Core Insights - U.S. retail sales increased by 0.6% in August 2025, matching the revised growth from July and exceeding expectations of 0.2% [1] - Sales excluding certain categories rose by 0.7%, surpassing the anticipated 0.4% [1] Winning Areas - **Online Retailers**: Nonstore retailers experienced a 2% sequential increase and a 10.1% year-over-year gain [3] - ProShares Online Retail ETF (ONLN) tracks online retailers and charges 58 bps in fees [3] - Amazon.com (AMZN) is a major player in e-commerce with a Zacks Rank 3 (Hold) [4] - **Clothing Stores**: Sales rose by 1% sequentially and 8.3% year over year in August 2025 [5] - SPDR S&P Retail ETF (XRT) provides exposure to U.S. retail stocks, with apparel retail comprising about 21% of the fund and a fee of 35 bps [5] - Genesco (GCO) is a specialty retail company with a Zacks Rank 1 (Strong Buy) [5] - **Sporting Goods, Hobby, Musical Instrument, & Books**: This segment saw a 0.8% sequential gain and a 4.7% year-over-year increase [6] - Consumer Discretionary Select Sector SPDR ETF (XLY) and VanEck Retail ETF (RTH) are suitable for investment in this sector [6] - DICK'S Sporting Goods (DKS) operates as a sporting goods retailer with a Zacks Rank 3 [7] - **Food Services & Drinking Places**: Sales increased by 0.7% sequentially and 6.5% year over year [8] - AdvisorShares Restaurant ETF (EATZ) invests primarily in restaurant-related companies and charges 99 bps in fees [8] - BJ's Restaurants (BJRI) operates high-end casual dining restaurants and holds a Zacks Rank 1 [9]

Summary of BJ's Restaurants FY Conference Call Company Overview - **Company**: BJ's Restaurants (NasdaqGS: BJRI) - **Date of Conference**: September 10, 2025 Key Points Business Strategy and Performance - The CEO, Lyle Tick, emphasized the focus on strengthening the foundations of the business over the past year, aiming for a more consistent and sustainable operation [6][7] - The Pizookie Meal Deal, priced at $13, has become a significant traffic driver, accounting for approximately 15% of weekly business and nearly 20% on specific weekdays [10] - The company is exploring ways to evolve the Pizookie Meal Deal, including potential upgrades and new menu items [12][14] Menu Innovations - The company is revamping its pizza offerings, which are considered a core platform. The new pizza will launch in November, featuring a complete overhaul of the crust and ingredients to enhance quality [20][29] - The focus areas for the menu include pizza, Pizzookies, craft beverages, and shareables, with plans to streamline offerings by reducing the number of SKUs [31][32] - Seasonal items and customer feedback are being integrated into the menu strategy to keep offerings fresh and relevant [33] Operational Improvements - The company has implemented an Activity-Based Labor Model (ABLM) to optimize labor costs and improve guest satisfaction, with plans to expand this model to 20% of restaurants [38][40] - Operational metrics have shown improvement, with a focus on reducing errors in food preparation and order processing, leading to a double-digit decrease in food and beverage comps [36][37] Financial Outlook - Current store-level margins are projected to be in the mid-15% range, with potential for upside as operational efficiencies improve [43][44] - The CEO indicated that the focus is on growing sales and profit dollars rather than hitting specific percentage margin goals [45] Marketing Strategy - The marketing team has been effective in driving traffic through targeted campaigns, particularly around the Pizookie Meal Deal and new product launches [46][47] - Future marketing efforts will focus on building a consistent presence in social and influencer marketing, rather than competing on share of voice with larger brands [49] Store Development - The company is working on prototype stores to ensure that physical spaces reflect the brand's DNA and are adaptable to different market needs [53][55] - There is a focus on right-sizing stores based on market demand, with successful smaller footprint locations being identified [56] Off-Premise Business - The off-premise segment is seen as a growth opportunity, with plans to improve operational efficiency and menu offerings to better serve this channel starting in 2026 [58][60] Additional Insights - The company is committed to culinary excellence, particularly in pizza preparation, which has been a focus of employee training and operational standards [27] - The CEO expressed excitement about the potential for new product introductions and seasonal offerings to enhance customer engagement [33][59]

Core Viewpoint - Investors are seeking growth stocks that demonstrate above-average growth potential, with BJ's Restaurants identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - BJ's Restaurants has a historical EPS growth rate of 189.6%, with projected EPS growth of 43.8% this year, significantly outperforming the industry average of 7.4% [4][10]. Group 2: Asset Utilization - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.34, indicating it generates $1.34 in sales for every dollar in assets, compared to the industry average of 0.96, showcasing superior efficiency [5][10]. Group 3: Sales Growth - BJ's Restaurants is expected to achieve a sales growth of 3.3% this year, which is higher than the industry average of 2.9% [6][10]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for BJ's Restaurants, with the Zacks Consensus Estimate for the current year increasing by 3.8% over the past month [8][10].

