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BJ's Restaurants' Soft Earnings Masking Strong Underlying Performance
ByAinvest
Tuesday, Aug 19, 2025 2:51 pm ET1min read
BJ's Restaurants' (NASDAQ:BJRI) earnings announcement didn't impress shareholders, but we believe investors are missing encouraging factors. Statutory profit was reduced by $19m due to unusual items, and a tax benefit contributed $4.2m to the bottom line. These items are one-off in nature and may not be sustainable. Considering this, we believe BJ's Restaurants' profit result is a good guide to its true profitability.
Zacks Research has recently lowered its Q3 2025 earnings per share (EPS) estimate for BJ's Restaurants (NASDAQ: BJRI) from $0.05 to $0.03, while maintaining its full-year EPS estimate at $1.50 per share [1]. This adjustment comes despite BJ's Restaurants' strong Q2 2025 earnings report, where the company reported $0.97 EPS, surpassing analysts' expectations by $0.28 [1].The lowered Q3 2025 EPS estimate follows a series of mixed analyst reports. While some analysts, such as those from Barclays and Wall Street Zen, have upgraded their ratings and price targets, others like Sanford C. Bernstein have maintained an underweight rating [1]. The consensus rating among analysts remains "Hold," with a consensus target price of $39.67 [1].
Despite the lowered EPS estimate, BJ's Restaurants' recent earnings report highlights its operational strength. The company's Q2 2025 earnings per share of $0.97 was a significant improvement over the previous year's $0.72, with a 4.5% year-over-year increase in revenue [1]. The company's return on equity and net margin also showed resilience, indicating strong financial health.
Investors should consider these factors when evaluating BJ's Restaurants' stock. The lowered EPS estimate is largely due to one-off items affecting statutory profit, such as unusual items and tax benefits. These items are not expected to be sustainable and should not significantly impact the company's true profitability [1].
References:
[1] https://www.marketbeat.com/instant-alerts/q3-eps-estimates-for-bjs-restaurants-cut-by-zacks-research-2025-08-18/
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