Here's Why BJ's Restaurants Is Wedbush's Top Pick For Q1

In a recent report, analysts at Wedbush preview the first quarter financial results for three restaurants set to announce earnings next Thursday, April 23: BJ's Restaurants, Inc.

, Starbucks Corporation

and Dunkin Brands Group Inc

. The firm picked BJ's as its favorite, but also favors Starbucks. However, it remains cautious on Dunkin. In this article, the focus will be put on Wedbush's top pick, BJ's, which carries an Outperform rating and a $63 price target. Near term, the analysts expect (based on their checks) comp acceleration and stabilization at or above the Street's consensus for the first quarter (3.8 percent). They also anticipate margin leverage "meaningfully ahead of expectations given the higher comp trajectory and the continuing benefit of cost initiatives, which should result in upped medium-term expectations for 2015 and 2016." In addition, new, smaller units have proven to be more productive than the older, larger ones. This should drive a reacceleration in unit growth: the company guided the addition of 15 new units over 2015, compared to 10 net additions in 2014. For the first quarter, EPS are expected to come in at $0.29, on revenue of $226 million. Longer term, the firm believes the company's "historical EPS growth algorithm of annual 10%+ top-line and 20%+EPS growth is once again realistic." Shares of BJ's Restaurants fell more than 2.2 percent on Friday morning.