BJ's Restaurants shares rise on same-store sales

Shares of BJ's Restaurants Inc. jumped Friday after the company reported its second quarter profit fell but said its same-store sales grew.

Shares rose 64 cents, or 6.6 percent, to $10.37 in midday trading. The stock has ranged from $8.35 to $24.80 over the past year.

After the market closed Thursday, BJ's said its profit fell 12 percent in the quarter, matching analysts' estimates. However, revenue jumped 16 percent with same-store sales rising 0.6 percent.

Same-store sales, or sales at locations open at least a year, is a key indicator of restaurant performance since it measures growth at existing locations rather than newly opened ones.

Investors and analysts appeared encouraged by the company's ability to post positive same-store sales amid a slowdown in consumer spending that has cut into sales across the restaurant industry.

KeyBanc Capital Markets analyst Lynne Collier said in a note to investors the BJ's "reported a solid quarter in light of a difficult operating environment as same-store sales returned back to the slightly positive territory."

Same-store sales were flat in the first quarter.

Collier said the stock remains "our favorite growth name for long-term investors," adding the chain could reach 300 to 400 locations. It now operates 75.

Collier has a "Buy" rating and a $16 price target on the shares.