[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)

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 for growth investors [2][10]. Group 1: Earnings Growth - BJ's Restaurants has a historical EPS growth rate of 189.6%, with projected EPS growth of 38.5% this year, significantly outperforming the industry average of 7.9% [4]. - Earnings growth is emphasized as a critical factor for attracting investor attention, particularly double-digit growth which signals strong prospects [3]. 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 0.97, showcasing superior efficiency [5]. Group 3: Sales Growth - BJ's Restaurants is expected to achieve a sales growth of 3.2% this year, exceeding the industry average of 2.5%, indicating a strong position in terms of sales performance [6]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for BJ's Restaurants have been revised upward, with the Zacks Consensus Estimate increasing by 6.9% over the past month, suggesting positive momentum [8][7]. Group 5: Overall Assessment - BJ's Restaurants has earned a Growth Score of A and a Zacks Rank 1, indicating it is a potential outperformer and a solid choice for growth investors [10].

Core Viewpoint - Investors in the Retail - Restaurants sector should consider BJ's Restaurants (BJRI) and Restaurant Brands (QSR) for potential value opportunities, with BJRI currently presenting a better value option based on various financial metrics [1]. Group 1: Zacks Rank and Analyst Outlook - BJRI has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to QSR, which has a Zacks Rank of 3 (Hold) [3]. - The positive estimate revision activity for BJRI suggests an improving analyst outlook, making it a more attractive option for investors [3]. Group 2: Valuation Metrics - BJRI has a forward P/E ratio of 16.82, while QSR's forward P/E is 18.76, indicating that BJRI may be undervalued relative to QSR [5]. - BJRI's PEG ratio is 1.20, compared to QSR's PEG ratio of 2.15, suggesting that BJRI offers better value when considering expected earnings growth [5]. - BJRI's P/B ratio stands at 1.96, significantly lower than QSR's P/B ratio of 4.7, further supporting the argument that BJRI is the superior value option [6]. Group 3: Value Grades - Based on various valuation metrics, BJRI holds a Value grade of A, while QSR has a Value grade of C, reinforcing BJRI's position as the better value investment at this time [6].

Core Viewpoint - The article emphasizes the importance of value investing and highlights BJ's Restaurants (BJRI) as a strong value stock based on various financial metrics [2][8]. Group 1: Company Overview - BJ's Restaurants (BJRI) currently holds a Zacks Rank of 1 (Strong Buy) and has an A grade for Value [4]. - The stock is trading at a P/E ratio of 17.27, significantly lower than the industry average of 24.71 [4]. - BJRI's Forward P/E has fluctuated between 16.91 and 28.43 over the past 52 weeks, with a median of 22.34 [4]. Group 2: Financial Metrics - BJRI has a PEG ratio of 1.23, compared to the industry average of 1.96, indicating a favorable valuation relative to expected EPS growth [5]. - The company has a P/S ratio of 0.55, which is lower than the industry's average P/S of 0.84, suggesting it may be undervalued [6]. - BJRI's P/CF ratio stands at 7.78, well below the industry average of 22.04, further indicating potential undervaluation [7]. Group 3: Investment Outlook - The combination of BJRI's strong earnings outlook and favorable valuation metrics suggests that the stock is likely undervalued at the moment [8].

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis in making informed investment decisions [1][2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility across various sectors [1]. - Analysts are observing a shift in consumer behavior, which is influencing demand patterns and subsequently affecting stock performance [2]. Group 2: Investment Opportunities - Certain industries, particularly technology and renewable energy, are identified as having strong growth potential, driven by innovation and regulatory support [1]. - Companies that adapt quickly to changing market conditions and consumer preferences are likely to outperform their peers [2]. Group 3: Financial Performance - Financial reports indicate that several companies have exceeded earnings expectations, showcasing resilience in challenging economic environments [1]. - Key metrics such as revenue growth and profit margins are being closely monitored to assess long-term viability and investment attractiveness [2].

