BJ's Restaurants, Inc. (NASDAQ:BJRI)

I love companies that can grow through cash flows. They seem to be executing well on their strategy and there's plenty of growth ahead.

There is absolutely no reason why this stock should have a $1.3 billion market cap. The company has tiny profit margins (bellow 1%). I define profit margin as free cash flow/revenues. The free cash flow last year was only $7 million, subtract from that the $4 million in stock based compensation expense and you only got $3 million in free cash flow. The trailing 12 months free cash flow is actually negative. In fact, over the last 10 years the company has never been very profitable (free cash flow has been negative almost every year.) Over the same 10 years net income has been positive, however, anyone who truly understands fundamental analysis doesn't pay too much attention to net income. It is just an accounting number and does not represent true profitability.

Seriously people! If you had the money to buy the whole business would you? I just don't think that a business with terrible cash flow, almost nonexistent profit margins, and awful return on capital is worth $1.3 billion. The assets on the balance sheet also don't justify this extreme valuation, since the majority of the assets are just restaurants, which would sell for a significant discount if the company were to liquidate its assets.

Overall, this is just a terrible business! The current valuation is extreme to say the least. This stock needs to drop at least 70% to make it even close to reasonable.

interested around 40

Big potemtial

I went to BJ's restaurant and was very disappointed; talk about false advertising. Also the shares seem expensive.

Reasonably-priced food, over-priced stock.

After recent run might be time for a to go order..

Regional restaurant chain with plenty of room to go. Been eating there a long, long time and just found out they're public, plus found out about their plans to expand. Get in before everyone else!

This is a nobrainer pick. I am a good trend spotter and this got the magic.

-trendy, hip environment (that still maintains class) to hang out at a bar with friends and enjoy the sports games on the many televisions
-above average pizzas
-decent other foods
-wide variety of beer brews + alcoholic drinks
-30 minute to 1 hr lines just to eat

That's a winning recipe right there. Expect a BJ's in a mall near you if there isn't one already. At a restaurant count of 93 stores as of March 2010, this will easily continue growing.

Profitable stores attest to the winning formula. BJ's will continue to reinvest cash flows and open up more stores, further increasing earnings per share.

Risks are on the lower side in my opinion. You need to ask yourself if the trend for this dining experience will fade anytime soon... probably not. Will the quality of food decline? Probably not. Is this joint better than a lot of the other restaurants in your area? Likely.

This will be a $1BN+ market cap company in a year or two.

Discretionary income will be limited to a select few in the food business and this is not one of them.....

The fundamentals for restaurants could hardly be any worse. PE is 24. No thanks.

Love their pizza though.

BJ'S HAS MANAGED TO ADD NEW STORE WITHOUT EXCESSIVE DEBT AND MOST IMPORTANTLY MAINTAIN ATTRACTIVE PROFITS AND ANALYST ARE EXPECTING THIS STOCK TO APPRECIATE UP TO 25%-35% IN THE NEXT 12 MONTHS.

Unit growth in the 20%+ range plus good same store sales growth.

coming back - will be a major chain in the US in 10 years, and lots of investors will like the pricepoint.

Good beer, good pizza... What else do you have to know?

Could be a good growth story...I like the concept of a brewery within a restaurant and it could help distinguish them. They aren't in all the major markets but yet they do have a decent number of locations already so it's not a total longshot.

This restaurant company is increasing sales at a 30% rate and earnings will increase at a 25% rate as G

When this stock gets between $ 20.00 & $ 20.50, it likes to go up. This is a great stock to short and to buy. The P/E is way to high. On any day the stock goes up by $ 1.45, it will go up the next day as well. Then short the stock. If this stock gets back up to $ 27.00 or $ 28.00. Be sure and short as well. If you look at the chart on this stock you can get a good idea how this stock works. Just remember the P/E is high and one day this stock will fall hard. Specially when it get arond $ 28.00.

from nothing to 48 restaurants. will grow even more. not a doubt