BJ's Restaurants (NASDAQ:BJRI) Stock Price Down 7.8% - Time to Sell?

Key Points

• BJ’s Restaurants shares fell 7.8% to about $68.48 in mid-day trading, despite trading volume running below its average.
• The company beat fiscal Q2 expectations with $0.94 EPS and $388.9 million in revenue; revenue rose 6.4% year over year, comparable sales increased 6.5%, and management raised fiscal 2026 guidance.
• Investor concerns include declining year-over-year EPS, a demanding valuation near 35 times earnings, and a consensus analyst rating of “Hold” with a $54.25 target price, although Benchmark upgraded the stock to “Buy” with an $80 target.

BJ's Restaurants, Inc. (NASDAQ:BJRI - Get Free Report) fell 7.8% during mid-day trading on Friday . The stock traded as low as $67.51 and last traded at $68.4780. 261,692 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 410,882 shares. The stock had previously closed at $74.26.

Key Headlines Impacting BJ's Restaurants

Here are the key news stories impacting BJ's Restaurants this week:

• Positive Sentiment: Benchmark raises target and rating: Benchmark Co. increased its price target for BJRI from $68 to $80 and upgraded the stock to “Buy,” implying approximately 16% upside from the referenced price. Benzinga
• Positive Sentiment: Quarterly results exceeded expectations: BJ’s reported fiscal Q2 earnings of $0.94 per share, above the $0.87-$0.90 analyst estimates, while revenue of $388.9 million surpassed the roughly $377.1 million consensus. BJ’s Restaurants Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Sales momentum and outlook improved: Revenue increased 6.4% year over year, comparable restaurant sales rose 6.5%, and management raised its fiscal 2026 financial guidance. BJ’s Restaurants Fiscal Second Quarter 2026 Results
• Neutral Sentiment: Investors may seek additional detail from BJRI’s earnings call regarding traffic, margins, costs, and the assumptions behind the revised guidance. BJRI Q2 2026 Earnings Call Transcript
• Negative Sentiment: EPS declined from last year: Despite beating estimates, quarterly EPS fell from $0.97 in the prior-year period to $0.94, which may be tempering the market’s reaction.
• Negative Sentiment: Valuation remains demanding: With the stock near its 52-week high and trading at a reported P/E ratio of approximately 35, investors may have expected an even stronger earnings or guidance surprise.

Wall Street Analyst Weigh In

BJRI has been the subject of a number of recent analyst reports. Piper Sandler boosted their price target on shares of BJ's Restaurants from $40.00 to $43.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Barclays dropped their price objective on BJ's Restaurants from $42.00 to $38.00 and set an "underweight" rating for the company in a research note on Wednesday, May 6th. DA Davidson set a $65.00 target price on BJ's Restaurants in a research report on Friday. Citigroup upped their target price on BJ's Restaurants from $47.00 to $68.00 and gave the stock a "neutral" rating in a research note on Monday, July 20th. Finally, William Blair raised BJ's Restaurants from a "market perform" rating to an "outperform" rating in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, BJ's Restaurants presently has an average rating of "Hold" and a consensus target price of $54.25.

BJ's Restaurants Stock Performance

The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.25 and a current ratio of 0.31. The stock has a market cap of $1.43 billion, a PE ratio of 34.63, a PEG ratio of 2.23 and a beta of 1.31. The company's 50-day moving average price is $56.28 and its two-hundred day moving average price is $45.46.

BJ's Restaurants (NASDAQ:BJRI - Get Free Report) last announced its earnings results on Thursday, July 30th. The restaurant operator reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $0.04. The company had revenue of $388.89 million during the quarter, compared to analyst estimates of $377.07 million. BJ's Restaurants had a net margin of 3.15% and a return on equity of 13.48%. The firm's quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.97 earnings per share. On average, equities research analysts forecast that BJ's Restaurants, Inc. will post 2.25 EPS for the current year.

Insider Transactions at BJ's Restaurants

In related news, EVP Gregory S. Lynds sold 6,201 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $55.86, for a total value of $346,387.86. Following the completion of the sale, the executive vice president owned 46,474 shares in the company, valued at $2,596,037.64. The trade was a 11.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Noah A. Elbogen sold 4,652 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $54.00, for a total value of $251,208.00. Following the completion of the sale, the director directly owned 76,235 shares of the company's stock, valued at approximately $4,116,690. This represents a 5.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 63,817 shares of company stock worth $3,384,688. Company insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. UBS Group AG raised its position in BJ's Restaurants by 576.9% in the 3rd quarter. UBS Group AG now owns 1,451,883 shares of the restaurant operator's stock worth $44,326,000 after purchasing an additional 1,237,383 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of BJ's Restaurants by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,114,685 shares of the restaurant operator's stock valued at $39,125,000 after buying an additional 30,684 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of BJ's Restaurants by 48.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 935,375 shares of the restaurant operator's stock valued at $28,557,000 after buying an additional 306,930 shares during the last quarter. Raymond James Financial Inc. increased its holdings in shares of BJ's Restaurants by 67.3% in the third quarter. Raymond James Financial Inc. now owns 388,779 shares of the restaurant operator's stock worth $11,869,000 after buying an additional 156,458 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of BJ's Restaurants by 8.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 385,230 shares of the restaurant operator's stock worth $15,178,000 after buying an additional 30,269 shares during the period. 99.95% of the stock is owned by hedge funds and other institutional investors.

About BJ's Restaurants

BJ's Restaurants, Inc is a publicly traded casual dining chain known for its deep‐dish pizzas, California‐style thin crust offerings and in‐house craft beer selections. Operating under the BJ's Restaurant & Brewhouse brand, the company combines a microbrewery concept with full‐service dining, offering an extensive menu that includes appetizers, salads, pasta dishes, sandwiches and the signature Pizookie dessert.

Founded in 1978 in Orange County, California, BJ's Restaurants began as BJ's Chicago Pizzeria, bringing a Chicago‐style pizza experience to the West Coast.

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