Core Insights - BJ's Restaurants, Inc. (BJRI) is experiencing growth due to increased traffic, operational efficiency, and the success of the Pizookie Meal Deal [1] - The stock has outperformed the Zacks Retail - Restaurants industry, with a 14.3% gain over the past year compared to the industry's 1.1% rise [2] - Earnings estimates for 2025 have increased to $2.11 per share, reflecting improved operating efficiencies and margins despite macroeconomic challenges [3][4] Growth Factors - Sales-Building & Margin-Driving Initiatives: The company is focusing on sales-building initiatives and strategic priorities, expecting continued margin improvement through menu innovation and cost management [6] - Comparable Sales Growth: In Q2 2025, BJRI recorded a 2.9% year-over-year comparable sales growth, driven by a 3.3% increase in traffic, with restaurant-level cash flow margins at 17% and adjusted EBITDA margins at 11.5% [7][9] - Menu Innovation: The company is revitalizing its menu with a focus on core items like pizza and Pizookies, preparing for a nationwide rollout of a revamped pizza platform in Q4 2025 [10][11] Digital and Operational Enhancements - Digital Initiatives: BJRI is enhancing operational efficiency through digital initiatives, resulting in a 42% year-over-year increase in seated reservations due to improved guest satisfaction [12] - Remodeling Efforts: The company is progressing with expansion plans, having completed 13 remodels in 2025, with more planned, aiming to enhance the dining experience and sales performance [13]

Company Overview - BJ's Restaurants, Inc. is a national casual dining brand founded in 1978, operating over 200 restaurants across 31 states [2] - The brand is known for its chef-crafted menu, which includes signature deep-dish pizzas, slow-roasted entrees, wings, and the world-famous Pizookie® dessert [2] - BJ's has been recognized as the most decorated restaurant-brewery in the country, winning the 2025 Vibe Vista Award for Best Beer Program and the 2024 Best Overall Beverage Program [2] - The company has been a pioneer in craft brewing since 1996, offering award-winning proprietary handcrafted beers brewed in four states and by independent third-party craft brewers [2] Upcoming Events - Management will participate in the Piper Sandler Growth Frontiers Conference on September 10, 2025, including a fireside discussion and one-on-one meetings [1]

Company Overview - BJ's Restaurants Inc is perceived as a casual-dining pizzeria in Southern California, but it is recognized for its pizookies in other regions of the country [1]. Investment Focus - The focus is on identifying long-term investment opportunities within the restaurant, retail, and food manufacturing sectors, with an emphasis on growth opportunities and valuation metrics [1].

Core Viewpoint - The article highlights BJ's Restaurants (BJRI) as a strong growth stock, supported by its favorable Growth Score and Zacks Rank, indicating potential for solid returns in the market [2][10]. Earnings Growth - BJ's Restaurants has a historical EPS growth rate of 189.6%, with projected EPS growth of 43.8% this year, significantly outperforming the industry average of 7.1% [5][4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.34, indicating it generates $1.34 in sales for every dollar in assets, compared to the industry average of 0.96, showcasing higher efficiency [7][6]. - BJ's Restaurants is also expected to achieve a sales growth of 3.3% this year, surpassing the industry average of 2.8% [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for BJ's Restaurants, with the Zacks Consensus Estimate for the current year increasing by 19% over the past month, indicating strong near-term stock price movements [8]. Conclusion - BJ's Restaurants has earned a Growth Score of A and a Zacks Rank 1, suggesting it is a potential outperformer and a solid choice for growth investors [10].

Core Viewpoint - The article highlights BJ's Restaurants (BJRI) as a strong value stock, supported by its favorable valuation metrics and earnings outlook [4][8]. Valuation Metrics - BJRI holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4][3]. - The Forward P/E ratio for BJRI is 16.36, significantly lower than the industry average of 25.00, suggesting it may be undervalued [4]. - BJRI's PEG ratio is 1.17, compared to the industry average of 2.09, indicating a favorable valuation relative to expected earnings growth [5]. - The P/S ratio for BJRI is 0.56, which is lower than the industry's average of 0.79, further supporting the undervaluation thesis [6]. - BJRI has a P/CF ratio of 8.01, well below the industry average of 23.09, indicating strong cash flow relative to its valuation [7]. Investment Outlook - The combination of these metrics suggests that BJRI is likely undervalued at present, making it an attractive option for value investors [8].

