What: Shares of BJ's Restaurants, Inc. (NASDAQ:BJRI) slipped 11.4% last month according to data from S&P Global Market Intelligence as the company turned in a subpar second-quarter earnings report. As you can see from the chart below, the entirety of the stock's fall came on July 27 after the report came out.
So what: Reflecting a trend in the restaurant industry, BJ's said comparable sales declined 0.2%, though revenue increased 7.9% to $250.3 million as the company continued to open new restaurants. That figure was below the consensus at $253 million. Earnings per share, meanwhile, increased 19.5% $0.56, missing estimates by a penny.
CEO Greg Trojan was positive on the company's overall trajectory, but did acknowledge that comparable sales were softer than expected.
Now what: Management did not provide guidance for the current quarter, but said that comparable sales were down 2% thus far in July, blaming a weakening consumer environment. Over the long term, the company stressed that it has room to more than double its restaurant count from 177 today to 425. It's also targeting lower-cost, smaller-format restaurants that should provide a faster return on investment.
Still, declining comparable sales are always concerning for restaurants, and with the trend aiming downward, the stock could follow.