BJ’s Restaurants, Inc. (BJRI - Analyst Report) opened its newest restaurant in La Jolla, CA on Oct 3. The 5,500 square feet restaurant with a 1,000 square feet patio, is located on Villa La Jolla Drive at the Shops of La Jolla and can accommodate nearly 200 guests.
The outlet features BJ’s Restaurants’ extensive menu, including its signature deep-dish pizza, award-winning hand-crafted beer and the famous Pizookie dessert. In addition, BJ’s unique contemporary décor creates an ideal environment for dining. This marks its sixty-third restaurant in California, where BJ’s Restaurants enjoys one of its strongest sales volumes.
The company has opened 13 new restaurants year to date and currently operates 183 casual dining restaurants across 23 states in the U.S., under its brand names – BJ’s Restaurant & Brewhouse, BJ’s Restaurant & Brewery, BJ’s Pizza & Grill and BJ’s Grill. It is also slated to open another two restaurants this month in Teterboro, NJ and Charlottesville, VA.
BJ'S RESTAURANT Price
We believe such prudent expansion plans bode well and should drive top and bottom-line growth at the company.
However, BJ’s Restaurants loses out in terms of international presence. While several other restaurateurs including Yum! Brands, Inc. (YUM - Analyst Report) , McDonalds Corporation (MCD - Analyst Report) and Papa John’s International, Inc. (PZZA - Analyst Report) are capitalizing on the emerging market potential, BJ’s Restaurants seems to be weak on this front.
Moreover, the company expects traffic and sales to remain soft in the near term, given various social and political issues, weakening consumer spending in the restaurant space and increasing global uncertainties.
Nevertheless, going forward, various marketing, operational and technology-driven initiatives undertaken by the company should propel growth.
Moreover, the company has been refining and streamlining its menu to make it easier for guests to order, and thereby improve traffic. Additionally, the company’s Project Q initiatives have led to strong margins in the past few quarters and are likely to continue doing so.
BJ’s Restaurants currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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