Industry Overview - The Zacks Retail – Restaurants industry is facing a challenging macroeconomic environment characterized by high costs and declining traffic, but is experiencing sales growth due to menu price hikes and average check growth [1][3] - Industry participants are leveraging partnerships with delivery channels and digital platforms to enhance sales [1] Sales Performance - Restaurant sales showed strong momentum, with U.S. Census Bureau data indicating $98.7 billion in seasonally adjusted sales in June, a 0.6% increase from May's revised total of $98.2 billion [4] Digital Innovation - The focus on digital innovation and partnerships with delivery services like DoorDash and Grubhub is driving incremental sales for restaurant operators [5] Off-Premise Sales - The increase in off-premise sales, including delivery and takeout, is acting as a key catalyst for growth, with many operators testing ghost kitchens and connected curbside services [6] Industry Ranking - The Zacks Restaurant industry holds a Zacks Industry Rank of 188, placing it in the bottom 23% of over 244 Zacks industries, indicating dull near-term prospects [7][8] Stock Performance - Over the past year, the industry has underperformed the Zacks S&P 500 Composite, growing only 5.7% compared to the S&P 500's 20.3% and the sector's 25.7% [9] Valuation Metrics - The industry is currently trading at a forward 12-month P/E of 24.69X, higher than the S&P 500's 22.69X but below the sector's 25.05X [12] Company Highlights - **BJ's Restaurants**: Achieved 2.9% year-over-year comparable sales growth in Q2 2025, driven by a 3.3% increase in traffic, with anticipated sales and earnings growth of 3.2% and 38.8% respectively for 2025 [14][15] - **The Cheesecake Factory**: Benefiting from higher consumer demand and operational efficiency, with expected sales and earnings growth of 5.1% and 9.3% respectively for 2025 [18][19] - **Cracker Barrel**: Focused on menu innovation and digital initiatives, with anticipated sales growth of 0.1% but a decline in earnings of 9.1% for 2025 [22][23]

[FORM 10-Q](index=1&type=section&id=FORM%2010-Q) This quarterly report on Form 10-Q was filed by BJ's Restaurants, Inc. for the period ended July 1, 2025 - BJ's Restaurants, Inc. filed its Quarterly Report on Form 10-Q for the period ended **July 1, 2025**[1](index=1&type=chunk)[2](index=2&type=chunk) - The company is classified as a **Large accelerated filer**[4](index=4&type=chunk) - As of August 6, 2025, there were **22,124,179 shares of Common Stock outstanding**[4](index=4&type=chunk) [TABLE OF CONTENTS](index=2&type=section&id=TABLE%20OF%20CONTENTS) The report is structured into two main parts: Financial Information and Other Information - The report is structured into two main parts: **Part I. Financial Information** and **Part II. Other Information**[7](index=7&type=chunk) - Part I includes **Consolidated Financial Statements**, **Management's Discussion and Analysis**, **Market Risk disclosures**, and **Controls and Procedures**[7](index=7&type=chunk) - Part II covers **Legal Proceedings**, **Risk Factors**, **Unregistered Sales of Equity Securities**, and **Exhibits**[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents unaudited consolidated financial statements, management's discussion, market risk, and controls - Part I encompasses the unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures[8](index=8&type=chunk)[7](index=7&type=chunk) [Item 1. CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This item presents the unaudited consolidated financial statements of BJ's Restaurants, Inc. for specified interim periods [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's assets, liabilities, and equity as of July 1, 2025, and December 31, 2024 **Consolidated Balance Sheet Highlights (in thousands):** | Metric | July 1, 2025 | December 31, 2024 | Change | | :--------------------------------- | :----------- | :---------------- | :----- | | Total assets | $1,025,237 | $1,041,064 | $(15,827) | | Total liabilities | $638,673 | $671,047 | $(32,374) | | Total shareholders' equity | $386,564 | $370,017 | $16,547 | - Current assets decreased from **$79.6 million** to **$72.6 million**, driven by reductions in accounts and other receivables, inventories, and prepaid expenses[10](index=10&type=chunk) - Long-term operating lease obligations decreased from **$394.1 million** to **$374.5 million**[10](index=10&type=chunk) [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section details revenues, expenses, and net income for the interim periods **Consolidated Statements of Operations Highlights (in thousands, except per share data):** | Metric | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenues | $365,597 | $349,927 | $713,570 | $687,261 | | Net income | $22,208 | $17,157 | $35,700 | $24,880 | | Basic net income per share | $1.00 | $0.74 | $1.59 | $1.07 | | Diluted net income per share | $0.97 | $0.72 | $1.54 | $1.04 | - For the thirteen weeks, revenues increased by **4.5%** and net income grew by **29.4%**[12](index=12&type=chunk) - For the twenty-six weeks, revenues increased by **3.8%** and net income grew by **43.5%**[12](index=12&type=chunk) [Unaudited Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section outlines changes in shareholders' equity, including net income and stock repurchases **Shareholders' Equity Changes (in thousands):** | Item | 13 Weeks