Of late, several restaurateurs are consistently focusing on unit expansion to boost its business. Among the casual dining chains, BJ's Restaurants, Inc. (BJRI) is one of the few that have been expanding despite economic uncertainty.
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 of 146.
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 a time.
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 Restaurants.
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. (FRGI), Jack in the Box Inc. (JACK) and Buffalo Wild Wings Inc. (BWLD). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), Jack in the Box and Buffalo Wild Wings carry a Zacks Rank #2 (Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment