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Core Insights - BJ's Restaurants, Inc. (BJRI) is experiencing growth due to increased traffic, operational efficiency, and effective marketing strategies, supported by an AI-driven labor model and ongoing remodeling efforts [1][4] Financial Performance - BJRI shares have increased by 36% over the past three months, significantly outperforming the Zacks Retail - Restaurants industry's 2.7% rise [2] - The earnings estimate for 2025 has risen to $2.19 per share from $2.14 in the last 60 days, with the company achieving an average earnings surprise of 155.6% over the last four quarters [4][2] Growth Drivers - Sales-building initiatives and strategic priorities are driving growth, with strong engagement from seasonal menu offerings and social-led marketing campaigns enhancing brand visibility [5] - In Q3 2025, BJRI reported a 0.5% year-over-year comparable sales growth, driven by a 3.3% increase in guest traffic, and restaurant-level operating margins expanded to 12.5% [6][8] - Menu innovation is a key focus, with successful new items like the Spooky Pizookie and the Brewhouse Sampler enhancing guest engagement and check averages [7][9] Remodeling and Expansion - BJRI is actively pursuing expansion through new unit construction and remodels, with plans to complete 20 remodels by year-end 2025, covering about half of its pre-2016 locations [10] Challenges - The company faces inflationary pressures, particularly in food costs, with a noted 2% year-over-year food cost inflation in Q3 2025, primarily due to higher beef and seafood prices [11]

Group 1 - The 'Pizookie Dip' phenomenon has emerged in the second half of the year, indicating a trend in consumer behavior within the restaurant industry [1] Group 2 - The research firm Goulart's Restaurant Stocks specializes in the U.S. restaurant industry, covering various segments from quick-service to fine dining [2] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly focusing on micro and small-cap stocks [2]

Core Insights - U.S. retail sales experienced a slowdown in October due to higher prices primarily driven by tariffs, leading to cautious consumer spending [1][4] - Despite the overall retail slowdown, spending on dining out remained strong, with restaurant sales expected to grow during the holiday season [1][5] Retail Sales Overview - Retail sales increased by only 0.2% month-over-month in September after a 1% rise in August, indicating a deceleration in consumer spending [3][4] - Sales at food services and drinking places reached $88.5 billion in September, marking a 0.7% sequential increase and a 5.7% year-over-year rise [3] Restaurant Industry Outlook - The restaurant sector is benefiting from a combination of aggressive consumer spending on dining out and anticipated increases in holiday spending [5][8] - The Federal Reserve's recent interest rate cuts are expected to further support the restaurant industry's growth [4][5] Investment Opportunities - Three restaurant stocks with strong online presence and positive earnings revisions are highlighted: Yum China Holdings (YUM), BJ's Restaurants, Inc. (BJRI), and El Pollo Loco Holdings, Inc. (LOCO) [2][8] - Yum China Holdings has an expected earnings growth rate of 11.3% for the current year, with a 1.7% improvement in earnings estimates over the past 90 days [6] - BJ's Restaurants is projected to have a 49% earnings growth rate for the current year, with a 0.9% increase in earnings estimates over the past 60 days [9] - El Pollo Loco Holdings has an expected earnings growth rate of 6.7%, with a 3.2% improvement in earnings estimates over the past 60 days [11]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market [3] Zacks Style Scores Overview - The Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score focuses on a company's financial health and future growth potential [5] - Momentum Score assesses stocks based on price trends and earnings outlook [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank and Its Importance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500 with an average annual return of +23.93% since 1988 [8] - The Zacks Rank includes a large number of stocks, making it essential to use Style Scores for better selection [9] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [11] Company Spotlight: BJ's Restaurants - BJ's Restaurants operates a chain of high-end casual dining establishments in the U.S. and currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [12] - The company has a forward P/E ratio of 17.1, indicating attractive valuation metrics for value investors [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the consensus estimate increasing by $0.02 to $2.19 per share, and an average earnings surprise of +155.6% [13]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [3][4] Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each rated from A to F based on specific investment characteristics [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score assesses stocks based on price trends and earnings outlook [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Stock Highlight: BJ's Restaurants - BJ's Restaurants (BJRI) operates a chain of high-end casual dining restaurants in the U.S. and currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [12] - The stock has shown a Momentum Style Score of B, with a price increase of 19.1% over the past four weeks [12] - Analysts have revised BJRI's earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.02 to $2.16 per share for fiscal 2025, and the company has an average earnings surprise of +155.6% [13]

