BJ’s Restaurants rallied after activist called for exploring alternatives

Fund 1 Investments on Friday disclosed a 9.5% stake in BJ’s Restaurants, which represents over 2.2M shares. The filing allows for activism. Fund 1 believes that there are both operational and strategic opportunities to maximize stockholder value at BJ’s and may choose to engage in discussions with management and the board. Fund 1, after its most recent conversations with management and subsequent diligence, “is unconvinced that a standalone strategy would produce the best results for stockholders generally.” The firm also believes that operational challenges, such as bringing the cost structure of the company more in line with its casual dining peers, “have been inadequately addressed despite years of investor attention.” As such, Fund 1 believes “that now is an opportune time to explore strategic alternatives,” and that the company “would be attractive and highly accretive to multiple viable buyers if the process were well managed.” Shares of BJ’s Restaurants closed Friday up 7% to $33.97.