Ended July 1, 2025 | 26 Weeks Ended July 1, 2025 | | :--------------------------------------- | :-------------------------- | :-------------------------- | | Net income | $22,208 | $35,700 | | Repurchase, retirement and reclassification of common stock | $(15,131) | $(29,230) | | Stock-based compensation | $1,986 | $4,026 | | Exercise of stock options | $6,020 | $6,700 | - Total shareholders' equity increased from **$370.0 million** at December 31, 2024, to **$386.6 million** at July 1, 2025[10](index=10&type=chunk)[14](index=14&type=chunk) - The company repurchased approximately **842,000 shares** of common stock for **$29.2 million** during the twenty-six weeks ended July 1, 2025[14](index=14&type=chunk)[56](index=56&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents cash flows from operating, investing, and financing activities for the interim periods **Consolidated Statements of Cash Flows Highlights (in thousands):** | Activity | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $66,900 | $42,532 | | Net cash used in investing activities | $(37,019) | $(41,349) | | Net cash used in financing activities | $(30,013) | $(14,068) | | Net decrease in cash and cash equivalents | $(132) | $(12,885) | - Operating cash flow increased by **$24.4 million**, primarily due to timing of accounts payable and accrued expenses, and improved net income[106](index=106&type=chunk) - Cash used in financing activities increased by **$15.9 million**, mainly due to higher share repurchases[109](index=109&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the unaudited consolidated financial statements [Note 1. BASIS OF PRESENTATION](index=8&type=section&id=Note%201.%20BASIS%20OF%20PRESENTATION) This note describes the basis of preparation for interim financial statements and recent accounting pronouncements - Financial statements are prepared in accordance with **U.S. GAAP** for interim information and **SEC rules**, including normal recurring adjustments[23](index=23&type=chunk) - The company is evaluating **ASU 2024-03, Disaggregation of Income Statement Expenses**, effective for fiscal years beginning after December 15, 2026, for its potential impact[27](index=27&type=chunk) - **ASU 2023-09, Improvements to Income Tax Disclosures**, effective for fiscal years beginning after December 15, 2024, is not expected to impact consolidated financial statements[26](index=26&type=chunk) [Note 2. REVENUE RECOGNITION](index=8&type=section&id=Note%202.%20REVENUE%20RECOGNITION) This note details policies for recognizing revenue from food, beverage, gift cards, and loyalty programs - Revenues are primarily from **food and beverage sales**, recognized when payment is tendered[29](index=29&type=chunk) - Gift card sales are recorded as a liability and recognized as revenue upon redemption, with estimated breakage recognized proportionally to historical redemption patterns[29](index=29&type=chunk) **Gift Card and Loyalty Program Liabilities (in thousands):** | Item | July 1, 2025 | December 31, 2024 | | :------------------------ | :----------- | :---------------- | | Gift card liability | $10,618 | $15,668 | | Deferred loyalty revenue | $3,066 | $2,910 | [Note 3. LEASES](index=9&type=section&id=Note%203.%20LEASES) This note outlines the company's accounting for operating leases, including lease costs and components - All material operating leases for restaurant locations and office space are classified as **operating leases**[32](index=32&type=chunk) - The company has elected to account for lease and non-lease components as a **single lease component** for office and beverage equipment[32](index=32&type=chunk) **Total Lease Costs (in thousands):** | Lease Cost Type | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Lease cost | $14,821 | $14,442 | $29,497 | $28,831 | | Variable lease cost | $1,098 | $997 | $2,040 | $1,792 | | Total lease costs | $15,919 | $15,439 | $31,537 | $30,623 | [Note 4. LONG-TERM DEBT](index=9&type=section&id=Note%204.%20LONG-TERM%20DEBT) This note describes the company's credit facility, terms, available commitments, and interest rates - The company entered into a **Fifth Amended and Restated Credit Agreement** on **May 30, 2025**, extending the maturity to **May 30, 2030**[34](index=34&type=chunk)[35](index=35&type=chunk) - The Credit Facility provides **$215 million** in revolving loan commitments, with **$135.2 million available** as of July 1, 2025[35](index=35&type=chunk) - The weighted average interest rate for the twenty-six weeks ended July 1, 2025, was approximately **6.0%**, a decrease from **6.9%** in the prior year[36](index=36&type=chunk) [Note 5. NET INCOME PER SHARE](index=11&type=section&id=Note%205.%20NET%20INCOME%20PER%20SHARE) This note explains the calculation of basic and diluted net income per share - Basic and diluted net income per share are calculated by dividing net income by the weighted average number of common shares outstanding, including dilutive equity awards[39](index=39&type=chunk) **Net Income Per Share (in thousands, except per share data):** | Metric | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income | $22,208 | $17,157 | $35,700 | $24,880 | | Weighted-average shares outstanding – basic | 22,220 | 23,309 | 22,452 | 23,313 | | Weighted-average shares outstanding – diluted | 22,962 | 23,921 | 23,130 | 23,954 | | Basic net income per share | $1.00 | $0.74 | $1.59 | $1.07 | | Diluted net income per share | $0.97 | $0.72 | $1.54 | $1.04 | - Approximately **0.4 million** and **0.6 million** common stock equivalents were excluded from diluted EPS calculation for the thirteen and twenty-six weeks ended July 1, 2025, respectively, due to being anti-dilutive[40](index=40&type=chunk) [Note 6. STOCK-BASED COMPENSATION](index=11&type=section&id=Note%206.