BJ's Restaurants is undervalued due to skepticism about efficiency, but recent earnings beats show accelerating cost control progress. Despite lower margins than peers, BJ's has much less debt, positioning it well in a higher interest rate environment. AI-driven labor scheduling and a focus on reducing comped meals are boosting operational efficiency and customer experience.
BJ's Restaurants (BJRI) possesses solid growth attributes, which could help it handily outperform the market.
Investors interested in stocks from the Retail - Restaurants sector have probably already heard of BJ's Restaurants (BJRI) and Dutch Bros (BROS). But which of these two stocks offers value investors a better bang for their buck right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
BJ's Restaurants, Cheesecake Factory and Cracker Barrel are thriving with sales growth, menu innovation and digital strategies despite industry headwinds.
BJ's Restaurants (BJRI) could produce exceptional returns because of its solid growth attributes.
Investors looking for stocks in the Retail - Restaurants sector might want to consider either BJ's Restaurants (BJRI) or Restaurant Brands (QSR). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
The heavy selling pressure might have exhausted for BJ's Restaurants (BJRI) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
BJ's delivered strong Q2 results: accelerating same-store sales, margin gains, and effective Pizookie Meal Deal promotions driving traffic and market share. Despite limited new store openings, robust buybacks and improving margins support a buy rating with a $41 price target (about 20% upside). Current valuation (17x earnings, 9.3x EV/EBITDA) and shareholder yield make the low $30s an attractive entry point for long-term investors.
BJ's Restaurants, Inc. (NASDAQ:BJRI ) Q2 2025 Earnings Conference Call July 31, 2025 4:30 AM ET Company Participants Bradford Richmond - Interim Chief Executive Officer Lyle D. Tick - CEO, President & Director Rana Schirmer - Director of SEC Reporting Conference Call Participants Alexander Russell Slagle - Jefferies LLC, Research Division Brian Hugh Mullan - Piper Sandler & Co., Research Division Jeffrey Andrew Bernstein - Barclays Bank PLC, Research Division Jon Michael Tower - Citigroup Inc., Research Division Sharon Zackfia - William Blair & Company L.L.C.
While the top- and bottom-line numbers for BJ's Restaurants (BJRI) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.