BJ's Restaurants tallies strong second quarter

July 27, 2006

HUNTINGTON BEACH, Calif. — Pizza and craft-brew-centered BJ's Restaurants reported solid increases in sales and profits for the 13 weeks ended July 4, 2006.

According to a news release, comparable restaurant sales increased 5.9 percent over the same period last year. Revenue rose 32 percent to $57.8 million from $43.9 million, and net income increased 14 percent to $2.3 million compared to $2.06 million last year.

"Our 5.9 percent comparable sales increase during the second quarter represented our 39th consecutive quarter of positive comparisons on that measure since our 1996 IPO, and was achieved in spite of a very difficult sales and operating environment for casual dining restaurants in general," said Jerry Deitchle, president and chief executive. "We believe that our positive sales trends can be principally attributed to BJ's continuing favorable price/value relationship as perceived by our guests, coupled with improving operational execution."

The company completed initial rollouts of its new kitchen display system and Web-based labor scheduling system ahead of schedule during the second quarter.

"These state-of-the-art toolsets should enable our restaurant operators to continue improving their execution in a more productive and efficient manner, while simultaneously improving the overall quality of the dining experience for our guests," said Deitchle. "Once we overcome the expected learning curve associated with these new tools during the next few months or so, we should begin to gradually realize their benefits going forward."

Deitchle said BJ's continues to work on an automated theoretical food cost system and an automated table management system. Tests of both are expected in selected restaurants later this year.

BJ's Restaurants currently owns and operates 50 casual-dining restaurants under the BJ's Restaurant and Brewery, BJ's Restaurant and Brewhouse or BJ's Pizza & Grill brand names.

Topics: Operations Management

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