Core Viewpoint - BJ's Restaurants reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.69 per share, and showing an increase from $0.72 per share a year ago, representing an earnings surprise of +40.58% [1] Financial Performance - The company achieved revenues of $365.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.97%, and up from $349.93 million year-over-year [2] - Over the last four quarters, BJ's Restaurants has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - BJ's Restaurants shares have increased approximately 4.5% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $337.8 million, and for the current fiscal year, it is $1.91 on revenues of $1.4 billion [7] - The outlook for the Retail - Restaurants industry is currently in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - The company reported Q2 sales of $366 million, a 4.5% increase year-over-year, with comparable restaurant sales growth of 2.9% driven by a 3.3% increase in traffic [18][19] - Restaurant level cash flow margins improved to 17%, reflecting a 150 basis point year-over-year increase, while adjusted EBITDA margins reached 11.5%, up 120 basis points [5][19] - Net income for the quarter was $22.2 million, with diluted net earnings per share of $0.97, marking a 35% increase compared to $0.72 per share last year [24] Business Line Data and Key Metrics Changes - The Pizookie Meal Deal has been a significant driver of traffic and sales, contributing to a 42% increase in seated reservations compared to Q2 last year [8] - The company has seen a reduction in comped meals by 16%, which has positively impacted the cost of sales [21][22] - The introduction of new menu items, such as the smash burger, has also contributed to sales growth, with the Pizookie Meal Deal accounting for about 15% of weekly sales [34][45] Market Data and Key Metrics Changes - The company experienced strong performance during key celebration periods, including record-breaking sales on Mother's Day and Father's Day [7][8] - Traffic growth has been consistent across various segments, with notable performance in delivery and takeout channels [18][19] - The company reported a 2% year-over-year food cost inflation, down from 3% in Q1, indicating improved cost management [22] Company Strategy and Development Direction - The company has established four strategic priorities: enhancing team member experience, improving handcrafted food and beverages, delivering exceptional hospitality, and refreshing the restaurant atmosphere [5][12] - A revamp of the pizza platform is planned for Q4, aimed at enhancing quality and reinforcing the brand's core offerings [14][15] - The company is focusing on operational efficiencies through initiatives like the activity-based labor model, which is expected to expand to 20% of restaurants by Q4 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining earnings expectations and comparable restaurant sales growth of approximately 2% for the remainder of the year [25] - The company is optimistic about the rollout of longer-term strategic initiatives and believes it is on track for sustainable growth [27] - Management noted that while July experienced some noise due to the holiday, performance has returned to expectations, reinforcing confidence in the business's progress [11][25] Other Important Information - The company repurchased approximately 438,000 shares at a cost of $15.1 million during the quarter, with $57 million remaining under the share repurchase authorization [24] - Capital expenditures for 2025 are projected between $65 million and $75 million, focusing on new restaurant openings and remodels [25] Q&A Session Summary Question: What are the next steps in refining the everyday value proposition? - Management emphasized building platforms rather than relying on limited-time offers, highlighting the success of the Pizookie Meal Deal and its potential for growth [32][34] Question: What progress has been made on training improvements? - Management reported significant progress in training and operational excellence, reflected in high NPS scores and reduced comp meals [38][40] Question: How is the alcohol mix trending? - Alcohol incidents have been declining, but new items like hard root beer have performed well, and there is a focus on total beverage growth [92][96] Question: What are the expectations for the activity-based labor model? - The model aims to improve hospitality and efficiency, with expected benefits in sales and guest experience over time [49][50] Question: How is the competitive landscape evolving? - Management noted consistency in consumer behavior and did not observe significant changes in closures or openings in the market [51][52]

