Brian S. Krakower, Chief Information Officer of BJ's Restaurants Inc. (NASDAQ:BJRI), sold 2,313 shares of the company's common stock on November 15, 2024. The shares were sold at an average price of $35.60, totaling approximately $82,342. Following this transaction, Krakower holds 5,339 shares, which include unvested restricted stock units. This sale was filed with the Securities and Exchange Commission, providing insight into the executive's current holdings and recent activity.
In other recent news, BJ's Restaurants saw a mixed bag in their third-quarter earnings call. The company reported a 2.2% increase in sales to $325.7 million and a 1.7% rise in comparable restaurant sales, largely due to a 1.3% growth in traffic. Despite these increases, the company faced challenges with restaurant-level margins, which fell to 11.7%. This was primarily due to increased promotional activity, higher supply chain costs, and labor inefficiencies.
On a different note, Piper Sandler recently adjusted its financial outlook for BJ's Restaurants, increasing the price target to $36 from the previous $35 while maintaining a neutral stance. This adjustment followed the restaurant chain's quarterly financial disclosure and was influenced by the recent management review led by Interim CEO Brad Richmond and President and Chief Concept Officer Lyle Tick.
Furthermore, the company reported a net loss of $2.9 million, or $0.13 per share, an improvement over the previous year. Despite these challenges, the management remains optimistic about the future, outlining strategic initiatives aimed at enhancing margins and maintaining strong sales growth into 2025. These are among the recent developments for BJ's Restaurants.
InvestingPro Insights
Brian S. Krakower's recent sale of BJ's Restaurants Inc. (NASDAQ:BJRI) shares comes at a time when the company's stock has shown strong performance. According to InvestingPro data, BJRI has delivered a robust 24.9% return over the last three months, significantly outperforming many of its peers in the restaurant industry.
Despite this positive momentum, InvestingPro Tips highlight some potential concerns for investors. The company suffers from weak gross profit margins, which is reflected in the latest data showing a gross profit margin of 14.15% for the last twelve months as of Q3 2024. Additionally, BJRI's stock price movements are quite volatile, which could explain why insiders like Krakower might choose to sell some of their holdings.
On a more positive note, analysts predict that BJ's Restaurants will be profitable this year, with the company already showing profitability over the last twelve months. The current P/E ratio stands at 27.75, which may be considered high by some investors, but it's worth noting that BJRI is trading at a low P/E ratio relative to its near-term earnings growth potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for BJRI, providing a deeper understanding of the company's financial health and market position.
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