BJ’s Restaurants stock upgraded to Buy at Benchmark on margin improvements

Published 04/08/2025, 18:00
BJ’s Restaurants stock upgraded to Buy at Benchmark on margin improvements

Investing.com - Benchmark upgraded BJ’s Restaurants (NASDAQ:BJRI) from Neutral to Buy and established a price target of $44.00 on Monday. According to InvestingPro data, the stock is currently trading near oversold territory, with analysts setting price targets ranging from $37 to $50.

The upgrade follows BJ’s Restaurants’ second-quarter 2025 operating results released on July 31, which demonstrated significant margin improvements from recent strategic initiatives and steady same-store sales growth.

The restaurant chain reported revenue of $365.5 million for the quarter, in line with consensus estimates, while posting same-store sales growth of 2.9% driven by 3.3% traffic growth.

Restaurant-level operating margin reached 17.0%, exceeding consensus by 40 basis points, as labor efficiency and sales leverage during the May/June celebration season offset value-based mix impacts from the Pizookie Meal Deal promotion.

BJ’s adjusted earnings per share of $0.97 (including $0.17 of other income) and adjusted EBITDA of $42 million (up 16% year-over-year) surpassed consensus estimates of $0.72 and $39 million, respectively.

In other recent news, BJ’s Restaurants Inc. reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.97, significantly exceeding the forecasted $0.70, representing a surprise of 38.57%. Revenue for the quarter reached $366 million, slightly above the anticipated $363.3 million. These results highlight a positive financial performance for the company. Despite the strong earnings report, the company’s stock experienced a decline during regular trading hours. Analyst reactions to these developments have not been detailed, but the earnings beat is noteworthy. These recent developments provide insights into BJ’s Restaurants’ current financial standing.

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