BJ’s Restaurants, Inc. (Nasdaq:BJRI) today reported financial results for the fourth quarter and fiscal year 2010 that ended on Tuesday, December 28, 2010.
Highlights for the 13 weeks ended December 28, 2010, compared to the 13 weeks ended December 29, 2009, were as follows:
- Total revenues increased 18% to $132.9 million
- Comparable restaurant sales increased 5.9%
- Net income and diluted net income per share were $6.9 million and $0.24, respectively
- Two new restaurants opened
- Total restaurant operating weeks increased approximately 12%
Results for the fourth quarter of fiscal 2010 include an after-tax benefit of approximately $0.7 million or $0.02 per diluted share primarily due to a favorable tax rate adjustment associated with disqualifying dispositions related to incentive stock options (“ISO”). Additionally, in the fourth quarter of fiscal 2009, the Company recorded an after-tax charge of approximately $1.6 million or $0.06 per diluted share related to a loss and related legal costs for the disposition of the Company’s entire auction rate securities (“ARS”) portfolio. Excluding both of these items from each year’s quarterly results, non-GAAP net income and diluted net income per share for the fourth quarter of fiscal 2010 would have increased by 90% and 83%, respectively, to $6.3 million and $0.22 compared to non-GAAP results for the same quarter last year. A reconciliation between GAAP and these non-GAAP financial measures is included in the accompanying financial data.
Highlights for the 52 weeks ended December 28, 2010, compared to the 52 weeks ended December 29, 2009, were as follows:
- Total revenues increased 20% to $513.9 million
- Comparable restaurant sales increased 5.6%
- Net income and diluted net income per share were $23.2 million and $0.82, respectively
- Ten new restaurants opened
- Total restaurant operating weeks increased approximately 13%
Excluding the two aforementioned after-tax items for both fiscal 2010 and 2009, non-GAAP net income and diluted net income per share for fiscal 2010 would have increased by 53% and 51%, respectively, to $22.5 million and $0.80 compared to non-GAAP results for fiscal 2009. A reconciliation between GAAP and these non-GAAP financial measures is included in the accompanying financial data.
“Our leadership team was very pleased with BJ’s strong financial performance for both the fourth quarter and full year of 2010,” commented Jerry Deitchle, Chairman and Chief Executive Officer. “Despite the difficult operating environment during the past couple of years, we made a decision to continue prudently investing in the quality of the BJ’s restaurant concept and the strength of our support infrastructure, thereby protecting our brand and our longer-term growth opportunity. As a result, fiscal 2010 was a very successful year for BJ’s. Not only did we achieve our targeted capacity growth by opening ten successful new restaurants this past year, we also achieved four consecutive quarters of solidly positive comparable restaurant sales that resulted in a 5.6% increase in that metric for the full year. Taken together, our capacity growth and comparable restaurant sales growth enabled BJ’s to surpass the half-billion dollar sales milestone during fiscal 2010. Just as important, we were able to achieve better leverage of our sales increases to our bottom-line performance as a result of more effective operational execution in all aspects of our business. We look forward to the challenge of surpassing this performance during the upcoming year.”
Two new restaurants opened during the fourth quarter of 2010 (Puente Hills, CA and Shenandoah, TX). “Sales volumes for all of our new restaurant openings during 2010 remain strong,” commented Deitchle. As previously announced, the Company currently expects to open as many as 12 to 13 new restaurants during 2011. Two new restaurant openings are currently planned for the latter half of the first quarter of 2011 (Tyler, TX and Sacramento, CA). As of this date, the Company expects to open as many as three new restaurants in the second quarter, four new restaurants in the third quarter and as many as three or four new restaurants during the fourth quarter. Investors are reminded that the actual number and timing of new restaurant openings is subject to a number of factors outside of the Company’s control, including weather conditions and factors under the control of landlords, contractors and regulatory/licensing authorities.
BJ’s Restaurants, Inc. currently owns and operates 102 casual dining restaurants under the BJ’s Restaurant & Brewery, BJ’s Restaurant & Brewhouse or BJ’s Pizza & Grill brand names. BJ’s restaurants offer an innovative and broad menu featuring award-winning, signature deep-dish pizza complemented with generously portioned salads, appetizers, sandwiches, soups, pastas, entrees and desserts. Quality, flavor, value, moderate prices and sincere service remain distinct attributes of the BJ’s experience. The Company operates several microbreweries which produce and distribute BJ’s critically acclaimed handcrafted beers throughout the chain. The Company’s restaurants are located in California (51), Texas (20), Arizona (6), Colorado (4), Oregon (2), Nevada (4), Florida (6), Ohio (2), Oklahoma (2), Kentucky (1), Indiana (1), Louisiana (1) and Washington (2).