Dj Vp Krakower Sells 8017 Of Bj's Restaurants Inc >Bjri

Let’s dig into the relative performance of Bloomin' Brands and its peers as we unravel the now-completed Q3 sit-down dining earnings season.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q3: Bloomin' Brands

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $928.8 million, down 10.6% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Bloomin' Brands delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 10.6% since reporting and currently trades at $6.46.

Is now the time to buy Bloomin' Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

Red Robin

Known for its bottomless steak fries, Red Robin is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $265.1 million, down 3.5% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Red Robin scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.1% since reporting. It currently trades at $4.09.

Is now the time to buy Red Robin? Access our full analysis of the earnings results here, it’s free for active Edge members.

Denny's

Open around the clock, Denny’s is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $113.2 million, up 1.3% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 49.4% since the results and currently trades at $6.14.

Read our full analysis of Denny’s results here.

BJ's

Founded in 1978 in California, BJ’s Restaurants is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $330.2 million, up 1.4% year on year. This print lagged analysts' expectations by 1.1%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

The stock is up 24.7% since reporting and currently trades at $35.78.

Read our full, actionable report on BJ's here, it’s free for active Edge members.

The Cheesecake Factory

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $907.2 million, up 4.8% year on year. This number came in 0.5% below analysts' expectations. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ same-store sales estimates.

The stock is down 17.2% since reporting and currently trades at $45.

Read our full, actionable report on The Cheesecake Factory here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced.Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over.The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Modern Fast Food company Chipotle jumped 4.4%. Is now the time to buy Chipotle? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company BJ's jumped 2.7%. Is now the time to buy BJ's? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company Texas Roadhouse jumped 2.8%. Is now the time to buy Texas Roadhouse? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Chipotle (CMG)

Chipotle’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock dropped 3% on the news that it continued to pull back as it reported disappointing third-quarter results. The fast-casual chain’s same-store sales growth of 0.3% missed expectations, prompting the guidance reduction. Management attributed the weaker performance to a notable pullback in spending from its core younger customers, particularly those between 25 and 35. The company stated this group faced challenges including unemployment, the resumption of student loan repayments, and slower wage growth. This led them to eat at home more often rather than turning to competitors. The report also showed that profit margins edged down compared to the previous year. Following the news, which sparked the stock's steepest single-day drop in over 13 years, several analysts lowered their price targets on the shares.

Chipotle is down 48% since the beginning of the year, and at $31.15 per share, it is trading 52.9% below its 52-week high of $66.16 from December 2024. Investors who bought $1,000 worth of Chipotle’s shares 5 years ago would now be looking at an investment worth $1,237.