1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Baron Funds Comments on BJ's Restaurants Inc.

February 06, 2013 | About:

BJ's Restaurants, Inc. (NASDAQ: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.

From Baron Funds' fourth quarter letter.


Rating: 4.0/5 (2 votes)

Comments

Please leave your comment:


GuruFocus has detected 1 Warning Sign with BJ's Restaurants Inc $BJRI.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by


User Generated Screeners


rael22225
rael22224
tdesai50Below5Year
tdesai50Below3Year
mpacholskaFrance strong 6+
san330Yasar_Graham_Number
FAROSFaros criteria 1
ahcukaValue
olanderfGood
merknt84my4
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK