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Factors That Underscore BJ's Restaurants (BJRI) Solid Prospects
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BJ's Restaurants, Inc. (BJRI - Free Report) is gaining from strong comparable restaurant sales, operational efficiency and menu-pricing initiatives. In the past year, the company’s shares have increased 42.8% compared with the industry’s gain of 33.2%.
The Zacks Rank #1 (Strong Buy) company has an impressive long-term earnings growth rate of 15%. BJRI’s 2023 earnings and sales are likely to witness increases of 5.4% and 311.8% year over year, respectively.
Let’s delve deeper into the factors spurring the stock’s growth.
Growth Drivers
BJ's Restaurants is benefiting from robust comparable restaurant sales. In the fiscal first quarter, the metric increased 9% year over year compared with 33.9% reported in the prior-year quarter. The upside was primarily backed by an increase in guest traffic, average check and menu-price initiatives partially offset by changes in the mix. For fiscal 2023, our model predicts comps to grow 4.4% year over year.
BJRI’s extensive focus on refining and streamlining its menu is the key driver for improved traffic. Management plans to introduce a new menu (featuring 10% fewer items) tentatively by June end. The initiative is likely to pave a path for improvement in daily execution, reduction in inventory and streamlining of kitchen operations.
Image Source: Zacks Investment Research
The company is also benefiting from solid expansion efforts. In fiscal 2022, it opened six new restaurants and reported solid sales with respect to the same. Year to date (through Apr 4, 2023), it has opened two new restaurants (in Orland Park, IL and San Antonio, TX) and reported robust sales.
BJ's Restaurants expects to open three new restaurants in fiscal 2023. It also emphasizes expanding its remodel initiative to more than 30 restaurants. It remains steadfast in its commitment to expand its presence to at least 425 restaurants domestically. Given the level of new restaurant expansion combined with driving positive comparable restaurant sales, management expects high-single-digits revenue growth for the coming years.
The company’s off-premise sales continue to drive growth and are more than doubled in comparison with the pre-pandemic level. In 2021, average weekly off-premise sales were approximately $20,000 per restaurant, reflecting twice growth from that of the pre-pandemic levels. BJRI stated that the momentum persisted in 2022 as well, on account of favorable guest behavior with respect to the idea of enjoying meals at home. In first-quarter 2023, BJ’s Restaurants’ off-premise weekly sales average was in the lower $20,000 range.
The Zacks Consensus Estimate for MELI’s 2023 sales and EPS indicates rises of 27.6% and 75%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 71.4% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS indicates rises of 3.4% and 660%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 4.7%, on average. Shares of CMG have increased 49% in the past year.
The Zacks Consensus Estimate for CMG’s 2023 sales and EPS indicates growth of 14% and 34%, respectively, from the year-ago period’s levels.
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Factors That Underscore BJ's Restaurants (BJRI) Solid Prospects
BJ's Restaurants, Inc. (BJRI - Free Report) is gaining from strong comparable restaurant sales, operational efficiency and menu-pricing initiatives. In the past year, the company’s shares have increased 42.8% compared with the industry’s gain of 33.2%.
The Zacks Rank #1 (Strong Buy) company has an impressive long-term earnings growth rate of 15%. BJRI’s 2023 earnings and sales are likely to witness increases of 5.4% and 311.8% year over year, respectively.
Let’s delve deeper into the factors spurring the stock’s growth.
Growth Drivers
BJ's Restaurants is benefiting from robust comparable restaurant sales. In the fiscal first quarter, the metric increased 9% year over year compared with 33.9% reported in the prior-year quarter. The upside was primarily backed by an increase in guest traffic, average check and menu-price initiatives partially offset by changes in the mix. For fiscal 2023, our model predicts comps to grow 4.4% year over year.
BJRI’s extensive focus on refining and streamlining its menu is the key driver for improved traffic. Management plans to introduce a new menu (featuring 10% fewer items) tentatively by June end. The initiative is likely to pave a path for improvement in daily execution, reduction in inventory and streamlining of kitchen operations.
Image Source: Zacks Investment Research
The company is also benefiting from solid expansion efforts. In fiscal 2022, it opened six new restaurants and reported solid sales with respect to the same. Year to date (through Apr 4, 2023), it has opened two new restaurants (in Orland Park, IL and San Antonio, TX) and reported robust sales.
BJ's Restaurants expects to open three new restaurants in fiscal 2023. It also emphasizes expanding its remodel initiative to more than 30 restaurants. It remains steadfast in its commitment to expand its presence to at least 425 restaurants domestically. Given the level of new restaurant expansion combined with driving positive comparable restaurant sales, management expects high-single-digits revenue growth for the coming years.
The company’s off-premise sales continue to drive growth and are more than doubled in comparison with the pre-pandemic level. In 2021, average weekly off-premise sales were approximately $20,000 per restaurant, reflecting twice growth from that of the pre-pandemic levels. BJRI stated that the momentum persisted in 2022 as well, on account of favorable guest behavior with respect to the idea of enjoying meals at home. In first-quarter 2023, BJ’s Restaurants’ off-premise weekly sales average was in the lower $20,000 range.
Other Key Picks
Here we present some other top-ranked stocks from the Zacks Retail and Wholesale sector are:
MercadoLibre, Inc. (MELI - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 35%, on average. Shares of MELI have gained 49.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MELI’s 2023 sales and EPS indicates rises of 27.6% and 75%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 71.4% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS indicates rises of 3.4% and 660%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 4.7%, on average. Shares of CMG have increased 49% in the past year.
The Zacks Consensus Estimate for CMG’s 2023 sales and EPS indicates growth of 14% and 34%, respectively, from the year-ago period’s levels.