BJ's Restaurants Shares Drop 9% Despite Exceeding Revenue Expectations Due to Q3 Loss

HUNTINGTON BEACH, Calif. - BJ's Restaurants, Inc. (NASDAQ:BJRI) reported a loss for the third quarter on Thursday, causing its shares to decline by 9% in after-hours trading. The casual dining chain disclosed a net loss of $2.9 million, or $0.13 per share, compared to a loss of $3.8 million, or $0.16 per share, in the same quarter last year. Analysts had expected earnings of $0.02 per share.

Revenue rose by 2.2% year-over-year to $325.7 million, slightly surpassing the $324.96 million predictions. Comparable restaurant sales increased by 1.7%.

Despite the guest traffic exceeding industry averages by approximately 570 basis points, BJ's was unable to fully capitalize on the strong traffic growth due to higher-than-expected restaurant costs. This resulted in a slightly higher dollar-based operating margin at the restaurant level, but a lower percentage margin compared to last year.

"Our third quarter results demonstrate progress with our sales-building initiatives that are driving accelerating positive comparable restaurant sales and guest traffic throughout the quarter," stated Interim CEO Brad Richmond. "In the current competitive environment, BJ's value programs are being well-received by our guests."

The company opened two new restaurants in the third quarter, bringing the total number of new locations opened in 2024 to three. BJ's currently operates 218 restaurants across 31 states.

Looking ahead, management expects to show positive profit momentum in the fourth quarter while focusing on regaining higher restaurant-level margins with a disciplined financial approach. In the third quarter, BJ's repurchased approximately 268,000 shares worth $8.2 million. The company has about $44 million remaining under its $550 million authorized share repurchase program.