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What's in Store for BJ's Restaurants (BJRI) in Q4 Earnings?

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BJ's Restaurants, Inc. (BJRI - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Feb 15. In the last reported quarter, the company reported a negative earnings surprise of 1,500%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share is pegged at 27 cents, indicating growth of 58.8% from 17 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $329.9 million. The metric suggests a decline of 4.2% from the year-ago quarter’s figure.

BJ's Restaurants, Inc. Price and EPS Surprise

BJ's Restaurants, Inc. Price and EPS Surprise

BJ's Restaurants, Inc. price-eps-surprise | BJ's Restaurants, Inc. Quote

Let’s analyze the factors that are likely to impact this earnings season.

Factors at Play

BJ's Restaurants’ fiscal fourth-quarter performance is likely to have gained from digital initiatives, expansion efforts and Brewhouse offerings. The emphasis on menu optimization, service enhancements and cost-saving measures is likely to have contributed to improving guest satisfaction and operational efficiency in the to-be-reported quarter. The company anticipates fiscal fourth-quarter restaurant-level cash flow margins to be in the low 14% range.

Acceptance of menu pricing rounds (with no value-oriented shifts in menu mix) and traffic growth are likely to have driven the company’s comparable restaurant sales in the fiscal fourth quarter. For the fiscal fourth quarter, the company expects comparable sales growth in the low-single-digit range.

However, incremental expenses related to labor, investments in promotional and awareness-building activity (to drive off-premise sales) and food cost inflation are likely to have negatively impacted the bottom line in the fiscal fourth quarter. Per our model, general and administrative expenses in the fiscal fourth quarter are anticipated to rise 1.2% year over year to $19.5 million.

What Our Model Says

Our proven model does not predict an earnings beat for BJ's Restaurants this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

Earnings ESP: BJ's Restaurants has an Earnings ESP of -8.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3 at present.

Stocks Poised to Beat Earnings Estimates

Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company's shares have gained 16.2% in the past three months. JACK’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 10.1%.

The Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank #3 at present.

Shares of CAKE have jumped 11.9% in the past three months. CAKE’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 1.2%.

Papa John's International, Inc. (PZZA - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank of 3 at present.

Shares of PZZA have gained 13.3% in the past three months. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 1.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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