%20STOCK-BASED%20COMPENSATION) This note details stock-based compensation plans, valuation methodologies, and recognized expenses - The company grants **non-qualified stock options**, **service-based RSUs**, and **performance-based RSUs** under the BJ's Restaurants, Inc. 2024 Equity Incentive Plan[41](index=41&type=chunk) - Stock options are valued using the **Black-Scholes model**, and performance-based RSUs with market-based metrics use the **Monte Carlo simulation model**[43](index=43&type=chunk) **Total Stock-Based Compensation Recognized (in thousands):** | Category | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Labor and benefits | $865 | $529 | $1,265 | $1,037 | | General and administrative | $1,042 | $2,237 | $2,592 | $4,206 | | Capitalized | $79 | $79 | $169 | $163 | | Total stock-based compensation | $1,986 | $2,845 | $4,026 | $5,406 | [Note 7. INCOME TAXES](index=16&type=section&id=Note%207.%20INCOME%20TAXES) This note provides information on the company's effective income tax rate and unrecognized tax benefits - The effective income tax rate for the twenty-six weeks ended July 1, 2025, was an expense rate of **4.4%**, compared to a benefit rate of **11.7%** for the comparable prior period[52](index=52&type=chunk) - The difference from the statutory tax rate is primarily due to significant **Federal Insurance Contributions Act (FICA) tax tip credits**[52](index=52&type=chunk) **Unrecognized Tax Benefits (in thousands):** | Item | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | | Beginning gross unrecognized tax benefits | $874 | $967 | | Increases for tax positions taken in the current year | $67 | $51 | | Ending gross unrecognized tax benefits | $941 | $1,018 | [Note 8. LEGAL PROCEEDINGS](index=16&type=section&id=Note%208.%20LEGAL%20PROCEEDINGS) This note summarizes legal proceedings and management's assessment of their potential financial impact - The company faces lawsuits and administrative proceedings common to the **foodservice industry**[54](index=54&type=chunk) - BJ's Restaurants is **self-insured** for a portion of its general liability, workers' compensation, and employment practice liability, with third-party insurance limiting exposure[54](index=54&type=chunk) - Management believes current legal proceedings will not have a **material adverse effect** on the company's financial position, results of operations, or liquidity[54](index=54&type=chunk) [Note 9. SHAREHOLDERS' EQUITY](index=16&type=section&id=Note%209.%20SHAREHOLDERS'%20EQUITY) This note details changes in shareholders' equity, including warrant extensions and share repurchases - BJ's Act III, LLC's warrant for **876,949 shares** was extended by two years to **May 4, 2027**[55](index=55&type=chunk) - During the twenty-six weeks ended July 1, 2025, the company repurchased and retired approximately **842,000 shares** of common stock for **$29.2 million**[56](index=56&type=chunk) - As of July 1, 2025, **$56.7 million** remained available under the authorized **$600 million share repurchase program**[56](index=56&type=chunk) - The company currently does not pay any **cash dividends**[57](index=57&type=chunk) [Note 10. RELATED PARTY TRANSACTIONS](index=18&type=section&id=Note%2010.%20RELATED%20PARTY%20TRANSACTIONS) This note discloses transactions with related parties, including warrant extensions and equity investments - The extension of Act III's warrant termination date resulted in a **$4.6 million expense** recorded in 'Other (expense) income, net'[59](index=59&type=chunk) - The company holds a **20% equity method investment**, contributing **$5.0 million in assets**, and recorded a net loss of **$0.2 million** for the twenty-six weeks ended July 1, 2025[60](index=60&type=chunk) [Note 11. SEGMENT INFORMATION](index=18&type=section&id=Note%2011.%20SEGMENT%20INFORMATION) This note identifies the company's single operating segment and how performance is assessed by the CODM - The company operates in **one operating segment**: full-service company-owned restaurants in the United States[61](index=61&type=chunk) - The Chief Operating Decision Maker (CODM) uses **income (loss) from operations** and **net income** to assess performance and allocate resources[61](index=61&type=chunk) **Segment Revenue and Expenses (in thousands):** | Metric | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenues | $365,597 | $349,927 | $713,570 | $687,261 | | Income from operations | $21,214 | $13,221 | $36,164 | $21,479 | | Net income | $22,208 | $17,157 | $35,700 | $24,880 | [Note 12. SUBSEQUENT EVENTS](index=18&type=section&id=Note%2012.