BJs RESTAURANTS INC [BJRI] Filings

10-Q 1 bjri-20230704.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July 4, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ______

Commission file number 0-21423

BJ’S RESTAURANTS, INC.

(Exact name of registrant as specified in its charter)

California

33-0485615

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

7755 Center Avenue, Suite 300

Huntington Beach, California 92647

(714) 500-2400

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading
Symbol

Name of each exchange on which registered

Common Stock, No Par Value

BJRI

NASDAQ Global Select Market

(Address, including zip code, and telephone number, including

area code, of registrant’s principal executive offices)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every interactive data file required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definition of “accelerated filer,” “large accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


☐	Large accelerated filer	☑	Accelerated filer
☐	Non-accelerated filer	☐	Smaller reporting company
☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

As of August 4, 2023, there were 23,573,109 shares of Common Stock of the Registrant outstanding.

BJ’S RESTAURANTS, INC.

TABLE OF CONTENTS


		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements	1

	Consolidated Balance Sheets – July 4, 2023 (Unaudited) and January 3, 2023	1

	Unaudited Consolidated Statements of Operations – Thirteen and Twenty-Six Weeks Ended July 4, 2023 and June 28, 2022	2
	Unaudited Consolidated Statements of Shareholders’ Equity – Thirteen and Twenty-Six Weeks Ended July 4, 2023 and June 28, 2022	3
	Unaudited Consolidated Statements of Cash Flows – Thirteen and Twenty-Six Weeks Ended July 4, 2023 and June 28, 2022	4

	Notes to Unaudited Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18

Item 4.	Controls and Procedures	18

Item 5.	Other Information	19

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	19

Item 1A.	Risk Factors	19

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19

Item 6.	Exhibits	20


	SIGNATURES	21

PART I. FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

BJ’S RESTAURANTS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)


	July 4, 2023		January 3, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	6,053	$	24,873
Accounts and other receivables, net		33,091		28,593
Inventories, net		11,994		11,887
Prepaid expenses and other current assets		14,636		16,905
Total current assets		65,774		82,258

Property and equipment, net		522,610		507,116
Operating lease assets		361,494		368,784
Goodwill		4,673		4,673
Equity method investment		4,900		5,000
Deferred income taxes, net		41,969		38,312
Other assets, net		39,841		39,779
Total assets	$	1,041,261	$	1,045,922

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	53,816	$	59,563
Accrued expenses		98,111		97,258
Current operating lease obligations		31,954		40,037
Total current liabilities		183,881		196,858

Long-term operating lease obligations		427,609		432,676
Long-term debt		53,000		60,000
Other liabilities		10,725		10,873
Total liabilities		675,215		700,407

Commitments and contingencies

Shareholders’ equity:
Preferred stock, 5,000 shares authorized, none issued or outstanding		—		—
Common stock, no par value, 125,000 shares authorized and 23,544 and 23,392 shares issued and outstanding as of July 4, 2023 and January 3, 2023, respectively		—		—
Capital surplus		73,407		74,459
Retained earnings		292,639		271,056
Total shareholders’ equity		366,046		345,515
Total liabilities and shareholders’ equity	$	1,041,261	$	1,045,922

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)


	For the Thirteen Weeks Ended						For the Twenty-Six Weeks Ended
	July 4, 2023			June 28, 2022			July 4, 2023			June 28, 2022
Revenues	$	349,670		$	329,697		$	690,950		$	628,426
Restaurant operating costs (excluding depreciation and amortization):
Cost of sales		90,614			90,928			181,491			172,394
Labor and benefits		126,522			123,111			254,855			239,397
Occupancy and operating		81,912			76,560			161,058			148,261
General and administrative		21,194			16,905			40,900			35,158
Depreciation and amortization		17,708			17,565			35,320			35,541
Restaurant opening		378			1,045			1,222			1,628
Loss on disposal and impairment of assets, net		1,130			438			3,276			595
Total costs and expenses		339,458			326,552			678,122			632,974
Income (loss) from operations		10,212			3,145			12,828			(4,548	)

Other income (expense):
Interest expense, net		(1,108	)		(436	)		(2,229	)		(1,070	)
Other income (expense), net (1)		622			(187	)		818			(575	)
Total other expense		(486	)		(623	)		(1,411	)		(1,645	)
Income (loss) before income taxes		9,726			2,522			11,417			(6,193	)

