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

 

OR

 

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.

1


 

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.

2


 

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.

3


 

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