Pleasant Lake Onshore Feeder Fund LP, along with related entities Pleasant Lake Partners LLC and Fund 1 Investments, LLC, reported a significant transaction involving BJs Restaurants Inc (NASDAQ:BJRI) stock. According to the latest SEC filing, these entities sold 15,000 shares at an average price of $38.051 per share, resulting in a total transaction value of approximately $570,765. Following this sale, the group retains ownership of 2,303,131 shares of BJRI. The shares are held for the benefit of the Pleasant Lake Onshore Feeder Fund, with Pleasant Lake Partners LLC acting as the investment adviser.
In other recent news, BJ's Restaurants (NASDAQ:BJRI) reported a net loss of $2.9 million for the third quarter, marking a decrease from last year's loss of $3.8 million. Despite this, the company's revenue rose by 2.2% year over year, reaching $325.7 million and slightly surpassing estimates of $324.96 million. Notably, BJ's Restaurants also experienced a 1.7% increase in comparable restaurant sales.
The company attributed its inability to fully capitalize on strong traffic growth to higher-than-expected restaurant costs. However, BJ's Restaurants opened two new locations in the third quarter, expanding its operation to 218 restaurants across 31 states. The company also repurchased approximately 268,000 shares of its common stock for $8.2 million during this period.
Analysts' expectations for the company's future performance are positive, with management expressing their intention to restore higher restaurant-level margins through a disciplined financial approach. These recent developments suggest a focus on profit momentum in the upcoming fourth quarter.
InvestingPro Insights
The recent stock sale by Pleasant Lake Onshore Feeder Fund LP and its related entities comes at an interesting time for BJ's Restaurants Inc (NASDAQ:BJRI). According to InvestingPro data, BJRI's stock has shown strong performance recently, with a 12.56% return over the last month and an impressive 20.48% return over the last three months. This upward momentum might have influenced the decision to sell shares at the current price levels.
Despite the recent stock sale, there are some positive indicators for BJRI. An InvestingPro Tip highlights that the company is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.46 as of the last twelve months ending Q2 2024. This suggests that the stock might be undervalued compared to its growth prospects.
However, investors should also consider that BJRI suffers from weak gross profit margins, as pointed out by another InvestingPro Tip. The company's gross profit margin stands at 14.21% for the last twelve months ending Q2 2024, which may be a concern for long-term profitability.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for BJRI, providing a deeper understanding of the company's financial health and market position.
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