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HUNTINGTON BEACH, Calif. - BJ's Restaurants, Inc. (NASDAQ:BJRI), a national casual dining chain, today announced the appointment of C. Bradford Richmond as Interim Chief Executive Officer, effective immediately. Richmond, who has served on the company's Board of Directors since February 2024, succeeds Gregory S. Levin, who steps down from his executive roles and the board.
Richmond brings extensive industry experience to his new role, having previously been the Chief Financial Officer of Darden Restaurants (NYSE:DRI), Inc. from 2006 to 2015 and its Corporate Controller from 2005 to 2006. His career also includes executive finance and strategic planning positions at Olive Garden and Red Lobster, dating back to 1982. He has been a member of the Board of Directors of Coast Entertainment Holdings since 2017, where he contributed to the growth and subsequent acquisition of the Main Event brand by Dave & Busters.
"I am honored to join BJ's leadership team," Richmond said. "I look forward to the opportunity to build upon the company's commitment to our culture and brand promise during my interim service."
Lea Anne S. Ottinger, Chair of the BJ's Board, expressed confidence in Richmond's ability to lead the company toward achieving sustainable sales growth and long-term shareholder value, highlighting his operational expertise and a proven track record of financial performance improvement.
Levin, who served BJ's for 19 years, including as Chief Executive Officer & President, was praised for his role in the company's growth and stability during his tenure. "I am proud of our focus on hospitality and service, and I am confident BJ's will continue to successfully execute on our growth initiatives," Levin commented on his departure.
BJ's Restaurants, which was founded in 1978, operates over 200 locations across 31 states, offering a wide menu including slow-roasted entrees, signature deep-dish pizza, and the Pizookie dessert. The company has also received recognition for its beverage program and craft brewing.
This leadership transition is based on a press release statement from BJ's Restaurants, Inc. The company's forward-looking statements indicate plans for continued growth and operational initiatives, though they are subject to various risks and uncertainties.
In other recent news, BJ's Restaurants reported a slight dip in comparable sales for Q2 of fiscal year 2024, but also showed a significant increase in restaurant margins and adjusted EBITDA. The company's total sales reached $349.9 million, despite a 0.6% decrease in same-store sales. The restaurant chain's revenue was $350 million, surpassing consensus estimates by $1 million. The adjusted operating earnings per share (EPS) were $0.53, beating the consensus prediction of $0.51. Additionally, BJ's Restaurants' adjusted EBITDA exceeded expectations, totaling $36 million against a consensus of $33 million.
Following these results, Benchmark analyst downgraded the company's stock from Buy to Hold, citing more conservative estimates for fiscal years 2024 and 2025, and challenges posed by the current operational environment. Despite the downgrade, BJ's Restaurants demonstrated a resilient operational strategy, slightly outperforming market expectations, even amidst a minor decline in same-store sales.
The company also announced plans to open two new restaurants and repurchased approximately 255,000 shares of common stock for $8.8 million. Looking ahead, BJ's Restaurants projects Q3 comparable sales to be in the 1% to 2% range and expects margin expansion in Q4, despite anticipated increases in marketing and food costs.
InvestingPro Insights
As BJ's Restaurants, Inc. (NASDAQ:BJRI) welcomes C. Bradford Richmond as Interim CEO, the company's financial health and market performance remain critical for investors. According to InvestingPro data, BJRI currently has a market capitalization of $739.56 million, reflecting its standing in the casual dining sector. The company's price-to-earnings (P/E) ratio stands at 25.47, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 20.99. This metric suggests that the company is trading at a reasonable valuation relative to its near-term earnings growth.
Despite a slight revenue decline of 1.26% in the last twelve months as of Q2 2024, analysts remain optimistic about BJRI's profitability. This is underscored by the company's recent performance, with a basic earnings per share (EPS) from continuing operations at $1.25. An InvestingPro Tip highlights that analysts predict BJRI will be profitable this year, which is consistent with its track record of profitability over the last twelve months.
On the operational front, BJRI's gross profit margin stands at 14.21%, which aligns with another InvestingPro Tip that points out the company's struggle with weak gross profit margins. This indicates an area where the new leadership may focus to improve financial efficiency. Moreover, the company's stock price movements have been quite volatile, as reflected in the 8.06% decline in the three-month price total return as of the current year. For investors seeking further insights, InvestingPro offers additional tips on BJRI's financial health and performance, including an analysis of the company's short-term obligations and liquidity challenges.
For those interested in a deeper dive into BJRI's financial metrics and strategic outlook, InvestingPro provides a comprehensive suite of tips and real-time data. Currently, there are seven additional InvestingPro Tips available for BJRI at https://www.investing.com/pro/BJRI, offering valuable perspectives for informed investment decisions.
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