BJ's Restaurants Stock Gains After Mizuho Upgrade on Strong Sales Outlook

Shares of BJ’s Restaurants, Inc. (NASDAQ: BJRI) rose 4.9% in pre-market trading after Mizuho upgraded the stock to Outperform from Neutral. The investment firm also increased its price target on the casual dining operator to $76 from a previous $74.

Stronger Sales Fuel Optimism

The upgrade was driven by what Mizuho described as "compelling field checks" indicating a stronger-than-expected third quarter for the restaurant chain. As a result, the firm has revised its forecast for BJ's Q3 same-store sales growth upward to 5.5%, a significant increase from its prior estimate of 4.6%.

This revised projection places Mizuho's outlook well above the current Wall Street consensus of 4.3% growth. The new estimate suggests that BJ's operational performance and consumer traffic may be outpacing market expectations.

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Revised Forecasts and Valuation

In line with its bullish sales outlook, Mizuho also raised its financial forecasts for BJ's Restaurants. The firm lifted its 2026 EBITDA estimate to $151.8 million and its 2027 estimate to $163.5 million. Mizuho also highlighted an expected acceleration in new restaurant openings to over 2% annually by 2028 as a key long-term earnings catalyst.

A central part of the investment thesis is the stock's valuation. Mizuho noted that BJRI shares trade at approximately 7.6 times its 2027 EBITDA forecast, a considerable discount to the casual dining peer group average of 9.9 times. The firm named BJ's one of its top picks within the casual dining sub-sector, further underscoring its positive view.