NasdaqGS:BJRI

Stock Analysis Report

Executive Summary

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States.

Rewards

PE ratio (19.6x) is below the Hospitality industry average (25.1x)

Risk Analysis

Earnings are forecast to decline by an average of -1.7% per year for the next 3 years

Has a high level of debt

Profit margins (3.6%) are lower than last year (5.8%)



Snowflake Analysis

Imperfect balance sheet with questionable track record.


Similar Companies

Share Price & News

How has BJ's Restaurants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BJRI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

BJRI

3.4%

US Hospitality

2.0%

US Market


1 Year Return

-27.1%

BJRI

19.2%

US Hospitality

23.6%

US Market

Return vs Industry: BJRI underperformed the US Hospitality industry which returned 20.1% over the past year.

Return vs Market: BJRI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BJRIIndustryMarket
7 Day-0.2%3.4%2.0%
30 Day4.5%5.3%3.9%
90 Day12.9%16.0%12.0%
1 Year-26.3%-27.1%22.3%19.2%26.2%23.6%
3 Year15.6%13.0%47.3%37.4%53.2%43.3%
5 Year-13.2%-15.1%56.6%40.0%75.7%56.3%

Price Volatility Vs. Market

How volatile is BJ's Restaurants's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BJ's Restaurants undervalued compared to its fair value and its price relative to the market?

19.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BJRI ($38.95) is trading above our estimate of fair value ($29.51)

Significantly Below Fair Value: BJRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BJRI is good value based on its PE Ratio (19.6x) compared to the Hospitality industry average (25.1x).

PE vs Market: BJRI is poor value based on its PE Ratio (19.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BJRI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BJRI is overvalued based on its PB Ratio (2.6x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is BJ's Restaurants forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BJRI's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: BJRI's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: BJRI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BJRI's revenue (6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BJRI's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BJRI's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has BJ's Restaurants performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BJRI has high quality earnings.

Growing Profit Margin: BJRI's current net profit margins (3.6%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: BJRI's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: BJRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BJRI had negative earnings growth (-34.8%) over the past year, making it difficult to compare to the Hospitality industry average (-18.9%).


Return on Equity

High ROE: BJRI's Return on Equity (14.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BJ's Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: BJRI's short term assets ($55.3M) do not cover its short term liabilities ($144.9M).

Long Term Liabilities: BJRI's short term assets ($55.3M) do not cover its long term liabilities ($626.8M).


Debt to Equity History and Analysis

Debt Level: BJRI's debt to equity ratio (55.1%) is considered high.

Reducing Debt: BJRI's debt to equity ratio has increased from 9% to 55.1% over the past 5 years.

Debt Coverage: BJRI's debt is well covered by operating cash flow (73.2%).

Interest Coverage: BJRI's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

Inventory Level: BJRI has a high level of physical assets or inventory.

Debt Coverage by Assets: BJRI's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is BJ's Restaurants's current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: BJRI's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BJRI's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BJRI has been paying a dividend for less than 10 years.

Growing Dividend: BJRI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), BJRI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BJRI's dividends in 3 years are forecast to be well covered by earnings (28.7% payout ratio).


Next Steps

Management

What is the CEO of BJ's Restaurants's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Greg Trojan (59yo)

6.9yrs

Tenure

US$3,654,536

Compensation

Mr. Gregory A. Trojan, also known as Greg, has been the Chief Executive Officer of BJ's Restaurants, Inc. since February 01, 2013 and served as its President since December 3, 2012. Mr. Trojan served as Ch ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD3.65M) is above average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.9yrs

Average Tenure

54yo

Average Age

Experienced Management: BJRI's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

60yo

Average Age

Experienced Board: BJRI's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: BJRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$58,09210 Dec 19
Brian Krakower
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares1,536
Max PriceUS$37.82
BuyUS$474,04815 Aug 19
Gregory Trojan
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares14,400
Max PriceUS$32.92
BuyUS$101,43015 Aug 19
Gerald Deitchle
EntityIndividual
Role
Chairman of the Board
Chairman
Shares3,000
Max PriceUS$33.81

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Greg Trojan (59yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: US$3.65m
  • Greg Levin (51yo)

    President

    • Tenure: 2yrs
    • Compensation: US$1.28m
  • Alex Puchner (57yo)

    Senior Vice President of Brewing Operations

    • Tenure: 24yrs
    • Compensation: US$143.26k
  • Gregory Lynds (58yo)

    Executive VP & Chief Development Officer

    • Tenure: 16.5yrs
    • Compensation: US$874.92k
  • Lon Ledwith (61yo)

    Executive Vice President of Operations

    • Tenure: 4.8yrs
    • Compensation: US$767.18k
  • Chris Pinsak (54yo)

    Senior Vice President of Operations

    • Tenure: 9yrs
  • Kendra Miller (44yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$597.96k
  • Brian Krakower (48yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.9yrs
    • Compensation: US$544.30k
  • Kevin Mayer (49yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 5.5yrs
    • Compensation: US$859.57k
  • Scott Rodriguez

    Senior Vice President of Culinary

    • Tenure: 2yrs

Board Members

  • Greg Trojan (59yo)

    CEO & Director

    • Tenure: 6.9yrs
    • Compensation: US$3.65m
  • Jerry Deitchle (67yo)

    Chairman

    • Tenure: 11.6yrs
    • Compensation: US$197.52k
  • Pete Bassi (70yo)

    Lead Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$206.52k
  • Jim Dal Pozzo (60yo)

    Director

    • Tenure: 19yrs
    • Compensation: US$160.02k
  • Larry Bouts (70yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$180.02k
  • Lea Anne Ottinger (60yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$172.02k
  • Patrick Walsh (43yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$176.52k
  • Noah Elbogen (36yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$172.52k
  • Janet Sherlock (53yo)

    Independent Director

    • Tenure: 1yrs

Company Information

BJ's Restaurants, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BJ's Restaurants, Inc.
  • Ticker: BJRI
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$756.638m
  • Shares outstanding: 19.16m
  • Website: https://www.bjsrestaurants.com

Number of Employees


Location

  • BJ's Restaurants, Inc.
  • 7755 Center Avenue
  • Suite 300
  • Huntington Beach
  • California
  • 92647
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BJRINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1996
ZCGDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1996

Biography

BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts. As of November 4, 2019, the company owned and operated 208 casual dining restaurants that offer dine-in, take-out, delivery, and party catering services in 28 states. BJ's Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/18 23:55
End of Day Share Price2020/01/17 00:00
Earnings2019/10/01
Annual Earnings2019/01/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.