BJ’s Restaurants stock added to Benchmark’s Best Ideas List

Investing.com - Benchmark maintained its Buy rating and $44.00 price target on BJ’s Restaurants (NASDAQ:BJRI) on Monday, adding the restaurant chain to its Best Ideas List. The target represents a significant upside from the current price of $32.46, with InvestingPro data showing the stock is currently undervalued based on its proprietary Fair Value model.

The research firm cited BJ’s "powerful brand-inherent value platform" that resonates with customers as a key factor behind the decision, along with the upcoming relaunch of an upgraded pizza platform, which represents an important menu pillar for the company. With annual revenue of $1.38 billion and a market capitalization of $717 million, BJ’s has maintained a solid market presence despite its relatively weak gross profit margins of 15.08%.

Benchmark highlighted BJ’s steady traffic trends over recent months, noting they appear particularly strong when compared to other full-service restaurant concepts in the current market environment.

The firm also pointed to BJ’s "increased willingness to be more aggressive with capital allocation" as another positive factor supporting the stock’s inclusion on the Best Ideas List.

Benchmark maintained its above-consensus AEBITDA estimates for fiscal years 2025 and 2026, with the $44 price target representing approximately 33% upside potential from current trading levels.

In other recent news, BJ’s Restaurants reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share of $0.97, significantly exceeding the forecast of $0.70, representing a 38.57% surprise. Revenue for the quarter reached $366 million, slightly above the expected $363.3 million. Despite this positive financial performance, Benchmark upgraded BJ’s Restaurants from Neutral to Buy, setting a price target of $44.00. The upgrade was influenced by the company’s margin improvements and steady same-store sales growth following recent strategic initiatives. These developments reflect the company’s ongoing efforts to enhance its financial health and operational efficiency.

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