BJs RESTAURANTS INC

Previous wording

Certain information included in this Form 10-Q and other filings with the Securities and Exchange Commission, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers may contain “forward-looking” statements about our current and expected performance trends, growth plans, business goals and other matters. Words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should,” and similar expressions are intended to identify “forward-looking” statements. These statements, and any other statements that are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended from time to time. The cautionary statements made in this Form 10-Q should be read as being applicable to all related “forward-looking” statements wherever they appear in this Form 10-Q. These forward-looking statements are based on information available to us as of the date any such statements are made, and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the risk factors described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated in our Form 10-Q for the thirteen weeks ended April 1, 2025, and in other reports filed subsequently with the SEC.

Current wording

“forward-looking” statements about our current and expected performance trends, growth plans, business goals and other matters. Words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should,” and similar expressions are intended to identify “forward-looking” statements. These statements, and any other statements that are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended from time to time. The cautionary statements made in this Form 10-Q should be read as being applicable to all related “forward-looking” statements wherever they appear in this Form 10-Q. These forward-looking statements are based on information available to us as of the date any such statements are made, and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the risk factors described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated in our Form 10-Q for the twenty-six weeks ended July 1, 2025, and in other reports filed subsequently with the SEC.

Previous wording

The first BJ’s restaurant opened in 1978 in Orange County, California, and was a small sit-down pizzeria that featured Chicago style deep-dish pizza with a unique California twist. In 1996, we introduced our proprietary craft beers and expanded the BJ’s concept to a full-service, high-energy restaurant when we opened our first large format restaurant with an on-site brewing operation in Brea, California. Today our restaurants feature a broad menu with approximately 100 menu items designed to offer something for everyone including: slow roasted entrees such as prime rib, EnLIGHTened Entrees® such as our Cherry Chipotle Glazed Salmon, our original signature deep-dish pizza, and the world-famous Pizookie® dessert. We also offer our award-winning BJ’s craft beers, which are produced at four in-house brewing facilities, two standalone brewpubs and by independent third-party brewers using our proprietary recipes, alongside a full bar featuring innovative cocktails.

Current wording

The first BJ’s restaurant opened in 1978 in Orange County, California, and was a small sit-down pizzeria that featured Chicago style deep-dish pizza with a unique California twist. In 1996, we introduced our proprietary craft beers and expanded the BJ’s concept to a full-service, high-energy restaurant when we opened our first large format restaurant with an on-site brewing operation in Brea, California. Today our restaurants feature a broad menu with approximately 100 menu items designed to offer something for everyone including: slow roasted entrees and wings, EnLIGHTened Entrees® such as our Cherry Chipotle Glazed Salmon, our original signature deep-dish pizza, and the world-famous Pizookie® dessert. We also offer our award-winning BJ’s craft beers, which are produced at four in-house brewing facilities, two standalone brewpubs and by independent third-party brewers using our proprietary recipes, alongside a full bar featuring innovative cocktails.

Previous wording

The following table provides, for the periods indicated, our unaudited Consolidated Statements of Operations expressed as percentages of total revenues. The results of operations for the thirteen weeks ended April 1, 2025 and April 2, 2024, are not necessarily indicative of the results to be expected for the full fiscal year. Percentages below may not reconcile due to rounding.

Current wording

The following table provides, for the periods indicated, our unaudited Consolidated Statements of Operations expressed as percentages of total revenues. The results of operations for the thirteen and twenty-six weeks ended July 1, 2025 and July 2, 2024, are not necessarily indicative of the results to be expected for the full fiscal year. Percentages below may not reconcile due to rounding.

Previous wording

Revenues. Total revenues increased by $10.6 million, or 3.2%, to $348.0 million during the thirteen weeks ended April 1, 2025, from $337.3 million during the comparable thirteen-week period of 2024. The increase in revenues primarily consisted of a 1.7%, or $5.7 million, increase in comparable restaurant sales, and $4.8 million related to sales from new restaurants not yet in our comparable restaurant sales base. The increase in comparable restaurant sales was due to an increase in guest traffic of approximately 2.7%, offset by an average check decrease of approximately 1.0%, resulting from changes in mix, partially mitigated by menu price increases.

