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.
Reasons to Add BJ's Restaurants (BJRI) Stock to Your Portfolio
Read MoreHide Full Article
BJ's Restaurants, Inc. (BJRI - Free Report) has been benefiting from solid growth in comparable restaurant sales, expansion and sales-boosting initiatives. Also, menu innovation bodes well for the company’s growth.
Recently, the company reported its second-quarter fiscal 2023 results, wherein earnings topped the Zacks Consensus Estimate by 56.3%. The bottom and the top lines grew year over year as well. The upside was driven by growth in average check, menu pricing increase and cost-saving initiatives.
Shares of BJRI have gained 25.5% in the year-to-date period, outperforming the Zacks Retail - Restaurants industry’s growth of 7.8%. Earnings estimates for fiscal 2023 have moved north to 86 cents per share from 71 cents per share over the past 30 days. This depicts analysts' optimism about the company’s growth prospects. Solidifying this prospect, the company has a strong VGM Score of A, backed by a Value Score of B and a Growth Score of A.
Image Source: Zacks Investment Research
Let us delve deeper into the factors.
Factors Favoring BJRI
BJ's Restaurants is consistently incorporating various strategies in order to achieve operational excellence and attain business growth. Its focus on various expansion initiatives is benefiting in gaining growth momentum. For the first half of 2023, the company has opened two new restaurants, one in Orland Park, IL and the other in San Antonio, TX, and reported solid sales with respect to the same.
It expects to open three more restaurants in fiscal 2023 to achieve its goal of five restaurant (including one relocation in Chandler, AZ expected in August 2023) openings in the year. Along with new openings, BJRI focuses on remodeling initiatives. In fiscal 2023, it expects to remodel 35-40 restaurants, of which more than 20 remodels have been completed as of the fiscal second quarter.
Furthermore, this owner and operator of a chain of high-end casual dining restaurants in the United States is also gaining from its sales-boosting initiatives. Last year, the company launched a cross-functional initiative to identify more than $25 million in affordable savings opportunities while maintaining quality standards. These efforts were undertaken to improve restaurant operating margins while delivering value to the customers. During the second quarter of fiscal 2023, the company was able to surpass its $25 million savings goal on an annualized basis while maintaining its quality standards. Furthermore, this cost savings initiative has enabled it to plan new restaurant openings for 2024. Restaurant openings are also expected to see an increase in 2025.
BJ’s Restaurants’ extensive focus on refining and streamlining its menu is the key driver for improved traffic. In July 2023, the company introduced a new menu consisting of 15% less items, as anticipated before. Through this approach, it will ensure improving its daily execution by increasing the repetition of guest favorites along with reducing the preparation time. BJRI expects these adjustments to enable growth in sales and margins in the coming period. In alignment with the new approach, the company also introduced new menu items, which include the big twist pretzel appetizer, Hickory Brisket Nachos and some others, along with the upgraded version of some of its premium cocktails.
Considering the aforementioned initiatives, BJRI witnessed growth in average check of approximately 7.6%, menu-price increases and cost-savings in the fiscal second-quarter 2023. These tailwinds drove the company’s comparable restaurant sales in the quarter by 4.7% year over year.
Zacks Rank
BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks that investors may consider from the Retail-Wholesale sector are Domino's Pizza, Inc. (DPZ - Free Report) , Builders FirstSource, Inc. (BLDR - Free Report) and Dave & Buster's Entertainment, Inc. (PLAY - Free Report) .
DPZ delivered a trailing four-quarter earnings surprise of 4.8%, on average. Shares of the company have gained 13.6% in the year-to-date period. The Zacks Consensus Estimate for DPZ’s 2023 sales indicates decline of 0.1% while earnings per share (EPS) indicates growth of 9.6%, from the previous year’s reported levels.
Builders FirstSource currently sports a Zacks Rank of 1. BLDR has a trailing four-quarter earnings surprise of 52.2%, on average. Shares of the company have rallied 129.1% in the year-to-date period.
The Zacks Consensus Estimate for BLDR’s 2023 sales and EPS indicates decline of 23.2% and 32.3%, respectively, from the previous year’s reported levels.
Dave & Buster's currently sports a Zacks Rank of 1. PLAY delivered a trailing four-quarter earnings surprise of 6.8%, on average. Shares of the company have gained 13.1% in the year-to-date period.
