Analysts have raised their price target for BJ's Restaurants from $38.14 to $38.88, citing improved risk and reward outlooks supported by new leadership, anticipated sales catalysts, and ongoing opportunities for margin expansion despite cautious industry trends.
Analyst Commentary
Recent Street research on BJ's Restaurants has highlighted factors influencing both the optimistic and more cautious perspectives on the company's outlook and valuation. Analysts have weighed in on the company’s growth prospects, leadership changes, and potential challenges in the current market environment.
Bullish Takeaways
- Bullish analysts view the risk and reward profile as favorable at current share levels and suggest there is potential upside for investors.
- There is confidence that new leadership will drive operational improvements and identify further opportunities for margin expansion.
- Upcoming sales catalysts are believed to support revenue growth and long-term profitability, strengthening the investment case.
- Several analysts have set higher price targets, highlighting a positive outlook on execution and future earnings growth.
Bearish Takeaways
- Bearish analysts caution that industry trends remain soft and this may limit near-term same-store sales growth.
- There are concerns about the company’s ability to sustain sales momentum following successful promotional launches in prior quarters.
- Some have reduced their price targets, reflecting tempered expectations for outperformance in the upcoming earnings report.
- Ongoing cost pressures and competition within the sector could create headwinds to margin improvement and valuation.
What's in the News
- BJ's Restaurant & Brewhouse launches two limited-time desserts for the holidays: the new Dubai Chocolate Pizookie and the return of the Monkey Bread Pizookie. Promotional gift card deals include bonus cards and VIP offers for in-store and online purchases (Key Developments).
- Todd Wilson appointed Chief Financial Officer, effective December 15, 2025. He brings nearly 20 years of experience from leadership roles at Red Robin, Hopdoddy Burger Bar, Jamba Juice, and Bloomin’ Brands (Key Developments).
- The company increased its equity buyback authorization by $75 million, totaling $675 million. It has completed the repurchase of over 15.4 million shares to date (Key Developments).
- Fiscal 2025 guidance issued. BJ's projects comparable restaurant sales growth of about 2% and restaurant-level operating profit between $211 million and $219 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $38.14 to $38.88.
- Discount Rate has increased from 9.78% to 10.04%.
- Revenue Growth projections have improved modestly from 3.00% to 3.06%.
- Net Profit Margin estimates have decreased from 4.16% to 4.03%.
- Future P/E ratio has fallen from 15.18x to 14.40x.
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