Bojangles’, Inc. (BOJA – Snapshot Report) was one of many restaurant chains to go IPO in 2015. This Zacks Rank #1 (Strong Buy) didn’t disappoint in the third quarter as it beat the Zacks Consensus and raised full year guidance.
Bojangles is familiar to those who live in the Southeastern part of the United States.
Founded in North Carolina in 1977, the chicken chain is famous for its freshly baked, made-from-scratch buttermilk biscuits.
As of Sept 2015, Bojangles’ had 657 system-wide restaurants, of which 274 were company-operated and 383 were franchised restaurants.
Even though it is expanding rapidly, the only time this Chicagoan has been able to try out its famous food was while in Washington DC. The closest Bojangles to Chicago appears to be in Tennessee.
Third Beat in a Row
On Nov 4, Bojangles reported its third quarter results and beat the Zacks Consensus by 5 cents. Earnings were $0.23 compared to the consensus of $0.18.
The company has beat the Zacks Consensus in the first three quarters it has reported as a public company.
Comparable restaurant sales, which is the key metric for restaurant chains, rose 4.1% year over year. Comparables had risen 5.3% in the third quarter of 2014.
It has grown comparable restaurant sales for 22 consecutive quarters.
Total revenue grew 12.7%.
The company is also in the midst of a growth spurt. It expects to grow its restaurant count by 8% in 2015.
Raised Full Year Guidance
With gasoline prices hitting new multi-year lows, it’s a good time to be a restaurant owner. Consumers are spending more eating out.
In November, Bojangles liked the trends it was seeing as it raised full year guidance.
Total revenues are now expected to be in the range of $486 to $488 million, up from its prior guidance of $482.5 to $487.5 million.
Restaurant contribution margin is forecase to rise to a range of 17.7% to 18% from previous guidance of 17.3% to 17.7%.
Comparable restaurant sales growth is expected in the low to mid-single digits.