Stifel Runs Through BJ's Restaurants' Earnings

In a report published Friday, Stifel analysts maintained a Buy rating on BJ's Restaurants, Inc. BJRI, with a price target of $60, after the company reported "another impressive margin-driven" results for 1Q15.

The company reported its 1Q15 EPS at $0.36, versus consensus of $0.28 and Stifel estimate of $0.29E. This beat was driven by higher-than-expected restaurant-level margins, despite comps being below expectations.

The company provided updates on a number of ongoing initiatives to boost traffic and margins:

• Project Q – to simplify back-of-the-house operations including menu item reductions and new store operations through the use of their smaller prototype
• Occupancy line item reductions
• Technology initiatives, like mobile pay

"We remain pleased with management’s implementation of several key initiatives and continue to expect more cost-cutting and margin-enhancing leveraging opportunities," the analysts wrote.

The EPS estimates for 2015 and 2016 have been raised from $1.35 to $1.45E and from $1.85 to $1.90, respectively.