Financial Data and Key Metrics Changes - For the full year 2025, total revenues reached $1.64 billion, representing a growth of 28% compared to the previous year, and more than doubling since the end of 2022 [6][23] - Adjusted EBITDA for 2025 grew by 31% to $303 million, outpacing revenue growth [7][23] - System same-shop sales growth was 5.6% for the year, with Q4 showing a growth of 7.7% [6][24] - Company-operated contribution margin was approximately 29% for 2025, reflecting over 400 basis points of margin expansion since 2022 [7][23] Business Line Data and Key Metrics Changes - New shop growth contributed significantly, with 154 new shop openings in 2025, leading to a total of 1,136 system-wide shops [6][24] - Company-operated same-shop sales growth in Q4 was 9.7%, driven by strong transaction growth of 7.6% [27] - System-wide average unit volumes (AUVs) reached a record $2.1 million, indicating strong shop-level economics [8][23] Market Data and Key Metrics Changes - The company expanded into seven contiguous states, including North Carolina, increasing its market presence to 25 states [11] - The new food program has been rolled out to over 300 shops across 11 states, with plans for completion by the end of 2026 [19] Company Strategy and Development Direction - The company aims to reach 2,029 shops by 2029, with a clear strategy focused on growth through people and brand investment [9][19] - A shift towards a foundational top-of-the-funnel paid advertising engine has been implemented to enhance brand awareness [14] - The company is also focusing on expanding its CPG platform, which includes creamers and ready-to-drink offerings, to drive long-term growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate competitive pressures and maintain traffic strength, citing strong same-shop sales performance [38] - The company anticipates continued transaction growth in 2026, with expectations of opening at least 181 new system shops [12][27] - Management acknowledged commodity cost pressures but remains optimistic about achieving long-term contribution margin goals [24][29] Other Important Information - The company has built a strong pipeline of regional operator candidates, increasing from approximately 400 to 475 since the end of 2022 [10] - The loyalty program, Dutch Rewards, surpassed 15 million members, with 72% of system transactions attributed to it [16] Q&A Session Summary Question: How will the company protect traffic during competitive pressures? - Management highlighted the strength of their value proposition and service quality, expressing confidence in maintaining traffic strength despite competition [38] Question: What is the mandate for the new Chief Shops Officer? - The focus will be on supporting baristas and enhancing operational initiatives, including the food program and mobile ordering [40] Question: What metrics can be shared regarding the food program's impact? - Management is tracking various operational metrics and is pleased with the initial results, indicating a long-term strategy for food offerings [46] Question: How does the company view the Clutch acquisition? - The acquisition is seen as a capital-efficient way to expand into new markets, with plans for conversion and opening in Q2 and Q3 [60][84] Question: What is the outlook for competition in specific markets? - Management noted that they are not currently seeing pressures on site availability or costs due to competition, maintaining a strong position in real estate [71]

Financial Data and Key Metrics Changes - For the full year 2025, total revenues grew by 28%, reaching $1.64 billion, more than doubling since the end of 2022 [6][23] - Adjusted EBITDA for 2025 increased by 31%, reaching $303 million, outpacing revenue growth [7][23] - System same-shop sales growth was 5.6% for the year, with Q4 same-shop sales growth at 7.7% [6][24] Business Line Data and Key Metrics Changes - New shop growth contributed 16% to overall performance, with 154 new shop openings in 2025 [6][24] - Company-operated same-shop sales growth was 9.7% in Q4, driven by strong transaction growth of 7.6% [24][28] - Company-operated contribution margin improved to 27.6% in Q4, reflecting effective cost management despite rising coffee costs [28][30] Market Data and Key Metrics Changes - System-wide average unit volumes (AUVs) reached a record $2.1 million, indicating strong shop-level economics [8][23] - The company expanded into seven contiguous states, increasing its system shop footprint to 25 states and 1,136 shops [11][12] Company Strategy and Development Direction - The company aims to reach 2,029 shops by 2029, with a clear strategy focused on expanding its shop footprint and enhancing customer experience [9][19] - A significant focus on brand awareness through paid advertising and the rollout of a consumer packaged goods (CPG) platform is expected to drive long-term growth [14][15] - The company is also enhancing its food program, which has shown promising results in terms of transaction and ticket lift [19][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate competitive pressures and maintain strong transaction growth, citing a robust value proposition [38][55] - The company anticipates continued momentum into 2026, with expectations of opening at least 181 new system shops [12][27] - Management acknowledged potential headwinds from elevated coffee costs but remains optimistic about achieving long-term margin goals [23][29] Other Important Information - The company has successfully generated free cash flow for two consecutive years, reinforcing its financial stability [32][34] - The average capital expenditure per shop decreased from $1.8 million in Q4 2024 to $1.3 million in Q4 2025, reflecting improved efficiency in shop openings [30][70] Q&A Session Summary Question: How does the company plan to protect traffic during competitive pressures? - Management highlighted the strength of their value proposition and service quality, expressing confidence in maintaining traffic despite competition [38] Question: What is the mandate for the new Chief Shops Officer? - The focus will be on supporting Broistas and enhancing operational initiatives, including the food program and mobile ordering [40] Question: What metrics are being tracked for the food program? - Management is monitoring Broista satisfaction, customer feedback, and operational metrics to assess the food program's success [46] Question: How does the company view the Clutch acquisition? - The acquisition is seen as a capital-efficient way to expand into new markets, with plans for conversion to Dutch Bros locations [59][81] Question: What is the outlook for competition in specific markets? - Management noted that they are not currently experiencing pressures on site availability or build costs, maintaining a strong position in real estate [70]

Financial Data and Key Metrics Changes - For the full year 2025, total revenues grew by 28%, reaching $1.64 billion, more than doubling since the end of 2022 [4][20] - Adjusted EBITDA increased by 31% to $303 million, outpacing revenue growth [5][20] - System same-shop sales growth was 5.6% for the year, with Q4 same-shop sales growth at 7.7% [6][20] Business Line Data and Key Metrics Changes - New shop growth contributed 16% with 154 new shop openings in 2025 [4][20] - Company-operated same-shop sales growth was 9.7% in Q4, driven by strong transaction growth of 7.6% [25][20] - Company-operated contribution margin was approximately 27.6% in Q4, reflecting a 24% increase year-over-year [26][20] Market Data and Key Metrics Changes - System-wide average unit volumes (AUVs) reached a record $2.1 million, indicating strong shop-level economics [6][20] - The company expanded into seven contiguous states, increasing its system shop footprint to 25 states and 1,136 shops [10][20] Company Strategy and Development Direction - The company aims to reach 2,029 shops by 2029, with a clear strategy focused on long-term growth through people and brand investment [7][17] - A significant focus on enhancing brand awareness through a top-of-the-funnel paid advertising engine and the rollout of the Dutch Bros CPG platform [12][13] - The company is also expanding its food program, which has shown promising results in driving incremental beverage occasions [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate commodity cost headwinds and maintain a long-term contribution margin goal of approximately 30% [20][31] - The company anticipates continued transaction growth in 2026, with system same-shop sales growth projected at 3%-5% [23][31] - Management highlighted the importance of their people and operational excellence in driving future growth [8][17] Other Important Information - The company reported approximately $705 million in total liquidity as of December 31, including $269 million in cash [29][31] - The average capital expenditure per shop decreased from $1.8 million in Q4 2024 to $1.3 million in Q4 2025 [30][68] Q&A Session Summary Question: How will the company protect traffic during competitive pressures? - Management highlighted the strength of their value proposition and confidence in their service and product quality, noting strong same-shop sales growth [34][35] Question: What is the mandate for the new Chief Shops Officer? - The focus will be on supporting baristas and enhancing initiatives like the food program and mobile ordering [37][38] Question: What are the expectations for new store productivity? - Management expects strong performance from new shops, with a target of $1.8 million in AUVs [46][49] Question: How is the food program impacting margins? - The food program is expected to be dollar accretive but may pressure overall margins due to elevated costs [55][57] Question: What are the learnings from the new walk-up store in Los Angeles? - Initial results are promising, and the company sees potential for urban expansion through this model [75][76] Question: Is the company actively seeking acquisition opportunities like Clutch? - Management confirmed they are open to conversion opportunities and view them as a productive use of capital [63][64]

BJ’s Wholesale Club (NYSE:BJ) Q3 2026 Earnings Call November 21, 2025 08:30 AM ET Company ParticipantsLaura Felice - CFOAng Singh - VP FP&ASteven Zaccone - Director of Equity ResearchNone - Unknown Speaker 2Bill Werner - Executive VPNone - Unknown Speaker 1Bob Eddy - Chairman and CEOConference Call ParticipantsRobbie Owens - AnalystMike Baker - Managing Director and Senior Research AnalystKate McShane - AnalystRupesh Parikh - AnalystPeter Benedict - AnalystPedro Gale - AnalystChuck Grom - AnalystOperatorHel ...

BJ’s Wholesale Club (NYSE:BJ) Q3 2026 Earnings Call November 21, 2025 08:30 AM ET Company ParticipantsLaura Felice - CFOAng Singh - VP FP&ASteven Zaccone - Director of Equity ResearchNone - Unknown Speaker 2Bill Werner - Executive VPNone - Unknown Speaker 1Bob Eddy - Chairman and CEOConference Call ParticipantsRobbie Owens - AnalystMike Baker - Managing Director and Senior Research AnalystKate McShane - AnalystRupesh Parikh - AnalystPeter Benedict - AnalystPedro Gale - AnalystChuck Grom - AnalystOperatorHel ...

Financial Data and Key Metrics Changes - Net sales for Q3 were approximately $5.2 billion, growing 4.8% year over year [15] - Total comparable club sales increased 1.1% year over year, with merchandise comp sales growing by 1.8% [15][19] - Adjusted earnings per share were $1.16, a decrease of approximately 2% year over year due to a legal settlement [20] - Adjusted EBITDA was down about 2% year over year to $301.4 million, but grew approximately 5% when adjusting for the settlement [19][20] Business Line Data and Key Metrics Changes - Perishables, grocery, and sundries division grew comp sales by 1.8%, with a two-year stack of 6% [5][16] - General merchandise and services division also increased by 1.8% in Q3, with a two-year stack of about 2% [16] - Digital sales grew by 30% year over year and 61% on a two-year stack, now approaching 17% of total sales [10][17] Market Data and Key Metrics Changes - Membership fee income grew by nearly 10% to approximately $126.3 million, driven by strong member counts and a recent fee increase [8][17] - Comp gallons in the gas business grew 2% year over year, significantly outpacing the industry [19] Company Strategy and Development Direction - The company is focused on enhancing member value through improved merchandising, digital convenience, and expansion of physical footprint [25] - A new club opened in Warner Robins, Georgia, and another in Smyrna, Tennessee, both performing above expectations [10][11] - The company plans to open 14 new clubs this year, the most in many years, and aims for 25-30 new clubs in the next two years [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value despite a challenging macroeconomic environment [13][24] - The company is narrowing its full-year merchandise comp sales guidance to a range of 2%-3% and increasing expected adjusted earnings per share to $4.30-$4.40 [23][24] - Management highlighted the importance of maintaining a focus on member value and long-term growth strategies [25] Other Important Information - The company has launched new own-brand products aimed at providing high quality at lower prices, enhancing member loyalty [9] - A 10% discount for team members was introduced to support them during the holiday season [61] - The company is leveraging AI for improved shopping experiences and operational efficiencies [72][74] Q&A Session Summary Question: Exposure to SNAP program and member behavior across income demographics - Management noted that low-income consumers showed resilience in purchasing habits despite inflation pressures, with stable performance observed [28][30] Question: Long-term sales growth expectations - Management expressed confidence in achieving long-term growth through improved membership, merchandising, and convenience [35][36] Question: Competitive response in new markets - Management indicated strong performance in new clubs and confidence in competing effectively in markets like Dallas [39][40] Question: Inventory positioning for Q4 - Management acknowledged a conservative inventory position that may limit sales upside but supports overall value for members [44][45] Question: Fourth quarter same-store sales assumptions - Management is cautiously optimistic about Q4 performance, with preparations in place for the holiday season [53][54] Question: General merchandise inventory planning for next year - Management indicated that inventory decisions are made based on ongoing clarity regarding tariffs and consumer response [56][57] Question: Sustainability of SG&A per square foot levels - Management emphasized the importance of maintaining efficiency in operations while planning for future investments [83][84]