Shares of Huntington Beach-based BJ’s Restaurants Inc. got a boost on Wednesday after an analyst upgraded the restaurant operator’s stock, saying the company’s ability to raise prices more aggressively than competitors will help it withstand rising food and labor costs.
The company’s shares closed up nearly 10% on a market value of about $350 million.
BJ’s Restaurants runs about 80 restaurants in 15 states that specialize in pizza, beer, steak and other American dishes.
The company is battling a weak economy that has hurt restaurant chains especially hard as consumers are opting to eat at home since they’re paying more money for everyday items such as gas and food.
The rising cost of food, energy and labor also are concerns for the restaurant industry.
The jump in the company’s stock comes after Wedbush Morgan Securities analyst Brian Moore raised his rating on the company from “buy to “hold” in a research note.
“BJ’s represents one of the few remaining growth concepts with the ability to exceed sales expectations,” Moore wrote.
Moore upgraded BJ’s Restaurants’ share price from $12 to $15.
The company’s shares currently trade at about $13.
