We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for BJ's Restaurants (BJRI) in Q2 Earnings?
Read MoreHide Full Article
BJ's Restaurants, Inc.(BJRI - Free Report) is set to report second-quarter 2016 results on Jul 26.
Last quarter, the company delivered a positive earnings surprise of 17.5%. In fact, the company delivered positive surprises in all the last four quarters, bringing the average surprise to 18.52%.
Let’s see how things are shaping up for this announcement.
The company’s Project Q initiative, which reduced average kitchen hours leading to labor efficiencies, have led to strong margins in the past few quarters and are expected to continue to do so in the to-be-reported quarter. The company is also committed to raise its operating margins through cost containment initiatives.
Moreover, menu innovation, trimming down of complicated menus, prudent expansion initiatives, and aggressive marketing and operational strategies have remained strong points for the company in the past and are expected to continue to boost sales in the second quarter. Also, the company’s investments in technology-driven initiatives like digital ordering should add to sales.
However, higher cost of sales and labor costs due to higher wages are expected to keep profits under pressure.
Earnings Whispers?
Our proven model does not conclusively show that BJ's Restaurants is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for BJ's Restaurants is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 57 cents per share.
Zacks Rank: BJ's Restaurants carries a Zacks Rank #3, which when combined with an ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Stocks in the restaurant space that have both a positive earnings ESP and a favorable Zacks Rank and are therefore worth considering include:
Papa John's International Inc. (PZZA - Free Report) with an Earnings ESP of +3.70% and a Zacks Rank #2.
Jack in the Box Inc. (JACK - Free Report) with an Earnings ESP of +1.15% and a Zacks Rank #2.
Shake Shack Inc. (SHAK - Free Report) with an Earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's in Store for BJ's Restaurants (BJRI) in Q2 Earnings?
BJ's Restaurants, Inc.(BJRI - Free Report) is set to report second-quarter 2016 results on Jul 26.
Last quarter, the company delivered a positive earnings surprise of 17.5%. In fact, the company delivered positive surprises in all the last four quarters, bringing the average surprise to 18.52%.
Let’s see how things are shaping up for this announcement.
BJ'S RESTAURANT Price and EPS Surprise
BJ'S RESTAURANT Price and EPS Surprise | BJ'S RESTAURANT Quote
Factors to Consider
The company’s Project Q initiative, which reduced average kitchen hours leading to labor efficiencies, have led to strong margins in the past few quarters and are expected to continue to do so in the to-be-reported quarter. The company is also committed to raise its operating margins through cost containment initiatives.
Moreover, menu innovation, trimming down of complicated menus, prudent expansion initiatives, and aggressive marketing and operational strategies have remained strong points for the company in the past and are expected to continue to boost sales in the second quarter. Also, the company’s investments in technology-driven initiatives like digital ordering should add to sales.
However, higher cost of sales and labor costs due to higher wages are expected to keep profits under pressure.
Earnings Whispers?
Our proven model does not conclusively show that BJ's Restaurants is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for BJ's Restaurants is 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 57 cents per share.
Zacks Rank: BJ's Restaurants carries a Zacks Rank #3, which when combined with an ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Stocks in the restaurant space that have both a positive earnings ESP and a favorable Zacks Rank and are therefore worth considering include:
Papa John's International Inc. (PZZA - Free Report) with an Earnings ESP of +3.70% and a Zacks Rank #2.
Jack in the Box Inc. (JACK - Free Report) with an Earnings ESP of +1.15% and a Zacks Rank #2.
Shake Shack Inc. (SHAK - Free Report) with an Earnings ESP of +7.69% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>