BJ's Restaurants offers double-digit upside with strong 2026 guidance and attractive valuation.

BJ's Restaurants is rated a 'Buy' ahead of earnings, with expectations of double-digit stock upside and mid-single-digit share buybacks. The company projects 1–3% same-store sales growth and EBITDA margins between 9.6% and 10.3% for fiscal year 2026, surpassing historical averages. Reduced capital expenditures will likely generate $27–50 million in free cash flow, supporting buybacks. Valuation at about 8.6 times EBITDA reflects a shift from high growth to steady profitability and margin expansion, making it an attractive investment opportunity.