BJ’s Restaurants’ first quarter results were met with a positive market reaction, as management highlighted continued momentum in guest traffic and product innovation. CEO Lyle Tick credited the seventh consecutive quarter of sales and traffic growth to upgraded menu offerings and improved operational execution, noting, “Same-store sales increased 2.4%, driven primarily by 2.2% traffic growth.” The company’s initiatives in menu renovation—particularly in burgers and pizza—helped offset challenges such as adverse winter weather and higher labor-related expenses. Despite these headwinds, restaurant-level operating margins remained stable, supported by disciplined cost control and targeted marketing strategies, including a shift towards digital channels and reduced traditional media spend.
Is now the time to buy BJRI? Find out in our full research report (it’s free for active Edge members).
BJ's (BJRI) Q1 CY2026 Highlights:
- Revenue: $358.1 million vs analyst estimates of $357 million (2.9% year-on-year growth, in line)
- Adjusted EPS: $0.57 vs analyst expectations of $0.61 (5.8% miss)
- Adjusted EBITDA: $37.75 million vs analyst estimates of $37.21 million (10.5% margin, 1.4% beat)
- EBITDA guidance for the full year is $145 million at the midpoint, below analyst estimates of $146 million
- Operating Margin: 3%, down from 4.3% in the same quarter last year
- Locations: 219 at quarter end, in line with the same quarter last year
- Same-Store Sales rose 2.4% year on year, in line with the same quarter last year
- Market Capitalization: $885 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BJ's’s Q1 Earnings Call
- Brian Bittner (Oppenheimer & Company) asked about the opportunity for average check to contribute more to comp growth. CEO Lyle Tick and CFO Todd Wilson responded that check growth is expected to be flat to up 1% for the year, with new menu initiatives intended to support this trend.
- Jeffrey Bernstein (Barclays) inquired about the resilience of BJ’s consumer base and any impact from gas prices. Tick emphasized consistent guest behavior and outperformance versus industry benchmarks, while Wilson noted that outperformance was broad-based across all geographies.
- Alexander Slagle (Jefferies) questioned the evolution of the Pizookie meal deal and the introduction of tiering options. Tick explained that premium tiers and new product additions are being tested to further drive guest engagement and trade-up opportunities.
- Nerses Setyan (Mizuho) focused on labor and cost efficiency. Wilson indicated opportunities remain for improved labor margins, with ongoing initiatives to optimize staffing and operational best practices throughout the year.
- Jon Tower (Citi) asked about the rationale for premiumization tests and potential World Cup business. Tick noted the tests are based on observed guest behavior and broader market trends, and that marketing will leverage major sporting events to drive incremental sales.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will monitor (1) the impact of new premium menu items and Pizookie meal deal tiering on guest frequency and average check, (2) the effectiveness of the activity-based labor model rollout in improving margin performance, and (3) progress on new restaurant openings and remodel initiatives. Additional focus will be placed on management’s ability to navigate commodity inflation and optimize marketing spend during key seasonal periods.
BJ's currently trades at $42.13, up from $38.28 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
