September Same-Store-Sales Slump May Cast A Shadow Over BJ's Restaurants Ahead Of Q3 Results
The restaurant industry continues its slump after a rough September. Same-store sales have been negative for four consecutive months and chains continue to see declining traffic.
Same-store sales growth for September dropped -1.1 percent, a decline of 0.5 percentage points from August. At the current rate, 2016 will be the weakest annual performance for the restaurant since 2009.
"The key driver behind the fall in sales during September was a decline in traffic, which continues to be the biggest challenge for chain restaurants," said Victor Fernandez, executive director of insights and knowledge for TDn2K.
Comp traffic was also down 3.5 percent in September.
These negative metrics and the trajectory of the restaurant industry may weigh on BJ's Restaurants, Inc. (NASDAQ: BJRI) Q3 results after the company reports on Wednesday.
A bright spot for BJ's may be its heavy concentration of restaurants in California, which remains the best performing region in the restaurant industry. Roughly 36 percent of BJ's restaurants are in the Golden State.
In Q2, BJ's just barely missed on earnings and revenue and the stock has not recovered since. BJ's is down 18 percent on the year. Analysts are looking for earnings of $0.32 in the third quarter.
The California-based restaurant chain looks to get back on track amid a struggling restaurant environment.
At last check, BJ's was up 1.13 percent at $35.46.
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