BJ’s Restaurant Stocks (NASDAQ:BJRI) were trading defensively after hours following the release of disappointing fourth-quarter results that included a larger-than-expected decline in sales.
The company earned a profit of $0.34 per share on sales of $323.6 million. While the company’s profits doubled In the same quarter last year, beating expectations by 6 cents a share, revenue fell 6% and missed the Street consensus estimate of $6 million.
Adjusted EBITDA increased 8.4% to $27.3 million.
Restaurant-level operating margin increased 150 basis points to 14.4%. However, excluding the benefit from gift card breakage – revenue earned through unredeemed gift cards – the restaurant’s operating margin would be 12.1%. The Q4 gift card breakout also includes a $0.10 net benefit to diluted earnings.
On the company’s balance sheet, cash and cash equivalents increased from $25 million to $29 million.
The company’s footprint remained relatively unchanged with the opening of 5 new restaurants in 2023, including the first in Illinois, and the closing of 5 underperforming restaurants. The company plans to spend $70 million in 2024 to open three new restaurants and renovate 20.
Additionally, the board approved a $50 million increase in its stock repurchase agreement. As a result, there is currently $61 million available under its $550 million authorized repurchase program.