BJ’s Restaurants (BJRI) remains well positioned to sustain its growth momentum while generating improved earnings on the heels of efficient operations and innovative offerings. These also help the company to drive traffic and post positive same-store sales growth.
The company also boasts of a debt-free balance sheet. With a slow revival in the economy, the company plans to accelerate its unit growth in 2011, and believes that there is room for at least 300 restaurants.
Its core California market, which has been under pressure due to high unemployment, also started to post modest same-store sales and promise substantial growth potential for the future. Hence, we upgrade the stock from Neutral to Outperform.