BJRI

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. The sharp move in BJ's Restaurants (BJRI) has been driven by strong quarterly results and a more upbeat earnings outlook, including analyst upgrades and an improved Zacks Rank that have supported recent trading momentum. See our latest analysis for BJ's Restaurants. At a share price of $66.76, BJ's Restaurants has seen strong recent momentum, with a 49.82% 3 month share price return and a 90.25% 1 year total shareholder return that reflects improving sentiment despite only modest long term revenue growth. If you are looking beyond BJ's Restaurants for other opportunities in the consumer space, this could be a good moment to broaden your search and check out 19 top founder-led companies Bulls point to BJ's Restaurants’ strong recent run and improved earnings outlook. Bears focus on slower long term revenue growth and modest forecasts. Which side does the current valuation actually support as you look at the numbers? The most followed narrative currently places BJ's Restaurants fair value at $69.75 compared with the last close at $66.76, which implies a small valuation gap that hinges on specific growth and profitability assumptions. Read the complete narrative. Want to see what bridges that modest revenue outlook to a higher fair value? The key is how earnings, margins and the chosen future P/E all fit together. Result: Fair Value of $69.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, BJ's Restaurants still carries clear risks, including slower progress in digital and off premise ordering and ongoing pressure from high labor costs that could squeeze margins. Find out about the key risks to this BJ's Restaurants narrative. The analyst narrative suggests BJ's Restaurants is around 4.3% undervalued at $66.76, using forward earnings and a future P/E of about 23.5x. A simple check against today’s P/E of 34.7x, an industry average of 23.8x and a fair ratio of 21.8x instead points to a stock that already prices in a lot of optimism. Which version of “fair” feels closer to your own view? See what the numbers say about this price — find out in our valuation breakdown. Given the mix of optimism and concern around BJ's Restaurants, it helps to walk through the numbers yourself and decide how compelling the story feels. To weigh those upbeat earnings hopes against the risks that have investors cautious, take a closer look at the 2 key rewards and 1 important warning sign. Now may be a good time to widen your watchlist with fresh stock ideas that match your style, so you are not relying on just one story. Target value opportunities that combine quality and attractive pricing by scanning the 48 high quality undervalued stocks. Prioritise resilience and focus on risk management by checking companies highlighted in the 75 resilient stocks with low risk scores. Explore potential future leaders before the crowd catches on by reviewing the screener containing 17 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BJRI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BJ's has been on fire lately. In the past six months alone, the company’s stock price has rocketed 57.4%, reaching $64.08 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is there a buying opportunity in BJ's, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free. Despite the momentum, we’re cautious about BJ's. Here are three reasons we avoid BJRI, plus one stock we’d rather own. A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, BJ’s 3.3% annualized revenue growth over the last seven years was sluggish. This was below our standard for the restaurant sector. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect BJ’s revenue to rise by 3.7%. This projection doesn’t excite us and suggests its newer menu offerings will not catalyze better top-line performance yet. Gross profit margins tell us how much money a restaurant gets to keep after paying for the direct costs of the meals it sells, like ingredients, and indicate its level of pricing power. BJ's has bad unit economics for a restaurant company, signaling it operates in a competitive market and has little room for error if demand unexpectedly falls. As you can see below, it averaged a 15.3% gross margin over the last two years. That means BJ's paid its suppliers a lot of money ($84.69 for every $100 in revenue) to run its business. We cheer for all companies serving everyday consumers, but in the case of BJ's, we’ll be cheering from the sidelines. After the recent surge, the stock trades at 24.8× forward P/E (or $64.08 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are more exciting stocks to buy at the moment. Let us point you toward an all-weather company that owns household favorite Taco Bell. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Download the Complete Report Here Key Takeaways 2Q26 marked a meaningful operating inflection as comparable sales returned to growth and transactions turned positive across all three segments despite the revenue impact from planned closures and relocation timing. STKS reported 2Q26 revenue of $200.5 million, down 3.3% y/y from $207.4 million and slightly below the prior $202-$206 million guidance range, while company-owned restaurant net revenue declined 3.2% to $197.3 million from $203.9 million. The decline primarily reflected permanent and temporary Grill Concepts closures and the delayed downtown New York STK relocation, partly offset by new openings and 0.9% consolidated comparable-sales growth. Comparable sales improved from a 0.3% decline in 1Q26 and a 1.8% decline in 4Q25, while transactions were positive across STK, Benihana and Grill Concepts, supporting continued relative market-share gains despite a mixed consumer backdrop. Management, license, franchise and incentive fee revenue declined to $3.2 million from $3.5 million, mainly due to the 2Q25 exit from the Scottsdale management agreement. STK led the comparable-sales recovery, while Benihana remained resilient and Grill Concepts improved again sequentially following the portfolio rationalization. Total U.S. STK comparable sales increased 3.2% in 2Q26, including 2.5% growth at company-owned restaurants and 6.4% growth at managed restaurants, bringing total U.S. STK comparable sales growth to 2.2% for the first half. Benihana comparable sales increased 0.8%, improving from approximately flat performance in 1Q26 and a 0.4% decline in 4Q25. Grill Concepts comparable sales declined 2.9%, but improved from declines of 5.3% in 1Q26 and 9.4% in 4Q25, while transactions turned positive across the retained portfolio. The improving cadence indicates that the underlying business has stabilized materially since late 2025, with traffic trends strengthening even as consumers remain selective on overall spend. Restaurant-level profitability expanded meaningfully as procurement savings and Benihana integration benefits more than offset higher marketing and maintenance investment. Company-owned restaurant cost of sales improved 170 bps to 19.5% of owned restaurant net revenue from 21.2% in 2Q25, supported by acquisition synergies, supply-chain initiatives, menu optimization and increased pricing. Cost of sales has now improved from 25.5% in 2021 to 19.5% in 2Q26, a cumulative reduction of 600 bps, supporting the view that the improvement reflects sustained operating and procurement efficiencies rather than a one-quarter commodity benefit. Owned restaurant operating expenses increased 50 bps to 64.0% from 63.5%, reflecting higher World Cup-related marketing and additional repair and maintenance spending to expand air-conditioning capacity at select Benihana locations. Nevertheless, total owned operating expenses improved 110 bps to 83.6% from 84.7%, driving restaurant operating profit to $32.4 million and margin expansion to 16.4% from 15.3%. Operating income improved sharply as stronger restaurant-level profitability and lower integration costs more than offset higher marketing, technology and corporate spending. Operating income increased to $6.6 million from $0.7 million in 2Q25, reflecting the 110-bp restaurant-margin improvement and a decline in transition and integration expense to $0.2 million from $3.9 million. Lease termination and restaurant closure expense fell to $0.9 million from $5.6 million, while depreciation and amortization remained broadly stable at $11.0 million versus $10.9 million. These benefits were partly offset by pre-opening expense of $2.9 million, up from $1.6 million, including costs associated with STK Phoenix, the delayed Chelsea opening and approximately $1.1 million of non-cash pre-opening rent. The significant improvement in GAAP operating income indicates that transaction and integration costs are largely rolling off, while procurement and operating synergies from the Benihana acquisition continue to support restaurant margins. Temporary external factors and the delayed STK relocation constrained 2Q26 sales and EBITDA, while early 3Q26 trends suggest these pressures have moderated. World Cup matches shifted dining occasions toward at-home viewing during evening and weekend periods that overlap with STKS’ highest-volume dayparts, while elevated temperatures reduced Benihana traffic in several Midwest and Northeast markets. The downtown New York STK relocation was expected to open at the beginning of 2Q26 but did not begin operating until July because of permitting and inspection delays. The relocated Chelsea restaurant is expected to generate approximately $150,000-$200,000 of weekly revenue, while most labor and pre-opening costs remained in the expense base during the delay. Approximately 40% of the adjusted EBITDA shortfall versus guidance was attributed to the relocation delay and roughly 60% to incremental marketing, with revenue also finishing near the low end of expectations. Traffic momentum continued into July following the end of the World Cup, while Las Vegas remained a notable area of strength with continued high sales velocity. Positive traffic alongside more modest comparable-sales growth indicates that STKS is gaining visits but remains exposed to a selective consumer spending environment. Guests continue to respond to lower-price-point access across the portfolio while remaining selective about premium spending outside celebration occasions, creating a gap between transaction and sales growth. STKS’ barbell strategy is designed for this environment: the $3, $6 and $9 happy hour and Weeknights Date Nights support traffic during slower weekday periods, while premium steak, seafood and beverage offerings capture higher-intent celebration spending. Mother’s Day, Father’s Day and graduation demand performed well across the portfolio, reinforcing the brands’ positioning as celebration destinations. The Friends with Benefits loyalty program continues to gain traction, with newly enrolled guests showing strong repeat participation and loyalty members spending meaningfully more per visit than non-members, while the program represents an increasing share of quarterly transactions. Seasonal menu innovation, including Wagyu offerings, premium cocktails and wellness-oriented additions, together with expansion of the high-margin off-premise channel, provides additional opportunities to support traffic, mix and guest engagement. Beef-cost visibility has extended through year-end, reducing a key 2H margin risk. STKS had previously contracted beef pricing through September 2026 and has now secured a significant portion of its requirements through the balance of the year. Cost of sales