Bojangles’, Inc. (BOJA) Stock | Impressive Q3 2015 Financial Results


Bojangles’, Inc. (NASDAQ: BOJA)


Bojangles’, Inc. (BOJA), a restaurant franchise company on Wednesday announced positive fiscal third quarter 2015 financial results.  


Bojangles’, Inc. Earnings

System-wide comparable restaurant sales increased 4.1%. Total revenues increased 12.7% to $124.3 million from $110.3 million. Net Income increased to $8.9 million from $7.0 million. Pro Forma Net Income* increased 49.2% to $8.5 million from $5.7 million. Pro Forma Diluted Net Income per Share increased 53.3% to $0.23 compared to $0.15. Adjusted EBITDA* increased 20.0% to $20.5 million from $17.1 million.   Globe Newswire


CEO Comments

“We continue to be pleased with the financial results of our iconic Bojangles’® brand. The 4.1% increase in system-wide comparable restaurant sales during the third fiscal quarter 2015 was on top of a 5.3% increase in the prior year fiscal quarter and has enabled us to extend our track record of comparable restaurant sales growth to 22 consecutive quarters. Total revenues rose 12.7% while Adjusted EBITDA and Pro Forma Net Income expanded at even higher rates of 20.0% and 49.2%, respectively. We are once again very pleased to be raising our annual outlook for revenues and profitability,” said Bojangles’ President and CEO Clifton Rutledge.

“We are actively and diligently working on a number of important initiatives that will strengthen Bojangles’ and prepare us for an even brighter future. These include investing in our people so we can better uphold our commitment to Bo-Size Service and build-out our menu development capabilities, enhancing our technological infrastructure, improving our supply chain through a new partnership, and expanding our footprint through greater scale in adjacent areas within the Southeast and infilling our core North and South Carolina markets. The Bojangles’ system is expected to grow approximately 8% in net unit count this year, demonstrating the considerable and untapped demand for our high-quality, craveable food and Legendary Iced Tea®,” he concluded.  Globe Newswire


BOJA Technical Analysis


BOJA gapped up in price yesterday to $19.57, up from the prior day’s close of $17.92, which is a 16% increase on the favorable news. Taking a look at the daily chart, we can see the last time BOJA traded above this price level was on September 21st, when it closed at $20.42. Taking a further look back on the chart we can see BOJA has been in an overall decline dating back to August 7th when the stock was trading at $24.87. More recently, BOJA has bounced off of its 52 week low price of $15.13 which was on October 27th. BOJA does have a low float of 10.06 million shares and is trading over 2 times the normal daily trading volume. BOJA did reach pre market highs of $20.35, but it gave back $0.78 at the open, or equivalent to 4%. For trading purposes, my entry point would have been $19.65 looking for a run through $20. My stop loss would have been $19.50, fearing anything below that and the stock would start to fill in the gap up.  


Company Profile

Bojangles’, Inc. operates and franchises limited service restaurants. Its restaurants serve chicken items, made-from-scratch buttermilk biscuits, flavorful fixin’s, and iced tea. As of June 28, 2015, the company had 646 system-wide restaurants, including 267 company-operated and 379 franchised restaurants under the Bojangles’ name primarily located in the Southeastern United States. Bojangles’, Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.  Yahoo Finance