BJ's Restaurants Details Turnaround Plan at ICR Conference as Traffic Rises and Growth Returns in Sight

Core Insights - BJ's Restaurants is focusing on improving operational consistency and sustaining traffic momentum to set the stage for potential unit growth [4] - The company has reported five consecutive quarters of positive traffic, with a 3.5% increase in Q4 traffic attributed to better execution and improved guest scores [6] - The leadership team is committed to foundational changes centered on alignment and accountability, with a focus on four strategic priorities [3] Financial Performance - The company has achieved average unit volumes (AUVs) above $6 million and same-store sales growth over the last five quarters [1] - Cash generation is strong, providing flexibility for investments, growth, and returning capital to shareholders through a share buyback program in 2025 [5] - The company expects to shift more capital towards growth-driving initiatives as it moves into new unit growth [16] Operational Improvements - Management is emphasizing basic service elements such as warm greetings and timely service to enhance guest experience [2] - A robust outlier management program has been implemented to lift underperforming restaurants, focusing on metrics like waste and overtime [12] - Simplification efforts have reduced food and beverage comps significantly, with a 25% reduction in margarita comps due to improved processes [13] Marketing and Product Strategy - The Pizookie Meal Deal is a key driver for both returning guests and attracting new customers, with limited-time offers enhancing its appeal [7] - Marketing efforts are heavily social media-driven, utilizing influencer engagement to create buzz around menu innovations [8] - The company is not planning major new strategies for 2026 but will continue to build on existing foundational strategies while remaining agile [9] Future Outlook - The company aims to build a more consistent and durable brand that can support renewed unit growth in the long term [16] - Management is taking a longer-term view to ensure that BJ's can meet investor expectations for consistency [16] - There is an expectation for more capital to be allocated towards growth initiatives rather than share repurchases as the stock stabilizes [15]