BJRI

BJ's Restaurants Inc

Consumer


Presented:12/06/2018
Price:$55.27
Cap:$1.18B
Current Price:$34.18
Cap:$0.79B

Presented

Date12/06/2018
Price$55.27
Market Cap$1.18B
Ent Value$1.57B
P/E Ratio18.42x
Book Value$14.69
Div Yield0.87%
Shares O/S21.29M
Ave Daily Vol497,948
Short Int23.73%

Current

Price$34.18
Market Cap$0.79B
BJ's Restaurants, Inc. engages in the ownership and operation of casual dining restaurants. It operates BJ's Restaurant and Brewery, BJ's Restaurant & Brewhouse, BJ's Pizza and Grill or BJ's Grill. It offers pizzas, appetizers, specialty salads, soups, pastas, sandwiches, entrées, desserts, and proprietary craft beers. The company was founded in 1978 and is headquartered in Huntington Beach, CA.

Publicly traded companies mentioned herein: Apple Inc (AAPL), BJ's Restaurants Inc (BJRI), Cheesecake Factory Inc (CAKE), Darden Restaurants Inc (DRI), Sears Holdings Corp (SHLD)

Highlights

The presenter is bearish on the outlook for BJ’s Restaurants (BJRI) due to changing consumer tastes and dining habits, foot traffic trends, and cost pressures. While the stock is up ~50% YTD (at $55), it is down ~$20 per share since early Sept and the trend lower could continue through year’s end (2018) and into Q1 ‘19. MSD% comps drove early 2018 optimism around BJRI, and rekindled confidence that the unit growth story was not dead; however, the positive results came by way of one-time items that are not likely repeatable (new slow roast menu items, digital/handheld ordering, etc.). Operating a casual dining business is not going to get any easier, and the structural challenges facing BJ’s are mounting. If the bearish scenario plays out, and comps turn negative, the stock could fall sharply as the market will not reward BJRI with a 24x P/E multiple.

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Idea Discussion

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