BJ’s Restaurants Inc (BJRI) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and …

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Thu, February 26, 2026 at 2:03 PM GMT+9 4 min read

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**Total Revenue:** $355.4 million, a 3.2% increase versus last year.

**Comparable Restaurant Sales Growth:** 2.6%, driven by 4.5% traffic growth.

**Restaurant Operating Margin:** 16.1%, an increase from 15.4% last year.

**Adjusted EBITDA:** $35.6 million, a 7.4% increase compared to $33.1 million last year.

**Net Income:** $12.6 million, compared to a loss of $5.3 million in 2024.

**Adjusted EPS:** $0.66 per diluted share, up from $0.47 last year.

**Cost of Sales:** 25.5%, 40 basis points favorable to last year.

**Total Labor Expense:** 35.8% of sales, unchanged versus last year.

**Occupancy and Operating Expenses:** 22.6% of sales, a 30 basis point improvement versus last year.

**General and Administrative Costs:** $25.1 million, 7.1% of sales, an increase of 20 basis points compared to last year.

**Net Funded Debt:** $61.2 million, with a debt balance of $85 million and cash and cash equivalents of $23.8 million.

**Share Repurchase:** Approximately 167,000 shares repurchased for $5.4 million in Q4; 2 million shares repurchased in fiscal 2025.

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Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

BJ's Restaurants Inc (NASDAQ:BJRI) reported its sixth consecutive quarter of sales and traffic growth, with a 2.6% increase in same-store sales and a 4.5% rise in traffic.

The company achieved a 16.1% restaurant operating margin and a 10% adjusted EBITDA margin, marking improvements of 70 and 40 basis points year-over-year, respectively.

BJ's Restaurants Inc (NASDAQ:BJRI) successfully introduced new menu items, such as the seasonal ezukis and a renovated pizza platform, which resonated well with customers and drove traffic.

The company completed 19 remodels in 2025, modernizing nearly 50% of its pre-2016 fleet, which is expected to enhance customer experience and operational efficiency.

BJ's Restaurants Inc (NASDAQ:BJRI) plans to open up to two new restaurants in the second half of 2026, with a focus on a refreshed prototype to support future growth.

Negative Points

The company experienced a 1.9% decrease in average check size, attributed to a mix shift towards lower-priced items like seasonal ezukis and late-night offerings.

BJ's Restaurants Inc (NASDAQ:BJRI) faced increased costs in beef and produce, contributing to a 2.5% inflation in the commodity basket during the fourth quarter.

Labor expenses remained high at 35.8% of sales, with increased bonus costs for restaurant management and higher workers' compensation expenses.

The off-premise segment of the business has seen declines, posing a challenge to overall sales growth.

General and administrative costs increased by 20 basis points due to expenses related to leadership transitions and previously capitalized expenses that no longer held future value.

 






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Q & A Highlights

Q: Can you discuss the mix shift in sales and how it affects your value versus premium offerings? A: Lyle Tick, CEO, explained that the mix shift in Q4 was not primarily driven by value offerings like the ezuki meal deal. Instead, it was influenced by the popularity of seasonal ezukis, which attracted a younger demographic. This resulted in more checks with lower average spend but higher traffic, particularly in late-night sales. The company expects some check trade-down in 2026 but anticipates net check expansion due to pricing adjustments for inflation.

Q: What was the inflation impact on commodities and labor in Q4, and what is the outlook for 2026? A: Lyle Tick noted that the total basket inflation in Q4 was about 2.5%, driven by beef and produce costs. Labor inflation was between 2% and 3%. For 2026, they expect inflation to be in the 3% to 4% range in the first half, moderating in the second half.

Q: How do you anticipate sales trends throughout 2026, and are there any significant drivers post-Q1? A: Lyle Tick stated that while internal models show some movement, there are no significant changes to call out. The company aims for consistent growth in comp sales and traffic across all quarters, with a focus on maintaining momentum from initiatives like seasonal ezukis.

Q: What factors will drive margin expansion in 2026, and is a 50 basis point increase in restaurant-level margins expected? A: Lyle Tick highlighted three components: consistent sales growth, improving efficiency through KPIs, and focusing on gross-to-net initiatives, particularly in food and beverage. The activity-based labor model rollout will also contribute, although its full impact may be more evident in 2027. Todd Wilson, CFO, confirmed that a 50 basis point expansion aligns with their expectations.

Q: How are you engaging younger demographics through LTOs, and what is the impact on social media? A: Lyle Tick mentioned that while it’s too early to measure long-term engagement, they have seen increased frequency across age cohorts. The company has shifted its social media strategy to influencer-produced content, which has driven significant organic engagement and impressions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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