After a slow start to the year, several restaurant chains are due to emerge as the winners this earnings season, according to Jefferies. Macroeconomic conditions are improving for restaurants, but the firm expects first-quarter results will come in largely in line with first-quarter expectations. A few factors are to blame. First of all, same-store sales only modestly recovered in March to around flat, while the key metric was down 4.5% in January and 0.6% in February, analyst Andy Barish wrote.
"Our comp estimate balances what we know was a slow start to 1Q due to winter weather and lots of rain in CA, against known positive tailwinds from remodels & catering momentum, calendar shift, and more favorable Q/Q Placer foot traffic data observed for BJ's through March," Barish wrote. Additionally, BJ's margins could also benefit from tailwinds such as efficiency gains from changes to its menu and cost-saving measures.
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