Investment Thesis
BJRI faces a critical liquidity crisis with current ratio of 0.31x, indicating severe inability to cover short-term obligations despite positive operating cash flow. Unexplained 29,586% YoY revenue growth suggests data anomaly or major structural change requiring clarification. Thin net margins (2.5%) and negligible returns (ROE 2.4%, ROA 0.9%) indicate a fundamentally challenged business model struggling for profitability in a competitive QSR environment.
Strengths
- Positive operating cash flow of $43.0M and free cash flow of $27.2M demonstrate underlying cash generation
- Conservative debt-to-equity ratio of 0.17x and solid interest coverage of 7.6x indicate manageable debt burden
- FCF margin of 7.6% is reasonable for restaurant sector given tight operating margins
Risks
- Critical liquidity position: current ratio of 0.31x signals severe working capital deficit and inability to cover current liabilities
- Extreme revenue growth anomaly of 29,586% YoY is unexplained and suggests potential data quality issue, acquisition impact, or accounting change requiring transparency
- Razor-thin profitability: 2.5% net margin and 3.0% operating margin leave no buffer for operational disruptions; ROE of 2.4% destroys shareholder value
Key Metrics to Watch
- Current ratio trending and working capital composition breakdown to clarify liquidity crisis source
- Revenue normalization and organic growth rates excluding any acquisition impacts
- Net margin progression and same-store sales trends in post-period quarters
Financial Metrics
Revenue
358.1M
Net Income
9.0M
EPS (Diluted)
$0.41
Free Cash Flow
27.2M
Total Assets
999.1M
Cash
22.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
3.0%
Net Margin
2.5%
ROE
2.4%
ROA
0.9%
FCF Margin
7.6%
Balance Sheet & Liquidity
Current Ratio
0.31x
Quick Ratio
0.28x
Debt/Equity
0.17x
Debt/Assets
62.7%
Interest Coverage
7.59x
Long-term Debt
62.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T08:11:06.589120 |
Data as of: 2026-03-31 |
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