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Publication date: January 18, 2024 at 7:00 PM ET
josh beckerman
Fund 1 Investments reports that it owns 9.5% of BJ’s Restaurants and believes “now is an opportune time to explore strategic alternatives,” including a sale.
The investor believes the restaurant company “could be attractive to multiple viable buyers and could be highly accretive if the process is managed properly.” That’s “unconvincing…”
josh beckerman
Fund 1 Investments reports that it owns 9.5% of BJ’s Restaurants and believes “now is an opportune time to explore strategic alternatives,” including a sale.
The investor believes the restaurant company “could be attractive to multiple viable buyers and could be highly accretive if the process is managed properly.” “We are not convinced that a standalone strategy will produce the best results for shareholders overall,” the company said, adding that the company has not done enough to address operational challenges, including addressing its cost structure.
BJ stock rose 1% to $32 in post-market trading.
BJ’s Restaurants announced in October that comparable sales increased 0.4% in the third quarter, following a 4.7% increase in the second quarter. The company said in October that it “continues to pursue cross-functional cost reduction initiatives to improve operating margins without compromising quality standards.” “To date, we have realized annual savings of more than $30 million, and we expect further savings in the fourth quarter.”
Since December, Barclays, Oppenheimer and Wedbush have raised their price targets on BJ.
Email Josh Beckerman at josh.beckerman@wsj.com.
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