[Fiscal Second Quarter 2025 Highlights](index=1&type=section&id=Fiscal_Second_Quarter_2025_Highlights) BJ's Restaurants, Inc. reported strong financial and operational performance for the fiscal second quarter of 2025, with notable increases in revenues, comparable restaurant sales, and profitability metrics compared to the prior year Metric | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY Change (%) | | :-------------------------------- | :---------- | :---------- | :----------- | :------------- | | Total revenues | $365.6 million | $349.9 million | +$15.7 million | +4.5% | | Comparable restaurant sales | +2.9% | -0.6% | +3.5% | - | | Diluted net income per share | $0.97 | $0.72 | +$0.25 | +34.8% | | Adjusted diluted net income per share | $0.97 | $0.78 | +$0.19 | +25.1% | | Restaurant level operating profit | $62.1 million | $54.2 million | +$7.9 million | +14.6% | | Restaurant level operating profit margin | 17.0% | 15.5% | +1.5% | +150 bps | | Adjusted EBITDA | $42.1 million | $36.1 million | +$6.0 million | +16.6% | - The Company repurchased and retired **approximately 438,000 shares** of its common stock at a cost of **approximately $15.1 million** during the quarter[8](index=8&type=chunk) [Management Commentary & Strategic Initiatives](index=1&type=section&id=Management_Commentary_Strategic_Initiatives) CEO Lyle Tick highlighted continued growth in sales and profitability, attributing success to the Pizookie Meal Deal, strong operational fundamentals, and a focus on guest and team member experience - **Traffic-driven top-line growth** and **year-over-year profitability improvement** were achieved through the **compelling value of the Pizookie Meal Deal**, **strong operational fundamentals**, and a **focus on guest and team member experience**[4](index=4&type=chunk) - Comparable restaurant sales growth for the year remains in line with initial expectations, despite weather-related impacts earlier in the year and a temporary slow start to July, which has since normalized[4](index=4&type=chunk) - The brand positioning project is complete, and the company is prioritizing key opportunities for BJ's, which will be implemented across menu, operations, and marketing later in 2025 and into 2026 to build **sustainable and profitable growth**[4](index=4&type=chunk) [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) BJ's Restaurants, Inc. continued its share repurchase program during the second quarter of 2025, repurchasing a significant number of shares and indicating remaining authorization for future repurchases - During the second quarter of 2025, the Company repurchased and retired **approximately 438,000 shares** of its common stock[5](index=5&type=chunk) - The cost of these repurchases was **approximately $15.1 million**[5](index=5&type=chunk) - As of July 1, 2025, **approximately $56.7 million** remained under the Company's authorized share repurchase program[5](index=5&type=chunk) [Fiscal Year 2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) Management provided its financial outlook for fiscal year 2025, anticipating continued comparable restaurant sales growth and specific ranges for key financial metrics, subject to the U.S. consumer environment and trade policies Fiscal Year 2025 Guidance | Metric | Outlook | | :-------------------------------- | :-------------------------------- | | Comparable restaurant sales growth | Approximately 2% | | Restaurant level operating profit | $211 million to $219 million | | Adjusted EBITDA | $132 million to $140 million | | Capital expenditures | $65 million to $75 million | | Share repurchases | $45 million to $55 million, depending on market conditions | [Investor Conference Call and Webcast](index=1&type=section&id=Investor%20Conference%20Call%20and%20Webcast) BJ's Restaurants, Inc. announced details for its conference call and live audio webcast to discuss the fiscal second quarter 2025 earnings, providing investors with an opportunity to hear management's insights and participate in a Q&A session - A conference call and live audio webcast for the second quarter 2025 earnings release will be held on July 31, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)[10](index=10&type=chunk) - The