BJ's Restaurants, Inc. (BJRI), an operator of casual dining restaurants, lowered sales and earnings guidance and the stock fell 27.5%.We viewed this as an overreaction to a modest near-term shortfall and used the occasion to buy additional stock and build a significant position for the Fund. The company also announced a new CEO and though we were big fans of the previous leader, we believe he has left the company in good stead.We think BJ's runs a great restaurant, with great economics, and has a big opportunity to increase its unit count five-fold.We are purchasing the stock at under 10 times forward cash flow, which we believe is a cheap price for the quality of the business and the growth prospects we perceive.
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