Consecutive Growth Streak
Seventh consecutive quarter of sales and traffic growth and sixth consecutive quarter of profit dollar growth and EBITDA margin expansion, demonstrating sustained momentum.
BJ's Restaurants
· BJRI
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- +42.69%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call emphasized multiple signs of positive momentum: consecutive quarters of traffic and sales growth, margin expansion, outperformance vs. Black Box benchmarks, product wins (burgers, pizza, Pizookies), improved guest and team metrics, and meaningful debt reduction. Headwinds (weather, commodity inflation — especially beef — workers' compensation driven labor costs, limited check expansion in Q1, and one-time depreciation) are manageable and are being addressed through menu updates, pricing actions, operational improvements, and phased marketing reinvestment. Given the balance of durable operational improvements, margin progress, product momentum, and a clear development roadmap against transitory/moderate cost pressures, the tone is constructive.
Company Guidance
Management reiterated full‑year 2026 guidance, modeling comparable restaurant sales of 1%–3% (with average check assumed flat to +1%) while noting strong traffic momentum (Q1 comps +2.4% driven by +2.2% traffic and a 3.3% outperformance vs. Black Box); they expect Q2 to be the peak for commodity inflation with Q2 cost of sales modestly above Q1’s 25.1% but plan a mid‑year menu update and pricing to fully offset inflation in H2, expect occupancy & operating expense around 23% of sales in Q2 (Q1 was 22.7%), will keep full‑year marketing roughly flat year‑over‑year at ~2.2% of sales but shift spend into Q2, target pre‑opening costs of about $700k per new unit with ~80% of those costs in Q4 as two restaurants open this year, and expect workers’ compensation pressures to normalize and profit growth to accelerate in the back half of the year.
Same-Store Sales and Traffic
Comparable restaurant sales increased 2.4% driven by 2.2% traffic growth and a 0.2% increase in average check for Q1; traffic-led growth indicates rising guest frequency.
Outperformance vs. Casual Dining Benchmark
BJ's outperformed Black Box casual dining benchmarks by ~120 basis points on sales and ~400 basis points on traffic in Q1, and beat the benchmark by 3.3% on a company-wide basis for the quarter.
Profitability and Margin Expansion
Restaurant-level operating profit rose to $57.2 million (+$1.6 million YoY) with restaurant-level operating margins at 16%. Adjusted EBITDA increased to $37.7 million from $35.4 million, a $2.4 million increase, and adjusted EBITDA margin expanded 30 basis points to 10.5%.
Revenue Growth
Total revenue for the quarter was $358.1 million, up 2.9% year-over-year.
Marketing Efficiency
Delivered Q1 results with roughly 20% lower media spend year-over-year while keeping full-year marketing as a percentage of sales flat; marketing shifted tactically into Q2 to support celebration season.
Menu and Product Momentum
New product initiatives showing strong results: Smashburger launch (June 2025) drove ~30% higher burger sales vs. prior, pizza introduction up ~20% in category sales, successful seasonal Pizookies driving dessert and traffic gains, and positive tests for chicken sandwich renovations and a premium Wagyu burger (system rollout planned into Q3).
Guest and Team Metrics Improvement
Net Promoter Score improved roughly 10% since Q3 2024; team member retention and trailing 12-month turnover are trending positively and are ~12+ percentage points better than Black Box industry benchmarks.
Strong Cash Deployment and Balance Sheet Moves
Generated significant free cash flow in Q1 and deployed it to $15.8 million of capital expenditures (including five remodels), repurchased ~151,000 shares for $5.3 million, and repaid $23 million of debt. Net funded debt fell to $39.3 million from $61.2 million at the end of 2025.
Unit Development Progress
Prototype work progressing with two planned openings later this year (Buckeye, AZ and Joliet, IL) and a growth roadmap that targets mid-single-digit openings next year ramping toward double-digit openings by 2028, with pre-opening cost expectations of roughly $700,000 per opening.
Operator
Good afternoon, and welcome to the BJ's Restaurants First Quarter 2026 Earnings Release Conference Call.? [Operator Instructions]? Please note this event is being recorded. I would now like to turn the conference over to Rana Schirmer, Director of SEC Reporting. Please go ahead.
Rana Schirmer
Thank you, operator. Good afternoon, everyone, and welcome to our fiscal year 2026 first quarter investor conference call and webcast. After the market closed today, we released our financial results for our fiscal 2026 first quarter. You can view the full text of our earnings release on our website at www.bjsrestaurants.com.? I will begin by reminding you that our comments on the conference call today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These statements are based on management's current business and market expectations, and our actual results could differ materially from those projections in the forward-looking statements.? We undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events, or otherwise, unless required to do so by the securities laws.
Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's filings with the Securities and Exchange Commiss...
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