webcast will be accessible on the 'Investors' page of the Company's website (http://www.bjsrestaurants.com), with a recording archived for 30 days[10](index=10&type=chunk) [About BJ's Restaurants, Inc.](index=2&type=section&id=About%20BJ's%20Restaurants,%20Inc.) BJ's Restaurants, Inc. is a national casual dining brand founded in 1978, operating over 200 restaurants across 31 states - BJ's Restaurants, Inc. is a national casual dining brand with brewhouse roots, founded in 1978, operating over **200 restaurants** across **31 states**[11](index=11&type=chunk) - The brand offers a chef-crafted menu including signature deep-dish pizzas, slow-roasted entrees, wings, and the world-famous Pizookie® dessert[11](index=11&type=chunk) - BJ's has been a pioneer in craft brewing since 1996, serving award-winning proprietary handcrafted beers, and offers dine-in, take-out, delivery, and large party catering[11](index=11&type=chunk) [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section serves as a disclaimer for forward-looking statements within the report, emphasizing that such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from projections - Statements in the report that are not purely historical are considered 'forward-looking' and are covered by safe harbors under securities acts[12](index=12&type=chunk) - These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from projected or anticipated outcomes[12](index=12&type=chunk) - Factors that might cause differences include rising costs (energy, labor, construction), macroeconomic conditions, consumer spending, labor market conditions, regulatory changes, competition, and other matters discussed in SEC filings[12](index=12&type=chunk) [Financial Statements](index=3&type=section&id=Financial_Statements) This section presents the company's unaudited consolidated financial statements, including statements of operations, balance sheet information, and supplemental operating data [Unaudited Consolidated Statements of Operations](index=3&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The unaudited consolidated statements of operations present BJ's Restaurants, Inc.'s financial performance for the second quarter and six months ended July 1, 2025, compared to the same periods in 2024, showing increases in revenues and net income Consolidated Statements of Operations (Q2 2025 vs. Q2 2024) | Metric | July 1, 2025 (in thousands) | % of Revenues | July 2, 2024 (in thousands) | % of Revenues | YoY Change (Value) | YoY Change (%) | | :-------------------------------- | :-------------------------- | :------------ | :-------------------------- | :------------ | :----------------- | :------------- | | Revenues | $365,597 | 100.0% | $349,927 | 100.0% | +$15,670 | +4.5% | | Cost of sales | $90,803 | 24.8% | $89,836 | 25.7% | +$967 | +1.1% | | Labor and benefits | $129,374 | 35.4% | $126,309 | 36.1% | +$3,065 | +2.4% | | Income from operations | $21,214 | 5.8% | $13,221 | 3.8% | +$7,993 | +60.5% | | Net income | $22,208 | 6.1% | $17,157 | 4.9% | +$5,051 | +29.4% | | Diluted Net Income Per Share | $0.97 | | $0.72 | | +$0.25 | +34.7% | Consolidated Statements of Operations (Six Months Ended July 1, 2025 vs. July 2, 2024) | Metric | July 1, 2025 (in thousands) | % of Revenues | July 2, 2024 (in thousands) | % of Revenues | YoY Change (Value) | YoY Change (%) | | :-------------------------------- | :-------------------------- | :------------ | :-------------------------- | :------------ | :----------------- | :------------- | | Revenues | $713,570 | 100.0% | $687,261 | 100.0% | +$26,309 | +3.8% | | Cost of sales | $177,623 | 24.9% | $174,789 | 25.4% | +$2,834 | +1.6% | | Labor and benefits | $255,026 | 35.7% | $251,330 | 36.6% | +$3,696 | +1.5% | | Income from operations | $36,164 | 5.1% | $21,479 | 3.1% | +$14,685 | +68.4% | | Net income | $35,700 | 5.0% | $24,880 | 3.6% | +$10,820 | +43.5% | | Diluted Net Income Per Share | $1.54 | | $1.04 | | +$0.50 | +48.1% | [Selected Consolidated Balance Sheet Information](index=3&type=section&id=Selected%20Consolidated%20Balance%20Sheet%20Information) This section provides key consolidated balance sheet figures for BJ's Restaurants, Inc. as of July 1, 2025, compared to December 31, 2024, highlighting changes in assets, debt, and shareholders' equity Selected Consolidated Balance Sheet Information | Metric | July 1, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (Value) | Change (%) | | :-------------------------- | :-------------------------- | :------------------------------- | :------------- | :--------- | | Cash and cash equivalents | $25,964 | $26,096 | -$132 | -0.5% | | Total assets | $1,025,237 | $1,041,064 | -$15,827 | -1.5% | | Total debt | $60,500 | $66,500 | -$6,000 | -9.0% | | Shareholders' equity | $386,564 | $370,017 | +$16,547 | +4.5% | [Unaudited Supplemental Information](index=4&type=section&id=Unaudited%20Supplemental%20Information) This section provides supplemental operating data, including comparable restaurant sales changes, restaurant count, and restaurant operating weeks, along with details on stock-based compensation for the second quarter and six months ended July 1, 2025 Operating Data | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Comparable restaurant sales % change | 2.9% | (0.6)% | 2.3% | (1.1)% | | Restaurants opened during period | - | - | 1 | 1 | | Restaurants open at period-end | 219 | 216 | 219 | 216 | | Restaurant operating weeks | 2,847 | 2,821 | 5,682 | 5,629 | Stock-based Compensation (in thousands) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Labor and benefits | $865 | $529 | $1,265 | $1,037 | | General and administrative | $1,042 | $2,237 | $2,592 | $4,206 | | Total stock-based compensation | $1,907 | $2,766 | $3,857 | $5,243 | - One restaurant was permanently closed during the period[22](index=22&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=4&type=section&id=Reconciliation_of_Non-GAAP_Financial_Measures) This section provides reconciliations of GAAP financial measures to non-GAAP measures, including adjusted diluted net income per share, restaurant level operating profit, and Adjusted EBITDA [Adjusted Diluted Net Income Per Share Reconciliation](index=5&type=section&id=Supplemental%20Financial%20Information%20%E2%80%93%20Adjusted%20Diluted%20Net%20Income%20Per%20Share) This section reconciles GAAP net income to Adjusted diluted net income per share for the second quarter and six months ended July 1, 2025, and July 2, 2024, by adjusting for loss on disposal and impairment of assets and its tax effects to provide a clearer view of underlying performance Adjusted Diluted Net Income Per Share Reconciliation | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | 6M 2025 (in thousands) | 6M 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net income (GAAP) | $22,208 | $17,157 | $35,700 | $24,880 | | Loss on disposal and impairment of assets, net | $195 | $1,928 | $368 | $2,712 | | Tax effect of adjustments | ($47) | ($467) | ($89) | ($656) | | Adjusted net income | $22,356 | $18,618 | $35,979 | $26,936 | | Diluted net income per share (as reported) | $0.97 | $0.72 | $1.54 | $1.04 | | Adjusted diluted net income per share | $0.97 | $0.78 | $1.56 | $1.12 | - The tax effect for adjustments is based on the Company's **annual statutory tax rate of 24.2%** for both periods[29](index=29&type=chunk) [Restaurant Level Operating Profit Reconciliation](index=5&type=section&id=Supplemental%20Financial%20Information%20%E2%80%93%20Restaurant%20Level%20Operating%20Profit) This section reconciles GAAP income from operations to Restaurant level operating profit for the second quarter and six months ended July 1, 2025, and July 2, 2024, by adding back non-restaurant specific costs such as general and administrative expenses, depreciation, and restaurant opening costs Restaurant Level Operating Profit Reconciliation | Metric | Q2 2025 (in thousands) | % of Revenues | Q2 2024 (in thousands) | % of Revenues | 6M 2025 (in thousands) | % of Revenues | 6M 2024 (in thousands) | % of Revenues | | :-------------------------------- | :--------------------- | :------------ | :--------------------- | :------------ | :--------------------- | :------------ | :--------------------- | :------------ | | Income from operations (GAAP) | $21,214 | 5.8% | $13,221 | 3.8% | $36,164 | 5.1% | $21,479 | 3.1% | | General and administrative | $21,750 | 5.9% | $20,604 | 5.9% | $43,502 | 6.1% | $43,601 | 6.3% | | Depreciation and amortization | $18,736 | 5.1% | $18,163 | 5.2% | $37,013 | 5.2% | $36,036 | 5.2% | | Restaurant opening | $225 | 0.1% | $300 | 0.1% | $663 | 0.1% | $890 | 0.1% | | Loss on disposal and impairment of assets, net | $195 | 0.1% | $1,928 | 0.6% | $368 | 0.1% | $2,712 | 0.4% | | **Restaurant level operating profit** | **$62,120** | **17.0%** | **$54,216** | **15.5%** | **$117,710** | **16.5%** | **$104,718** | **15.2%** | [Net Income to Adjusted EBITDA