In a recent move that may catch the attention of investors, BJ's Restaurants Inc. (NASDAQ:BJRI) Interim CEO, Richmond C. Bradford, acquired additional shares of the company's stock. On September 6, 2024, Bradford purchased a total of 2,500 shares of BJ's Restaurants common stock, with transactions valued at $73,500.
The purchase was made in two separate transactions on the same day. In the first transaction, Bradford bought 1,000 shares at a price of $29.1 per share. The second transaction involved 1,500 shares acquired at $29.6 each. These transactions expanded Bradford's direct holdings in the company to 16,905 shares, as reported in the latest filings.
This acquisition is notable as it comes from a top executive within the company, potentially signaling confidence in the future performance of BJ's Restaurants. The move by the Interim CEO, who also serves as a director, adds to his already significant investment in the company's stock.
BJ's Restaurants Inc. is known for its casual dining establishments, offering a menu that includes deep-dish pizza, salads, sandwiches, pastas, steaks, and a variety of appetizers, alongside its own handcrafted beers. The company operates numerous restaurants across the United States and is headquartered in Huntington Beach, California.
Investors and market watchers often look to insider buying as a positive indicator, as it suggests that company executives are willing to invest their own money on the belief that the stock will perform well. This latest investment by Bradford is a clear demonstration of his commitment to BJ's Restaurants and its future prospects.
For those interested in following the company's stock performance, BJ's Restaurants trades under the ticker symbol BJRI on the NASDAQ exchange.
In other recent news, BJ's Restaurants, Inc. reported its Q2 fiscal year 2024 results, with total sales of $349.9 million and a slight 0.6% decrease in same-store sales. However, the restaurant chain's revenue was $350 million, surpassing consensus estimates by $1 million. The adjusted operating earnings per share (EPS) were $0.53, beating the consensus prediction of $0.51. BJ's Restaurants' adjusted EBITDA exceeded expectations, totaling $36 million against a consensus of $33 million.
Following these results, a Benchmark analyst downgraded the company's stock from Buy to Hold, citing more conservative estimates for fiscal years 2024 and 2025. The company also announced plans to open two new restaurants and repurchased approximately 255,000 shares of common stock for $8.8 million.
In leadership changes, BJ's Restaurants appointed Lyle D. Tick as President and Chief Concept Officer, and C. Bradford Richmond as Interim Chief Executive Officer. These appointments mark recent developments in the company's leadership structure, with both new appointees bringing extensive industry experience to their roles.
InvestingPro Insights
Following the recent insider buying by BJ's Restaurants Inc. (NASDAQ:BJRI) Interim CEO, Richmond C. Bradford, the market is keen on understanding the company's financial health and potential. According to InvestingPro data, BJ's Restaurants currently has a market capitalization of $676.81 million, with a P/E ratio of 23.4. This figure is noteworthy as it is expected to adjust to a lower P/E ratio of 19.05 in the last twelve months as of Q2 2024, which could indicate the stock is trading at a low price relative to its near-term earnings growth, as highlighted by one of the InvestingPro Tips.
Despite recent insider buying, one InvestingPro Tip suggests that BJ's Restaurants suffers from weak gross profit margins, which currently stand at 14.21% for the last twelve months as of Q2 2024. This could be a point of concern for investors looking at the company's ability to translate sales into profits. Additionally, the company's stock price movements have been quite volatile, with a 6-month price total return at -22.24% as of the same period.
Investors may also want to consider that BJ's Restaurants does not pay a dividend to shareholders, which could influence investment decisions depending on individual strategies and income preferences. However, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months, with a basic EPS (Continuing Operations) of $1.25.
For those interested in further insights and metrics, InvestingPro offers additional tips on BJ's Restaurants, which can be found at https://www.investing.com/pro/BJRI. These tips may provide valuable guidance for investors looking to make informed decisions about their investments in the company.
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