Latest news with #BJ'sRestaurants
Yahoo
2 days ago
- Business
- Yahoo
Investing in BJ's Restaurants (NASDAQ:BJRI) three years ago would have delivered you a 69% gain
By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the BJ's Restaurants, Inc. (NASDAQ:BJRI) share price is up 69% in the last three years, clearly besting the market return of around 40% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 27%. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. BJ's Restaurants was able to grow its EPS at 188% per year over three years, sending the share price higher. This EPS growth is higher than the 19% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on BJ's Restaurants' earnings, revenue and cash flow. We're pleased to report that BJ's Restaurants shareholders have received a total shareholder return of 27% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 10% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for BJ's Restaurants that you should be aware of. Of course BJ's Restaurants may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
3 Stocks to Buy on Growing Restaurant Sales Amid Price Challenges
U.S. retail sales have had a roller-coaster ride over the past few months as tariff fears and high inflation have compelled consumers to spend cautiously. However, that hasn't stopped consumers from spending lavishly at restaurants and bars. Sales at U.S. restaurants and bars have grown at a solid pace, except for occasional hiccups. Also, trade war tensions have eased substantially, and inflation is finally showing signs of cooling, which are likely to boost the restaurant industry in the near term. Given this scenario, it would be wise to invest in restaurant stocks such as BJ's Restaurants, Inc. BJRI, Wingstop WING and CAVA Group, Inc. CAVA. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Commerce Department reported that sales at U.S. restaurants totaled $99.4 billion in April, up 1.2% month over month after increasing a solid 3% in March. Economists view dining out as a key indicator of household finances. The solid jump in April indicates that the economy is still on solid ground, and despite price challenges, consumers are willing to shell out more at restaurants and bars. The jump in retail sales is being backed by a steady rise in retail sales. Retail sales rose 0.1% in April after jumping 1.7% in March. Inflation has also started showing signs of cooling lately. The consumer price index (CPI) rose 0.2% in April after falling 0.1% in March for the first time since May 2020. Year over year, CPI increased 2.3%, the smallest gain since February 2021. The April reading suggests that inflation is on track to reach the Federal Reserve's 2% target. Also, consumers were worried about the impact of sweeping tariffs announced by President Donald Trump in early April. However, he has since temporarily paused the tariffs and said that negotiations are ongoing with several countries. This has somewhat eased trade war tensions. Also, investors are hopeful that slowing inflation could see the Federal Reserve resume its rate cut campaign in September, which definitely bodes well for the restaurant industry. BJ's Restaurants, Inc. owns and operates a chain of high-end casual dining restaurants in the United States. BJRI's menu offers a wide range of dining options, including everyday lunch and dinner, special occasions and late-night business. BJ's Restaurants' expected earnings growth rate for the current year is 23.8%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. Presently, BJRI has a Zacks Rank #2. Wingstop franchises and operates restaurants. WING's operating segment consists of the Franchise and Company segments. WING offers classic wings, boneless wings, as well as tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors. Wingstop's expected earnings growth rate for the current year is 6.3%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. WING presently has a Zacks Rank #2. CAVA Group, Inc. is a category-defining Mediterranean fast-casual restaurant brand, which brings heart, health and humanity to food. CAVA is based in Washington. CAVA Group's expected earnings growth rate for the current year is 38.1%. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the past 60 days. CAVA currently has a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Wingstop Inc. (WING) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Has BJ's Restaurants (BJRI) Outpaced Other Retail-Wholesale Stocks This Year?
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. BJ's Restaurants (BJRI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question. BJ's Restaurants is a member of our Retail-Wholesale group, which includes 207 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. BJ's Restaurants is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for BJRI's full-year earnings has moved 23.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. According to our latest data, BJRI has moved about 18.3% on a year-to-date basis. Meanwhile, the Retail-Wholesale sector has returned an average of 1.5% on a year-to-date basis. This shows that BJ's Restaurants is outperforming its peers so far this year. Another stock in the Retail-Wholesale sector, Canada Goose (GOOS), has outperformed the sector so far this year. The stock's year-to-date return is 6.4%. Over the past three months, Canada Goose's consensus EPS estimate for the current year has increased 1.2%. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, BJ's Restaurants belongs to the Retail - Restaurants industry, which includes 39 individual stocks and currently sits at #167 in the Zacks Industry Rank. On average, stocks in this group have lost 0.4% this year, meaning that BJRI is performing better in terms of year-to-date returns. Canada Goose, however, belongs to the Retail - Apparel and Shoes industry. Currently, this 40-stock industry is ranked #137. The industry has moved -8.8% so far this year. BJ's Restaurants and Canada Goose could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
16-05-2025
- Business
- Yahoo
3 ETF Areas to Win Amid Slowing Retail Sales in April
The U.S. retail sales edged up 0.1% sequentially in April after an upwardly revised 1.7% surge in March, compared with the expectation of economists polled by Reuters to remain unchanged after a previously reported 1.5% jump in March. The increase in March was partly driven by consumers advancing their purchases of items like automobiles in anticipation of U.S. President Donald Trump's tariff announcement on April 2. Biggest increases in April were seen in sales at food services and drinking places (1.2%), building material and garden equipment supplies dealers (0.8%), furniture (0.3%) and electronics and appliances stores (0.3%). Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, were down 0.2%, below an upwardly revised 0.5% gain in March and forecasts of a 0.3% rise. Below we highlight a few areas and the related ETFs & stocks that may benefit handsomely from the retail sales. Food Services and Drinking Places Sales at food services and drinking places gained 1.2% sequentially in April and 7.8% year over year. AdvisorShares Restaurant ETF EATZ – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees. BJ's Restaurants BJRI – BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. The stock has a Zacks Rank #1 (Strong Buy). Building Material & Garden Equipment & Supplies Dealers The segment Building Material & Garden Equipment & Supplies Dealers saw a 0.8% sequential gain in sales. The segment's sales were 3.2% higher year over year. As far as the ETF route is concerned, broad-based retail ETFs like Consumer Discretionary Select Sector SPDR ETF XLY and VanEck Retail ETF RTH should fit the bill. Vulcan Materials VMC – Vulcan Materials Company operates primarily in the United States as the nation's largest supplier of construction aggregates (primarily crushed stone, sand and gravel) and a major producer of aggregates-intensive downstream products like asphalt mix and ready-mixed concrete. The stock has a Zacks Rank #2 (Buy). Electronics & Appliance Stores Sales gained 0.3% sequentially in April and 0.1% year over year. Rise in electronics sales should boost semiconductor funds and stocks. VanEck Vectors Semiconductor ETF SMH – The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The fund charges 35 bps in fees. Universal Electronics UEIC – As far as stocks are concerned, investors can take a look at UEIC. It is the worldwide leader in universal control and sensing technologies for the smart home. The fund has a Zacks Rank # the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Vulcan Materials Company (VMC) : Free Stock Analysis Report Universal Electronics Inc. (UEIC) : Free Stock Analysis Report VanEck Retail ETF (RTH): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
BJRI Q1 Earnings Call: Margin Expansion, Menu Upgrades, and Cautious Unit Growth Drive Outlook
American restaurant chain BJ's Restaurants (NASDAQ:BJRI) met Wall Street's revenue expectations in Q1 CY2025, with sales up 3.2% year on year to $348 million. Its non-GAAP profit of $0.59 per share was 53.4% above analysts' consensus estimates. Is now the time to buy BJRI? Find out in our full research report (it's free). Revenue: $348 million vs analyst estimates of $348 million (3.2% year-on-year growth, in line) Adjusted EPS: $0.59 vs analyst estimates of $0.38 (53.4% beat) Adjusted EBITDA: $35.35 million vs analyst estimates of $32.1 million (10.2% margin, 10.1% beat) EBITDA guidance for the full year is $135.5 million at the midpoint, above analyst estimates of $130.5 million Operating Margin: 4.3%, up from 2.4% in the same quarter last year Free Cash Flow was -$12.06 million, down from $448,000 in the same quarter last year Locations: 219 at quarter end, up from 217 in the same quarter last year Same-Store Sales rose 1.7% year on year (-1.7% in the same quarter last year) Market Capitalization: $963.8 