is expected to remain near the current 19.5% level, with no material negative beef impact anticipated during 2H26. The company continues to benefit from consolidated beef procurement, vendor scale and menu engineering, supporting greater cost visibility despite continued commodity volatility. Maintaining cost of sales near 19.5% will be important as 3Q historically represents the lowest-margin quarter, with owned operating expenses guided to 85%-87% of owned restaurant net revenue. STKS maintained its 6 to 10 venue opening target for 2026, but shifted the majority of the remaining pipeline toward asset-light formats to prioritize free cash flow and returns over owned revenue growth. The remaining development pipeline is now weighted toward franchised and licensed locations, materially changing the ownership mix without reducing the system-wide opening target. The company opened STK Downtown Phoenix in June, relocated STK Downtown New York to Chelsea in July and converted Kona Grill Riverton into a Benihana in July. Phoenix and Chelsea each required $1.0 million or less of net company investment after tenant-improvement allowances, while future company-owned projects generally target no more than $1.5 million of net investment. STKS is also prioritizing its existing lease pipeline over substantial new company-owned commitments, supporting greater capital flexibility, free cash flow generation and debt reduction. The lower 2026 revenue guidance primarily reflects this shift toward asset-light development and deferred conversion timing, together with a modest reduction in comparable-sales expectations, rather than a broad deterioration in underlying traffic trends. Benihana Express is emerging as a scalable, capital-light growth platform, supported by proven unit economics, a standardized prototype and increasing franchise interest. Following the acquisition of the Miami Benihana Express location, STKS has spent approximately three months refining the branding, restaurant design and operating model, creating a standardized prototype to support broader franchise expansion. The concept operates in an 800-1,000 sq. ft. footprint, with food and labor costs of approximately 20% and 25%, respectively, supporting a prime margin above 50%. The existing Miami location is generating approximately $1.2 million of annual revenue, while development costs are expected at roughly $500 per sq. ft., or approximately $0.4-$0.5 million for a typical unit. A company-owned Denver location and a licensed Florida Keys location are under development, while additional franchise interest has emerged following completion of the prototype. Future agreements are expected to generate a 6% royalty plus a 2% marketing contribution, implying approximately $72,000 of annual royalty revenue per unit at a $1.2 million AUV and supporting meaningful scalability with limited incremental capital. The broader asset-light pipeline is also expanding, with two licensed STK locations planned at a major U.S. airport, RA Sushi Niagara Falls, and franchised Benihana and licensed Benihana Express locations in the Florida Keys, supporting approximately $14 million of managed, franchise and licensing revenue expected in 2026. Grill portfolio rationalization is progressing, although conversion timing has shifted later while improving traffic reduces the need for additional closures. STKS continues converting selected Grill locations into higher-return STK and Benihana restaurants, with five Grill locations temporarily closed in January 2026 for conversion, two conversions now reopened and Baltimore expected to reopen in 3Q26. Remaining projects have shifted toward year-end and could move to franchised formats, lowering near-term owned revenue and capital requirements. No additional Grill closures are currently planned, with future reviews generally tied to one to two lease expirations annually. Grill comparable sales improved to -2.9% from -5.3% in 1Q26 and transactions turned positive, although restaurant operating profit declined to $1.2 million from $2.2 million y/y, indicating that profitability has not yet fully recovered. STKS continues to execute against four strategic priorities centered on traffic growth, capital-efficient expansion, portfolio optimization and balance-sheet improvement. The 2Q26 results showed progress across each, with positive transactions, improving margins, lower capital deployment and continued debt reduction. Underlying earnings improved materially in 2Q26, although the capital structure continues to constrain common equity earnings. Net loss attributable to The ONE Group narrowed significantly to $2.1 million from $10.1 million in the prior-year period, reflecting improved restaurant-level profitability and lower transition and integration costs. However, net loss available to common shareholders remained elevated at $12.0 million versus $18.2 million in the prior year, as $9.9 million of Series A preferred stock paid-in-kind dividends and accretion materially reduced earnings available to common shareholders. Updated 2026 guidance continues to prioritize free cash flow generation and capital discipline while maintaining modest top-line growth. Management guided for 2026 revenue of $805-$820 million, implying consolidated comparable-sales growth of 1%-2%, alongside approximately $14 million of managed, franchise and licensing revenue. Owned restaurant operating expenses are expected to remain around 82% of restaurant revenue, while Adjusted EBITDA is guided to $95-$105 million and adjusted G&A to approximately $50 million. The company also expects net capital expenditures of approximately $30 million, down from the prior $38-$42 million range and consistent with the shift toward more asset-light development. Liquidity remains adequate, but the still-heavy capital structure reinforces the importance of sustained cash generation and disciplined capital allocation. STKS ended 2Q26 with $17.1 million of cash and short-term credit-card receivables and $28.7 million of revolver availability, representing $45.8 million of short-term liquidity. The term facility currently has no active financial covenant under prevailing conditions, reducing near-term covenant risk and providing flexibility as the company shifts development toward franchise and licensing models. However, STKS still carries approximately $347.7 million of gross debt and $210.6 million of Series A preferred stock, which increased from $191.3 million at year-end through $19.3 million of first-half paid-in-kind dividends and accretion. The preferred carries a 13% starting dividend rate that compounds over time, further reinforcing debt reduction and balance-sheet improvement as key capital-allocation priorities. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Valuation remains attractive as the operating thesis increasingly shifts from recovery toward cash conversion and capital efficiency. Positive traffic across all segments, improving restaurant margins and continued Benihana synergies are strengthening the earnings base, while the move toward asset-light development and Benihana Express should reduce capital intensity and improve returns on growth. At the same time, higher operating cash flow and lower capex are supporting debt reduction, creating a clearer path to lower interest expense and improved earnings conversion. If STKS can sustain positive comparable sales, deliver within its $95-$105 million 2026 Adjusted EBITDA guidance range and continue deleveraging, the current discount to historical and peer multiples should have room to narrow. P/S Multiple analysis. STKS currently trades at approximately 0.07x forward P/S, near the bottom of its three-year range and well below the 0.19x three-year mean. As fundamentals strengthen and free cash flow increasingly supports deleveraging, the stock could see multiple expansion over time. Illustratively, a reversion to mean to 0.19x P/S would imply a value of approximately $4.9/share based on current forward revenue estimates. Peer analysis (relative valuation). Peer valuation also suggests meaningful discounting. As of the 8/7 close, STKS traded at 6.1x EV/NTM EBITDA, representing a ~51% discount to the 12.4x peer average. Its 0.7x EV/NTM Sales multiple also represents an approximately 48% discount to the 1.4x industry average. While elevated debt, preferred equity and execution risk justify some discount, sustained traffic growth, margin expansion and stronger free cash flow conversion could support a narrowing of the gap. Read Exec Edge’s Initiation on The ONE Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post The ONE Group: A Restaurant Stock With Rising Traffic, Expanding Margins – Quarterly Update Report appeared first on ExecEdge.

BJ's Restaurants, Inc. recently reported past second-quarter 2026 results showing sales rising to US$388.89 million from US$365.60 million, while net income fell to US$18.78 million from US$22.21 million and diluted EPS from continuing operations eased to US$0.86 from US$0.97. Alongside higher revenues but softer profitability, the company continued shrinking its share count, repurchasing 64,000 shares in the quarter and bringing total buybacks under its long-running program to 15,839,318 shares for US$590.33 million, which can magnify per-share metrics over time. Now we’ll examine how higher sales but weaker earnings in the latest quarter may influence BJ’s existing investment narrative around efficiency and growth. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own BJ’s Restaurants, you generally have to believe its focus on experiential dining, menu breadth, and improving operations can support consistent earnings, not just higher sales. The latest quarter fits that tension: revenue grew but profits softened, which slightly weakens the near term efficiency story and highlights margin pressure as the key risk, while the main short term catalyst remains whether BJ’s can translate traffic and promotions into cleaner, more resilient profitability. The recent update on share repurchases is particularly relevant here. BJ’s bought back 64,000 shares in Q2 2026, bringing total repurchases under its long-running program to 15,839,318 shares for US$590.33 million. That shrinking share base can support per share metrics, but with net income down year over year, it puts more focus on whether the company’s menu promotions and operational initiatives can stabilize margins rather than just relying on financial engineering. However, investors should also recognize that rising labor costs could quietly limit how much of these efficiency gains actually reach the bottom line… Read the full narrative on BJ's Restaurants (it's free!) BJ's Restaurants' narrative projects $1.6 billion revenue and $69.4 million earnings by 2029. Uncover how BJ's Restaurants' forecasts yield a $69.75 fair value, in line with its current price. Some of the most optimistic analysts were expecting earnings of about US$59.5 million and a PE near 19.8x by 2029, but softer recent margins and the risk of accelerating wage inflation show how quickly those upbeat assumptions and the more cautious margin focused narrative could both be tested by new information. Explore 2 other fair value estimates on BJ's Restaurants - why the stock might be worth 13% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your BJ's Restaurants research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free BJ's Restaurants research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate BJ's Restaurants' overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Find 49 companies with promising cash flow potential yet trading below their fair value. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BJRI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investors might want to bet on BJ's Restaurants (BJRI), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The upward trend in estimate revisions for this restaurant chain reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For BJ's Restaurants, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.15 per share, which is a change of +275.0% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for BJ's Restaurants has increased 34.88% because three estimates have moved higher compared to no negative revisions. For the full year, the earnings estimate of $2.35 per share represents a change of +4.0% from the year-ago number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for BJ's Restaurants versus no negative revisions. This has pushed the consensus estimate 6.35% higher. Thanks to promising estimate revisions, BJ's Restaurants currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. BJ's Restaurants shares have added 15.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET Director of SEC Reporting - Rana Schirmer Chief Executive Officer and President - Lyle Tick Chief Financial Officer - Todd Wilson Operator: Welcome to the BJ's Restaurants Second Quarter 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Rana Schirmer, Director of SEC Reporting. Please go ahead. Rana Schirmer: Thank you, operator. Good afternoon, everyone, welcome to our fiscal year 2026 second quarter investor conference call and webcast. After the market closed today, we released our financial results for our fiscal 2026 second quarter. You can view the full text of our earnings release on our website at www.bjsrestaurants.com. I will begin by reminding you that our comments on the conference call today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These statements are based on management's current business and market expectations, and our actual results could differ materially from those projections in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events, or otherwise, unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's filings with the Securities and Exchange Commission. We will start today's call with prepared remarks from Lyle Tick, our Chief Executive Officer and President, followed by Todd Wilson, our Chief Financial Officer. After which, we will take your questions. With that, I will turn the call over to Lyle. Lyle? Lyle Tick: Good afternoon, everyone, thank you for joining us to discuss our Q2 financial results, operating performance, and outlook. Q2, or celebration season, as we call it, was another very strong quarter for BJ's. It was energizing from a performance standpoint, reinforcing our relevance in the social splurge occasion I have talked about, and meaningful from an organizational perspective. Q2 represented our eighth consecutive quarter of sales and traffic growth and our seventh consecutive quarter of profit growth. Same-store sales increased 6.5%, driven by 8.3% traffic growth, continuing to significantly outperform Black Box casual dining benchmarks. On the profit side, restaurant-level operating margins expanded roughly 20 basis points to 17.2%, inclusive of roughly 5% of food inflation, which impacted cost of sales by 120 basis points. Adjusted EBITDA margins were up roughly $2.3 million at 11.4%, inclusive of roughly 40 basis points of deferred comp expense, which Todd will address in his remarks. A few notable Q2 highlights. Our operators delivered outstanding performance. Mother's Day and Father's Day were up over 8% and 3% year-over-year respectively, and more than 80 restaurants broke daily or weekly sales records, all while continuing to improve guest metrics. A strong reinforcement of our ability to win across multiple occasions. Our marketing plan continues to work effectively and efficiently. As I have previously shared, I shifted marketing dollars from Q1 into Q2 to optimize spend timing and drive the highest returns. For the first half overall, we invested the same dollars, but we are about 20 basis points more efficient as a percentage of sales versus last year, while delivering an increase of 67% in impressions in Q2 and 146% in the first half overall, supporting our strong sales. The results continue to reflect the progress our marketing and culinary teams are making, aligning product, messaging, and go-to-market strategies. Our Biscoff seasonal Pizookie was a hit, doubling Pizookie incidents year-over-year during the quarter, and we saw growth across all geographies, all day parts, and all channels. On check and mix, there are a few key points I think are worth calling out. The majority of compression came from Tuesday and Friday. Tuesday is driven by an iconic promotion that builds acquisition and ritual amongst hard-to-reach younger guests. Friday is when the Pizookie Meal Deal has opened the social splurge occasion to more people, driving both new guests and repeat visits. Importantly, our sales growth is relatively evenly split between all of the weekdays and the weekend days. We are not overly reliant on any one day or promotion, and our value proposition is resonating across the week. As I mentioned last quarter, as we move further through the menu renovation and continue to optimize programming, we expect more balance between traffic and mix, which we started to see in Q1. What we cannot fully plan for is when a product, like the Biscoff Pizookie, hits a cultural nerve and drives extraordinary trial. Thankfully, our marketing and culinary teams have a pretty impressive hit rate and have built a strong pipeline going forward. Ultimately, the key point is that we are driving profitable traffic. Even with 120 basis points of cost of sales headwinds driven by food inflation, we grew total dollars and expanded restaurant-level cash flow margins. From an organizational perspective, Q2 was a meaningful quarter. We hired Monika Saxena, who came to us most recently from LongHorn Steakhouse, as our Brand President. Monika's track record of delivering sustainable long-term results through clear brand positioning, a relentless focus on product quality and guest experience, and her ability to build high-performing teams makes her an ideal addition to our leadership team. We also recently brought in Birju Amin as our new Chief Technology Officer, coming most recently from Yum! Brands, where he led restaurant technology for Taco Bell. These hires, along with the other leadership team changes over the past 18 months, reflect our commitment to unlocking the full potential of BJ's as we enter our next phase of growth. I'm confident their perspectives, combined with the strong existing team and tenure we have at BJ's, will help us continue to drive long-term value for our shareholders. Overall, I'm very pleased with our Q2 and first half results and encouraged by the positive momentum we've carried into Q3, including sustained significant outperformance versus Black Box casual dining benchmarks. Looking ahead, we have a deeper understanding of our business and our consumer. We've identified our core growth drivers and are clear on the levers to pull in both the short and longer term. Our strategy remains centered on ensuring our people, our food, and our atmosphere work in concert to make BJ's the brand of choice. Everything starts with our team members. They're the ones who bring our brand promise to life, and we're committed to ensuring they have the tools they need to deliver for our guests every day. That means continuing to invest in our training, embedding the new team member and manager programs we rolled earlier this year, building one BJ's way consistently across our restaurants, and developing our leadership pipeline to support future growth. It also means making our team members' jobs easier. Through continued work on POS simplification and modernization, tablet upgrades, and tech enablement, like our AI-supported activity-based labor model, which we'll continue to expand through year-end, our priorities are informed by listening to our teams and investing in the tools they need to deliver. These investments are reflected in our consistent guest metric improvements, continued reduction in comp food and beverage, team member and manager retention outpacing casual dining benchmarks, and ultimately, in our sales and profit performance. On the menu front, we feel good about the progress we're making and will continue taking a disciplined category management approach. We will focus on leveraging the chicken sandwich and burger category refreshes through Q3 while advancing other key category and item work across the menu. Our three culinary pillars of Pizookies, the Pizookie Meal Deal, and product news drive our culinary calendar, and we continue to optimize for more balance between traffic and mix. We have a strong Pizookie lineup for Q3, anchored in perennial favorites S'mores and Spooky, and we'll be bringing some new flavor innovation for holiday while continually building our pipeline to drive buzz and engagement. The Pizookie Meal Deal continues to resonate, driving both new customer acquisition and repeat visits. As I mentioned last quarter, we're testing potential evolutions, including a premium tier. The test is providing great learnings, but it's still in its early stages as we explore ways to give guests pathways to trade up while reinforcing two core BJ's equities, variety and the Pizookie. On the product news side, I remain pleased with the category work we have done to date, and I'm excited about what lies ahead. Across pizza, burgers, and chicken sandwiches, each renovated category is driving higher incidents, more sales, higher average price, and higher dollar margin than before, inclusive of over $1.5 million of investments we've made back into product quality, particularly with pizza. As we continue progressing across the menu, I expect us to deliver a more craveable, compelling, consistent, and profitable offering over time. Ensuring the atmosphere of our 219 existing restaurants remains a competitive advantage is another key focus. We've invested incrementally over the past 18 months and plan to continue doing so over the next 18, getting fully caught up on deferred facilities work and ensuring our fleet, both the physical plant and equipment, is gold standard for team members and guests. This work, combined with our remodel program, is fundamental as we plan for growth. On new unit development, the two planned openings later this year, Buckeye, Arizona, and Joliet, Illinois, are well underway and will showcase a meaningfully refreshed expression of the BJ's brand. These markets represent a mix of an established performance market in Buckeye, Arizona, and a development market in Joliet, Illinois, where we expect nearby restaurants to benefit from increased brand awareness and operational leverage. We continue to build our pipeline as we dial in the new prototype and apply a right size, right place, right cost approach to our next chapter of unit growth. In closing, I'm confident in our plans, excited about what lies ahead, and committed to continuing to invest in our people, ensuring they have the tools and support to bring our brand to life every day, advance operational excellence, making BJ's better and easier for team members and guests, elevate our food and beverage offering, and set the foundation