BJ's Expands Further in Virginia - Analyst Blog

By
A A A

Of late, several restaurateurs are consistently focusing on unit expansion to boost its business. Among the casual dining chains, BJ's Restaurants, Inc. ( BJRI ) is one of the few that have been expanding despite economic uncertainty.

With the resurgence of consumer confidence, management accelerated its unit openings. Over the next five years, the company expects to double its restaurant from the present count of 146.

The restaurateur recently unveiled a BJ's outlet in Gainesville, VA, its first restaurant opening this year. Opened under the company's popular brand name BJ's Restaurant & Brewhouse, the 8,500 square feet unit is located at Virginia Gateway Shopping Center and can accommodate around 270 diners at a time.

We believe the spacious new unit with BJ's signature menu offerings including deep-dish pizza, handcrafted beer and Pizookie dessert combines with the contemporary ambience will add to the company's sales.

BJ's Restaurants plans to foray into potential new markets in 2014 to realize untapped opportunities. Virginia is a comparatively newer market for the company with just two BJ's Restaurants.

While the above data sounds encouraging, there is a disadvantage as well. As the Zacks Rank #5 (Strong Sell) stock is venturing into underserved markets, there will be an attendant headwind of higher pre-opening costs in these areas compared with matured trade areas.

Some better-ranked stocks in the industry include Fiesta Restaurant Group, Inc. ( FRGI ), Jack in the Box Inc. ( JACK ) and Buffalo Wild Wings Inc. ( BWLD ). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), Jack in the Box and Buffalo Wild Wings carry a Zacks Rank #2 (Buy).



BJ'S RESTAURANT (BJRI): Free Stock Analysis Report

BUFFALO WLD WNG (BWLD): Free Stock Analysis Report

FIESTA RESTRNT (FRGI): Free Stock Analysis Report

JACK IN THE BOX (JACK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BJRI , BWLD , FRGI , JACK

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

57,375,820
  • $16.20 ▼ 0.80%
46,357,695
  • $102.13 ▲ 1.23%
39,856,106
  • $3.59 ▲ 0.84%
36,749,915
  • $19.21 ▲ 5.38%
35,094,671
  • $74.63 ▼ 1.75%
25,538,058
  • $48.06 ▼ 0.23%
24,241,250
  • $38.18 ▲ 1.03%
22,422,839
  • $11.20 ▲ 3.70%
As of 8/27/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com