Intel stock extends gains after report of possible U.S. government stake
On Friday, BJ’s Restaurants stock (NASDAQ:BJRI), currently trading at $33.49 with a market capitalization of $747 million, saw its price target increased by Jefferies, with a new target of $44, up from the previous $43, while the firm continued to endorse the stock with a Buy rating. According to InvestingPro analysis, the stock is trading near its Fair Value, with analysts’ targets ranging from $31 to $50. The adjustment follows BJ’s Restaurants’ solid fourth-quarter same-store sales (SSS), which surpassed expectations, largely due to an increase in customer traffic. The company’s recent initiatives, such as the Pizookie Meal Deal, additional targeted marketing, and a successful campaign catering to large parties during the holidays, have started to show positive results.
The report from Jefferies highlighted that the company’s margins also exceeded forecasts, as the team began capitalizing on several new opportunities for enhancement. While InvestingPro data shows current gross profit margins at 14.41%, the company’s financial health score is rated as ’FAIR’, suggesting room for improvement. Although these developments are in the initial stages, Jefferies believes that BJ’s Restaurants has a strong foundation and numerous opportunities to drive significant acceleration in profitable growth over time.
BJ’s Restaurants’ recent brand assessment has led to early actions that are beginning to have an impact on the company’s performance. The analyst from Jefferies expressed confidence in the potential for these strategies to contribute to the restaurant chain’s growth, stating, "Still early, but foundation in good shape & plenty of opportunity to drive meaningful accel in profitable growth over time."
The increase in the price target to $44 reflects the analyst’s reassessment of BJ’s Restaurants’ prospects, following the company’s reported success in the fourth quarter. The Buy rating remains in place, indicating Jefferies’ ongoing positive outlook on the stock’s potential.
Investors will likely monitor BJ’s Restaurants’ progress as it continues to implement and expand upon the strategies that have led to the recent positive developments in its business operations. InvestingPro reveals that 4 analysts have recently revised their earnings estimates upward, with net income expected to grow this year. For deeper insights into BJRI’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, BJ’s Restaurants Inc. reported financial results for Q1 2025 that exceeded earnings expectations. The company posted earnings per share (EPS) of $0.59, compared to the projected $0.36, while revenue slightly surpassed forecasts, reaching $348 million. BJ’s Restaurants also raised its full-year guidance, anticipating comparable restaurant sales growth of 2-3% and an operating profit between $210-$219 million. The company highlighted a 3.2% year-over-year increase in sales, driven by a 2.7% rise in customer traffic. Analyst discussions during the earnings call noted BJ’s focus on operational efficiency and strategic initiatives, including AI-driven labor scheduling and menu optimization. Additionally, BJ’s Restaurants plans capital expenditures of $65-$75 million, focusing on restaurant infill strategies. The company emphasized its commitment to enhancing guest satisfaction and expanding its restaurant footprint. These developments reflect a positive outlook for BJ’s Restaurants as it navigates the current economic landscape.
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