4-Star Small Caps Set to Soar: BJ's Restaurants

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, restaurant operator BJ's Restaurants (Nasdaq: BJRI  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at BJ's and see what CAPS investors are saying about the stock right now.

BJ's facts

 

 

Headquarters (founded)

Huntington Beach, Calif. (1991)

Market Cap

$980.2 million

Industry

Restaurants

Trailing-12-Month Revenue

$695.3 million

Management

Chairman/CEO Gerald Deitchle
CFO Gregory Levin

Return on Equity (average, past 3 years)

8.9%

Cash/Debt

$38.6 million / $0

Competitors

Brinker International (NYSE: EAT  )
Darden Restaurants (NYSE: DRI  )
DineEquity (NYSE: DIN  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 418 members who have rated BJ's believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those bulls, fellow Fool Thomas Engle (TMF1000), succinctly summed up the BJ's bull case:

I like this company because it has a very small store base and is in only 13 states. They have excellent potential for expansion. The Company says 300+, I think that is too conservative. ...

I expect those store estimates to go up significantly as they continue to build out their store base. They have a low cost menu close to that of Buffalo Wild Wings which should help them when times are tougher. They majority of their restaurants are in states like California which were hit hard by the recession. ...

I believe [BJ's Pizza & Grill] could be the [Buffalo Wild Wings] of pizza, though they have televisions, they aren't a sport bar, but pizza is one of the U.S favorite foods with tens of thousands of pizza restaurants, there is huge amount of growth potential that [BJ's] can tap as they take market share from competitors. ... It won't grow fast, but steadily and without debt.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, BJ's may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it The Only Stock You Need to Profit from the NEW Technology Revolution. We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2135329, ~/Articles/ArticleHandler.aspx, 10/25/2014 10:35:36 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement