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Factors Setting the Tone for BJ's Restaurants' (BJRI) Q3 Earnings

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BJ's Restaurants, Inc. (BJRI - Free Report) is scheduled to report third-quarter 2021 results on Oct 21, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 62.5%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter earnings is pegged at 8 cents. In the prior-year quarter, the company had reported an adjusted loss per share of 44 cents. The consensus mark for revenues stands at $292.6 million, which suggests an improvement of 47.1% from the prior-year quarter’s tally.

Factors to Note

BJ's Restaurants third-quarter performance is likely to have benefited from sequential improvement in comps driven by solid recovery in dining room sales and robust off-premise business. In second-quarter fiscal 2021, off-premise sales amounted to approximately $24,000 per week. The momentum is likely to have continued as expanded off-premise offerings and its connected curbside service have been resonating well with an increased number of customers. Focus on unit expansion, slow-roasted protein platform and Beer Club subscription services may have contributed to the to-be-reported quarter’s performance.

The company has been benefiting from its focus on refining and streamlining its menu for improved traffic. During second-quarter fiscal 2021, the company continued testing of its virtual brand — slow roast — at approximately 30 restaurants across California and Texas. It reported impressive sales and solid customer feedback on the back of slow roast items and other protein-centric product offerings.

The company has been receiving positive reviews with respect to its beer subscription service — Beer Club. It has been witnessing high customer engagement, owing to new beer releases along with program benefits. However, higher costs might have weighed on the company’s margin in the quarter under review.

BJ's Restaurants, Inc. Price and EPS Surprise BJ's Restaurants, Inc. Price and EPS Surprise

BJ's Restaurants, Inc. price-eps-surprise | BJ's Restaurants, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for BJ's Restaurants this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: BJ's Restaurants has an Earnings ESP of +33.34%. 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 #4 (Sell).

Stocks Poised to Beat Estimates

Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these have the right combination of elements to beat on earnings this season:

AutoNation, Inc. (AN - Free Report) has an Earnings ESP of +8.85% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Papa John's International, Inc. (PZZA - Free Report) has an Earnings ESP of +5.07% and a Zacks Rank #2.

Carvana Co. (CVNA - Free Report) has an Earnings ESP of +96.59% and a Zacks Rank #3.

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