One-glance verdict
Overvalued
$13.07 our estimate vs market $61.75
Wall Street consensus: $74.71 (471.5% higher than our fair-value estimate)
372% above our estimate, beyond the bull case
Fundamentals snapshot
BJ's Restaurants, Inc.
BJRI · NMS · Consumer Cyclical · Restaurants
Current price
$61.75
52-week range
$33.36 - $74.60
Market cap
$1.31B
Balance sheet
Stretched
10.12x Adequate
Net debt $420.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.4% last year.
- Reward Returns 10.4% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Insider ownership is only 4.9% (peer median: 5.2%).
What this company does
BJ's Restaurants, Inc.
BJ's Restaurants, Inc. runs casual dining spots across the US, selling a variety of foods from pizzas to desserts, along with craft beers. Their money primarily comes from customers buying food and drinks in their restaurants, which matters because it shows how popular their menu is and how well they are managing the costs of making and selling their food (their operating margins, which is the profit left from each sale after covering the direct costs of that sale).
How the company got here
BJ's Restaurants began in 1978 as a small pizza place in Santa Ana, California, called BJ's Chicago Pizzeria. Over time, it grew and evolved, expanding its menu beyond just pizza to include a wider variety of casual dining options and even adding its own craft beers brewed on-site at some locations. The company went public in 1996, allowing it to fund further expansion across the United States. This evolution from a simple pizzeria to a full-service restaurant and brewery chain has shaped its identity and offerings today.
What it actually does
BJ's Restaurants operates casual dining restaurants across the United States. Think of it as a place where you can go with family or friends for a relaxed meal. They offer a wide-ranging menu that includes pizzas, burgers, salads, pasta, and other entrees. A key part of their offering is their own brand of craft beers, brewed at many of their locations, alongside other alcoholic and non-alcoholic beverages. They also have a popular dessert menu, featuring their signature "Pizookie" – a warm cookie baked in a small pizza pan.
Restaurant Operations
This is the core of BJ's business, where all the magic happens to serve customers. It involves everything from preparing the food and brewing the beer to serving guests at their tables and managing takeout and delivery orders. The company focuses on creating a welcoming atmosphere for dine-in customers while also building up its capabilities for customers who prefer to order food online or pick it up. This segment is responsible for generating the vast majority of the company's revenue.
What management is betting on now
BJ's management is focused on several key strategies to drive future growth and profitability. They are investing in their employees and the quality of their food and beverages, aiming to provide excellent customer service, which they call "WOW Hospitality." Additionally, they are working to keep the restaurant atmosphere fresh and appealing. Technology, including artificial intelligence and digital ordering platforms, is also a major focus to improve efficiency and enhance the customer experience, especially for takeout and delivery options. They are also selectively opening new restaurants in promising locations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$735.00K
FY2024 Q4
$7.63M
FY2025 Q2
$-12.06M
FY2025 Q3
$41.91M
FY2025 Q4
$7.46M
FY2026 Q1
$27.18M
FY2026 Q2
$7.75M
Revenue
$388.89M
Net income
$18.78M
Diluted EPS
0.86
Operating cash flow
$31.05M
Free cash flow
$7.75M
Fetching…
Sources
Revenue
$358.12M
Net income
$9.03M
Diluted EPS
0.41
Operating cash flow
$42.98M
Free cash flow
$27.18M
Fetching…
Sources
Revenue
$355.40M
Net income
$12.64M
Diluted EPS
0.59
Operating cash flow
$18.55M
Free cash flow
$7.46M
Fetching…
Sources
Revenue
$365.60M
Net income
$22.21M
Diluted EPS
0.97
Operating cash flow
$62.28M
Free cash flow
$41.91M
Fetching…
Sources
Revenue
$347.97M
Net income
$13.49M
Diluted EPS
0.58
Operating cash flow
$4.62M
Free cash flow
$-12.06M
Fetching…
Sources
Revenue
$325.70M
Net income
$-2.93M
Diluted EPS
-0.13
Operating cash flow
$27.31M
Free cash flow
$7.63M
Fetching…
Sources
Revenue
$349.93M
Net income
$17.16M
Diluted EPS
0.72
Operating cash flow
$20.20M
Free cash flow
$735.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $13.07 vs current price $61.75
Wall Street consensus is the average analyst price target: $74.71 (471.5% higher than our fair-value estimate).
Our most-likely fair value is $13.07 a share — about 78.8% below today's price of $61.75, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $420.2M. Interest coverage 10.1x.
Net debt
$420.24M
Interest coverage
10.12x
BJ's Restaurants, Inc.'s profit covers its interest bill about 10.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
BJRI
BASELINE
BJ's Restaurants, Inc.
Total debt $434.66M Interest coverage 10.12x This is the baseline the peer rows are being compared against.
Total debt $2.15B Interest coverage 24.67x +144% vs BJRI Carries about 2.4x more debt cushion than BJRI.
Total debt $1.92B Interest coverage 2.44x -76% vs BJRI Carries about 4.2x less debt cushion than BJRI.
Total debt $1.68B Interest coverage 1.84x -82% vs BJRI Carries about 5.5x less debt cushion than BJRI.
Total debt $1.04B Interest coverage -0.11x -100% vs BJRI This peer has almost no interest-payment cushion compared with BJRI.
Total debt $3.59B Interest coverage 0.72x -93% vs BJRI Carries about 14.0x less debt cushion than BJRI.
What you should know
The case for and against BJRI
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.4% last year.
-
Returns 10.4% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 4.9% (peer median: 5.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
33.02x
Forward P/E
22.76x
P/B
3.29x
P/S
0.92x
EV/EBITDA
13.43x
PEG ratio
1.67x
Profitability
How much profit each dollar creates
Gross margin
15.5%
Operating margin
5.0%
Net margin
2.9%
ROE
10.4%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.09x
Current ratio
0.29x
Quick ratio
0.17x
Total debt
$434.66M
Total cash
$14.43M
Growth
How the business has been compounding
Revenue TTM
$1.43B
Revenue 5Y CAGR
15.8%
EPS TTM
1.87
EPS 5Y CAGR
133.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$117.65M
Free CF TTM
$40.90M
FCF margin
2.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2020-03-09