%20SUBSEQUENT%20EVENTS) This note discloses significant events occurring after the balance sheet date, such as new tax legislation - The **One Big Beautiful Bill Act (OBBBA)** was enacted on **July 4, 2025**, amending U.S. tax law[63](index=63&type=chunk) - The company is currently evaluating the impact of the OBBBA on its consolidated financial statements and disclosures[63](index=63&type=chunk) [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=18&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial condition, operations, liquidity, and capital resources [STATEMENT REGARDING FORWARD-LOOKING DISCLOSURE](index=18&type=section&id=STATEMENT%20REGARDING%20FORWARD-LOOKING%20DISCLOSURE) This statement clarifies that the report contains forward-looking information subject to risks - The report contains **forward-looking statements** about performance trends, growth plans, and business goals[64](index=64&type=chunk)[65](index=65&type=chunk) - These statements are subject to **risks and uncertainties** that could cause actual results to differ materially[65](index=65&type=chunk) - The company assumes no obligation to update these forward-looking statements[65](index=65&type=chunk) [GENERAL](index=20&type=section&id=GENERAL) This section provides an overview of BJ's Restaurants' business, restaurant count, menu, and revenue sources - BJ's Restaurants is a leading full-service restaurant brand with **219 restaurants** in **31 states** as of August 8, 2025[66](index=66&type=chunk) - The menu features approximately **100 items**, including deep-dish pizza, slow-roasted entrees, and craft beers produced at **four in-house brewing facilities**[67](index=67&type=chunk) - Revenues are derived from **food and beverage sales**, including takeout, delivery, and catering, with gift card and loyalty program revenues recognized upon redemption[68](index=68&type=chunk)[69](index=69&type=chunk) [RESULTS OF OPERATIONS](index=22&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes financial performance, including revenue and expense trends for interim periods **Consolidated Statements of Operations as % of Total Revenues:** | Metric | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended July 2, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenues | 100.0% | 100.0% | 100.0% | 100.0% | | Cost of sales | 24.8% | 25.7% | 24.9% | 25.4% | | Labor and benefits | 35.4% | 36.1% | 35.7% | 36.6% | | Income from operations | 5.8% | 3.8% | 5.1% | 3.1% | | Net income | 6.1% | 4.9% | 5.0% | 3.6% | - Net income as a percentage of revenues increased from **4.9% to 6.1%** for the thirteen-week period and from **3.6% to 5.0%** for the twenty-six-week period[78](index=78&type=chunk) - Operating income as a percentage of revenues improved from **3.8% to 5.8%** for the thirteen-week period and from **3.1% to 5.1%** for the twenty-six-week period[78](index=78&type=chunk) [Thirteen Weeks Ended July 1, 2025 Compared to Thirteen Weeks Ended July 2, 2024](index=22&type=section&id=Thirteen%20Weeks%20Ended%20July%201%2C%202025%20Compared%20to%20Thirteen%20Weeks%20Ended%20July%202%2C%202024) This section compares operational results for the thirteen-week periods ended July 1, 2025, and July 2, 2024 - Total revenues increased by **$15.7 million (4.5%)** to **$365.6 million**[79](index=79&type=chunk) - Comparable restaurant sales increased by **2.9%**, driven by a **3.3% increase in guest traffic**[79](index=79&type=chunk) - Cost of sales as a percentage of revenues decreased from **25.7% to 24.8%**, primarily due to lower commodity costs and cost savings initiatives[80](index=80&type=chunk) - Labor and benefit costs as a percentage of revenues decreased from **36.1% to 35.4%**, attributed to leveraging comparable restaurant growth and improved labor efficiency[81](index=81&type=chunk) - Occupancy and operating expenses as a percentage of revenues increased from **22.7% to 22.8%**, mainly due to a **$2.5 million increase** in marketing-related expenses[83](index=83&type=chunk) [Twenty-Six Weeks Ended July 1, 2025 Compared to Twenty-Six Weeks Ended July 2, 2024](index=24&type=section&id=Twenty-Six%20Weeks%20Ended%20July%201%2C%202025%20Compared%20to%20Twenty-Six%20Weeks%20Ended%20July%202%2C%202024) This section compares operational results for the twenty-six-week periods ended July 1, 2025, and July 2, 2024 - Total revenues increased by **$26.3 million (3.8%)** to **$713.6 million**[90](index=90&type=chunk) - Comparable restaurant sales increased by **2.3%**, driven by a **3.0% increase in guest traffic**[90](index=90&type=chunk) - Cost of sales as a percentage of revenues decreased from **25.4% to 24.9%**, due to lower commodity costs and cost savings initiatives[91](index=91&type=chunk)[92](index=92&type=chunk) - Labor and benefit costs as a percentage of revenues decreased from **36.6% to 35.7%**, driven by leveraging comparable restaurant growth and improved labor efficiency[93](index=93&type=chunk) - General and administrative expenses as a percentage of revenues decreased from **6.3% to 6.1%**, primarily due to leveraging fixed costs over a higher revenue base[95](index=95&type=chunk) [LIQUIDITY AND MATERIAL CASH REQUIREMENTS](index=28&type=section&id=LIQUIDITY%20AND%20MATERIAL%20CASH%20REQUIREMENTS) This section discusses capital requirements, liquidity sources, and projected capital expenditures - Capital requirements are driven by **new restaurant expansion**, existing restaurant enhancements, and **share repurchases**[102](index=102&type=chunk) - The company expects to accelerate restaurant openings in **2026** and anticipates total capital expenditures for fiscal 2025 to be approximately **$65 million to $75 million**[102](index=102&type=chunk)[108](index=108&type=chunk) - Liquidity is expected to be adequate for the next twelve months, funded by **current cash**, **operating cash flows**, and