BJ's Restaurants posts a ninth straight quarter of growth
Same-store sales rose 8.1% and traffic 8.3% in the third quarter, as the casual-dining chain raises its full-year guidance and leans on its Pizookie dessert.
BJ's Restaurants grew same-store sales 8.1% and traffic 8.3% in the third quarter, its ninth straight quarter of gains on both measures.
Profit grew for an eighth consecutive quarter, the casual-dining chain said on Thursday. BJ's raised its full-year same-store sales guidance to 4.7%, up from an earlier estimate of 3% to 4%. The company says it beat the Black Box casual-dining benchmark on both sales and traffic, with traffic outperforming the industry by more than 800 basis points.
"We outperformed the Black Box casual dining national benchmarks on both sales and traffic," said chief financial officer Todd Wilson, pointing to menu pricing discipline. Check averages actually fell 0.2% in the prior quarter, even as sales kept climbing. "We're growing traffic, we're moderating check, and building a stronger business," said chief executive Lyle Tick.
We're growing traffic, we're moderating check, and building a stronger business.
Average unit volumes rose about 10% over two years, to $6.7 million, and average unit profit climbed roughly 24% over the same period.
BJ's also brews its own craft beer in-house at several locations under the BJ's Brewhouse banner, a point of differentiation the company has leaned on as rivals cut prices to chase traffic.
A pizza overhaul pays off
The gains follow a full overhaul of BJ's pizza platform last year, plus the Pizookie Meal Deal, a value bundle built around the chain's skillet cookie dessert, with seasonal Pizookie versions layered on through the year.
A new holiday menu brings back the Biscoff Pizookie, now built on a brown-butter base, alongside a Hawaiian Rib Eye, Truffle Mac & Cheese, Loaded Mashed Potatoes and Truffle Fries.
A rare bright spot in casual dining
The results stand out against a sector where several US chains have struggled this year, from Red Robin's own turnaround fight to chains cutting outlooks as diners trade down. BJ's operates more than 220 restaurants across the US, up from a single Southern California pizzeria the company opened under its current name in 1978.