Reconciliation](index=5&type=section&id=Supplemental%20Financial%20Information%20%E2%80%93%20Net%20Income%20to%20Adjusted%20EBITDA) This section provides a reconciliation of GAAP net income to Adjusted EBITDA for the second quarter and six months ended July 1, 2025, and July 2, 2024, by adjusting for non-operating and non-cash items such as interest, taxes, depreciation, amortization, stock-based compensation, and other income/losses Net Income to Adjusted EBITDA Reconciliation | Metric | Q2 2025 (in thousands) | % of Revenues | Q2 2024 (in thousands) | % of Revenues | 6M 2025 (in thousands) | % of Revenues | 6M 2024 (in thousands) | % of Revenues | | :-------------------------------- | :--------------------- | :------------ | :--------------------- | :------------ | :--------------------- | :------------ | :--------------------- | :------------ | | Net income (GAAP) | $22,208 | 6.1% | $17,157 | 4.9% | $35,700 | 5.0% | $24,880 | 3.6% | | Interest expense, net | $1,272 | 0.3% | $1,259 | 0.4% | $2,502 | 0.4% | $2,670 | 0.4% | | Income tax expense (benefit) | $1,495 | 0.4% | ($2,423) | (0.7)% | $1,662 | 0.2% | ($2,603) | (0.4)% | | Depreciation and amortization | $18,736 | 5.1% | $18,163 | 5.2% | $37,013 | 5.2% | $36,036 | 5.2% | | Stock-based compensation expense | $1,907 | 0.5% | $2,766 | 0.8% | $3,857 | 0.5% | $5,243 | 0.8% | | Other income, net | ($3,761) | (1.0)% | ($2,772) | (0.8)% | ($3,700) | (0.5)% | ($3,468) | (0.5)% | | Loss on disposal and impairment of assets, net | $195 | 0.1% | $1,928 | 0.6% | $368 | 0.1% | $2,712 | 0.4% | | **Adjusted EBITDA** | **$42,052** | **11.5%** | **$36,078** | **10.3%** | **$77,402** | **10.8%** | **$65,470** | **9.5%** |

Core Insights - BJ's Restaurants, Inc. reported a 4.5% increase in total revenues to $365.6 million for the second quarter of fiscal 2025 compared to the same period in 2024 [8] - The company achieved a 2.9% growth in comparable restaurant sales, with diluted net income per share rising by 34.8% to $0.97 [8] - Adjusted EBITDA increased by 16.6% to $42.1 million, reflecting strong operational fundamentals and effective strategic initiatives [8][4] Financial Performance - Total revenues for the second quarter of 2025 were $365.6 million, up from $349.9 million in the second quarter of 2024 [15] - Net income for the second quarter was $22.2 million, a 29.5% increase from $17.2 million in the prior year [15] - Adjusted diluted net income per share was $0.97, compared to $0.78 in the same quarter of 2024, marking a 25.1% increase [8][15] Operational Highlights - Restaurant level operating profit reached $62.1 million, a 14.6% increase, with a margin of 17.0%, up 150 basis points from the previous year [8][29] - The company repurchased approximately 438,000 shares at a cost of $15.1 million during the second quarter, with $56.7 million remaining under its share repurchase program [5] - BJ's Restaurants operates over 200 locations across 31 states, focusing on high-quality ingredients and a diverse menu [11] Future Outlook - For fiscal 2025, the company anticipates comparable restaurant sales growth of approximately 2%, with restaurant level operating profit projected between $211 million and $219 million [9] - Adjusted EBITDA is expected to range from $132 million to $140 million, with capital expenditures estimated at $65 million to $75 million [9] - The company is prioritizing key opportunities in menu, operations, and marketing as part of its strategic plan for sustainable growth [4]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for BJ's Restaurants despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - BJ's Restaurants is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decrease of 4.2% [3][18]. - Revenue is projected to be $361.6 million, which is an increase of 3.3% from the same quarter last year [3][18]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4][19]. - The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +17.39%, suggesting a bullish outlook from analysts [12][19]. Earnings Surprise Potential - BJ's Restaurants has a history of beating consensus EPS estimates, having surpassed expectations in three out of the last four quarters [14][19]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 indicates a likelihood of beating the consensus EPS estimate [12][19]. Industry Context - BJ's Restaurants is positioned within the Zacks Retail - Restaurants industry, where it is expected to post earnings that reflect broader industry trends [18].