American restaurant chain BJ’s Restaurants (NASDAQ:BJRI) missed analysts' expectations in Q4 FY2023, with revenue down 6% year on year to $323.6 million. It made a GAAP profit of $0.34 per share, improving from its profit of $0.07 per share in the same quarter last year.

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BJ's (BJRI) Q4 FY2023 Highlights:

• Revenue: $323.6 million vs analyst estimates of $329.4 million (1.7% miss)

• EPS: $0.34 vs analyst estimates of $0.27 (24.6% beat)

• Gross Margin (GAAP): 14.4%, up from 12.9% in the same quarter last year

• Same-Store Sales were up 0.6% year on year

• Market Capitalization: $806.8 million

“BJ’s solid fourth quarter results demonstrate the operational excellence being delivered in our restaurants and the significant progress we are making with productivity and margin enhancement initiatives,” commented Greg Levin, Chief Executive Officer and President.

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

Sit-Down Dining

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

Sales Growth

BJ's is larger than most restaurant chains and benefits from economies of scale, giving it an edge over its smaller competitors.

As you can see below, the company's annualized revenue growth rate of 3.5% over the last four years (we compare to 2019 to normalize for COVID-19 impacts) was weak , but to its credit, it opened new restaurants and grew sales at existing, established dining locations.

This quarter, BJ's missed Wall Street's estimates and reported a rather uninspiring 6% year-on-year revenue decline, generating $323.6 million in revenue. Looking ahead, Wall Street expects sales to grow 4.9% over the next 12 months, an acceleration from this quarter.

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