Core Viewpoint - BJ's Restaurants (BJRI) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily determined by changes in a company's earnings picture, specifically the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for BJ's Restaurants indicates a positive outlook on its earnings, which could lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, influenced by institutional investors [5]. - Rising earnings estimates and the subsequent rating upgrade suggest an improvement in BJ's underlying business, which should be recognized by investors through a higher stock price [6]. Importance of Tracking Earnings Revisions - Empirical research supports a strong correlation between earnings estimate revisions and near-term stock movements, making it beneficial for investment decisions [7]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specific Earnings Estimates for BJ's Restaurants - For the fiscal year ending December 2025, BJ's Restaurants is expected to earn $1.64 per share, reflecting an 11.6% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for BJ's Restaurants has increased by 10.8%, indicating a positive trend in earnings expectations [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [10]. - The upgrade of BJ's Restaurants to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Core Viewpoint - BJ's Restaurants (BJRI) is currently positioned as a more attractive investment compared to Compass Group PLC (CMPGY) based on various valuation metrics and earnings outlook [1][3][6] Valuation Metrics - BJRI has a forward P/E ratio of 23.10, while CMPGY has a forward P/E of 26.67, indicating that BJRI is relatively cheaper [5] - The PEG ratio for BJRI is 1.65, compared to CMPGY's PEG ratio of 2.44, suggesting that BJRI offers better value considering its expected earnings growth [5] - BJRI's P/B ratio stands at 2.34, significantly lower than CMPGY's P/B of 8.65, further supporting BJRI's valuation advantage [6] Earnings Outlook - BJRI holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while CMPGY has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings forecast [3][6] - The positive earnings estimate revisions for BJRI enhance investor confidence in its future performance [3] Value Grades - BJRI has a Value grade of B, while CMPGY has a Value grade of D, reflecting BJRI's stronger position in terms of valuation metrics and earnings outlook [6]

Group 1 - BJ's Restaurants (BJRI) is currently outperforming its Retail-Wholesale peers with a year-to-date return of 8.1%, compared to the sector average of 4.9% [4] - The Zacks Consensus Estimate for BJRI's full-year earnings has increased by 10.8% over the past three months, indicating improved analyst sentiment and earnings outlook [4] - BJ's Restaurants holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable investment outlook based on earnings estimates and revisions [3] Group 2 - BJ's Restaurants is part of the Retail - Restaurants industry, which includes 39 stocks and is currently ranked 65 in the Zacks Industry Rank, with an average gain of 5.2% this year [6] - Another stock in the Retail-Wholesale sector, OCADO GROUP (OCDDY), has also shown strong performance with a year-to-date increase of 5.3% and a Zacks Rank of 2 (Buy) [5][6] - The Internet - Commerce industry, where OCADO GROUP belongs, has 37 stocks and is ranked 63, with an average gain of 8% this year [6]

Group 1: BJ's Restaurants - BJ's Restaurants operates a chain of high-end casual dining restaurants in the United States and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for BJ's current year earnings has increased by 1.4% over the last 60 days [1] - The company has a PEG ratio of 1.8, which is lower than the industry average of 3.6, and possesses a Growth Score of A [2] Group 2: Brinker International - Brinker International owns and operates various restaurants under the Chili's and Maggiano's brands and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Brinker’s current year earnings has increased by 41% over the last 60 days [2] - The company has a PEG ratio of 0.50 compared to the industry average of 3.35, and it also possesses a Growth Score of A [3] Group 3: Flutter Entertainment PLC - Flutter Entertainment is an online sports betting and iGaming operator with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Flutter's next year earnings has increased by 9.1% over the last 60 days [3] - The company has a PEG ratio of 0.56, which is lower than the industry average of 1.36, and possesses a Growth Score of B [3]

Group 1: BOK Financial - BOK Financial is a regional financial services company operating in several states including Oklahoma, Texas, and New Mexico, with a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for BOK Financial's current year earnings has increased by 4% over the last 60 days [1] - The company has a price-to-earnings (P/E) ratio of 12.26, which is lower than the industry average of 13.70, and holds a Value Score of B [2] Group 2: BJ's Restaurants - BJ's Restaurants operates a chain of high-end casual dining restaurants in the United States and also carries a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for BJ's Restaurants' current year earnings has increased by 1.4% over the last 60 days [1] - The company has a P/E ratio of 25.29, significantly lower than the industry average of 48.50, and possesses a Value Score of B [3]

Group 1: Company Highlights - Primo Brands Corporation (PRMB) focuses on healthy hydration with sustainably sourced products, and its current year earnings estimate has increased by 15% over the last 60 days [1] - BOK Financial (BOKF) provides various financial services across multiple states, with a 4% increase in its current year earnings estimate over the last 60 days [2] - Sprouts Farmers Market (SFM) operates in the grocery store industry with a wellness-focused model, seeing a 4% increase in its current year earnings estimate over the last 60 days [3] - BJ's Restaurants (BJRI) operates high-end casual dining restaurants in the U.S., with a 1.4% increase in its current year earnings estimate over the last 60 days [4] - Unity Software (U) provides a platform for creating interactive 3D content, with a 0.8% increase in its current year earnings estimate over the last 60 days [4] Group 2: Market Insights - The Zacks Rank 1 (Strong Buy) List includes companies with positive earnings estimate revisions, indicating potential investment opportunities in the current market [5]

