BJ's Restaurants (NASDAQ:BJRI) Posts Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• BJ’s Restaurants reported quarterly EPS of $0.33, beating the $0.17 consensus by $0.16; revenue of $358.6 million also exceeded expectations of $346.7 million.
• Comparable sales rose 8.1%, driven by 8.3% traffic growth, while restaurant-level operating margin expanded 220 basis points to 14.7% and adjusted EBITDA increased to $31.4 million.
• The company raised its 2026 comparable-sales, restaurant-level operating profit, and adjusted EBITDA outlook, and lowered expected capital expenditures.

BJ's Restaurants (NASDAQ:BJRI - Get Free Report) announced its quarterly earnings results on Thursday. The restaurant operator reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.16, FiscalAI reports. BJ's Restaurants had a return on equity of 12.93% and a net margin of 2.86%. The business had revenue of $358.63 million for the quarter, compared to the consensus estimate of $346.68 million.

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

• Strong sales and traffic growth: Third-quarter comparable sales rose 8.1%, driven by 8.3% traffic growth, marking the ninth consecutive quarter of sales and traffic gains. Revenue increased 8.6% to $358.6 million, with growth across days, dayparts, revenue centers, and regions.
• Profitability improved, and full-year guidance was raised: Restaurant-level operating margin expanded 220 basis points to 14.7%, while adjusted EBITDA increased $10.3 million to $31.4 million. BJ’s raised its 2026 comparable-sales, restaurant-level operating profit, and adjusted EBITDA outlook, while lowering expected capital expenditures.
• Check trends and menu initiatives showed progress: Average check declined just 0.2%, improving from a 1.8% decline in Q2; management attributed the sequential improvement partly to menu renovations and more balanced growth drivers. The company said revamped pizza, burger, and chicken sandwich offerings are generating higher sales and margins.
• Q4 outlook includes a calendar headwind: Management said results to date are in line with expectations, but projected an approximately 100-basis-point Q4 comparable-sales headwind from holiday timing. It also expects occupancy and operating expenses to rise to about 23% of revenue, citing marketing, insurance, and repair and maintenance costs.
• Balance sheet strengthened as growth investment continues: BJ’s repaid $28 million of debt during the quarter and ended with approximately $4 million of net debt, down from $61 million at the start of the year. The company plans to open one restaurant in Q4 and one in Q1, with roughly four or five openings targeted for 2027.

BJ's Restaurants Stock Performance

Shares of NASDAQ:BJRI traded down $3.40 on Thursday, hitting $58.35. The company's stock had a trading volume of 775,501 shares, compared to its average volume of 431,269. The company has a market capitalization of $1.24 billion, a price-to-earnings ratio of 31.21, a price-to-earnings-growth ratio of 1.84 and a beta of 1.46. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.22 and a current ratio of 0.29. BJ's Restaurants has a 12 month low of $33.36 and a 12 month high of $74.60. The stock's 50-day moving average is $60.51 and its two-hundred day moving average is $51.16.

Wall Street Analysts Forecast Growth

BJRI has been the topic of several analyst reports. DA Davidson set a $65.00 target price on BJ's Restaurants in a research report on Friday, July 31st. William Blair raised shares of BJ's Restaurants from a "market perform" rating to an "outperform" rating in a report on Friday, July 17th. Citigroup lowered their price target on shares of BJ's Restaurants from $75.00 to $70.00 and set a "neutral" rating for the company in a research report on Friday, October 23rd. Benchmark increased their price objective on shares of BJ's Restaurants from $68.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Finally, Mizuho raised shares of BJ's Restaurants from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $74.00 to $76.00 in a research note on Thursday, October 1st. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $62.00.

Insider Activity at BJ's Restaurants

In other BJ's Restaurants news, EVP Kendra D. Miller sold 2,978 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $69.80, for a total transaction of $207,864.40. Following the transaction, the executive vice president owned 25,621 shares of the company's stock, valued at approximately $1,788,345.80. This trade represents a 10.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director C Richmond purchased 500 shares of the company's stock in a transaction on Wednesday, September 2nd. The shares were bought at an average price of $61.05 per share, for a total transaction of $30,525.00. Following the completion of the transaction, the director directly owned 36,500 shares in the company, valued at $2,228,325. This represents a 1.39% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 2.40% of the company's stock.

About BJ's Restaurants

BJ's Restaurants, Inc NASDAQ: BJRI operates and develops casual dining restaurants under the BJ's Restaurant & Brewhouse brand. Its restaurants offer a broad menu centered on deep-dish pizza, along with appetizers, salads, sandwiches, burgers, entrees, desserts and other American-style dishes.

The company is also known for producing and serving craft beer, including its proprietary BJ's beers, at many of its locations. Its restaurants typically combine full-service dining with a brewery-inspired atmosphere and offer dine-in, takeout, delivery and catering services, depending on the location.

BJ's traces its origins to 1978, when the first restaurant opened in Southern California.

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