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BJ's Restaurants Inc (BJRI) Q1 2025 Earnings Call Highlights: Strong Traffic Growth and Margin ...

In This Article:

  • Revenue: $348 million, a 3.2% increase from last year.

  • Comparable Restaurant Sales: Increased by 1.7%, driven by 2.7% traffic growth.

  • Restaurant Level Operating Margin: 16%, a 100 basis point improvement year over year.

  • Adjusted EBITDA Margin: 10.2%, representing a 150 basis point improvement year over year.

  • Net Income: $13.5 million, with diluted net income per share of $0.58, an 80% increase from $0.32 per share last year.

  • Share Repurchase: Approximately 404,000 shares repurchased at a cost of $14.1 million during the quarter.

  • Net Debt: $66.5 million, with a debt balance of $85.5 million and cash equivalents of $19 million.

  • Updated 2025 Financial Outlook: Raised profit guidance with expected restaurant level operating profit of $210 million to $219 million and adjusted EBITDA of $131 million to $140 million.

  • Capital Expenditures: Expected to be $65 million to $75 million for the year.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • BJ's Restaurants Inc (NASDAQ:BJRI) reported a strong first quarter with a 2.7% traffic growth, outperforming the industry average by 320 basis points.

  • The company achieved a 16% restaurant level operating margin and a 10.2% adjusted EBITDA margin, marking improvements of 100 and 150 basis points year over year, respectively.

  • BJ's Restaurants Inc (NASDAQ:BJRI) raised its earnings expectations and increased its planned share buyback range due to stronger margin performance.

  • The Pezuki meal deal and social media engagement have driven significant traffic growth, with over 57 million organic social impressions and a 17 times increase in Pezuki platter sales.

  • The company has successfully implemented operational improvements, including a 13% reduction in comp food and beverage costs and a 4% reduction in repair and maintenance spend.

Negative Points

  • Sales were slightly behind internal expectations, particularly in February, due to adverse weather and delays in federal income tax refund processing.

  • Despite strong traffic growth, the mix component was lighter, with some nominal increase in Pezuki meal deal incidents affecting overall check growth.

  • The company faces potential macroeconomic headwinds in 2025, with anticipated modest incremental inflation in the second half due to tariffs.

  • BJ's Restaurants Inc (NASDAQ:BJRI) has a long lead time for new restaurant openings, with expected benefits not materializing until the back half of 2026.

  • The off-premise business, particularly third-party delivery, has room for improvement, with current consumer experience friction and merchandising not fully optimized.