Here's Why You Should Consider Investing in BJRI Stock Right Now

BJ's Restaurants, Inc. BJRI has been benefiting from increased traffic growth, improved operational efficiency and the success of the Pizookie Meal Deal. Moreover, better labor scheduling, reduced comped meals and higher guest satisfaction remain key tailwinds for the business' long-term, sustainable growth.

Shares of this premium casual restaurant chain have gained 14.3% in the past year, outperforming the Zacks Retail - Restaurants industry’s 1.1% rise. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, missing on only one occasion, the average being a negative 102.7%.

The earnings estimate for 2025 has moved up to $2.11 per share from $1.78 over the past 60 days. Despite prevailing macroeconomic uncertainties, potential tariff-related risks and inflationary pressures, the stock exhibits a favorable trajectory, underscoring its operating efficiencies and improved margins, which heighten expectations for absolute earnings growth.

BJ's Restaurants — a Zacks Rank #1 (Strong Buy) stock — has a favorable VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities to investors.

Let’s delve deeper and find out the factors aiding the stock.

Factors Fueling Growth of BJRI Stock

Sales-Building & Margin-Driving Initiatives: BJ’s Restaurants is driving growth through sales-building initiatives while advancing its strategic priorities. The company expects continued margin improvement, supported by menu innovation and disciplined cost management, reinforcing its path toward long-term shareholder value creation.

In the second quarter of 2025, it recorded 2.9% year-over-year comparable sales growth, driven by a 3.3% increase in traffic. On the margin front, BJ’s Restaurants reported restaurant-level cash flow margins of 17% and adjusted EBITDA margins of 11.5%, up 150 and 120 basis points year over year, respectively. Restaurant-level operating profit increased 15% to $62.1 million, marking the company’s most profitable quarter ever, reinforcing its ability to balance growth investments, margin expansion and capital returns.

Focus on Menu Innovation: BJ's Restaurants is moving on with its long-term growth plan by continuing to come up with new menu items, with a particular focus on bringing some of the old platforms back to life. The company is focusing on core menu platforms such as pizza, Pizookies, craft beverages and shareables. It is preparing for the nationwide rollout of its revamped pizza platform in the fourth quarter of 2025, featuring a Detroit-style-inspired dough.

In addition to pizza, BJRI is resurrecting guest favorites like the Monkey Bread Pizookie, launching premium shareables like the Brewhouse Sampler for football season and bolstering its craft beverage credentials with a new 22-ounce pour. Seasonal innovations demonstrated the company's ability to maintain a menu that is unique, topical and in line with customer preferences while also generating significant sales and brand engagement.
 
Digital Initiatives to Boost Revenues: BJ's Restaurants is enhaning operational efficiency and creating new revenue opportunities through digital initiatives. Large-party and walk-in reservations have been made easier thanks to DineTime's integration into its event platform. In second-quarter 2025, these efforts helped improve guest satisfaction and increase seated reservations by 42% year over year. The company has improved its point-of-sale ("POS") and kitchen display systems ("KDS") to facilitate menu entry. This has increased order speed and accuracy while also lowering food and beverage compensation costs.

Remodeling Efforts: BJ's Restaurants is progressively moving forward with its expansion plans by taking a balanced approach to both new unit construction and remodels. The company is actively working on initiatives to increase sales by prioritizing guests’ dining experience. In 2025, it has already completed 13 remodels with another seven to 10 planned for the remainder of the year. With additional projects scheduled, which continue to outperform control restaurants in sales and guest satisfaction. The company expects the updated design to be piloted through remodels and new restaurant openings in 2026.

Other Key Picks

Other top-ranked stocks from the Zacks Retail-Wholesale sector are Build-A-Bear Workshop, Inc. BBW, Groupon, Inc. GRPN and Levi Strauss & Co. LEVI.

Build-A-Bear Workshop presently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.3%, on average. BBW stock has jumped 32.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BBW’s 2025 sales and earnings per share (EPS) indicates growth of 7.4% and 6.9%, respectively, from the year-ago period’s levels.

Groupon sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 230.5%, on average. Groupon's stock has jumped 101.7% year to date.

The Zacks Consensus Estimate for Groupon’s 2025 sales and EPS indicates growth of 2.2% and 153%, respectively, from the prior-year levels.

Levi Strauss flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 25.9%, on average. Levi Strauss stock has gained 29.8% year to date.

The Zacks Consensus Estimate for Levi Strauss’ 2025 sales indicates a decline of 3.3% and EPS indicates growth of 4% from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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