BJ’s Restaurants, Inc. (BJRI) with about 96 restaurants remains committed to targeting a double-digit growth for both 2010 and 2011.
Management commented that to capture the market they will keep opening new restaurants and plans to open 10 to 11 restaurants in fiscal year 2010 unlike other casual dining companies, which have slowed or stopped new unit development in response to a sluggish economy.
BJ’s closest competitor California Pizza Kitchen, Inc. (CPKI) plans to open eight full service restaurants in fiscal year 2010. Its peer Buffalo Wild Wings, Inc’s (BWLD) unit growth target for 2010 is 13% –15%. Thus other casual dining companies are also opening new restaurants to increase their market share.
BJ’s had cash and cash equivalent of $22.0 million at the end of the first quarter 2010. The low cash balance could hinder its growth objective.
BJ’s first quarter earnings of 16 cents outdid the Zacks Consensus Estimate by a penny. The company’s comparable-restaurant sales in the first-quarter 2010 grew substantially by 4.4%, on a drop of 0.2% registered in fourth-quarter 2009 and a decline of 0.1% witnessed in the prior-year quarter.
BJ’s Restaurants is well positioned to sustain its growth momentum while generating improved earnings spurred by operating efficiencies and innovative offerings. However, an unfavorable consumer spending pattern and increased competition from other casual dining operators still remain concerns.
We maintain a Zacks Rank #3 on BJ’s, which translates into a short-term Neutral recommendation.
Founded in 1978 in Orange County, California, BJ’s owns and operates a chain of 96 high-end casual dining restaurants in the United States that serve its signature deep-dish pizzas, salads, sandwiches, burgers, pastas, steaks, and its own hand-crafted beers.
Management commented that to capture the market they will keep opening new restaurants and plans to open 10 to 11 restaurants in fiscal year 2010 unlike other casual dining companies, which have slowed or stopped new unit development in response to a sluggish economy.
BJ’s closest competitor California Pizza Kitchen, Inc. (CPKI) plans to open eight full service restaurants in fiscal year 2010. Its peer Buffalo Wild Wings, Inc’s (BWLD) unit growth target for 2010 is 13% –15%. Thus other casual dining companies are also opening new restaurants to increase their market share.
BJ’s had cash and cash equivalent of $22.0 million at the end of the first quarter 2010. The low cash balance could hinder its growth objective.
BJ’s first quarter earnings of 16 cents outdid the Zacks Consensus Estimate by a penny. The company’s comparable-restaurant sales in the first-quarter 2010 grew substantially by 4.4%, on a drop of 0.2% registered in fourth-quarter 2009 and a decline of 0.1% witnessed in the prior-year quarter.
BJ’s Restaurants is well positioned to sustain its growth momentum while generating improved earnings spurred by operating efficiencies and innovative offerings. However, an unfavorable consumer spending pattern and increased competition from other casual dining operators still remain concerns.
We maintain a Zacks Rank #3 on BJ’s, which translates into a short-term Neutral recommendation.
Founded in 1978 in Orange County, California, BJ’s owns and operates a chain of 96 high-end casual dining restaurants in the United States that serve its signature deep-dish pizzas, salads, sandwiches, burgers, pastas, steaks, and its own hand-crafted beers.
Read the full analyst report on “BJRI”
Read the full analyst report on “CPKI”
Read the full analyst report on “BWLD”
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