dine-in and off-premise operations. The
entire leadership team at BJ’s extends its gratitude to our
restaurant and operating teams for their unique ability to deliver
BJ’s gold standard level of guest service in rapidly changing times
and we also thank our loyal guests for their support and their
trust in BJ’s.”
About BJ’s Restaurants,
Inc.BJ’s Restaurants, Inc. (“BJ’s”) is a national brand
with brewhouse roots and a menu where craft matters. BJ’s broad
menu with over 140 offerings has something for everyone:
slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees®
including Cherry Chipotle Glazed Salmon, signature deep dish pizza
and the often imitated, but never replicated world-famous Pizookie®
dessert. BJ’s has been a pioneer in the craft brewing world since
1996, and takes pride in serving BJ’s award-winning proprietary
handcrafted beers, brewed at its brewing operations in five states
and by independent third-party craft brewers. The BJ’s experience
offers high-quality ingredients, bold flavors, moderate prices,
sincere service and a cool, contemporary atmosphere. Founded in
1978, BJ’s owns and operates 209 casual dining restaurants in 29
states: Alabama, Arizona, Arkansas, California, Colorado,
Connecticut, Florida, Indiana, Kansas, Kentucky, Louisiana,
Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico,
New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania,
Rhode Island, South Carolina, Tennessee, Texas, Virginia and
Washington. All restaurants typically offer dine-in, take-out,
delivery and large party catering. Due to the COVID-19 crisis,
dine-in service is currently not available, menu offerings and
hours are limited, and four restaurants have temporarily been
closed. For more BJ’s information, visit
http://www.bjsrestaurants.com.
Forward-Looking Statements
DisclaimerCertain statements in the preceding paragraphs
and all other statements that are not purely historical constitute
“forward-looking” statements for purposes of the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended, and are
intended to be covered by the safe harbors created thereby. Such
statements include, but are not limited to, those regarding our
expected weekly operating costs and capital expenditures, our
available liquidity, our cost cutting and capital preservation
measures, and effects of the Covid-19 pandemic on our business.
These “forward-looking” statements involve known and unknown risks,
uncertainties and other factors which may cause actual results to
be materially different from those projected or anticipated.
Factors that might cause such differences include, but are not
limited to: (i) the length and severity of the current Covid-19
pandemic and its effect on restaurant sales and operations, (ii)
the effect of any governmental action or mandated employer-paid
benefits in response to the Covid-19 pandemic, (iii) our ability to
manage costs and reduce expenditures in a low or zero revenue
environment, (iv) the availability of additional financing if and
when required, and (v) numerous other matters discussed in the
Company’s filings with the Securities and Exchange Commission,
including its recent reports on Forms 10-K, 10-Q and 8-K. The
“forward-looking” statements contained in this press release are
based on current assumptions and expectations, and BJ’s
Restaurants, Inc. undertakes no obligation to update or alter its
“forward-looking” statements whether as a result of new
information, future events or otherwise.
For further information, please contact Greg
Levin of BJ's Restaurants, Inc. at (714) 500-2400 or JCIR at (212)
835-8500 or at bjri@jcir.com.
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