The firm also boosted its fiscal year 2014 earnings projection to 69 cents per share from 62 cents per share, and raised its 2015 earnings estimate to $1.02 per share from 83 cents per share.
In Oppenheimer's research note, it says BJ's Restaurants has already showed signs of better margin management in the first quarter of fiscal year 2014 despite negative comps.
TheStreet Ratings team rates BJ'S RESTAURANTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BJ'S RESTAURANTS INC (BJRI) a HOLD. The primary factors that have impacted our rating are mixed; some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BJRI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Despite the fact that BJRI's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- The gross profit margin for BJ'S RESTAURANTS INC is rather low; currently it is at 17.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.26% significantly trails the industry average.
- Net operating cash flow has decreased to $29.38 million or 20.85% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: BJRI Ratings Report