Craig Bibb
Long/short equity, growth, growth at reasonable price

BJ's Restaurants - Grow Or No Grow?

BJ's Restaurants -- Grow or no grow?

At a first-ever analyst day last week, the management of BJ's Restaurants (NASDAQ:BJRI) laid out a plan to restore margins by 2016. While no activist plan has been disseminated and no activist has even been active, the activist playbook is an open book and, thus, investors can now mull two competing visions for BJRI in 2016.

So it's on: the Vision 2016 battle

Management sees 2016 restaurant level cash flow margins restored to 19%+ from the 16.5% expected in 2014. They get there by modestly cutting operating expenses, leveraging G&A and D&A, and restoring same store sales growth to 2% all while still expanding the unit base by 10-12% annually. If...

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