BJRI — BJ's Restaurants, Inc.

Summary of BJ's Restaurants Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Performance:

  • Total revenue: $355.4 million, up 3.2% year-over-year.
  • Same-store sales growth: 2.6%, driven by 4.5% traffic growth.
  • Restaurant-level operating margin: 16.1%, an increase of 70 basis points year-over-year.
  • Adjusted EBITDA: $35.6 million, a 7.4% increase from $33.1 million last year.
  • Net income: $12.6 million, compared to a loss of $5.3 million in Q4 2024.
  • Adjusted EPS: $0.66, up 40% from $0.47 last year.

• Full Year 2025 Performance:

  • Same-store sales growth: 2%, with traffic growth of 2.8%.
  • Restaurant-level operating margin: 15.5%, up 110 basis points year-over-year.
  • Adjusted EBITDA: $134.1 million, a 14.5% increase.

2. Strategic Updates and Business Highlights

• BJ's achieved its sixth consecutive quarter of sales and traffic growth, with a focus on improving operational efficiency and guest experience.
• The introduction of limited-time offers (LTOs) like the Pizookie Meal Deal successfully attracted a younger demographic.
• Marketing strategies evolved to emphasize social media and influencer engagement, resulting in a significant increase in organic social impressions.
• The rollout of a new activity-based labor management tool is underway, with plans to expand to the full system in 2026.
• The company completed 19 remodels in 2025, nearing 50% of its pre-2016 fleet, and plans to continue investing in remodels and a new restaurant prototype.

3. Forward Guidance and Outlook

• 2026 Guidance:
  • Expected same-store sales growth: 1% to 3%.
  • Restaurant-level operating profit forecast: $221 million to $233 million.
  • Adjusted EBITDA target: $140 million to $150 million.
  • Capital expenditures projected at $85 million to $95 million, with plans to open up to two new restaurants in the second half of 2026.
  • Share repurchase program may allocate up to $50 million depending on market conditions.

4. Bad News, Challenges, or Points of Concern

• The company noted challenges with off-premise sales, which have seen declines over the past few quarters.
• Labor and commodity inflation are expected to remain elevated in the first half of 2026, with total inflation projected at 3% to 4%.
• The company is cautious about potential disruptions during the rollout of the new labor management system, especially during peak seasons.

5. Notable Q&A Insights

• Management addressed concerns regarding the balance of value versus premium offerings, indicating that the recent traffic growth was not solely driven by value promotions.
• Inflationary pressures were discussed, with specific commodities like beef and produce contributing to cost increases.
• The company is seeing strong late-night traffic growth, attributed to a favorable environment and a lack of late-night dining options in the market.
• Engagement with younger customers attracted by LTOs is still being assessed, with early indications showing increased frequency among younger cohorts.
• The new restaurant prototype aims to be a contemporary expression of the brand while allowing for flexibility in size and cost to build.

Overall, BJ's Restaurants reported strong financial results and strategic progress in Q4 2025, while also acknowledging challenges related to inflation and off-premise sales. The outlook for 2026 remains cautiously optimistic with plans for continued growth and investment in the brand.