A day after BJ's Restaurants, Inc.
Analyst John Glass has slashed its unit growth for the year 2017 from 10 percent to 6–7 percent to reflect the environment. In a research note, he pointed out, "BJRI missed 3Q, despite lower comp expectations, amidst ongoing CDR weakness, soft CA sales — a negative read for concepts with heavy exposure there — and possible election impact."
Following the comparable restaurant sales drop of 3.4 percent in the third quarter, the brokerage reduced its comps estimate for the fourth quarter from 1 percent growth to a 2 percent drop. Similarly, the firm slashed restaurant margins expectations from 19.9 percent to 18.1 percent. These negative factors made them to cut EPS forecast from $0.49 to $0.40 in the fourth quarter.
"Early October comps improved to -2 percent (including weather impact), but not enough to be a trend, in our view, and remain negative. Further BJRI's gap to the industry — which had been running positive ~100 bps — decelerated to ~200 bps below CDR Industry SSS in the 3Q," the analyst told.
For the year 2017, Morgan Stanley lowered EPS expectations from $2.13 to $1.92 to reflect the lower unit additions.
At last check, the stock traded at $33.75, down 5.44 percent.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email
|Oct 2016||Morgan Stanley||Maintains||Equal-Weight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.