Current wording

Revenues. Total revenues increased by $15.7 million, or 4.5%, to $365.6 million during the thirteen weeks ended July 1, 2025, from $349.9 million during the comparable thirteen-week period of 2024. The increase in revenues primarily consisted of a 2.9%, or $10.2 million, increase in comparable restaurant sales, and $5.2 million related to sales from new restaurants not yet in our comparable restaurant sales base. The increase in comparable restaurant sales was due to an increase in guest traffic of approximately 3.3%, offset by an average check decrease of approximately 0.4%, resulting from changes in daypart and channel mix, partially mitigated by menu price increases.

Previous wording

Cost of Sales. Cost of sales increased by $1.9 million, or 2.2%, to $86.8 million during the thirteen weeks ended April 1, 2025, from $85.0 million during the comparable thirteen-week period of 2024. This increase was primarily to support the higher sales at restaurants in our comparable restaurant sales base as well as our new restaurants. As a percentage of revenues, cost of sales decreased to 25.0% for the current thirteen-week period from 25.2% for the prior year comparable period. This decrease was primarily due to menu price increases offsetting inflationary pressures and the effectiveness of our cost savings initiatives.

Current wording

Cost of Sales. Cost of sales increased by $1.0 million, or 1.1%, to $90.8 million during the thirteen weeks ended July 1, 2025, from $89.8 million during the comparable thirteen-week period of 2024. This increase was primarily to support the higher sales at restaurants in our comparable restaurant sales base as well as our new restaurants. As a percentage of revenues, cost of sales decreased to 24.8% for the current thirteen-week period from 25.7% for the prior year comparable period. This decrease was primarily due to lower commodity costs and the effectiveness of improved operations and our cost savings initiatives.

Previous wording

Labor and Benefits. Labor and benefit costs for our restaurants increased by $0.6 million, or 0.5%, to $125.7 million during the thirteen weeks ended April 1, 2025, from $125.0 million during the comparable thirteen-week period of 2024. This increase was primarily due to $0.5 million related to higher management compensation, $0.9 million in taxes and benefits, and $0.4 million related to higher workers’ compensation costs, offset by $1.1 million related to lower hourly labor and $0.1 million related to lower stock-based compensation. As a percentage of revenues, labor and benefit costs decreased to 36.1% for the current thirteen-week period from 37.1% for the prior year comparable period. This decrease was primarily due to leveraging our comparable restaurant growth and improved labor efficiency driven by our cost savings initiatives. Included in labor and benefits for the thirteen weeks ended April 1, 2025 and April 2, 2024, was approximately $0.4 million and $0.5 million, or 0.1% and 0.2% of revenues, respectively, of stock-based compensation expense related to equity awards granted in accordance with our Gold Standard Stock Ownership Program for certain restaurant management team members.

Current wording

Labor and Benefits. Labor and benefit costs for our restaurants increased by $3.1 million, or 2.4%, to $129.4 million during the thirteen weeks ended July 1, 2025, from $126.3 million during the comparable thirteen-week period of 2024. This increase was primarily due to $1.8 million related to higher management compensation, $0.8 million related to higher hourly labor, and $0.3 million related to stock-based compensation. As a percentage of revenues, labor and benefit costs decreased to 35.4% for the current thirteen-week period from 36.1% for the prior year comparable period. This decrease was primarily due to leveraging our comparable restaurant growth and improved labor efficiency driven by our cost savings initiatives. Included in labor and benefits for the thirteen weeks ended July 1, 2025 and July 2, 2024, was approximately $0.9 million and $0.5 million, or 0.2% of revenues, of stock-based compensation expense related to equity awards granted in accordance with our Gold Standard Stock Ownership Program for certain restaurant management team members.

