In a bid to expand its presence in the domestic market, casual
dining restaurant operator,
BJ's Restaurants, Inc.
), recently unveiled a new outlet in Eugene, Ore. The opening
marks the fifth of the company's targeted 17 new openings in
The site of the new opening previously housed a small format
BJ's Pizza and Grill(R) restaurant. The company replaced it with
a larger-format BJ's Restaurant & Brewhouse(R).
The new BJ's unit, located in the Valley River Center shopping
mall, is spread across approximately 8,500 square feet and can
accommodate around 270 diners at a time.
The new restaurant has come up in Eugene, where BJ's has
already generated a certain amount of customer loyalty. Thus, we
believe that the company will benefit immensely from its spacious
new unit and contemporary ambience, thus adding to its sales.
Apart from this new unit, BJ's operates two other restaurants
in Oregon. As per the National Restaurant Association, the
state's restaurants are expected to record $6.5 billion in sales
in 2013.Thus Oregon's restaurant industry has a key role in
augmenting state revenues.
We noticed that BJ's 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 units.
Now, the Zacks Rank #2 (Buy) 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. With capacity growth, BJ's will gain scale
advantage, which will help generate cost efficiency in the
Other players in the same industry that look attractive at
current levels include
Brinker International Inc.
CEC Entertainment Inc.
AFC Enterprises Inc.
). While Brinker and CEC Entertainment both carry a Zacks Rank #1
(Strong Buy), AFC Enterprises carries a Zacks Rank #2 (Buy).
AFC ENTERPRISES (AFCE): Free Stock Analysis
BJ'S RESTAURANT (BJRI): Free Stock Analysis
CEC ENTERTANMNT (CEC): Free Stock Analysis
BRINKER INTL (EAT): Free Stock Analysis
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