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BJ’s Restaurants Earnings: Strong Traffic & Margin Gains Drive Raised Outlook

  • Writer: Hardik Shah
    Hardik Shah
  • May 4
  • 3 min read
Classic Burger, Pizza, and Beer combo at a BJ's Restaurant

TLDR

  • Sales and Margins Up: Revenues rose 3.2% to $348M and restaurant-level margins improved 100 bps to 16%, driven by 2.7% traffic growth.

  • Strategic Wins: Initiatives like the Pizookie Meal Deal and facilities simplification boosted guest satisfaction and operational efficiency.

  • Outlook Raised: FY25 guidance was increased for earnings, adjusted EBITDA ($131–$140M), and share repurchases ($45–$55M).


Business Overview


BJ’s Restaurants, Inc. (NASDAQ: BJRI) is a leading national casual dining brand, known for its broad menu that includes deep-dish pizzas, slow-roasted entrées, award-winning craft beers, and the signature Pizookie® dessert. With over 200 locations across 31 states, BJ’s serves dine-in, take-out, delivery, and catering guests, emphasizing craft quality and value.


BJ's Restaurant Earnings - Q1 2025

  • Revenue: $348.0 million (+3.2% YoY)

  • Comparable Sales: +1.7%, driven by 2.7% traffic growth

  • Net Income: $13.5 million, up 74.7% YoY

  • EPS: $0.58 (GAAP, +80% YoY); Adjusted EPS $0.59 (+68.6% YoY)

  • Adjusted EBITDA: $35.4 million (+20.3% YoY), 10.2% margin (+150 bps)

  • Restaurant-Level Operating Profit: $55.6 million (+10.1% YoY), margin +100 bps to 16%


FY 2025 Outlook:

  • Comparable sales growth: 2%–3%

  • Restaurant-level operating profit: $210M–$219M

  • Adjusted EBITDA: $131M–$140M

  • Capital expenditures: $65M–$75M

  • Share repurchases: $45M–$55M


Management expressed confidence in delivering continued margin expansion and sales growth while managing modest tariff-related headwinds in H2 2025.


Operational Performance


  • Traffic Beat: BJ’s traffic increased by 2.7%, outperforming the Black Box industry average by 320 bps.

  • Guest Satisfaction: Food, value, and recommend scores hit multi-year highs.

  • Efficiency Focus: New POS and kitchen display simplifications saved time and improved order accuracy, while proactive facilities management reduced repair & maintenance spend by 4%.

  • Weather Impact: February comps fell due to adverse weather and tax refund delays, but March rebounded strongly (+3%).

  • Tariffs: About 85% of BJ’s food is sourced from USMCA regions, insulating most of its product cost from tariffs. Remaining exposure could impact margins by ~30 bps later in 2025, but mitigation strategies are in place.


“The accelerating pace of our progress has enabled us to raise our full-year earnings outlook,” — Brad Richmond, Interim CEO

Market Insights


  • Consumer Trends: Higher-income cohorts remain resilient. The Pizookie Meal Deal attracted weekday diners, while weekend traffic also improved.

  • Value Proposition: Value remains key, especially amid economic uncertainty. BJ’s noted success in balancing promotional activity and operational efficiency without sacrificing guest experience.

  • Competitive Advantage: BJ’s positions itself for “social splurge occasions” — casual but special gatherings — a segment considered more resilient than transactional dining.

"When consumers may have less transactions to give, they’re really focusing on that experience being worth it." — Lyle Tick, President & Chief Concept Officer

Strategic Initiatives


  • Menu Optimization: Pizza renovation underway, starting with crust, sauce, and toppings, is expected to drive traffic and profitability. In Southern California, pizza remains the #1 traffic driver.

  • AI Scheduling: Pilots using AI-driven labor forecasting and scheduling showed early positive results, reducing labor costs while improving guest sentiment.

  • New Unit Growth: One new unit opened in Q1 (Queen Creek, AZ — 2nd highest sales opening ever). Near-term growth will emphasize infill locations in existing markets for higher ROI.

  • Simplification: Over 50 process improvements identified to streamline operations and improve team member experience.


"We're seeing opportunities to be more efficient... while enhancing the guest experience." — Lyle Tick

Capital Allocation


  • Share Buybacks: Q1 buybacks totaled $14.1M (404,000 shares). April repurchases added another $10.5M (324,000 shares). Full-year repurchase target raised to $45–$55M.

  • Debt & Liquidity: Net debt increased temporarily to $66.5M due to ERP transition and working capital. Management expects this to normalize.


The Bottom Line


BJ’s Restaurants posted a solid Q1 2025, with strong traffic-driven sales growth and notable operating margin expansion. Strategic initiatives in guest experience, operational simplification, and menu optimization (especially the pizza platform renovation) continue to gain traction. Raised earnings guidance and buyback plans reflect growing confidence in the business’ momentum, while prudent tariff mitigation and market expansion efforts position BJ’s for sustainable shareholder returns through 2025 and beyond.


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