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BJRI Stock Surges 21% in a Month: Too Late to Buy or Just the Start?

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Key Takeaways

  • BJRI's shares surged 20.6% in a month, outperforming industry peers and nearing a 52-week high of $45.80.
  • Comparable sales rose 1.7% in Q1, aided by strong traffic and operational upgrades driving guest satisfaction.
  • Earnings estimates for 2025 rose 6.6% in 30 days, with EPS projected to climb 21.9% and revenues up 3.1%.

BJ's Restaurants, Inc.’s (BJRI - Free Report) shares have surged 20.6% in the past month, outpacing the industry and the S&P 500’s growth of 1.9% and 6.3%, respectively.

On Wednesday, the stock closed at $44.94, slightly below its 52-week high of $45.80 but well above 52-week low of $27.61. In the past month, BJRI has outpaced industry players like The Wendy's Company (WEN - Free Report) , First Watch Restaurant Group, Inc. (FWRG - Free Report) and Jack in the Box Inc. (JACK - Free Report) .

BJRI Stock’s Price Performance

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Technical indicators imply BJRI's continued strong performance. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in BJRI's financial health and prospects.

50-Day Moving Average

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Image Source: Zacks Investment Research

Although this momentum might attract potential buyers, is it the right time to invest in BJRI? Let us delve deeper.

Factors Favoring BJRI Stock

BJ’s Restaurants continues to progress in its sales-building initiatives while focusing on productivity and cost savings. The company anticipates growth in sales and margins, leveraging its long-term strategy and strong consumer appeal to enhance shareholder value.

BJ’s Restaurants reported solid comparable sales performance in the first quarter, largely driven by strong traffic growth that outpaced broader industry trends. During the first quarter of fiscal 2025, comparable restaurant sales increased 1.7% year over year against a 1.7% decline in the prior-year quarter.

Although overall sales were slightly below internal projections, the shortfall was limited to February, impacted by adverse weather and delays in federal tax refund processing. January and March, however, saw healthy comp growth, which was in line with expectations. Notably, the company’s operational initiatives contributed to higher guest satisfaction scores, a positive indicator for sustaining future sales momentum.

BJ’s Restaurants has been actively working on initiatives to increase sales by prioritizing guests’ dining experience. The company has been implementing measures to enhance dining room and kitchen operations, including improved hospitality procedures and kitchen systems. These efforts aim to boost net promoter scores, drive sales and improve operational efficiencies.

BJ’s Restaurants continues to prioritize maintaining a fresh and inviting atmosphere, which has long been a key differentiator for the brand. It has completed eight remodels so far in 2025, with plans to update approximately 20 additional locations by year-end. The company noted that the remodeled restaurants are performing in line with expectations, consistently delivering stronger results compared with non-remodeled units.

On the other hand, BJ’s Restaurants is benefiting from expansion efforts. It maintains a balanced approach to opening new restaurants while ensuring the portfolio is optimized for maximum shareholder returns.

BJRI’s Earnings Estimates

Over the past 30 days, BJRI’s 2025 earnings estimates have increased to $1.78 per share from $1.67. The company has been on track for robust growth, with revenues projected to climb 3.1% year over year and earnings expected to rise 21.9%. On the other hand, stocks like Wendy's, First Watch Restaurant and Jack in the Box’s earnings in the current year are likely to witness a decline of 5%, 26.7% and 16.3%, respectively, year over year.

BJRI Trades at a Discount

BJRI is currently valued at a discount compared with the industry on a forward 12-month P/E basis. Its forward 12-month price-to-earnings ratio is 22.93, lower than the industry. Meanwhile, stocks like Wendy's, First Watch Restaurant and Jack in the Box’s forward 12-month price-to-earnings ratios are 12.05, 52.57 and 3.93, respectively.

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End Notes

BJ’s Restaurants is showing strong momentum backed by solid traffic growth, effective operational improvements and a clear focus on enhancing guest experience. Its emphasis on improving kitchen systems, hospitality procedures and store remodels is paying off in higher guest satisfaction, which bodes well for sustained sales growth. The company’s strategy of balancing expansion with operational efficiency reflects a disciplined approach to growth, while its valuation suggests potential upside. 

With improving fundamentals, growing earnings expectations and a favorable technical setup, BJRI presents a compelling case for investors looking to capitalize on a restaurant stock executing well on both strategic and financial fronts. BJRI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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