million BJ's Restaurants delivered first quarter results shaped by strong traffic gains and improved restaurant-level efficiencies, supported by operational simplification and targeted value promotions. Interim CEO Brad Richmond credited margin expansion to a combination of higher guest counts, successful labor management, and process improvements, stating, 'We have a really nice balance right now of being able to drive traffic in with a great value message as well as delivering these profits.' Looking forward, management's updated guidance reflects confidence in the durability of current margin gains and the rollout of strategic initiatives. President Lyle Tick highlighted plans to upgrade menu staples and leverage data-driven operational changes, while CFO Tom Houdek noted the company is monitoring tariff impacts but expects only modest inflation in the second half. Management maintained a cautious but optimistic outlook, emphasizing continued focus on operational execution and measured restaurant growth. Management attributed quarterly performance to guest traffic outperformance and ongoing operational changes, while emphasizing early but encouraging progress on long-term brand and menu initiatives. Traffic Outperformance: BJ's achieved 2.7% traffic growth, notably outperforming the broader industry by over 300 basis points. Management credited this to value-driven promotions like the Pizookie Meal Deal, as well as increased social media engagement, which generated significant organic interest and sales. Margin Expansion Initiatives: Restaurant-level operating margins improved due to simplification efforts, including point-of-sale (POS) and kitchen display system (KDS) upgrades, and targeted labor scheduling using AI in select locations. Team member retention, now above industry norms, also contributed to operating efficiencies. Menu and Product Upgrades: The company is executing a structured category management approach to menu innovation, beginning with a full renovation of its signature pizza platform. Early market tests for the revamped pizza and new sauces have shown promising guest feedback and operational benefits. Remodels and New Units: Eight remodels were completed in the quarter, with more planned, and one new restaurant opened in a core geography to leverage existing operational infrastructure. Management is prioritizing infill growth in established markets to improve brand awareness and operational leverage. Operational Agility in Macroeconomic Uncertainty: Despite industry-wide concerns about consumer spending, management reported stable guest behavior across income cohorts. Approximately 85% of food supplies are sourced from USMCA countries and are not subject to new tariffs, limiting exposure to inflationary pressures in the near term. Management's outlook for the remainder of the year centers on maintaining operational efficiency and disciplined menu innovation, while closely monitoring consumer trends and potential cost pressures. Menu Optimization Rollout: Expansion of menu simplification and upgrades—including pizza renovation and SKU reductions—is expected to drive guest engagement and operational consistency, supporting both traffic and margins. AI-Driven Labor Scheduling: Continued deployment of AI-based forecasting and scheduling tools is anticipated to unlock further labor efficiencies, with management highlighting ongoing pilots yielding improved guest satisfaction and reduced labor costs. Tariff and Inflation Watch: Management has factored in potential impacts from tariffs and food cost inflation, mainly in the second half of the year. The company believes most inflation is contained but is prepared to adjust pricing and sourcing strategies as needed. Alex Slagle (Jefferies): Asked about the magnitude and sustainability of margin gains from process simplification; management noted ongoing benefits from labor efficiencies and balanced reinvestment into guest experience. Brian Bittner (Oppenheimer & Co.): Queried why BJ's traffic trends outperformed quick-service and fast-casual peers; executives cited higher-income customer base, strong value propositions, and focus on group occasions. Jeffrey Bernstein (Barclays): Questioned whether macroeconomic pressures are impacting value perceptions or guest mix; management reported stable behavior across cohorts and highlighted the unique appeal of the Pizookie Meal Deal. Sharon Zackfia (William Blair): Probed whether value promotions are attracting new customer segments; leadership indicated broad-based traffic growth without a fundamental shift in customer demographics. Brian Mullan (Piper Sandler): Sought details on the strategic importance and expected impact of the pizza platform upgrade; management described pizza as a core brand pillar and anticipated incremental traffic and check growth once fully rolled out. In the coming quarters, the StockStory team will monitor (1) the rollout and guest response to the revamped pizza platform and broader menu simplification, (2) the pace and financial impact of further remodeling and infill unit openings, and (3) the company's ability to sustain margin improvements amid evolving labor and food cost pressures. Execution in these areas will be critical for assessing whether BJ's can translate operational momentum into durable growth. BJ's currently trades at a forward P/E ratio of 25.6×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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