the **credit agreement**[103](index=103&type=chunk) **Key Liquidity Measurements (in thousands):** | Metric | July 1, 2025 | December 31, 2024 | | :------------------------ | :----------- | :---------------- | | Cash and cash equivalents | $25,964 | $26,096 | | Net working capital | $(117,392) | $(116,744) | | Current ratio | 0.4:1.0 | 0.4:1.0 | [CASH FLOWS](index=28&type=section&id=CASH%20FLOWS) This section provides a detailed analysis of cash flows from operating, investing, and financing activities **Summary of Cash Flows (in thousands):** | Activity | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $66,900 | $42,532 | | Net cash used in investing activities | $(37,019) | $(41,349) | | Net cash used in financing activities | $(30,013) | $(14,068) | | Net decrease in cash and cash equivalents | $(132) | $(12,885) | - Net cash provided by operating activities increased by **$24.4 million**, primarily due to improved net income and timing of accounts payable and accrued expenses[106](index=106&type=chunk) [Operating Cash Flows](index=28&type=section&id=Operating%20Cash%20Flows) This section analyzes net cash provided by operating activities and the factors influencing its changes - Net cash provided by operating activities was **$66.9 million**, an increase of **$24.4 million** from the prior year[106](index=106&type=chunk) - The increase is primarily due to the timing of accounts payable and accrued expenses, coupled with improved net income[106](index=106&type=chunk) [Investing Cash Flows](index=28&type=section&id=Investing%20Cash%20Flows) This section analyzes net cash used in investing activities, primarily related to capital expenditures - Net cash used in investing activities decreased by **$4.3 million** to **$37.0 million**[107](index=107&type=chunk) - The decrease is primarily due to the number of new restaurant openings and timing of restaurant remodel activity[107](index=107&type=chunk) **Components of Capital Expenditures (in thousands):** | Category | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | | New restaurants | $4,506 | $15,406 | | Restaurant maintenance and remodels, and key productivity initiatives | $32,076 | $25,391 | | Restaurant and corporate systems | $474 | $552 | | Total capital expenditures | $37,056 | $41,349 | [Financing Cash Flows](index=30&type=section&id=Financing%20Cash%20Flows) This section analyzes net cash used in financing activities, including borrowings and share repurchases - Net cash used in financing activities increased by **$15.9 million** to **$30.0 million**[109](index=109&type=chunk) - The increase is primarily due to **higher share repurchases**, partially offset by increased proceeds from stock option exercises[109](index=109&type=chunk) **Key Financing Activities (in thousands):** | Activity | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended July 2, 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | | Borrowings on line of credit | $418,000 | $453,900 | | Payments on line of credit | $(424,000) | $(458,400) | | Repurchase of common stock | $(29,230) | $(8,835) | | Proceeds from exercise of stock options | $6,700 | $168 | [OFF-BALANCE SHEET ARRANGEMENTS](index=30&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) This section confirms the absence of any material off-balance sheet arrangements as of the reporting date - As of **July 1, 2025**, the company is not involved in any **off-balance sheet arrangements**[110](index=110&type=chunk) [IMPACT OF INFLATION](index=30&type=section&id=IMPACT%20OF%20INFLATION) This section discusses the effects of inflation on operations and mitigation strategies - Inflation has impacted **operations** and **new restaurant construction**[111](index=111&type=chunk) - The company has partially offset inflation through **menu price increases**, **efficient purchasing**, and **productivity improvements**[111](index=111&type=chunk) - There is no assurance that the company can continue to offset inflation, and macroeconomic conditions could limit future menu price increases[111](index=111&type=chunk) [SEASONALITY AND ADVERSE WEATHER](index=30&type=section&id=SEASONALITY%20AND%20ADVERSE%20WEATHER) This section explains how weather, seasonal factors, and new restaurant openings impact quarterly results - Business is impacted by **weather and seasonal factors**, including holidays and severe weather, affecting sales volumes[112](index=112&type=chunk) - Quarterly results are significantly impacted by the timing of **new restaurant openings** and associated expenses[112](index=112&type=chunk) - Financial results for any given quarter may not be indicative of a full fiscal year[112](index=112&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=30&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) This section highlights the company's reliance on estimates and assumptions in financial reporting - Financial statements rely on **estimates and assumptions**, which are inherently uncertain[113](index=113&type=chunk)[114](index=114&type=chunk) - There were no significant changes in critical accounting policies during the twenty-six weeks ended **July 1, 2025**[115](index=115&type=chunk) [Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=32&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This item discusses the company's exposure to market risks, including interest rate and commodity price risks [Interest Rate