BJ's Restaurants Inc. Message Board

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Non-Tech : BJ's Restaurants Inc.

BJRI 36.77

+1.6%

Nov 12 3:59 PM EST

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To: Lhn5 who wrote (157)	5/14/1998 7:39:00 PM
From: Wowzer	Read Replies (3) of 865

My notes from the CC: 15% same store sales increase despite very rainy weather in Southern CA. All expense categories, except for labor, improved when compared to sales. The increase in the minimum wage was primary reason for the higher labor number. Management plans to raise prices across the board in the next few weeks to help offset raising labor costs. <And they say there is no inflation out there :-).> CHGO reported $180K loss; However earnings before interest taxes and amortization (EBITA) was $308K. Significant same store sales increases of %15 for first qtr and 19% in month of April. Even though the converted Northwest restaurants have shown significant revenue gains, these restaurants cash flow efficiencies are not improving as fast as projected. For example, the BJ's in Southern CA and Boulder cash flow ratio is 19.6% of revenues while the Northwest is only 6%. Alan S. Rodomsky 50, Director of Northwest Operations was hired at the end of March to oversee Northwest operations. After his first month it looks like the NW efficiencies are starting to improve. Mr. Motenko sees no reason why NW's cash flow can't be the same at Southern CA's when compared to sales. Two unprofitable Pietro's locations will most likely be disposed of. Since the leases are now month to month foresee very small write off. Other than the planned conversion of the Eugene OR location to a BJ's the remaining 5? locations are currently cash flowing and are now only going to receive minor improvements and will retain the Petro's name. In my opinion this is a change of strategy and are now going to concentrate more on the large brewery/restaurants locations. For example the recent purchase of the 10,000 s.f. Woodland Hills restaurant. Cost for the restaurant is $400K plus about $800K in improvements. Management believes the cash on hand of 1.35 million plus operating cash flow is sufficient to meet the current expansion needs. However, management may debt finance a portion of the Woodland Hills location. Valencia still on schedule to open first qtr 1999. Approval for video poker should be coming anytime now. The 10,000 s.f. Brea location currently does over $4 million in revenue and has about a $100,000 a month in positive cash flow. The Boulder 5,500 s.f. resturaunt does about 2.5 million in sales. Hopefully the Woodland Hills and Valencia locations will generate these type of numbers. Mr. Motenko was asked about profitability in Qtr 2 and Qtr 3 while he did not give specific numbers he was very enthusiastic about the company's prospects in the upcoming qtrs. Rory

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