for future unit growth. Q2 delivered another quarter of sustained traffic-driven growth and share gains. While the environment remains dynamic, we enter Q3 with strong positive momentum, clear plans, and significant outperformance versus Black Box casual dining benchmarks. Two years into our journey to unlock the full potential of BJ's Restaurant and Brewhouse, our performance speaks to the progress we've made. Going forward, we remain focused on our strategic pillars and on making sure BJ's continues to be the restaurant of choice when people want to get together with those they care about most. Before I close, I want to thank all our BJ's team members, from our restaurants through to the support center, for their passion and commitment. We talk a lot about being better every day and stronger together. Once again in Q2, our teams took care of each other, our guests, and our restaurants, and delivered another strong result for BJ's. Thank you. I'll now turn it over to Todd for more color on our financial results and outlook. Todd Wilson: Thank you, Lyle. Good afternoon, everyone. We delivered strong second quarter results led by 6.5% comparable restaurant sales growth. We achieved 20 basis points of restaurant margin expansion despite a 120 basis point commodity headwind, and delivered a $4.7 million increase in restaurant level operating profit and a $2.3 million increase in adjusted EBITDA. Total revenue for the quarter was $388.9 million, a 6.4% increase versus last year. The comparable restaurant sales increase of 6.5% was led by 8.3% traffic growth and included 1.8% average check compression. Traffic growth was driven by several initiatives, including the success of our seasonal Pizookies, PMD offerings, and menu innovation, all of which benefited from the shift in marketing investment. In addition, our operators continue to do a great job driving increased guest satisfaction, and remodeled restaurants are delivering traffic growth that exceeds the rest of the portfolio. Lyle commented earlier on the check compression. Growth in both traffic and sales across the week underscores the breadth of our performance. Guests are responding to our total value proposition as our promotional offers, combined with an improved overall BJ's experience, are driving growth across all days of the week and across all day parts. Restaurant level operating profit was $66.8 million, and margins increased 20 basis points to 17.2%. Cost of sales was 25.5%, a 70 basis point increase versus last year. The increase primarily reflected a 120 basis points margin headwind due to approximately 5% inflation in our commodity basket, led by an expected 20% increase in beef costs. Produce increases further pressured costs in the quarter due to severe weather and higher transportation costs, though we have seen some relief early in the third quarter. Operationally, we continued to deliver improvements in food waste management and reduced comp food and beverage incidents, including through our efforts to support outlier restaurants. Alongside our operational initiatives, the menu work completed to date is helping us offset a portion of the commodity pressure through improved product architecture and mix. We expect the year-over-year commodity inflation rate to subside in the balance of the year and the benefit of this work to be more visible in the second half. Total labor expense improved 90 basis points to 34.5% as sales leverage and disciplined execution more than offset a 10 basis point increase in workers' compensation costs. Our operators did an excellent job leveraging sales growth to improve margins across hourly labor, management, and benefits while continuing to increase guest satisfaction measures. We remain committed to delivering a great guest experience and expect to continue delivering labor margin gains through the remainder of the year. Occupancy and operating expenses were 22.8%, unchanged versus last year. Within this category, I would highlight three items. First, marketing. We strategically shifted dollars from the first quarter into the second to support our high volume celebration season. This increased second quarter marketing expense by $1.2 million or 20 basis points versus last year. On a year-to-date basis, marketing dollars were unchanged and declined 10 basis points, reflecting improved efficiency and return in driving significant traffic growth. Second, repair and maintenance. We increased our P&L investment in repairs and maintenance during the quarter by approximately $1 million or 14% versus last year as part of the journey to the gold standard physical plant and equipment Lyle mentioned earlier. This builds on incremental maintenance CapEx investments we have made over the past 18 months. We believe the condition and atmosphere of our facilities are important drivers of guest traffic and repeat visits, as well as team member satisfaction and retention. We expect to continue investing at a measured pace over the next several quarters, consistent with our updated financial outlook. Third, the remaining expenses in this category leverage sales growth, improving by 20 basis points versus last year. General and administrative costs were 6.8%, a 90 basis point increase versus last year. This included $1.4 million of incremental costs related to a legal reserve and leadership transition costs, which we excluded from adjusted EBITDA. Additionally, the liability associated with our deferred compensation program is recorded in G&A and totaled $1.5 million. Notably, this liability is offset in other income by increases in the value of the underlying investments. Excluding these items and other smaller adjustments, on a normalized basis, we estimate the quarter would have been approximately $23 million and unchanged versus last year at $5.9 million sales. We continue to expect a normalized G&A run rate of up to $90 annually. These components parts delivered an adjusted EBITDA increase to $44.4 million compared to $42.1 million last year. The business continues to generate significant free cash flow, which we deployed across three priorities. First, we invested $23.3 million in capital expenditures, primarily maintaining our restaurants, completing five remodels, and constructing two new restaurants targeted to open in the fourth quarter. Second, we repurchased and retired approximately 64,000 common shares for $2.4 million. Third, we repaid $18 million of debt. We ended the second quarter with net debt of approximately $30 million, a substantial reduction from the $61 million we carried at the start of the year. While our cost of debt remains low at approximately 5%, strengthening our balance sheet further positions us to act with conviction on high return investments in remodels, new restaurants, share repurchases, and other investments to drive shareholder value. Turning to our 2026 financial outlook, based on our strong first half results, we are raising guidance for select financial metrics. Our updated guidance is as follows. Comparable restaurant sales growth in the range of 3%-4%, compared with our previous range of 1%-3%. Restaurant level operating profit in the range of $228 million-$235 million, compared with $221 million-$233 million previously. Adjusted EBITDA in the range of $145 million-$152 million, up from $140 million-$150 million previously. We continue to expect capital expenditures in the range of $85 million-$95 million, and our share repurchase guidance is also unchanged at up to $50 million, subject to market conditions. I'll also provide additional color for modeling purposes. First, the third quarter is off to a good start with continued sales and traffic growth and results beating the Black Box casual dining benchmark. Second, we expect third quarter comparable restaurant sales to somewhat outpace the fourth quarter, given the shape of the sales comparison in the third and fourth quarter of last year. Finally, we launched a new menu in late June that included an approximately 110 basis point price increase. We expect total effective pricing of approximately 3.7% in the third quarter, 2.6% in the fourth quarter, and 3% for the full year. We believe average check pressure will ease in the third quarter compared with the second, and anticipate returning to moderate average check growth by the fourth quarter. The performance of our seasonal Pizookies can affect these results, as we've seen in prior quarters, as their popularity can reduce average check while providing a clear benefit to guest traffic, sales, and profit dollars. In summary, our second quarter results reflect strong traffic momentum, disciplined execution by our operators, and meaningful progress in strengthening our balance sheet. These results are only possible because of the hard work of our restaurant, field leadership, and support teams. Congratulations, and thank you to the entire BJ's team. As we move through the balance of the year, we remain focused on executing our core strategies, maintaining daily operational discipline, and investing in the guest experience, operational excellence, and high return growth opportunities. With that, we'll now open the line for questions. Operator? Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble the roster. The first question will come from Alex Slagle with Jefferies. Please go ahead. Alex Slagle: Hey, guys. Thanks for the question. Really impressive leverage on the labor line. I guess if not for that cost of goods being elevated, would have been the restaurant level margin closer to the 18% level. Curious looking at cost of goods and how much that can come down maybe versus these 2Q levels. I know you gave the guidance, but is there some room for upside there if things play out? Todd Wilson: Yeah, Alex, Todd here. As we're looking at cost of sales for the balance of the year, we do think that Q2, to your point, obviously was impacted by a lot of commodity inflation. We get a little relief on a year-over-year basis in inflation. Keep in mind, though, sequentially, some of our beef costs in particular still increase. We think cost of sales can improve a little bit. We're not looking for a big step down by any means, but we do think we could see a little bit of cost of sales improvement in the balance of the year. Alex Slagle: Okay. I think you mentioned, you expect the third quarter same store sales to outpace third quarter, if I heard that right. I was just sort of surprised if that was. Lyle Tick: I think it was third quarter to somewhat outpace fourth quarter. Alex Slagle: Fourth quarter, okay. Lyle Tick: Based on the shape of sales last year. Alex Slagle: That makes sense. Todd Wilson: Yeah, Alex, sorry if that wasn't clear, but yeah, absolutely. Third quarter. We believe will be greater than fourth based on the year ago compares. Alex Slagle: Okay. Was there anything sort of one-time in nature in that second quarter comp and traffic? I know that the seasonal Pizookie was really big, and I don't know if there was anything with World Cup or the lapse from last year, if there was anything aftermath from the L.A. fires or anything like that? Lyle Tick: No, there really wasn't, Alex, Todd, you can build on this, but any of that L.A. fire stuff was really Q1. With respect to Q2, there really wasn't. World Cup, I would say, you saw kind of individualized bumps in some individualized restaurants around individualized games. It was really nothing that was materially visible or differentiated when you look at all restaurant performance across geographies, day