Previous wording

Occupancy and Operating. Occupancy and operating expenses increased by $3.1 million, or 4.0%, to $79.9 million during the thirteen weeks ended April 1, 2025, from $76.9 million during the comparable thirteen-week period of 2024. This was primarily due to increases of $0.9 million in marketing-related expenses, $0.8 million in third party delivery fees, $0.8 million in utilities, $0.8 million in repairs and maintenance, $0.2 million in credit card processing fees, $0.2 million in license fees and $0.2 million in equipment rental, offset by decreases of $0.8 million in supplies and $0.3 million in restaurant facility expenses. As a percentage of revenues, occupancy and operating expenses increased to 23.0% for the current thirteen-week period from 22.8% for the prior year comparable period. This increase was primarily related to our investment in increased marketing with the goal of driving incremental sales.

Current wording

Occupancy and Operating. Occupancy and operating expenses increased by $3.7 million, or 4.7%, to $83.3 million during the thirteen weeks ended July 1, 2025, from $79.6 million during the comparable thirteen-week period of 2024. This was primarily due to increases of $2.5 million in marketing-related expenses, $0.6 million in utilities, $0.5 million in delivery fees, $0.4 million in repairs and maintenance and $0.4 million in credit card processing fees, offset by decreases of $0.5 million in supplies and $0.2 million in rent and related. As a percentage of revenues, occupancy and operating expenses increased to 22.8% for the current thirteen-week period from 22.7% for the prior year comparable period. This increase was primarily related to our investment in increased marketing with the goal of driving incremental sales.

Previous wording

Depreciation and Amortization. Depreciation and amortization increased by $0.4 million, or 2.3%, to $18.3 million during the thirteen weeks ended April 1, 2025, compared to $17.9 million during the comparable thirteen-week period of 2024. This increase was primarily related to depreciation expense related to our restaurants opened since the thirteen weeks ended April 2, 2024, coupled with depreciation related to our remodeled restaurants. As a percentage of revenues, depreciation and amortization remained consistent at 5.3% for the current thirteen-week period and the prior year comparable period.

Current wording

Depreciation and Amortization. Depreciation and amortization increased by $0.6 million, or 3.2%, to $18.7 million during the thirteen weeks ended July 1, 2025, compared to $18.2 million during the comparable thirteen-week period of 2024. This increase was primarily related to depreciation expense related to our restaurants opened since the thirteen weeks ended July 2, 2024, coupled with depreciation related to our remodeled restaurants. As a percentage of revenues, depreciation and amortization decreased to 5.1% for the current thirteen-week period from 5.2% for the prior year comparable period.

Previous wording

Restaurant Opening. Restaurant opening expense decreased by $0.2 million, or 25.8%, to $0.4 million during the thirteen weeks ended April 1, 2025, compared to $0.6 million during the comparable thirteen-week period of 2024. This decrease was primarily due to the timing of openings.

Current wording

Restaurant Opening. Restaurant opening expense decreased by $0.1 million, or 25.0%, to $0.2 million during the thirteen weeks ended July 1, 2025, compared to $0.3 million during the comparable thirteen-week period of 2024. This decrease was primarily due to the timing of openings.

Previous wording

Loss on Disposal and Impairment of Assets, Net. Loss on disposal and impairment of assets, net, was $0.2 million during the thirteen weeks ended April 1, 2025, and $0.8 million during the comparable thirteen-week period of 2024. These costs primarily related to disposals of assets in conjunction with initiatives to keep our restaurants up to date.

Current wording

Loss on Disposal and Impairment of Assets, Net. Loss on disposal and impairment of assets, net, was $0.2 million during the thirteen weeks ended July 1, 2025, and $1.9 million during the comparable thirteen-week period of 2024. For the thirteen weeks ended July 1, 2025, these costs primarily related to disposals of assets in conjunction with initiatives to keep our restaurants up to date. For the thirteen weeks ended July 2, 2024, the cost primarily related to the impairment and reduction in the carrying value of the long-lived assets related to one of our restaurants.