Risk](index=32&type=section&id=Interest%20Rate%20Risk) This section details the company's exposure to interest rate fluctuations on its floating-rate credit facility - The company has a **$215 million Credit Facility** with a floating interest rate, with **$60.5 million outstanding** as of July 1, 2025[117](index=117&type=chunk) - A hypothetical **1% change in interest rates** would result in an approximate **$0.5 million annual impact** on net income[117](index=117&type=chunk) [Food, Supplies and Commodity Price Risks](index=32&type=section&id=Food%2C%20Supplies%20and%20Commodity%20Price%20Risks) This section addresses the company's exposure to volatility in food, supplies, and commodity prices - The company is exposed to **volatility in food, supplies, and commodity prices** due to market factors, government regulation, and trade policies[118](index=118&type=chunk) - Mitigation strategies include **fixed-price purchase commitments (up to one year)** and flexibility to adjust menu prices or items[118](index=118&type=chunk) - The company does not use financial instruments to hedge commodity prices[118](index=118&type=chunk) [Item 4. CONTROLS AND PROCEDURES](index=32&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) This item reports on the effectiveness of disclosure controls and changes in internal control [Evaluation of Disclosure Controls and Procedures](index=32&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures as of July 1, 2025 - The Chief Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were **effective as of July 1, 2025**[119](index=119&type=chunk) - Controls are designed to ensure timely recording, processing, summarizing, and reporting of required information[119](index=119&type=chunk) [Changes in Internal Control Over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section discusses the implementation of a new ERP system and its impact on internal control - A **new ERP system** was implemented during the quarter ended **July 1, 2025**, replacing legacy systems[120](index=120&type=chunk) - The new ERP system is an important component of the company's system of disclosure controls and procedures[120](index=120&type=chunk) - No other material changes in internal control over financial reporting occurred during the quarter[121](index=121&type=chunk) [Item 5. OTHER INFORMATION](index=32&type=section&id=Item%205.%20OTHER%20INFORMATION) This item states that there is no other information to report beyond what is already disclosed - No other information is reported under this item[123](index=123&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, and exhibits - Part II covers **legal proceedings**, **risk factors**, **equity security sales**, and **exhibits**[124](index=124&type=chunk)[7](index=7&type=chunk) [Item 1. LEGAL PROCEEDINGS](index=34&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This item refers to Note 8 for a summary of legal proceedings, indicating no new material changes - For a summary of legal proceedings, refer to **Note 8** of the Unaudited Consolidated Financial Statements[125](index=125&type=chunk) [Item 1A. RISK FACTORS](index=34&type=section&id=Item%201A.%20RISK%20FACTORS) This item states no material changes to risk factors from the Annual Report on Form 10-K - No material changes to risk factors from the Annual Report on Form 10-K for fiscal year ended **December 31, 2024**[126](index=126&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=34&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This item details the company's share repurchase program and remaining authorization - As of **July 1, 2025**, the company cumulatively repurchased approximately **$543.3 million** in shares since the program's inception in **2014**[127](index=127&type=chunk) - During the twenty-six weeks ended July 1, 2025, approximately **842,000 shares** were repurchased for **$29.2 million**[127](index=127&type=chunk) - The Board approved a **$50 million increase** in the share repurchase program in **February 2025**[127](index=127&type=chunk) **Common Share Repurchases (26 Weeks Ended July 1, 2025):** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------- | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------------- | | 01/01/25 - 01/28/25 | 58,284 | $35.07 | $33,886,105 | | 01/29/25 - 02/25/25 | 46,960 | $36.16 | $82,187,998 | | 02/26/25 - 04/01/25 | 298,320 | $34.72 | $71,830,877 | | 04/02/25 - 04/29/25 | 309,226 | $32.21 | $61,871,926 | | 04/30/25 - 05/27/25 | 83,891 | $37.72 | $58,707,907 | | 05/28/25 - 07/01/25 | 45,094 | $44.52 | $56,700,365 | | Total | 841,775 | | | [Item 6. EXHIBITS](index=35&type=section&id=Item%206.%20EXHIBITS) This item lists the exhibits filed as part of the Form 10-Q, including corporate documents - The section lists various exhibits, including **corporate governance documents**, **credit agreements**, and **certifications**[130](index=130&type=chunk) - **Exhibit 10.1** is the **Fifth Amended and Restated Credit Agreement** dated **May 30, 2025**[130](index=130&type=chunk) [SIGNATURES](index=36&type=section&id=SIGNATURES) This section provides the signatures of the company's principal executive and financial officers - The report was signed on **August 8, 2025**, by **Lyle D. Tick** (CEO, President, and Director), **William J. Atkins** (Interim Principal Financial Officer), and **Jacob J. Guild** (SVP and Chief Accounting Officer)[132](index=132&type=chunk)