Core Insights - BJ's Restaurant & Brewhouse is enhancing its signature deep dish pizza for the first time in nearly five decades, drawing inspiration from iconic pizza styles across the U.S. [1][3] - The revamped pizza features improved dough, premium toppings, and flavor profiles that honor the pizza traditions of New York, Chicago, and Detroit while maintaining BJ's legacy [2][4] Product Enhancements - The new deep dish pizza includes hand-pressed, double-proofed dough made with unbleached flour and New York water, designed for a crispier bite and airy interior [7] - Whole milk mozzarella is used for a richer melt and creamier texture, while fresh-pack tomato sauce is made from 100% vine-ripened tomatoes for a bolder flavor [7] - In-house roasted Italian sausage and premium cup & char pepperoni are included to enhance the overall flavor profile [7] Menu Offerings - BJ's introduces a lineup of signature pizza creations, including the Epic Five Meat and Pepperoni Extreme, alongside classic options like BJ's Favorite and Classic Combo [5] - The menu caters to various preferences, offering indulgent selections as well as lighter choices such as vegetarian options and customizable pizzas [5] Company Background - Founded in 1978, BJ's operates over 200 restaurants across 31 states, known for its high-quality ingredients and craft brewing since 1996 [8] - The brand has received multiple awards, including the 2025 Vibe Vista Award for Best Beer Program, highlighting its commitment to quality and customer experience [8]

Group 1 - BJ's Restaurants has appointed Todd Wilson as chief financial officer, effective December 15, 2023, bringing extensive restaurant experience to the role [5][7] - Wilson previously served as CFO at Red Robin, where he improved restaurant-level margins and financial results while enhancing communication with the investment community [3][7] - The company has seen success from operational shifts and menu improvements, with comparable sales increasing by 0.5% in the third quarter, marking five consecutive quarters of sales and traffic growth [5][7] Group 2 - Wilson's experience includes roles at Hopdoddy, Jamba, and Bloomin' Brands, contributing to his capability in driving operational excellence and managing finance teams [3][4][7] - BJ's Restaurants is enhancing its value proposition through initiatives like the Pizookie Meal Deal platform and a relaunch of its pizza menu with improved ingredients [5][7] - CEO Lyle Tick emphasized that Wilson's expertise will support the chain in strengthening its financial foundation and achieving its long-term strategic vision [4][7]

Core Insights - BJ's Restaurants, Inc. has appointed Todd Wilson as the new Chief Financial Officer, effective December 15, 2025, bringing nearly two decades of financial leadership experience to the company [1][2]. Company Overview - BJ's Restaurants, Inc. is a national casual dining brand founded in 1978, operating over 200 restaurants across 31 states, known for its high-quality ingredients and diverse menu offerings [4]. - The company has a strong market position in the casual dining space and is recognized for its craft brewing, having won multiple awards including the 2025 Vibe Vista Award for Best Beer Program [4]. Leadership Background - Todd Wilson previously served as CFO of Red Robin Gourmet Burgers, where he improved restaurant-level margins and financial results [2]. - His experience includes significant roles at Hopdoddy Burger Bar and Jamba Juice, where he led financial strategies and operations [2]. - Wilson holds an MBA from the University of South Florida and a bachelor's degree from the University of Florida [2]. Strategic Vision - The CEO of BJ's expressed confidence in Wilson's ability to drive operational excellence and strengthen the company's financial foundation [3]. - Wilson is enthusiastic about joining BJ's during a pivotal time and aims to leverage the brand's strong market position and loyal customer base to capitalize on future opportunities [4].