The Zacks Consensus Estimate for PLAY’s fiscal 2023 sales and EPS indicates growth of 17% and 29%, respectively, from the previous year’s reported levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Reasons to Add BJ's Restaurants (BJRI) Stock to Your Portfolio
BJ's Restaurants, Inc. (BJRI - Free Report) has been benefiting from solid growth in comparable restaurant sales, expansion and sales-boosting initiatives. Also, menu innovation bodes well for the company’s growth.
Recently, the company reported its second-quarter fiscal 2023 results, wherein earnings topped the Zacks Consensus Estimate by 56.3%. The bottom and the top lines grew year over year as well. The upside was driven by growth in average check, menu pricing increase and cost-saving initiatives.
Shares of BJRI have gained 25.5% in the year-to-date period, outperforming the Zacks Retail - Restaurants industry’s growth of 7.8%. Earnings estimates for fiscal 2023 have moved north to 86 cents per share from 71 cents per share over the past 30 days. This depicts analysts' optimism about the company’s growth prospects. Solidifying this prospect, the company has a strong VGM Score of A, backed by a Value Score of B and a Growth Score of A.
Image Source: Zacks Investment Research
Let us delve deeper into the factors.
Factors Favoring BJRI
BJ's Restaurants is consistently incorporating various strategies in order to achieve operational excellence and attain business growth. Its focus on various expansion initiatives is benefiting in gaining growth momentum. For the first half of 2023, the company has opened two new restaurants, one in Orland Park, IL and the other in San Antonio, TX, and reported solid sales with respect to the same.
It expects to open three more restaurants in fiscal 2023 to achieve its goal of five restaurant (including one relocation in Chandler, AZ expected in August 2023) openings in the year. Along with new openings, BJRI focuses on remodeling initiatives. In fiscal 2023, it expects to remodel 35-40 restaurants, of which more than 20 remodels have been completed as of the fiscal second quarter.
Furthermore, this owner and operator of a chain of high-end casual dining restaurants in the United States is also gaining from its sales-boosting initiatives. Last year, the company launched a cross-functional initiative to identify more than $25 million in affordable savings opportunities while maintaining quality standards. These efforts were undertaken to improve restaurant operating margins while delivering value to the customers. During the second quarter of fiscal 2023, the company was able to surpass its $25 million savings goal on an annualized basis while maintaining its quality standards. Furthermore, this cost savings initiative has enabled it to plan new restaurant openings for 2024. Restaurant openings are also expected to see an increase in 2025.
BJ’s Restaurants’ extensive focus on refining and streamlining its menu is the key driver for improved traffic. In July 2023, the company introduced a new menu consisting of 15% less items, as anticipated before. Through this approach, it will ensure improving its daily execution by increasing the repetition of guest favorites along with reducing the preparation time. BJRI expects these adjustments to enable growth in sales and margins in the coming period. In alignment with the new approach, the company also introduced new menu items, which include the big twist pretzel appetizer, Hickory Brisket Nachos and some others, along with the upgraded version of some of its premium cocktails.
Considering the aforementioned initiatives, BJRI witnessed growth in average check of approximately 7.6%, menu-price increases and cost-savings in the fiscal second-quarter 2023. These tailwinds drove the company’s comparable restaurant sales in the quarter by 4.7% year over year.
Zacks Rank
BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy).
Other Key Picks
Some other top-ranked stocks that investors may consider from the Retail-Wholesale sector are Domino's Pizza, Inc. (DPZ - Free Report) , Builders FirstSource, Inc. (BLDR - Free Report) and Dave & Buster's Entertainment, Inc. (PLAY - Free Report) .
Domino's currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DPZ delivered a trailing four-quarter earnings surprise of 4.8%, on average. Shares of the company have gained 13.6% in the year-to-date period. The Zacks Consensus Estimate for DPZ’s 2023 sales indicates decline of 0.1% while earnings per share (EPS) indicates growth of 9.6%, from the previous year’s reported levels.
Builders FirstSource currently sports a Zacks Rank of 1. BLDR has a trailing four-quarter earnings surprise of 52.2%, on average. Shares of the company have rallied 129.1% in the year-to-date period.
The Zacks Consensus Estimate for BLDR’s 2023 sales and EPS indicates decline of 23.2% and 32.3%, respectively, from the previous year’s reported levels.
Dave & Buster's currently sports a Zacks Rank of 1. PLAY delivered a trailing four-quarter earnings surprise of 6.8%, on average. Shares of the company have gained 13.1% in the year-to-date period.
The Zacks Consensus Estimate for PLAY’s fiscal 2023 sales and EPS indicates growth of 17% and 29%, respectively, from the previous year’s reported levels.