BJs Restaurants Inc (BJRI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.51% | 26.77% | 28.30% | 24.62% | 30.27% |
| Operating profit margin | 1.04% | -0.43% | -1.53% | -11.16% | 4.23% |
| Pretax margin | 0.76% | -0.65% | -1.77% | -11.61% | 3.99% |
| Net profit margin | 1.48% | 0.32% | -0.33% | -7.47% | 3.89% |
In analyzing BJ's Restaurants Inc profitability ratios over the past five years, several key observations can be made:
1. Gross Profit Margin: The gross profit margin has fluctuated over the years, with a peak of 30.27% in 2019 and a low of 24.62% in 2020. Although there was a slight increase in 2023 compared to the previous years, there remains room for improvement in managing the cost of goods sold.
2. Operating Profit Margin: The operating profit margin has shown a significant improvement in 2023 compared to the negative margins in 2020 and 2021. This indicates that the company has been able to control its operating expenses more effectively in the most recent year. However, the margin is relatively low compared to the industry average, suggesting that operational efficiency could still be enhanced.
3. Pretax Margin: The pretax margin has also shown improvement in 2023, turning positive after two years of negative margins. This indicates that the company has been able to better manage its non-operating expenses and generate more income before taxes. However, the margin is still relatively low, highlighting the need for further improvements in profitability.
4. Net Profit Margin: The net profit margin returned to positive territory in 2023 after several years of negative margins. This improvement can be attributed to the operational and cost management initiatives taken by the company. Despite the positive trend, the margin remains relatively low, indicating that there is still room for enhancing profitability through increasing revenue and/or controlling costs more efficiently.
In conclusion, while there have been positive trends in profitability ratios for BJ's Restaurants Inc in 2023, there is a continuous need for the company to focus on improving operational efficiency, controlling costs, and maximizing profitability in order to enhance shareholder value in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.30% | -0.52% | -1.59% | -8.16% | 4.58% |
| Return on assets (ROA) | 1.86% | 0.39% | -0.35% | -5.46% | 4.22% |
| Return on total capital | 3.76% | -1.59% | -4.95% | -29.42% | 16.92% |
| Return on equity (ROE) | 5.38% | 1.18% | -1.08% | -19.70% | 15.58% |
Based on the profitability ratios of BJs Restaurants Inc, there are notable fluctuations in performance over the past five years.
1. Operating return on assets (Operating ROA) has shown inconsistent performance, with a significant improvement in 2023 compared to the previous year, indicating better operational efficiency in generating profits from its assets.
2. Return on assets (ROA) has also varied, showing positive performance in 2023 and 2019, while experiencing negative returns in 2021 and 2020. The improvement in 2023 suggests better asset utilization to generate profits.
3. Return on total capital has been volatile, with a substantial increase in 2023 compared to negative returns in the preceding years. This ratio indicates the company's ability to generate profits from its total capital employed, showing signs of recovery in 2023.
4. Return on equity (ROE) has shown mixed performance, with positive returns in 2023 and 2019, but negative returns in 2021 and 2020. The increase in 2023 indicates improved profitability in relation to shareholders' equity.
Overall, BJs Restaurants Inc has displayed improvements in profitability ratios in 2023 compared to previous years, signaling better efficiency in generating profits from its assets, capital, and equity. However, the company should continue to monitor and enhance its profitability metrics to ensure sustained growth and financial performance.