Revenue and Sales Performance - Total revenues increased by $4.5 million, or 1.4%, to $330.2 million during the thirteen weeks ended September 30, 2025, compared to $325.7 million in the same period of 2024[83]. - Total revenues for the thirty-nine weeks ended September 30, 2025, increased by $30.8 million, or 3.0%, to $1.04 billion[94]. - Comparable restaurant sales increased by 1.8%, or $17.7 million, with guest traffic up approximately 2.2%[94]. Cost of Sales and Expenses - Cost of sales decreased by $1.8 million, or 2.0%, to $84.9 million, representing 25.7% of revenues, down from 26.6% in the prior year[84]. - Cost of sales for the thirty-nine weeks increased by $1.1 million, or 0.4%, to $262.5 million[95]. - Labor and benefit costs increased by $1.6 million, or 1.3%, to $122.3 million, maintaining a consistent percentage of 37.1% of revenues[85]. - Labor and benefit costs increased by $5.3 million, or 1.4%, to $377.4 million, with labor costs as a percentage of revenues decreasing to 36.2% from 36.7%[97]. - Occupancy and operating expenses rose by $1.3 million, or 1.6%, to $81.6 million, remaining at 24.7% of revenues[86]. - Occupancy and operating expenses rose by $8.1 million, or 3.4%, to $244.8 million, with these expenses as a percentage of revenues increasing to 23.5% from 23.4%[98]. - General and administrative expenses increased by $1.5 million, or 7.0%, to $22.4 million, with a percentage of revenues rising to 6.8% from 6.4%[87]. - General and administrative expenses increased by $1.4 million, or 2.1%, to $65.9 million, with these expenses as a percentage of revenues decreasing to 6.3% from 6.4%[99]. - Depreciation and amortization increased by $1.1 million, or 6.1%, to $19.3 million, accounting for 5.8% of revenues[88]. Net Income and Cash Flow - Net income for the thirteen weeks ended September 30, 2025, was 0.1%, compared to a loss of (0.9)% in the prior year[82]. - Net cash provided by operating activities was $91.96 million, a $22.1 million increase from the prior year[110]. - Net cash used in investing activities was $58.5 million, a $2.6 million decrease from the prior year, with total capital expenditures for fiscal 2025 anticipated to be approximately $65 million to $75 million[111]. - Net cash used in financing activities increased by $14.7 million to $34.2 million, primarily due to increased share repurchases[113]. Tax and Future Plans - The effective income tax rate for the thirty-nine weeks ended September 30, 2025, was an expense of 0.5%, compared to a benefit of 15.0% for the prior year[105]. - The company plans to open two new restaurants in the second half of 2026 and remodel approximately 20 existing locations in fiscal 2025[106]. Financial Position and Risks - Cash and cash equivalents decreased to $25.4 million from $26.1 million, with a current ratio of 0.4:1.0[106]. - The company has a $215 million Credit Facility, with $89.5 million outstanding as of September 30, 2025, which carries a floating interest rate[121]. - A hypothetical 1% change in interest rates under the Credit Facility would impact the company's net income by approximately $0.7 million annually[121]. - The company is exposed to risks related to food, supplies, and commodity prices due to market price fluctuations and potential supply chain disruptions[122]. - The company attempts to manage commodity price risks by entering into fixed-price purchase commitments, typically up to one year[122]. - The company believes that substantially all food and supplies are available from multiple sources, helping to diversify overall commodity cost risk[122]. - The company has some flexibility to increase menu prices or vary menu items in response to food commodity price increases[122]. - Certain commodity purchase arrangements may include contractual features that establish price floors or caps[122]. - The company does not use financial instruments to hedge commodity prices, relying instead on supplier arrangements to control costs[122].