News

Bojangles' reports 25th consecutive quarter of sales growth

August 9, 2016

Bojangles' announced its second-quarter earnings this week, which continue the chain's record of system-wide comparable restaurant sales growth to 25 consecutive quarters. However, the chain did adjust its guidance down slightly for the year this week.

Q2 EPS increased to $0.27, while Q2 revenue was $131.6 million. The chain said its company-operated restaurants performed even better during the second quarter, reporting a 0.9 percent increase in comparable restaurant sales, including 0.5 percent growth in comparable store transactions. 

Bojangles' said in a news release about the quarterly earnings that the chain expects fiscal year EPS of $0.88 to $0.92 a share, versus prior guidance of $0.89 to $0.93. Fiscal year revenue was also adjusted down from $540.67 million to $530-533 million. 

System-wide comparable restaurant sales increased 0.2 percent, versus the company-operated sales of 0.9 percent. Total revenues increased 9.2 percent to $131.6 million from $120.5 million.
  
The chain opened 18 new restaurants during the period with seven of those company-operated and 11 franchised. Net Income increased 58.4 percent to $10 million from $6.3 million, while diluted net income per share grew 58.8 percent to $0.27 from $0.17.
 
Adjusted net income increased 17.3 percent to $10.1 million from $8.6 million. Adjusted diluted net income per share increased 17.4 percent to $0.27. Adjusted EBITDA increased 12.9 percent to $23.2 million. 

"Creating the best experience possible at all Bojangles' restaurants goes beyond providing our customers with freshly-made food that is distinct and affordable," said Bojangles President and CEO Clifton Rutledge. "We must also drive toward operational excellence through strategic investments in our brand. These include our 'Kitchen of the Future' and ultimately 'Bojangles' of the Future' projects, as well as by adding labor in the appropriate situations and locations to better differentiate ourselves in today’s competitive marketplace.  

"Ramping up our Bo-Size and Star Service efforts by expanding table service, among other labor initiatives, will ensure our restaurant hospitality levels match the high quality of our food." 

Rutledge said the chain is taking a "measured approach" to the brand's long-term growth. Bojangles expects to open 60 to 65 system-wide restaurants overall this year. Bojangles' currently has 689 restaurants system-wide and most of those are located in the Southeast.