BJRI - BJ's Restaurant: Good Prospects And Activist Involvement Can Drive Upside

2024-03-25 18:00:40 ET

Summary

• BJ's Restaurant is well positioned for sales and margin growth in the medium to long term.
• Revenue should benefit from price increases, easing comparisons, and efforts to enhance customer satisfaction and brand awareness.
• The company's margin growth prospects are supported by price increases, cost-saving initiatives, and productivity gains.

Investment Thesis

BJ’s Restaurant Inc ( BJRI ) is well positioned to deliver sales and margin growth in the medium to long term. Revenue should benefit from carryover impact price increases from the second half of 2023, and further price increases planned for FY24. In addition, easing comparison in the back of the current year also bodes well for the sales growth moving forward. Moreover, the company is focused on improving its brand image by enhancing customer satisfaction and boosting unaided awareness, which should help in increasing guest traffic and hence sales growth. Further, increasing footprint with the expected reacceleration of new restaurant developments from FY25 should also support medium to long-term sales growth....

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