Income tax (benefit) expense		(2,206	)		2,225			(3,996	)		(7,950	)
Net income	$	11,932		$	297		$	15,413		$	1,757

Net income per share:
Basic	$	0.51		$	0.01		$	0.66		$	0.08
Diluted	$	0.50		$	0.01		$	0.64		$	0.07

Weighted average number of shares outstanding:
Basic		23,539			23,434			23,510			23,405
Diluted		23,971			23,576			23,961			23,658

(1)

For the thirteen weeks ended July 4, 2023 and June 28, 2022, related party costs included in other income (expense), net was an equity method investment loss of $60,000 and zero, respectively. For the twenty-six weeks ended July 4, 2023 and June 28, 2022, related party costs included in other income (expense), net was an equity method investment loss of $100,000 and zero, respectively. See Note 10 for further information.

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(In thousands)


	For the Thirteen Weeks Ended
	Common Stock					Capital			Retained
	Shares		Amount			Surplus			Earnings		Total
Balance, March 29, 2022		23,416	$	—		$	69,326		$	268,336	$	337,662
Issuance of restricted stock units		23		978			(978	)		—		—
Reclassification of common stock		—		(978	)		—			978		—
Stock-based compensation		—		—			2,380			—		2,380
Adjustment to dividends previously accrued		—		—			—			5		5
Net income		—		—			—			297		297
Balance, June 28, 2022		23,439	$	—		$	70,728		$	269,616	$	340,344

Balance, April 4, 2023		23,529	$	—		$	71,035		$	280,199	$	351,234
Exercise of stock options		—		8			(2	)		—		6
Issuance of restricted stock units		15		500			(500	)		—		—
Repurchase, retirement and reclassification of common stock		—		(508	)		—			508		—
Stock-based compensation		—		—			2,874			—		2,874
Net income		—		—			—			11,932		11,932
Balance, July 4, 2023		23,544	$	—		$	73,407		$	292,639	$	366,046

	For the Twenty-Six Weeks Ended
	Common Stock					Capital			Retained
	Shares		Amount			Surplus			Earnings		Total
Balance, December 28, 2021		23,304	$	—		$	72,513		$	261,258	$	333,771
Issuance of restricted stock units		135		6,593			(6,953	)		—		(360	)
Reclassification of common stock		—		(6,593	)		—			6,593		—
Stock-based compensation		—		—			5,168			—		5,168
Adjustment to dividends previously accrued		—		—			—			8		8
Net income		—		—			—			1,757		1,757
Balance, June 28, 2022		23,439	$	—		$	70,728		$	269,616	$	340,344

Balance, January 3, 2023		23,392	$	—		$	74,459		$	271,056	$	345,515
Exercise of stock options		—		8			(2	)		—		6
Issuance of restricted stock units		152		6,161			(6,659	)		—		(498	)
Repurchase, retirement and reclassification of common stock		—		(6,169	)		—			6,169		—
Stock-based compensation		—		—			5,609			—		5,609
Adjustment to dividends previously accrued		—		—			—			1		1
Net income		—		—			—			15,413		15,413
Balance, July 4, 2023		23,544	$	—		$	73,407		$	292,639	$	366,046

See accompanying notes to unaudited consolidated financial statements.

BJ’S RESTAURANTS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	For the Twenty-Six Weeks Ended
	July 4, 2023			June 28, 2022
Cash flows from operating activities:
Net income	$	15,413		$	1,757
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		35,320			35,541
Non-cash lease expense		16,310			16,585
Amortization of financing costs		109			109
Deferred income taxes		(3,657	)		(8,273	)
Stock-based compensation expense		5,420			4,999
Loss on disposal and impairment of assets, net		3,276			595
Equity method investment		100			—
Changes in assets and liabilities:
Accounts and other receivables		(2,898	)		7,557
Inventories, net		186			95
Prepaid expenses and other current assets		1,796			2,052
Other assets, net		(1,638	)		(810	)
Accounts payable		(5,093	)		(5	)
Accrued expenses		874			(8,596	)
Operating lease obligations		(23,770	)		(20,099	)
Other liabilities		(148	)		(1,295	)
Net cash provided by operating activities		41,600			30,212

Cash flows from investing activities:
Purchases of property and equipment		(52,912	)		(31,119	)
Proceeds from sale of assets		4			566
Net cash used in investing activities		(52,908	)		(30,553	)

Cash flows from financing activities:
Borrowings on line of credit

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