As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at sit-down dining stocks, starting with BJ's (NASDAQ:BJRI).
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.
The 13 sit-down dining stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, sit-down dining stocks have held steady with share prices up 3% on average since the latest earnings results.
BJ's (NASDAQ:BJRI)
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.BJ's reported revenues of $349.9 million, flat year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ earnings estimates.
“Our second quarter results demonstrate continued success with the growth and productivity initiatives that we outlined during last year’s Investor Day,” commented Greg Levin, Chief Executive Officer and President.
Unsurprisingly, the stock is down 10.7% since reporting and currently trades at $33.25.
Is now the time to buy BJ's? Find out by reading the original article on StockStory, it’s free.
Best Q2: Red Robin (NASDAQ:RRGB)
Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare.Red Robin reported revenues of $300.2 million, flat year on year, outperforming analysts’ expectations by 2.7%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 16% since reporting. It currently trades at $5.50.
Weakest Q2: Denny's (NASDAQ:DENN)
Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.Denny's reported revenues of $115.9 million, flat year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 21.3% since the results and currently trades at $6.03.
First Watch (NASDAQ:FWRG)
Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.First Watch reported revenues of $258.6 million, up 19.5% year on year. This result met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $14.35.
Bloomin' Brands (NASDAQ:BLMN)
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.Bloomin' Brands reported revenues of $1.12 billion, down 2.9% year on year. This result met analysts’ expectations. More broadly, it was a softer quarter as it recorded underwhelming earnings guidance for the next quarter and a miss of analysts’ earnings estimates.
Bloomin' Brands had the slowest revenue growth among its peers. The stock is down 15.3% since reporting and currently trades at $15.50.
This content was originally published on Stock Story
