BJ’s(US:BJRI)2025-10-30 22:00Financial Data and Key Metrics Changes - The company reported Q3 sales of $330 million, a 1.4% increase year-over-year, with same-store sales growth of 0.5% [22][24] - Restaurant-level operating profit increased by 8.8% to $41.3 million, with operating margins at 12.5%, an improvement of 80 basis points year-over-year [24][25] - Adjusted EBITDA margins reached 6.4%, representing a 70 basis points improvement year-over-year, with adjusted EBITDA increasing 14.1% to $21.1 million [24][25] Business Line Data and Key Metrics Changes - The Pizookie Meal Deal has been a significant driver of traffic growth, contributing to the overall increase in guest frequency and satisfaction [8][19] - The company has seen a 3.5% year-on-year traffic increase in the last six weeks of Q3, outperforming casual dining benchmarks [5][19] - The late-night segment continues to grow, contributing to traffic but carrying a lower average check [11][23] Market Data and Key Metrics Changes - The company has experienced a positive trend in guest satisfaction scores and team member retention metrics, reaching multi-year highs [6][19] - The marketing strategy has shifted towards social media and influencer engagement, resulting in a 300% increase in earned media impressions year-over-year [9][10] Company Strategy and Development Direction - The company is focused on four strategic priorities: enhancing team member experience, improving handcrafted food and beverage offerings, delivering well hospitality, and advancing technology initiatives [12][14][16] - A new pizza platform is set to launch on November 6, aimed at refreshing the menu and driving engagement [14][15] - The company plans to pilot a refreshed restaurant prototype in 2026, with a focus on building a flexible pipeline for new unit growth [18][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance through Q4, reiterating full-year top-line guidance of approximately 2% [5][27] - The company is optimistic about the foundational work laid in 2025, which positions it for sustainable growth moving forward [19][45] - Management noted an increase in frequency across all age and income cohorts, indicating a positive consumer behavior trend [33][34] Other Important Information - The company repurchased 996,000 shares for $33.2 million in Q3, with updated share repurchase expectations for 2025 increased to $65-$80 million [22][27] - The company ended Q3 with a net funded debt of $64.1 million, maintaining a healthy balance sheet [22] Q&A Session Summary Question: What drove the acceleration in traffic in the back half of September and into October? - Management attributed the traffic acceleration to foundational improvements in guest metrics, satisfaction, and the success of the Pizookie Meal Deal and social media engagement [28][29] Question: Is the 3% range for Q4 comps realistic? - Management indicated that they are looking at about 2% to 2.5% growth for Q4, which would align with the full-year guidance of approximately 2% [31][32] Question: How are you thinking about pricing power going forward? - Management emphasized the importance of delivering a value equation and indicated that they believe they have some pricing power, which will be approached judiciously [52][54] Question: What are the plans for the new pizza launch? - The pizza launch will be supported by external marketing, focusing on social media and influencer engagement to drive awareness [49][50] Question: What is the outlook for remodels and new unit growth? - Management confirmed plans to continue the remodel program and is building a pipeline for new unit growth, with two new openings targeted for the second half of 2026 [36][38]