HUNTINGTON BEACH, Calif. - BJ's Restaurants, Inc. (NASDAQ:BJRI) reported a loss for the third quarter, sending shares tumbling 9% in after-hours trading on Thursday.
The casual dining chain posted a net loss of $2.9 million, or $0.13 per share, compared to a loss of $3.8 million, or $0.16 per share, in the same quarter last year. Analysts had expected earnings of $0.02 per share.
Revenue rose 2.2% YoY to $325.7 million, slightly above estimates of $324.96 million. Comparable restaurant sales increased 1.7%.
While guest traffic exceeded the industry by approximately 570 basis points, BJ's was unable to fully leverage the strong traffic growth due to higher than anticipated restaurant costs. This resulted in modestly higher dollar restaurant level operating margin but lower percentage margin compared to a year ago.
"Our third quarter results mark progress with our sales building initiatives, which drove positive comparable restaurant sales and guest traffic that accelerated through the quarter," said Brad Richmond, Interim Chief Executive Officer. "In the current competitive environment, BJ's value programs are resonating with guests."
The company opened two new restaurants in Q3, bringing the total to three new locations in 2024. BJ's currently operates 218 restaurants across 31 states.
Looking ahead, management expects to demonstrate favorable profit momentum in the fourth quarter as it focuses on restoring higher restaurant level margins through a disciplined financial approach.
During Q3, BJ's repurchased approximately 268,000 shares of its common stock for $8.2 million. The company has about $44 million remaining under its authorized $550 million share repurchase program.
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