Orange County, CA-based casual dining restaurant operator,
BJ's Restaurants, Inc.
), recently unveiled its fifth outlet in Fort Collins, CO. The
opening marks the fourth of the company's targeted 17 new
openings in 2013.
The new BJ's Restaurants, located in Fort Collins' Front Range
Village Shopping Center, is spread across approximately 8,000
square feet and accommodates around 265 customers. We expect the
variety of menu offered at the new unit and contemporary ambience
to attract a strong guest base, going forward.
Fort Collins is a Home Rule Municipality of Larimer County,
CO. The city has an established restaurant industry and boasts
some of the major restaurateurs, such as
Red Robin Gourmet Burgers Inc.
Burger King Worldwide, Inc.
We have noticed that BJ's Restaurants has mainly expanded in
its existing markets in California and Texas in the last three
years citing plenty of growth opportunities. The company
currently has 61 restaurants in California, while Texas boasts 28
Now, the company is considering other potential new markets
for entry in 2013 and 2014 to realize untapped opportunities.
According to management, in the long run, there exists the
possibility of opening at least 425 outlets across the U.S.
BJ's Restaurants is one of the few casual dining chains that
have been expanding in an uncertain economy. With the resurgence
of consumer confidence, management accelerated its unit openings.
In June, the company will re-open a new restaurant in Eugene, OR.
after shifting its existing small format restaurants Pizza and
Grill to a larger Brewhouse unit.
Colorado is a relatively newer market with just four of BJ's
Restaurants. According to the National Restaurant Association,
the restaurant industry in Colorado plays a pivotal role in the
state's revenues. According to this research site, the state's
restaurants are expected to record $9.5 billion in sales in
While the above data sounds encouraging, there is a
disadvantage as well. As the Zacks Rank #4 (Sell) company is
venturing into the new under-served market, it will face higher
pre-opening costs in these areas.
BJ'S RESTAURANT (BJRI): Free Stock Analysis
BURGER KING WWD (BKW): Free Stock Analysis
MCDONALDS CORP (MCD): Free Stock Analysis
RED ROBIN GOURM (RRGB): Free Stock Analysis
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