BJ’s Restaurants’ first quarter was marked by traffic growth and operational improvements, leading to a positive market reaction. Management attributed the solid performance to increased guest visits, effective marketing around the Pizookie Meal Deal, and margin gains from labor and process efficiencies. Interim CEO Brad Richmond noted, “Our operating initiatives delivered improved guest satisfaction scores, which bodes well for future sales growth.” The company also benefited from proactive cost controls, particularly in labor and maintenance, which helped counteract industry headwinds during periods of unpredictable demand.
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BJ's (BJRI) Q1 CY2025 Highlights:
- Revenue: $348 million vs analyst estimates of $348 million (3.2% year-on-year growth, in line)
- Adjusted EPS: $0.59 vs analyst estimates of $0.38 (53.4% beat)
- Adjusted EBITDA: $35.35 million vs analyst estimates of $32.1 million (10.2% margin, 10.1% beat)
- EBITDA guidance for the full year is $135.5 million at the midpoint, above analyst estimates of $130.5 million
- Operating Margin: 4.3%, up from 2.4% in the same quarter last year
- Locations: 219 at quarter end, up from 217 in the same quarter last year
- Same-Store Sales rose 1.7% year on year (-1.7% in the same quarter last year)
- Market Capitalization: $970.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions BJ's’s Q1 Earnings Call
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Alex Slagle (Jefferies) asked about the sustainability of margin gains from process changes. Interim CEO Brad Richmond explained that operational efficiencies, particularly in labor, were consistent through the quarter and are expected to continue, with ongoing simplification efforts further supporting margins.
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Brian Bittner (Oppenheimer & Co.) questioned why BJ’s is outperforming other dining segments in traffic. President Lyle Tick highlighted the brand’s appeal to higher-income customers and the focus on social “splurge” occasions, while Richmond noted the company’s ability to take share from weaker competitors due to its strong value proposition.
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Jeffrey Bernstein (Barclays) pressed on whether macroeconomic pressures were impacting value perception and guest mix. Tick and CFO Tom Houdek responded that there were no material shifts in guest behavior or income cohort mix, with the Pizookie Meal Deal driving broad-based traffic gains.
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Sharon Zackfia (William Blair) inquired about new customer acquisition from the Pizookie Meal Deal. Tick said the promotion attracted new guests but did not fundamentally alter the existing customer cohort mix, suggesting broad appeal rather than a shift toward more price-sensitive guests.
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Brian Mullan (Piper Sandler) sought detail on the significance of the pizza platform and plans for its relaunch. Tick described pizza as core to the brand, especially in California, and emphasized that improvements in quality and marketing could meaningfully boost traffic and check sizes in the future.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the rollout and guest response to the renovated pizza platform and menu simplification, (2) the expansion and impact of AI-driven labor scheduling on both efficiency and guest satisfaction, and (3) progress on new unit development, particularly in existing markets with untapped capacity. Continued margin management amid inflation and tariff risks will also be a key area of focus.
BJ's currently trades at $43.90, up from $33.48 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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