parts, and channels. There wasn't anything anomalistic. It was really the kind of programming and I think the progress. Alex Slagle: All right. Congrats. Thanks. Lyle Tick: Thank you, sir. Operator: The next question will come from Sharon Zackfia with William Blair. Please go ahead. Sharon Zackfia: Hi. Thanks for taking the question. I guess I wanted to ask about the implied comps for the back half. I think the math suggests like 1.5% to 3.5%, and it sounds like you had some durable results in the second quarter, and it sounds like trends were off to a good start in July. Just curious on your thought process as you enter the second half with that implied guidance. Lyle Tick: I'll start and Todd, you can pick up. What I would say, Sharon, is we are, I am very pleased with the trends and momentum the business has thus far in Q3. Much like we were when we were on the Q2 call. Our teams continue to do an awesome job executing, and I'm really pleased with what I'm seeing across the business and confidence in the performance. You guys have probably gotten to know me a little bit the past two years. My predisposition tends to be, I want to ensure that we do what we say we're going to do and maybe not get too far out over our skis, but I feel really good about the performance we have and how the business is performing to date. Sharon Zackfia: Thanks for that. I know you've been doing a lot of menu innovation, and seems like that's been going really, really well. Is there anything else we should expect you to refresh before the end of this year? What's on the short list at this point? Lyle Tick: In terms of rolled out category refreshes, I wouldn't expect more rolled out category refreshes. We're right now in test on a number of different, both category work as well as some item work. I would expect more category work coming through next year. What you do see this year, and it's kind of how we've used it a little bit throughout the past couple of years, is you start to see some of the seasonal work that we're doing almost preview a little bit of work that's coming. It provides us an opportunity to get scaled learning about some of the work we're doing. The Wagyu Burger found its way first onto a PMI earlier in the year. I think about some of the work we did around some of the buffalo chicken sliders, those types of things. These things we start to get learning on and go into the bank and inform the future rollout. We do both the ops test, the market test, and also use our seasonal platforms to get scaled learning about it. You'll see some of that in the fourth quarter reflected through some of our seasonal programming, but I wouldn't expect another category rollout this year beyond what we're doing with burgers and chicken sandwiches from a category perspective. Sharon Zackfia: Okay. Thank you. Operator: The next question will come from Jon Tower with Citi. Please go ahead. Jon Tower: Great. Thanks. Good question. Maybe I didn't quite pick it up in the transcript so far, or the prepared remarks, but I'm curious if you could just speak to what drove the negative mix in the quarter. It sounds like some of your seasonal Pizookies might have been the primary driver of it, but if you could maybe expand upon that'd be great. Lyle Tick: Yeah. It's not a new story, but it's a codified story, which is, a lot of it is driven by the seasonal Pizookie, when that really hits a nerve, right? We've kind of mapped the curve of that. You saw some of the things I said about Biscoff being double the incidence or double the size of last year. When you see that kind of hit that nerve, you get a lot of these trial checks, right? We're bringing a lot of people in, not necessarily buying on discounts, but buying a smaller check as they're young people trying the Pizookie. When I take a step back, I think about it as kind of not all mix is created equal, right? We continue to drive outsized traffic with some of these programs like the Pizookie, like the PMD. Those people that we see come into there come back more often, we're flowing more profit through to the bottom line. As I think about it holistically, I feel really good about how our programs are working. I think as we continue to do the work across the menu, we continue to expect to see that moderate over time. The thing is, with some of these seasonal products, when they hit a nerve and they trial spikes, you'll often see some mix impact with that. When you take a step back, you start to think about the menu work going forward, you look at pizza, burger, and chicken sandwiches, they're all growing incidents, they're growing sales, they're growing margin. Now, some of that trade in there, some of it's new, some of it's trading. You'll see some of that coming from steaks and entrees, which tend to carry a higher dollar check, but they tend to be lower margin, but a bit of a higher dollar check. I think the key to remember there is on the journey so far, the category renovation work we're doing is working. It's driving the results we want, people are moving where we're driving them, we just simply haven't gotten to those categories yet. There's nothing, from my perspective, that has me not believing that as we do the rest of the work on the menu, we can continue to expect, as we do that work on the renovation, to drive similar behavior and ultimately balance things out as we go through all of the work. Jon Tower: Interesting. Okay. I know you had referenced in the prepared remarks the kind of tiering out of Pizookie Meal Deals and where you are in the process, or at least you've made some progress there. I'm just curious if you could also dig into that a little bit more in terms of either what you've been finding so far as what's been resonating, either from a price point perspective or product, and/or if there's any sort of things that aren't necessarily working as you've been testing and maybe even a timeline for us for where we should be able to think about a premium menu or premium tier coming through. Lyle Tick: Yeah. It's too early for me to give you anything that I would feel comfortable standing behind at this point on that. The shape of the work we're doing on PMD specifically is twofold. One is looking at how we keep that menu fresh. As we did the chicken sandwiches, we retired one of our items on PMD and brought in a classic chicken sandwich, which delivered a great margin, but we thought would resonate better. We're absolutely seeing that. As we do the tier test, we're just really early in that process, and so I don't have results that I feel comfortable sharing, but it's part of learning. I think the thing that I would tell you, though, is while we obviously look at how do we optimize the individual programs, when I'm looking at the business, I'm trying to always take a big step back and say, "Are we delivering a more compelling BJ's through the combination of things that we're doing that are bringing more guests in and allowing us to grow profits?" As I look at the big picture, I'm really pleased with how the pieces are working together, right? We're continuing to see two years in comp growth driven by traffic. We see our restaurants continuing to make progress and execute better, deliver more restaurant profit through to the bottom line. We continue to see our ability to grow corporate profits. We're on track to open the two new restaurants that we've mentioned previously and begin building pipeline again. We're returning dollars to shareholders. Overall, I'm trying to make sure that we keep in mind the big picture and is the shape of everything that we're doing delivering a more compelling BJ's. Not to say we won't optimize the parts, I think sometimes if you get too caught in optimizing a single part, you can lose the bigger picture of how everything's working together to progress the business. Jon Tower: Got it. Thanks for taking the question. Lyle Tick: I want to be intentional about how we do it, I guess is the way I'd say it. Jon Tower: Thank you. Lyle Tick: Thank you. Operator: The next question will come from Todd Brooks with Benchmark StoneX. Please go ahead. Todd Brooks: Hey, thanks for taking my questions. A couple for you. One, it's sort of a block-and-tackling question. Lyle and Todd, a couple times during the call, you anchored the quarter-to-date performance to your Black Box peer group. I know you're not going to give us detail on your performance, but can you talk about where the peer group performance sits through July, just based on some of the strength we saw in the bar and grill category during the World Cup? Todd Wilson: Yeah. Hey, Todd. Todd here. Yeah, I'd say what we've seen to start Q3 in the Black Box numbers is similar to what we saw in Q2, meaning traffic for the Black Box, to be clear, for Black Box, we see traffic a little bit negative, sales a little bit positive. That's consistent with what we saw in Q2. Obviously, we had significant outperformance. We beat the Black Box traffic by our comparisons by over 9 points in Q2. A very accelerated rate of performance. We see Black Box very consistent to start Q3. Again, as we said, we continue to beat Black Box in these first couple of weeks of the quarter here. Todd Brooks: Okay, great. Thanks, Todd. Lyle Tick: By the way, Todd. Todd Brooks: You're welcome. Lyle Tick: Todd, just specifically, that's the casual dining. Todd Wilson: That's right. Lyle Tick: Benchmark. I'm not sure if there is a sub bar and grill benchmark, but the benchmark we're talking about is casual dining. Todd Brooks: Perfect. Thanks. Then, I look at the volumes and the traffic that you're able to generate during celebration season, for the longest time, the mantra at a BJ's is, we're trying to grow the business, then during celebration season, we're trying to hold the hill on the traffic that we always get. To see the material growth in traffic that you were able to generate at what previously have been characterized as prior peaks, that you really can't drive many more people through the box. I'd love to hear some about some of the key unlocks for how you were able to service so many more customers during celebration season. Lyle Tick: Yeah. Look, I haven't seen that yet, right? I haven't seen an indication yet that we are tapped out in our ability to accept traffic and move people through. Because the traffic growth exists during this period in our top AUV restaurants, through all of our quintiles. So, once you get below the top quintile, clearly there's plenty ability, as proven by the top quintile. I think the things that help, I know I kind of have talked about it previously, a little bit of the kind of blocking and tackling of great operations. We have continued to, during this season, shine more of a light on reservations. We have continued to see the reservation growth. That's helpful from a planning perspective. Chris, for example, going into this celebration season, he put a very big focus from his observation on the transition, like the shoulder periods and how we're transitioning in and out of shoulder periods. Oftentimes he'd go into restaurants and see that around that early shoulder period transition, we'd be on a wait early when we shouldn't be on a wait because it's an early transition. We didn't get the transition right. So he put a lot of focus on, I think, the blocking and tackling of when we know we're going to be having a lot of volume coming through, have we planned really well for it? Are we really disciplined on how we manage the shoulders, on how we get in and out of those periods? Then