BJ's Restaurants Inc. (NASDAQ:BJRI), a company specializing in casual dining, has announced amendments to its compensatory arrangements for non-employee directors and the outcomes of its recent shareholders' meeting, according to an 8-K filing with the Securities and Exchange Commission.
Effective Monday, the company's board of directors, following recommendations from the Compensation Committee and a compensation consultant, approved new compensation terms for its non-employee directors. These terms include an annual cash retainer of $75,000, additional retainers for committee members and chairs, and a $55,000 extra retainer for the non-employee Chair of the Board. Moreover, non-employee directors will receive an annual restricted stock unit award valued at $125,000, with an additional $60,000 award for the non-employee Chair of the Board. All stock awards vest after one year.
In addition to compensation adjustments, the company disclosed the retirement of three board members, Peter A. Bassi, Larry D. Bouts, and Gerald W. Deitchle, as of June 18, 2024.
During the Annual Meeting of Shareholders held on the same day, several key decisions were made. Shareholders elected nine directors to the board, ratified and approved the BJ’s Restaurants, Inc. 2024 Equity Incentive Plan, endorsed the executive officers' compensation on a non-binding advisory basis, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year 2024.
The BJ's Restaurants, Inc. 2024 Equity Incentive Plan was approved with 18,999,682 votes for, 1,468,003 against, and 19,049 abstentions. Shareholders also showed support for the executive compensation package, with 19,767,512 votes for, 697,174 against, and 22,048 abstentions. The ratification of KPMG LLP as the company's independent auditors was passed with 22,497,550 votes for, 5,387 against, and 20,707 abstentions.
The changes in compensation and the outcomes of the shareholders' meeting reflect the company's ongoing governance and its commitment to aligning the interests of its directors with those of the shareholders. This report is based on the company's latest SEC filing.
In other recent news, BJ's Restaurants, Inc. reported a slight 1.7% dip in comparable restaurant sales for Q1 of fiscal year 2024, but saw a positive shift from about -5% in January to flat by March. The company's restaurant margins expanded to 15%, with adjusted EBITDA reaching $29.4 million. Net income stood at $7.7 million, with diluted net income per share of $0.32. In terms of expansion, BJ's Restaurants opened its first location in Wisconsin and has plans for two more openings later this year.
The company is also planning to remodel more sites and targets continued margin expansion, aiming for pre-pandemic levels. These are recent developments that reflect the company's resilience and commitment to growth, despite early challenges. Despite a 1.2% decrease in sales from the previous year to $337 million, the company is strategically positioning itself to capitalize on key seasonal periods and maintain its value proposition.
InvestingPro Insights
As BJ's Restaurants Inc. (NASDAQ:BJRI) continues to refine its governance structure and compensation strategies, investors may find value in examining the company's financial metrics and market performance. According to InvestingPro data, BJRI has a market capitalization of $821.68 million and is trading at a P/E ratio of 34.49, which is adjusted to 28.02 when considering the last twelve months as of Q1 2024. Despite a slight revenue decline of 1.16% in Q1 2024, the company has experienced a 0.21% revenue growth over the last twelve months. Additionally, BJRI's EBITDA growth for the same period stands at a robust 22.2%, showcasing the company's ability to increase its earnings before interest, taxes, depreciation, and amortization.
InvestingPro Tips highlight that BJRI is trading at a low P/E ratio relative to near-term earnings growth, which may appeal to value investors looking for growth potential. Moreover, analysts predict the company will be profitable this year, a sentiment reinforced by the company's profitability over the last twelve months. For those interested in a deeper dive into BJRI's financials and performance metrics, InvestingPro offers additional tips that can further guide investment decisions. By using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to a comprehensive suite of tools and insights for informed investing.
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