Of late, several restaurateurs are consistently focusing on
unit expansion to boost its business. Among the casual dining
BJ's Restaurants, Inc.
) is one of the few that have been expanding despite economic
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
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
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
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.
Jack in the Box Inc.
Buffalo Wild Wings Inc.
). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy),
Jack in the Box and Buffalo Wild Wings carry a Zacks Rank #2
BJ'S RESTAURANT (BJRI): Free Stock Analysis
BUFFALO WLD WNG (BWLD): Free Stock Analysis
FIESTA RESTRNT (FRGI): Free Stock Analysis
JACK IN THE BOX (JACK): Free Stock Analysis
To read this article on Zacks.com click here.