moving people through, do we have full hands in and out? Are we pre-busing? I know it's not super futuristic. It's the hard work of running a good shift, and I think our guys looking at, given the momentum the business has, how are they going to make sure that we're able to move the people through? Todd Wilson: Hey, Todd, I'll tag in real quick. I think you probably heard it in our prepared remarks, but I think it's worth reiterating of when we look by day of week, or let me say it differently. Sales and traffic grew across every day of the week, they grew across every day part, and they grew across every geography that we operate in. I think the broad-based nature of that reinforces that we're winning across multiple occasions here, right? It's the broad appeal of this brand, and you probably picked that up, I just wanted to make sure it didn't get missed. Todd Brooks: No, that's helpful. Thanks, and congrats to you both, and you all. Lyle Tick: Thank you, Todd. Todd Brooks: Yep. Operator: The next question will come from Nick Setyan with Mizuho Securities. Please go ahead. Nick Setyan: Thank you. Obviously, the marketing has been very successful. Can you just remind us how you're thinking about the back half of this year in terms of marketing spend year-over-year, then maybe even Q3 versus Q4? Anything under the hood in terms of the evolution of how you're thinking about marketing, more social and digital versus national TV, or not national TV, but TV on the local markets, et cetera, would be helpful. Lyle Tick: Yeah. Year-on-year, as you look at the full year, from a percentage reinvestment point of view, we're targeting flat year-on-year percentage. Obviously, as we grow sales, that's going to throw off a few more dollars to invest in the business. Ultimately, we're keeping the same kind of percentage reinvestment rate and looking to continue to get more efficient and effective. I think what you've seen over the past couple of years, and continually have moved in this direction is, as we're able to bring together a relevant product calendar with our go-to-market and kind of marketing strategies. Apply that to kind of the relevant channels. We've continued to move more and more towards social, cultural, word of mouth marketing. I think we've also sharpened what I call our comms architecture, right? A couple of times of the year when we decide to talk more broadly in broader media, that's where we might leverage Pizookie Meal Deal and a value message that gets more people in. We think the other two pillars we like to talk about, which is product news and Pizookie news, those do really well from a social and digital perspective. The other thing that we continually do is for those markets that have traditionally, Nick, gotten kind of the broad media in those couple of windows of the year, we monitor those very closely to say, "Are we getting the return?" We're constantly piloting how we might evolve that mix depending on those markets, to drive the business. I think there was a couple of markets that got what we call Tier 2 broader support during Q2 that we shifted to all social and saw great results there. That allows us to either reinvest some of that money back into the markets that really benefit from that broader media or, ultimately drive that social part harder. We're constantly working on optimizing both channel mix and market mix by looking at kind of the return. I think the key for this working is to have that intersection of relevant news from a product perspective that intersects with a good channel strategy, and those things work together. Nick Setyan: Okay. Just on the margin on the flow through in Q2, I just want to understand sort of what you intend us to interpret with some of the prepared commentary. Could we get in Q3, essentially, really solid comps with better flow through? Was there some, like it was one time in nature in terms of the Q2, I guess, less than expected flow through? We should get more flow through in Q3 and going forward? Todd Wilson: Yeah, Nick. I hope it came through loud and clear. Q2 obviously on a year-over-year from a flow through, the cost of sales headwind, the commodity inflation was a big factor there. If you think about the shape of our year, though, we've always tried to communicate, "Hey, the first half of the year," because of the shape of inflation, right? Inflation started to peak in the second half of last year, that then carried through the first half of this year. We have always expected that the first half of the year would be--we've actually a little ahead of our expectations given the headwinds on inflation. The balance of the year, meaning Q3 and Q4, as those inflation headwinds subside, we do expect the dollar margin and the percentage margin to increase more substantially than they did in the first half of the year. Nick Setyan: Understood. Thank you. Lyle Tick: Thank you. Operator: The next question will come from Brian Mullan with Piper Sandler. Please go ahead. Allison Arfstrom: Hi, this is Allison Arfstrom on for Brian. Thank you for the question. The menu mix drivers in 2Q that you outlined were clear and also that it should moderate over time. More near term, should the 2Q trend hold? Is that 2Q mix level a good way to think about the back half of this year? Todd Wilson: Yeah, Allison, Todd here. Yeah, I think the way that we are thinking about it is that the mix impact eases, is the word I intentionally use, right? It eases in Q3 as compared to Q2, and then takes a further step down in Q4. As Lyle alluded to, right, the variable in that is the degree in which our seasonal Pizookies resonate. But on kind of a normalized basis, that is our baseline expectation that we see that mix ease in Q3, step down further in Q4, and by Q4, we do expect that check could be back, in total, to a moderately positive number. Allison Arfstrom: Okay. Thank you. Lyle Tick: Thank you. Operator: The final question will come from Jeff Farmer with Gordon Haskett. Please go ahead. Jeff Farmer: Thanks. Just two quick ones. Sorry to do it to you guys, just one more on July. I believe you did say that Black Box, the casual dining segment, the traffic part of it was down 1% in Q2. I'm curious if you guys can share what that number looks like in July or at least sort of month to date in July. Todd Wilson: Yeah, Jeff, Todd here. We're seeing similar to start Q3 in the Black Box numbers. Similar on traffic, similar on sales to what we saw in Q2. Jeff Farmer: Okay. Bigger picture, more strategy on the marketing front. Obviously, we heard from Cheesecake earlier this week. A lot of these casual dining concepts are getting much better at advertising across social and digital channels. You guys have had a nice lead there, some of these concepts are beginning to sort of, I won't say reel you in, they're narrowing the lead you have. Strategically, how do you stay ahead in terms of things like the digital and social channels on the marketing front that have worked well for you guys? Lyle Tick: I guess there's a couple of things, I might take a bigger step back before I get down to that. I think the big step back for me is I think what you're seeing and what we continue to see in our category in full service is this kind of delta between those who are winning and those who are losing, right? As exemplified in some of the Black Box data that we were just talking about. We're obviously very pleased with our performance. We've heard some other people deliver good performance, which obviously means that there's that delta. I think that delta is about your holistic value proposition as a business, and are you delivering a more compelling alternative to the category? Are you winning more of that traffic, right? I think that we've seen our ability to do that, and I think there's a set of winners who continue to do that. I think part of that is marketing strategies, but it's a much bigger story than that, right? Which comes from better operations, better product, better atmosphere, and how the whole thing is working together. I think we've continued to focus on improving the entire value proposition. I think you continue to see that at kind of a macro level, which is how we look at the business, and I think important overall context. When you get down to specifically the leveraging of digital channels and social media and influencer, yeah, look, I'm pleased with the way that we've progressed. I'm pleased with the trajectory that we're on. As I said, I think the intersection there that gets you the outsized results is the intersection of your product pipeline and leveraging that channel, right? The relevancy of that product pipeline is the multiplier on how that channel works for you. I think we have some pretty good, iconic, ownable platforms that we're able to build upon. I feel good about our ability to continue to resonate in those channels, but overall with our value proposition. Jeff Farmer: Very helpful. Appreciate it. Thank you. Lyle Tick: Sure. Operator: This concludes our question and answer session, as well as conference call. Thank you for attending today's presentation. You may now disconnect and have a great day. Before you buy stock in BJ's Restaurants, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BJ's Restaurants wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BJ's Restaurants (BJRI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 8.3% traffic growth, significantly outperforming casual dining benchmarks by over 9 points through successful 'celebration season' execution. Strategic reallocation of marketing spend from Q1 to Q2 resulted in a 67% increase in impressions and 20 basis points of improved efficiency as a percentage of sales. The Biscoff seasonal Pizookie acted as a major cultural trial driver, doubling Pizookie incidence year-over-year and attracting younger demographics. Menu renovation work in pizza, burgers, and chicken sandwiches is driving higher sales and dollar margins despite intentional investments in product quality. Restaurant-level margins expanded 20 basis points to 17.2%, successfully offsetting a 120 basis point headwind from 5% food inflation, specifically a 20% surge in beef costs. Operational improvements in labor leverage (90 basis points) and food waste management helped mitigate commodity pressures and higher repair and maintenance investments. Leadership team transformation continued with the hiring of a new Brand President and Chief Technology Officer to support the next phase of unit growth. Raised full-year comparable restaurant sales guidance to 3%-4% based on strong first-half momentum and sustained outperformance versus peers. Expect commodity inflation to subside in the second half of the year, allowing menu architecture improvements to become more visible in the margin profile. Anticipate average check compression will ease in Q3 and return to moderate growth by Q4 as the impact of high-trial seasonal promotions stabilizes. Planned opening of two new restaurants in Q4 will showcase a refreshed brand expression and prototype designed for operational leverage. Commitment to a 'gold standard' physical plant involves continued incremental investment in repairs, maintenance, and remodels over the next 18 months. Beef costs increased by approximately 20%, representing the primary driver of the 120 basis point margin headwind in cost of sales. Produce costs were pressured by severe weather and higher transportation costs, though management noted early relief in the third quarter. G&A expenses included $1.4 million in non-recurring legal reserves and leadership transition costs, which were excluded from adjusted EBITDA. Increased P&L investment in repairs and maintenance by $1 million (14%) to address deferred facilities work and improve guest atmosphere. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects cost of sales to improve slightly in the back half of the year as year-over-year inflation comparisons become easier. Labor margin gains are expected to continue through the remainder of the year due to disciplined execution and sales leverage. Compression was primarily driven by the success of the Biscoff Pizookie and Pizookie Meal Deal, which attracted high volumes of younger guests at lower entry price points. Management views this as 'profitable traffic' that builds long-term ritual, noting that renovated categories like burgers and pizza actually carry higher dollar margins. Management has not yet seen a ceiling on traffic capacity, even in top-quintile restaurants, due to better reservation management and improved 'shoulder period' transitions. Focus remains on 'blocking and tackling' operations, such as pre-busing and labor modeling, to handle outsized traffic growth. BJ's is currently testing a premium tier for the PMD to provide guests pathways to trade up while maintaining the core value proposition. It is too early to share specific results, but the goal is to optimize the program without losing the broad appeal that drives new customer acquisition.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. BJ's Restaurants stock has delivered a strong 109.6% return over the past year, yet the current checks suggest the shares may be trading above what recent cash flow and earnings based models point to as intrinsic value. With both the Discounted Cash Flow (DCF) estimate and market multiples signaling a premium, the market's optimism is running ahead of these valuation frameworks for now. Over the last 12 months, BJ's Restaurants has returned 109.6%, which puts extra focus on whether recent gains already reflect much of the good news in the story. Expectations around earnings and margin resilience, especially with the upcoming results scheduled for July 30 and the market watching indicators like comparable restaurant sales and restaurant level margins, may support the current price. However, any sign of compressed profitability can weigh on what investors are willing to pay. The stock currently screens as expensive on Simply Wall St's broader checks, with BJ's Restaurants scoring 0 out of 6 on valuation, so it does not show up as a clear bargain on this framework. For investors, the debate is whether BJ's Restaurants has now moved ahead of its intrinsic value or if the current price still leaves enough room for future execution to justify the premium. BJ's Restaurants delivered 109.6% returns over the last year. See how this stacks up to the rest of the Hospitality industry. The Discounted Cash Flow (DCF) approach looks at what BJ's Restaurants could generate in cash over time and discounts that back to today. For BJ's Restaurants, the latest twelve month free cash flow is about $68.4 million, and the model assumes cash flows that are growing rather than shrinking. On these inputs, the DCF points to an estimated intrinsic value of about $64 per share. With the current share price sitting above that estimate, the DCF implies the stock is roughly 15.5% overvalued. The upcoming Q2 2026 earnings on July 30, where analysts expect lower earnings despite higher revenue, helps explain why some investors may question how much upside is left at this price. Overall, the Discounted Cash Flow work suggests BJ's Restaurants stock currently screens as overvalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests BJ's Restaurants may be overvalued by 15.5%. Discover 56 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for BJ's Restaurants. The P/E ratio is a common way to look at BJ's Restaurants because earnings are a key focus for restaurant stocks. On this measure, BJ's Restaurants trades on a P/E of about 35.2x, compared with a Hospitality industry average near 25.5x and a peer group average of about 25.4x. That places the stock at a clear premium to many similar businesses. The fair P/E ratio from Simply Wall St's model is about 18.3x, which reflects what investors might pay given factors such as growth profile, margins, size and risk. Against that benchmark, the current 35.2x multiple is almost double, so the shares screen as expensive relative to their earnings power on this framework. On the P/E multiple alone, BJ's Restaurants stock currently looks overvalued compared with both its industry peers and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for BJ's Restaurants pick up where the valuation work leaves off and focus on the specific paths that could make the stock worth materially more or less than today. They sit on the Community page and turn abstract ratios and model outputs into clear future scenarios for BJ's Restaurants' growth, margins and earnings, so you can see which expectations are built into the current price and track whether those assumptions hold. One of the top community narratives on BJ's Restaurants: 49% overvalued Read one of the top narratives on BJ's Restaurants Do you think there's more to the story for BJ's Restaurants? Head over to our Community to see what others are saying! For BJ's Restaurants, both the Discounted Cash Flow (DCF) intrinsic value estimate and the current earnings multiple point to the stock being overvalued rather than a clear bargain. The broader value checks also sit in the low tier, which reinforces that message instead of offsetting it. From here, the key issue is whether earnings and margins can develop strongly enough to support a premium valuation. If profitability or growth expectations slip, the current pricing leaves limited room for disappointment. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BJRI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Total Revenue: $388.9 million, a 6.4% increase year over year. Comparable Restaurant Sales: Increased 6.5%, driven by 8.3% traffic growth and including 1.8% average check compression. Restaurant-Level Operating Profit: $66.8 million, with margins expanding 20 basis points to 17.2%. Adjusted EBITDA: $44.4 million, up from $42.1 million in the prior year, with margins at 11.4%. Cost of Sales: 25.5% of sales, a 70-basis-point increase, reflecting a 120-basis-point headwind from approximately 5% commodity inflation. Labor Expense: Improved 90 basis points to 34.5% of sales. Occupancy and Operating Expenses: 22.8% of sales, unchanged year over year. General and Administrative Costs: 6.8% of sales, a 90-basis-point increase, including $1.4 million in legal reserve and leadership transition costs. Capital Expenditures: $23.3 million invested in the quarter, primarily for restaurant maintenance, five remodels, and two new restaurant constructions. Share Repurchases: Approximately 64,000 common shares repurchased and retired for $2.4 million. Net Debt: Approximately $30 million at the end of Q2, down from $61 million at the start of the year. Store Locations: 219 existing restaurants, with two new openings planned for the fourth quarter in Buckeye, Arizona, and Joliet, Illinois. 2026 Guidance: Comparable restaurant sales growth raised to 3% to 4%; restaurant-level operating profit guidance raised to $228 to $235 million; adjusted EBITDA guidance raised to $145 to $152 million. Warning! GuruFocus has detected 3 Warning Sign with AMZN. Is BJRI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BJ's Restaurants Inc (NASDAQ:BJRI) delivered its eighth consecutive quarter of sales and traffic growth, with same-store sales up 6.5% and traffic up 8.3%, significantly outperforming Black Box casual dining benchmarks. Restaurant-level operating margins expanded by 20 basis points to 17.2% despite a 120-basis-point headwind from food inflation, demonstrating strong operational leverage and cost control. The company's marketing strategy proved highly effective, with a 67% increase in impressions in Q2 and 146% in the first half, while maintaining flat marketing spend as a percentage of sales year-over-year. Menu innovation, particularly the Biscoff seasonal Pizookie, was a major success, doubling Pizookie incidents year-over-year and driving strong guest traffic and sales across all geographies, day parts, and channels. BJ's Restaurants Inc (NASDAQ:BJRI) raised its full-year guidance for comparable restaurant sales growth to 3%-4% (from 1%-3%) and adjusted EBITDA to $145-$152 million (from $140-$150 million), reflecting confidence in continued momentum. The company strengthened its balance sheet, reducing net debt to approximately $30 million from $61 million at the start of the year, positioning it for high-return investments in remodels, new restaurants, and share repurchases. Average check compression of 1.8% in Q2, driven by the popularity of value-oriented promotions like the Pizookie Meal Deal and seasonal Pizookies, which attract lower-check guests and weigh on mix. Cost of sales increased by 70 basis points to 25.5% due to approximately 5% commodity inflation, led by a 20% increase in beef costs, which pressured margins despite operational improvements. General and administrative costs rose 90 basis points to 6.8% year-over-year, including $1.4 million in incremental legal reserve and leadership transition costs, as well as $1.5 million in deferred compensation expenses. The company faces ongoing uncertainty from seasonal product performance, as the success of items like the Biscoff Pizookie can create volatility in average check and mix, making financial forecasting more challenging. Repair and maintenance expenses increased by approximately $1 million (14% year-over-year) as part of a multi-quarter investment to bring facilities to a 'gold standard,' which will continue to pressure near-term profitability. While Q3 is off to a good start, management expects Q3 comparable sales to somewhat outpace Q4 due to the shape of prior-year comparisons, indicating potential deceleration in the back half of the year. Q: Can you provide more color on the implied comparable sales guidance for the back half of the year, given the strong Q2 results and a good start to Q3?A: Lyle Tick (CEO) stated he is very pleased with the trends and momentum in Q3, with teams executing well. He noted his predisposition is to ensure the company does what it says it will do and not get too far ahead, but expressed high confidence in the current performance and the business's trajectory. Q: What drove the negative mix in the quarter, and how should we think about this trend for the rest of the year?A: Lyle Tick (CEO) explained that the negative mix was largely driven by the seasonal Pizookie, which drove significant trial and brought in new guests with smaller checks. He emphasized that "not all mix is created equal" and that these programs drive outsized traffic and profit. Todd Wilson (CFO) added that they expect the mix impact to ease in Q3 and step down further in Q4, with a potential return to moderately positive check growth by Q4. Q: Can you elaborate on the progress and timeline for the premium tier test of the Pizookie Meal Deal?A: Lyle Tick (CEO) stated it is too early to share specific results, but the work is twofold: keeping the menu fresh (e.g., adding a classic chicken sandwich) and testing a premium tier. He emphasized a holistic view of the business, ensuring all initiatives work together to