HUNTINGTON BEACH, CA – BJ's Restaurants Inc. (NASDAQ:BJRI), a casual dining chain with a market capitalization of approximately $808 million, has announced that Putnam K. Shin, the company's Executive Vice President and Chief Growth and Innovation Officer, has departed from his role, effective as of Sunday. The news comes without a named successor or reasons for Shin's departure, leaving a notable vacancy in the company's executive team. According to InvestingPro data, eight analysts have recently revised their earnings expectations downward for the upcoming period.
The casual dining chain, known for its deep-dish pizza and Pizookie dessert, filed the announcement in a Form 8-K with the Securities and Exchange Commission on Tuesday. The filing provided no further details on the circumstances surrounding Shin's exit or any interim plans for his responsibilities.
Shin's departure is a significant change in the leadership structure at BJ's Restaurants, a company that operates in the competitive restaurant industry where innovation and growth strategies are crucial for maintaining market share.
The company, formerly known as Chicago Pizza & Brewery Inc., is headquartered in Huntington Beach, California, and operates numerous restaurants across the United States. As of the latest reports, BJ's Restaurants has not issued any public comments beyond the SEC filing regarding the transition or its plans to address the now-vacant position.
Investors and industry watchers will be looking to see how BJ's Restaurants navigates this change in its executive ranks and what moves it will make to continue its growth and innovation efforts. The company's stock, BJRI, is listed on the NASDAQ Global Select Market.
This report is based on a press release statement.
In other recent news, BJ's Restaurants saw a notable rise in traffic and sales during its third-quarter earnings call, reporting a 2.2% increase in sales to $325.7 million and a 1.7% growth in comparable restaurant sales. This growth, primarily driven by a 1.3% increase in traffic, is the highest the company has seen since 2018. However, BJ's Restaurants also reported a net loss of $2.9 million, or $0.13 per share, and faced challenges in improving margins with restaurant-level cash-flow margins dropping to 11.7%.
In response to these developments, Piper Sandler adjusted its financial outlook for BJ's Restaurants, raising the price target to $36 from $35 and maintaining a neutral stance on the stock. The adjustment followed discussions with Interim CEO Brad Richmond and President and Chief Concept Officer Lyle Tick, who outlined strategic initiatives aimed at enhancing margins and maintaining strong sales growth into 2025.
Despite short-term challenges, Piper Sandler's report indicates that BJ's Restaurants is actively exploring ways to improve its business model under the guidance of its new leadership. BJ's management also addressed the impact of promotions on margins and discussed strategies for margin expansion during a Q&A session with analyst Brian Bittner of Oppenheimer. These are among the recent developments for BJ's Restaurants.
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