BJ's Restaurants (NASDAQ:BJRI) Announces Quarterly Earnings Results

Key Points

• EPS miss: BJ's reported $0.57 EPS versus a $0.61 consensus (down $0.04), while revenue grew 2.9% year‑over‑year and the company recorded a net margin of 3.49% and ROE of 13.82%.
• Operational momentum: The company delivered its 7th consecutive quarter of sales and traffic growth (comps +2.4%, traffic +2.2%) driven by product hits like the All‑American Smash Burger (~30% lift in burger sales) and stronger restaurant‑level margins (16%) and adjusted EBITDA margin (10.5%, +30 bps).
• Balance sheet and guidance: Strong cash flow funded $15.8M of capex and five remodels, ~$5.3M of buybacks and a $23M debt paydown that cut net funded debt to $39.3M, and management reiterated full‑year guidance while expecting commodity inflation to peak in Q2 with targeted pricing to offset H2 pressures.

BJ's Restaurants (NASDAQ:BJRI - Get Free Report) announced its quarterly earnings results on Tuesday. The restaurant operator reported $0.57 earnings per share for the quarter, missing the consensus estimate of $0.61 by ($0.04), FiscalAI reports. BJ's Restaurants had a net margin of 3.49% and a return on equity of 13.82%. The company's revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.59 earnings per share.

Here are the key takeaways from BJ's Restaurants' conference call:

• 7th consecutive quarter of sales and traffic growth — comparable same-store sales +2.4% driven by +2.2% traffic, restaurant-level margins 16% and adjusted EBITDA margin 10.5% (up 30 bps), with sustained outperformance vs. Black Box casual dining benchmarks.
• Product momentum is driving results — the All‑American Smash Burger lifted burger sales ~30%, pizza sales are ~20% higher, the Pizookie Meal Deal is increasing traffic and younger guest frequency, and new premium items (Wagyu burger, chicken sandwich refresh) are rolling out into Q3 to drive mix and check.
• Strong cash generation was deployed to reinvest in the business ($15.8M capex, five remodels), return capital (repurchased ~$5.3M of stock), and reduce leverage (repaid $23M of debt), lowering net funded debt to $39.3M from $61.2M.
• Management reiterated full‑year guidance and expects Q2 to be the peak for commodity inflation with a mid‑year menu update and targeted pricing to offset pressures in H2, though workers’ compensation and weather caused near‑term cost and volatility headwinds (labor at 36.3%, ~70 bps weather impact).

BJ's Restaurants Stock Up 3.6%

BJRI traded up $1.32 during trading on Tuesday, reaching $38.28. The stock had a trading volume of 375,211 shares, compared to its average volume of 293,756. BJ's Restaurants has a one year low of $28.46 and a one year high of $47.02. The company has a current ratio of 0.40, a quick ratio of 0.33 and a debt-to-equity ratio of 0.23. The stock's 50 day moving average is $36.89 and its two-hundred day moving average is $38.32. The company has a market capitalization of $804.65 million, a price-to-earnings ratio of 17.80, a P/E/G ratio of 1.20 and a beta of 1.29.

Insider Activity

In other news, Director C Bradford Richmond purchased 1,200 shares of the business's stock in a transaction dated Tuesday, March 3rd. The shares were purchased at an average price of $35.10 per share, for a total transaction of $42,120.00. Following the completion of the acquisition, the director directly owned 16,700 shares in the company, valued at $586,170. This represents a 7.74% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Brian S. Krakower sold 2,600 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $35.03, for a total transaction of $91,078.00. Following the sale, the executive vice president directly owned 5,062 shares of the company's stock, valued at approximately $177,321.86. This represents a 33.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders acquired 3,200 shares of company stock valued at $110,670 over the last ninety days. Corporate insiders own 4.90% of the company's stock.

Institutional Investors Weigh In On BJ's Restaurants

Hedge funds have recently made changes to their positions in the stock. Deutsche Bank AG boosted its stake in BJ's Restaurants by 5.9% in the fourth quarter. Deutsche Bank AG now owns 16,820 shares of the restaurant operator's stock valued at $663,000 after acquiring an additional 932 shares in the last quarter. Russell Investments Group Ltd. grew its stake in shares of BJ's Restaurants by 16.3% during the third quarter. Russell Investments Group Ltd. now owns 20,538 shares of the restaurant operator's stock worth $627,000 after acquiring an additional 2,876 shares during the last quarter. Squarepoint Ops LLC increased its holdings in shares of BJ's Restaurants by 10.3% during the fourth quarter. Squarepoint Ops LLC now owns 13,581 shares of the restaurant operator's stock valued at $535,000 after acquiring an additional 1,272 shares in the last quarter. Franklin Resources Inc. boosted its stake in BJ's Restaurants by 4.3% in the 4th quarter. Franklin Resources Inc. now owns 11,904 shares of the restaurant operator's stock worth $469,000 after purchasing an additional 494 shares in the last quarter. Finally, Sei Investments Co. acquired a new position in BJ's Restaurants during the 2nd quarter valued at approximately $414,000. 99.95% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

BJRI has been the subject of several recent research reports. Barclays upped their price target on BJ's Restaurants from $39.00 to $42.00 and gave the stock an "underweight" rating in a report on Thursday, February 26th. Mizuho lowered their target price on shares of BJ's Restaurants from $44.00 to $40.00 and set a "neutral" rating for the company in a report on Thursday, April 2nd. Benchmark boosted their price target on shares of BJ's Restaurants from $44.00 to $48.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. DA Davidson started coverage on shares of BJ's Restaurants in a research note on Friday, March 6th. They issued a "neutral" rating and a $38.00 price objective for the company. Finally, Citigroup dropped their target price on shares of BJ's Restaurants from $49.00 to $47.00 and set a "neutral" rating on the stock in a research report on Thursday, April 16th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $41.88.

BJ's Restaurants Company Profile

BJ's Restaurants, Inc is a publicly traded casual dining chain known for its deep‐dish pizzas, California‐style thin crust offerings and in‐house craft beer selections. Operating under the BJ's Restaurant & Brewhouse brand, the company combines a microbrewery concept with full‐service dining, offering an extensive menu that includes appetizers, salads, pasta dishes, sandwiches and the signature Pizookie dessert.

Founded in 1978 in Orange County, California, BJ's Restaurants began as BJ's Chicago Pizzeria, bringing a Chicago‐style pizza experience to the West Coast.

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