Factors Driving BJ’s Restaurants (BJRI) First Quarter Earnings

BJ’s Restaurants, Inc. BJRI is expected to release its first quarter 2022 results on April 21, after market close. In the last reported quarter, the company’s earnings missed Zacks’ consensus estimate by 900%.

How are the ratings placed?

Zacks’ consensus estimate for the first-quarter loss is pegged at 26 cents. In the prior year quarter, the company posted an adjusted loss per share of 14 cents. The revenue consensus mark is set at $297.9 million, suggesting a 33.4% improvement over the year-ago quarter tally.

Let’s see how things have evolved over the quarter.

Factors at play

BJ’s Restaurants performance in the first quarter was likely driven by improved traffic and mix. Sales in the quarter were likely aided by improved dining room sales and robust off-premises activity. Robust off-premises sales through an expanded family feast and bundled deals likely helped the company’s performance. The focus on unit expansion, slow roast protein platform and Beer Club subscription services bodes well. The company is also taking advantage of its focus on refining and streamlining its menu to improve traffic.

The company’s results in the quarter should also have benefited from a strong loyalty program. The company’s loyal customer database continues to grow well with the steady increase in transactions. However, higher pre-opening costs, marketing expenses and costs related to initiatives to boost sales likely weighed on the company’s margin in the quarter. In particular, slow roasting ovens and portable tablets increase restaurant costs. A rise in the cost of meat and seafood, including ribs, prime rib, rib eye, tri-tip and salmon, is also hurting the business. BJRI also faced high general and administrative expenses.

BJ’s Restaurants, Inc. Awards and EPS Surprise

BJ’s Restaurants, Inc. price-eps-surprise | BJ’s Restaurants, Inc. Quote

What our model says

Our proven model does not conclusively predict increased profits for BJ’s Restaurants this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings.

ESP Earnings: BJ’s Restaurants has an ESP of 0.00%. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Zack’s Ranking: The company has a Zacks rank #3. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks are poised to beat earnings estimates

Here are some stocks in the Zacks Retail-Wholesale sector that investors can consider as our model shows they have the right combination of elements to post an earnings beat in the reportable quarter:

Chipotle Mexican Grill, Inc. CMG has a +1.08% Earnings ESP and Zacks Rank #3.

Chipotle’s shares have gained 3.4% over the past year. CMG’s earnings have beaten the consensus mark in each of the past four quarters. The company has an earnings surprise for the last four quarters of 11.2% on average.

Cracker Barrel Old Country Store, Inc. CBRL has a +11.33% Earnings ESP and a #3 Zacks Rank.

Shares of Cracker Barrel have fallen 29.9% over the past year. CBRL has a four-quarter earnings surprise of 350.5%, on average.

Groupon, Inc. GRPN has a +23.91% win ESP and a #3 Zacks rank.

Groupon shares have gained 169.1% over the past year. GRPN has a four-quarter earnings surprise of 396.7%, on average.

Stay on top of upcoming earnings announcements with Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Meredith Campagna

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