BJ's Wholesale Club Holdings Inc. (BJ) shares stayed choppy in Monday morning trading, even after the warehouse retailer delivered upbeat third-quarter earnings results on Friday.

The earnings beat tells only part of the story. While BJ's posted net sales of $5.2 billion, up 4.8% year-over-year, comparable store sales growth excluding gas came in at just 1.8%. That missed analyst estimates calling for 3% growth, according to Needham analyst Robert Drbul, who maintained a Buy rating with a $120 price target.

Earnings per share of $1.15 came in slightly above expectations, helped along by strong cost control and higher gas profits. JPMorgan analyst Christopher Horvers, who kept a Neutral rating and $90 price target on the stock, noted that core comp growth of 1.8% fell short of Street expectations of 2.2%.

On the expansion front, BJ's announced new club locations in Mesquite, Texas and Foley, Alabama. The company remains on track to open seven new clubs during the fourth quarter. Drbul raised his 2025 earnings estimate from $4.30 per share to $4.37 per share based on the results.

Looking ahead, the company plans to reinvest back into its business to enhance its value proposition and strengthen member loyalty. Horvers pointed out that same-store sales from the new club pipeline should accelerate over the next two years.

Shares of BJ's Wholesale Club were down 0.82% to $90.86 at the time of publication on Monday.