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What's in Store for BJ's Restaurants (BJRI) Q1 Earnings?

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BJ's Restaurants, Inc. (BJRI - Free Report) is scheduled to report first-quarter 2021 results on Apr 22, after market close. In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate.

How Are Estimates Placed?

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of 75 cents, which suggests deterioration from a loss of 10 cents reported in the year-ago quarter. The consensus mark for revenues is at $201 million, which suggests a decline of 21.1% from the prior-year quarter’s tally.

Let's take a look at how things have shaped up in the quarter.

BJs Restaurants, Inc. Price and EPS Surprise

 

BJs Restaurants, Inc. Price and EPS Surprise

BJs Restaurants, Inc. price-eps-surprise | BJs Restaurants, Inc. Quote

 

Factors at Play

BJ's Restaurants first-quarter performance is likely to have been negatively impacted by the pandemic-induced capacity restrictions and store closures. Although the company has reopened majority of its restaurants, it is likely to have witnessed dismal traffic due to social distancing protocols. This along with elevated expenses on account of labor, marketing and sales-boosting initiatives is likely to have hurt margins in the to-be-reported quarter.

However, focus on indoor and outdoor seating expansions, beer subscription program, menu additions, modification of restaurant services and enhancement of guest experience are likely to have contributed to the first-quarter top line. Also, solid contributions from off-premise business are likely to have been upsides on the back of technological upgrades. Nonetheless, with the ongoing vaccination efforts and improved treatment protocols, traffic is likely to have gained traction in the to-be-reported quarter.

What Our Model Says

Our proven model predicts an earnings beat for BJ's Restaurants this time around as a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Earnings ESP: BJ's Restaurants has an Earnings ESP of +9.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

Starbucks Corporation (SBUX - Free Report) carries a Zacks Rank #2 and has an Earnings ESP of +8.74%.

Jack in the Box Inc. (JACK - Free Report) carries a Zacks Rank #2 and has an Earnings ESP of +8.04%.

Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #3 and has an Earnings ESP of +4.10%.

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