BJ's Restaurants, Inc.BJRI recently opened a restaurant in Towson, MA under its brand BJ's Restaurant & Brewhouse. This marks the company's third restaurant in Maryland and the sixth restaurant opening so far in 2015. Located adjacent to the 1 million square foot Town Center Regional Mall, this new restaurant is spread over an area of approximately 7,500 square feet. This new restaurant can accommodate approximately 225 guests. Its extensive menu includes BJ's signature deep-dish pizza, handcrafted beer and famous Pizookie dessert.
Among the casual dining chains, BJ's Restaurants is one of the few that have been expanding even amid a sluggish economy. With the resurgence of consumer confidence, management has accelerated its unit openings and expects to maintain the trend. With this opening, the company is on track to achieve its target of 15 restaurant openings this year.
The next restaurant will be opened in Columbus, OH on Jun 22 followed by a restaurant in Huntsville, AL, which is expected to open next month. With capacity growth, the company is gaining scale advantage, which will help generate cost efficiency in the future.
Meanwhile, BJ's Restaurants is focusing more on its smaller new 7,400-7,500 square foot prototype restaurants that cost approximately $1 million less than the prior prototype. This helps in reducing operating costs amid a tepid economy. Due to lesser food wastage and improved labor productivity, these new restaurants generate higher margins. Given its operational efficiency and launch of new higher return restaurant prototypes, the company's margins are likely to increase.
BJ's Restaurants has a Zacks Rank #2 (Buy). Some other stocks that can be considered in the restaurant industry include Zoe's Kitchen, Inc. ZOES , Dave & Buster's Entertainment, Inc. PLAY and Bravo Brio Restaurant Group, Inc. BBRG . While Zoe's Kitchen and Dave & Buster's Entertainment sport a Zacks Rank #1 (Strong Buy), Bravo Brio Restaurant carries a Zacks Rank #2.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