deliver a more compelling BJ's and drive long-term growth. Q: How are you thinking about marketing spend in the back half of the year, and how is the channel mix evolving?A: Lyle Tick (CEO) stated they are targeting a flat year-over-year percentage reinvestment rate. The strategy continues to shift more towards social, cultural, and word-of-mouth marketing. They are constantly optimizing channel and market mix, and in Q2, some markets that traditionally received broader media support were shifted to all-social, yielding great results. Q: Can you discuss the labor leverage in Q2 and the expected flow-through for the rest of the year?A: Todd Wilson (CFO) confirmed that Q2's flow-through was impacted by the significant cost of sales headwind from commodity inflation. He reiterated that as these inflation headwinds subside in Q3 and Q4, they expect dollar and percentage margins to increase more substantially than in the first half of the year. Q: What were the key drivers of the strong traffic growth during the "celebration season," and is there capacity for more?A: Lyle Tick (CEO) attributed the growth to operational discipline, including a focus on reservations and managing "shoulder periods" effectively. He noted that traffic growth was seen across all quintiles of restaurants, indicating there is still capacity, especially in the top AUV restaurants. Todd Wilson (CFO) added that sales and traffic grew across every day of the week, day part, and geography, reinforcing the brand's broad appeal. Q: What is the current state of the casual dining benchmark (Black Box) performance, and how is BJ's outperforming?A: Todd Wilson (CFO) stated that Black Box traffic is slightly negative and sales slightly positive, consistent with Q2. BJ's significantly outperformed, beating Black Box traffic by over 9 points in Q2 and continuing to beat the benchmark in the first few weeks of Q3. Q: With competitors improving their digital and social marketing, how does BJ's plan to stay ahead?A: Lyle Tick (CEO) emphasized that the key is the holistic value proposition, not just marketing. He highlighted the intersection of a relevant product pipeline with effective channel strategy as the multiplier for success. He expressed confidence in BJ's iconic, ownable platforms (like Pizookies) to continue resonating in social and digital channels. Q: Can you provide more detail on the cost of sales outlook, given the commodity inflation in Q2?A: Todd Wilson (CFO) said they expect some relief on a year-over-year basis in the balance of the year, though beef costs will still increase sequentially. He expects cost of sales to improve a little, but not a big step down. Q: Were there any one-time items in the Q2 comp and traffic performance, such as the World Cup or other events?A: Lyle Tick (CEO) confirmed there were no anomalous items. The LA fire impacts were in Q1, and the World Cup only provided individualized bumps at specific restaurants, with no material or differentiated impact across the portfolio. The performance was driven by programming and progress. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in BJ's Restaurants, Inc.? Here are five stocks we like better. BJ’s Restaurants delivered strong Q2 fiscal 2026 results: Comparable sales increased 6.5% on 8.3% traffic growth, while revenue rose 6.4% to $388.9 million and restaurant-level operating profit grew to $66.8 million. Despite a 1.8% decline in average check and roughly 5% commodity inflation, labor leverage and operational improvements expanded restaurant-level margin to 17.2%. Seasonal Pizookie offerings, menu updates and continued traffic gains were key performance drivers. Management raised its full-year outlook for comparable sales, restaurant-level operating profit and adjusted EBITDA, while debt fell to about $30 million. BJ’s plans to open two restaurants in Q4 and continues investing in remodels, maintenance and future growth. Does Cheesecake Factory Stock Have Any Upside Left on the Menu? BJ's Restaurants (NASDAQ:BJRI) reported second-quarter fiscal 2026 results marked by continued traffic growth, higher restaurant-level profit and an increased full-year outlook, while management said it is investing in menu innovation, restaurant upkeep and future unit development. Chief Executive Officer and President Lyle Tick said the company recorded its eighth consecutive quarter of sales and traffic growth and its seventh consecutive quarter of profit growth. Comparable restaurant sales rose 6.5% in the second quarter, driven by 8.3% traffic growth. The company said it continued to outperform Black Box casual dining benchmarks. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 2 stocks that missed earnings but surged higher Total revenue increased 6.4% year over year to $388.9 million. Restaurant-level operating profit rose $4.7 million to $66.8 million, while adjusted EBITDA increased $2.3 million to $44.4 million. Average check declined 1.8% during the quarter, as guest mix shifted toward promotional and seasonal offerings. Tick said Tuesday promotions aimed at younger consumers and the Pizookie Meal Deal on Fridays contributed to the pressure on check averages, but said the company was generating “profitable traffic” and was not overly dependent on any single day or promotion. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 3 Restaurant Stocks Ready To Rally Seasonal Pizookie offerings were a major driver of traffic. The Biscoff Pizookie doubled Pizookie incidents compared with the prior year during the quarter, according to Tick. He said the product generated substantial trial, including from younger customers making smaller purchases, while supporting repeat visits over time. Management said sales and traffic increased across all geographies, dayparts and days of the week. Mother’s Day sales rose more than 8% year over year, while Father’s Day sales increased more than 3%. More than 80 restaurants set daily or weekly sales records during the quarter, Tick said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Restaurant-level operating margin expanded 20 basis points to 17.2%, despite cost-of-sales pressure. Cost of sales increased 70 basis points to 25.5% of sales, primarily due to about 5% inflation in the company’s commodity basket. CFO Todd Wilson said beef costs rose about 20% and were the largest contributor to the pressure, while severe weather and transportation expenses also increased produce costs. Wilson said the company expects year-over-year commodity inflation to moderate during the remainder of the year, though sequential beef-cost increases remain a factor. BJ’s expects some cost-of-sales improvement in the second half, but not a major decline, he said. Total labor expense improved 90 basis points to 34.5% of sales as higher revenue and operational execution more than offset a 10-basis-point increase in workers’ compensation costs. Management said restaurant operators improved hourly labor, management and benefits expenses while continuing to raise guest-satisfaction measures. The company also cited lower food waste and fewer food and beverage comp incidents. Tick said investments in training, point-of-sale simplification, tablet upgrades and an AI-supported activity-based labor model are intended to make restaurant jobs easier and support service levels. The labor model is expected to expand through year-end. BJ’s shifted marketing spending from the first quarter to the second quarter to support its celebration season. Second-quarter marketing expense rose $1.2 million, or 20 basis points, year over year. However, year-to-date marketing dollars were unchanged and marketing expense declined 10 basis points as a share of sales, Wilson said. Tick said the company continues to place greater emphasis on social, digital, cultural and word-of-mouth marketing, particularly for product news and Pizookie campaigns. The company plans to hold marketing investment as a percentage of sales roughly flat for the full year while seeking further efficiency. The company increased repair and maintenance spending by about $1 million, or 14%, during the quarter as part of a broader effort to address deferred facilities work and improve restaurant conditions. Management expects to continue investing at a measured pace over the next several quarters. BJ’s said its refreshed pizza, burger and chicken sandwich categories are producing higher incidence, sales, average prices and dollar margins than prior offerings. The company has invested more than $1.5 million in product quality, particularly in pizza, according to Tick. Management does not expect another broad category refresh before year-end, though it is testing additional category and item changes. Seasonal offerings may provide early indications of future menu work, Tick said. The company is also testing a potential premium tier for the Pizookie Meal Deal, though management said the effort remains in an early stage. Tick said the company expects average-check pressure to ease in the third quarter and projected a return to moderate average-check growth in the fourth quarter. Wilson said the extent of seasonal Pizookie popularity could affect those results because strong Pizookie demand can reduce check averages while benefiting traffic, sales and profit dollars. BJ’s plans to open two new restaurants in the fourth quarter: one in Buckeye, Arizona, and one in Joliet, Illinois. Tick said both locations will feature a refreshed version of the brand’s restaurant design. The company operates 219 existing restaurants. The company also completed five remodels during the quarter and said remodeled locations are generating traffic growth above the rest of the portfolio. Based on first-half performance, BJ’s increased its fiscal 2026 guidance for several metrics: Comparable restaurant sales growth is now expected to be 3% to 4%, compared with prior guidance of 1% to 3%. Restaurant-level operating profit is projected at $228 million to $235 million, up from $221 million to $233 million. Adjusted EBITDA is expected to total $145 million to $152 million, compared with prior guidance of $140 million to $150 million. Capital expenditures remain forecast at $85 million to $95 million. Share repurchases remain authorized at up to $50 million, subject to market conditions. During the second quarter, BJ’s spent $23.3 million on capital expenditures, repurchased about 64,000 shares for $2.4 million and repaid $18 million of debt. Net debt ended the quarter at about $30 million, down from $61 million at the beginning of the year. Wilson said the third quarter began with continued sales and traffic growth, with the company again outperforming the Black Box casual dining benchmark. He said Black Box casual dining traffic remained slightly negative and sales slightly positive early in the third quarter, similar to the second-quarter pattern. BJ's Restaurants, Inc is a publicly traded casual dining chain known for its deep‐dish pizzas, California‐style thin crust offerings and in‐house craft beer selections. Operating under the BJ's Restaurant & Brewhouse brand, the company combines a microbrewery concept with full‐service dining, offering an extensive menu that includes appetizers, salads, pasta dishes, sandwiches and the signature Pizookie dessert. Founded in 1978 in Orange County, California, BJ's Restaurants began as BJ's Chicago Pizzeria, bringing a Chicago‐style pizza experience to the West Coast. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BJ's Restaurants Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.