Group 1 - BJ's Restaurants is adapting to a market where consumers are increasingly looking for bargains, indicating a shift in consumer behavior [1] - The company is facing challenges in driving traffic to its locations, suggesting that the competitive landscape is tough [1] Group 2 - The analysis is conducted by a specialized firm focused on restaurant stocks, covering various segments including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide insights and strategies for investors [1]

Group 1 - BJ's Restaurants, Inc. (NASDAQ: BJRI) is identified as a strong player in the competitive restaurant industry, with an attractive combination of valuation and growth potential [1] - The current market conditions are challenging for the restaurant sector, yet BJRI's shares are perceived to have significant upside potential [1] Group 2 - The investment strategy promoted emphasizes a blended approach to trading and income, aiming to enhance savings and retirement timelines [1]

Core Insights - BJ's Restaurants, Inc. (BJRI) reported strong fourth-quarter fiscal 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year growth [1][4] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 47 cents, surpassing the consensus estimate of 35 cents, and up from 45 cents in the same quarter last year [4] - Total revenues reached $344.3 million, exceeding the consensus mark of $337 million by 2.1%, and increased by 6.4% year over year [4] - Comparable restaurant sales rose by 5.5% year over year, compared to a 0.6% increase in the prior-year quarter [5] Operational Efficiency - Restaurant-level operating profit margin improved by 100 basis points year over year to 15.4%, compared to 14.4% in the previous year [7] - Labor costs as a percentage of sales decreased to 35.8% from 36.5% year over year, while occupancy and operating costs also improved to 22.9% from 23.6% [6] Balance Sheet - As of December 31, 2024, cash and cash equivalents totaled $26.1 million, down from $29.1 million at the end of fiscal 2023, while total debt decreased to $66.5 million from $68 million [8] Fiscal 2024 Highlights - Total revenues for fiscal 2024 were $1.36 billion, up from $1.33 billion in fiscal 2023, while net income decreased to $16.7 million from $19.7 million [9] - Adjusted EPS for fiscal 2024 was $1.47, compared to $1.08 in the previous year [9] 2025 Outlook - For fiscal 2025, the company expects comparable restaurant sales to increase by 2% to 3% year over year, with restaurant-level operating profit projected between $205 million and $215 million [11] - Adjusted EBITDA is forecasted to be between $127 million and $137 million, with capital expenditures expected to range from $65 million to $75 million [11]

Financial Data and Key Metrics Changes - Comparable same-restaurant sales increased by 5.5%, driven primarily by guest traffic, with strength across all dayparts and channels [13][50]. - Restaurant-level margins improved to 15.4%, a 100 basis points increase from the previous year, with restaurant-level operating profit reaching $52.9 million, a 14% increase year-over-year [14][52]. - Adjusted EBITDA for Q4 was $33.1 million, representing a 21% increase from the prior year, with an adjusted EBITDA margin of 9.6%, a 120 basis points improvement [14][53]. Business Line Data and Key Metrics Changes - The Pizookie Meal Deal and holiday large party offerings were highlighted as successful promotions that resonated with guests, contributing to sales performance [21][90]. - The company engaged in significant brand positioning initiatives, which are expected to enhance operational efficiency and guest experience [15][28]. Market Data and Key Metrics Changes - Comp sales outperformed the industry by 3.7 percentage points, and traffic outperformed by 6.8 percentage points, indicating strong market share growth [50][61]. - The company noted that weather impacts and consumer conservatism affected sales trends in early 2025, with expectations for Q1 comp sales near 2% [62][96]. Company Strategy and Development Direction - The company is focused on brand refresh and growth initiatives, with four strategic priorities: team member experience, handcrafted food and beverage, delivering WOW hospitality, and keeping the atmosphere fresh [29][40]. - Plans include remodeling up to 30 existing locations and opening one new restaurant in 2025, with a targeted pipeline for future growth [44][46]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to build on recent achievements and strengthen financial metrics moving forward [11][12]. - The outlook for 2025 anticipates comparable restaurant sales growth in the range of 2% to 3%, with expectations for margin expansion and continued investment in brand positioning [61][63]. Other Important Information - The company reported a net loss of $5.3 million for Q4, influenced by extraordinary items including asset impairment charges [54][55]. - The company ended Q4 with net debt of $40.4 million, reflecting a $7.7 million reduction from the previous quarter [60]. Q&A Session Summary Question: Clarification on restaurant level profit guidance and margin implications - Management indicated a path to expand margins across various categories, with expectations for both dollar and percentage growth [71][72]. Question: Thoughts on marketing spend to drive traffic in fiscal '25 - The company plans to maintain a targeted marketing strategy, focusing on core markets and efficient spending [85][87]. Question: Assessment of value delivery and future promotional strategies - Management believes there is more potential with the Pizookie Meal Deal and plans to comprehensively review the value strategy to enhance guest satisfaction [90][92]. Question: Impact of weather and consumer behavior on Q1 performance - Management noted that weather has impacted results, estimating a loss of over 100 basis points due to adverse conditions [96][97]. Question: Simplification efforts on the menu - The company sees opportunities to streamline the menu, focusing on removing underperforming items to enhance execution and innovation [104][107].