Hold Rating for BJ’s Restaurants Amid Mixed Performance Indicators

William Blair analyst Sharon Zackfia has maintained their neutral stance on BJRI stock, giving a Hold rating on April 23.

Sharon Zackfia’s rating is based on several factors influencing BJ’s Restaurants’ performance. The company’s first-quarter adjusted EPS exceeded expectations, primarily due to better-than-anticipated restaurant-level margins. However, revenue growth was modest, aligning with consensus but slightly below expectations due to factors like inclement weather and delayed tax refunds affecting February sales.
Despite a positive traffic increase of 2.7%, which surpassed projections, the mix declined by 3% to 4% due to the $13 Pizookie Meal Deal and other factors. While these elements indicate resilience and some positive trends, they also suggest that the company’s growth potential may be limited in the near term, justifying a Hold rating.

Zackfia covers the Consumer Cyclical sector, focusing on stocks such as CarMax, Lululemon Athletica, and Royal Caribbean. According to TipRanks, Zackfia has an average return of 12.0% and a 50.23% success rate on recommended stocks.

In another report released on April 23, Citi also maintained a Hold rating on the stock with a $39.00 price target.