Stock Story -
American restaurant chain BJ’s Restaurants (NASDAQ:BJRI) will be reporting earnings tomorrow afternoon. Here's what to look for.
BJ's met analysts' revenue expectations last quarter, reporting revenues of $337.3 million, down 1.2% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
Is BJ's a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting BJ's revenue to be flat year on year at $349.2 million, slowing from the 6.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BJ's has missed Wall Street's revenue estimates three times over the last two years.
Looking at BJ's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Darden (NYSE:DRI) delivered year-on-year revenue growth of 6.8%, meeting analysts' expectations, and Kura Sushi (NASDAQ:KRUS) reported revenues up 28.1%, in line with consensus estimates. Darden's stock price was unchanged after the resultswhile Kura Sushi was down 15.9%.
Read the full analysis of Darden's and Kura Sushi's results on StockStory.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. BJ's is up 8.1% during the same time and is heading into earnings with an average analyst price target of $39.8 (compared to the current share price of $38.02).