Previous wording

Income Tax Benefit. Our effective income tax rate for the thirteen weeks ended April 1, 2025, was an expense of 1.2% compared to a benefit of 2.4% for the comparable thirteen-week period of 2024. The effective tax rate expense and benefit, respectively, for the thirteen weeks ended April 1, 2025 and April 2, 2024 was different than the statutory rate primarily due to FICA tax tip credits.

Current wording

Income Tax Expense (Benefit). Our effective income tax rate for the thirteen weeks ended July 1, 2025, was an expense of 6.3% compared to a benefit of 16.4% for the comparable thirteen-week period of 2024. The effective tax rate expense and benefit, respectively, for the thirteen weeks ended July 1, 2025 and July 2, 2024, was different than the statutory rate primarily due to FICA tax tip credits.

Previous wording

General and Administrative. General and administrative expenses decreased by $1.2 million, or 5.4%, to $21.8 million during the thirteen weeks ended April 1, 2025, from $23.0 million during the comparable thirteen-week period of 2024. This was primarily due to decreases of $1.2 million in legal fees, $0.8 million related to our deferred compensation liability, and $0.4 million lower stock-based compensation, offset by increases of $0.5 million related to incentive compensation, $0.5 million in external services, and $0.3 million in recruiting related expenses. As a percentage of revenues, general and administrative expenses decreased to 6.3% for the current thirteen-week period from 6.8% for the prior year comparable period. This decrease was primarily due to our ability to leverage our fixed costs over a higher revenue base. Included in general and administrative costs was stock-based compensation expense of approximately $1.5 million and $2.0 million, or 0.4% and 0.6% of revenues for the thirteen weeks ended April 1, 2025 and April 2, 2024, respectively.

Current wording

General and Administrative. General and administrative expenses decreased by $0.1 million, or 0.2%, to $43.5 million during the twenty-six weeks ended July 1, 2025, from $43.6 million during the comparable twenty-six-week period of 2024. This was primarily due to decreases of $2.1 million in legal fees, and $0.5 million related to our deferred compensation liability, offset by increases of $1.7 million in external services, including consulting fees, and $0.9 million related to office expenses. As a percentage of revenues, general and administrative expenses decreased to 6.1% for the current twenty-six-week period from 6.3% for the prior year comparable period. This decrease was primarily due to our ability to leverage our fixed costs over a higher revenue base. Included in general and administrative costs was stock-based compensation expense of approximately $2.6 million and $4.2 million, or 0.4% and 0.6% of revenues for the twenty-six weeks ended July 1, 2025 and July 2, 2024, respectively. This reduction was due to equity forfeitures associated with leadership changes during the period.

Previous wording

Interest Expense, Net. Interest expense, net, decreased by $0.2 million to $1.2 million during the thirteen weeks ended April 1, 2025, compared to $1.4 million during the comparable thirteen-week period of 2024. This decrease was primarily due to a lower weighted average interest rate year over year, partially offset by a higher average outstanding debt balance.

Current wording

Interest Expense, Net. Interest expense, net, decreased by $0.2 million to $2.5 million during thet wenty-six weeks ended July 1, 2025, compared to $2.7 million during the comparable twenty-six-week period of 2024. This decrease was primarily due to a lower weighted average interest rate year over year, coupled with a lower average outstanding debt balance.

Previous wording

Other (Expense) Income, Net. Other (expense) income, net, was $0.1 million of expense during the thirteen weeks ended April 1, 2025, compared to income of $0.7 million during the comparable thirteen-week period of 2024. This change was primarily related to the change in the cash surrender value of certain life insurance policies under our deferred compensation plan.

Current wording

Other Income, Net. Other income, net, was $3.7 million of expense during the twenty-six weeks ended July 1, 2025, compared to income of $3.5 million during the comparable twenty-six-week period of 2024. This change was primarily related to an increase in income related to a payroll tax credit, compared to prior period, offset by the change in the cash surrender value of certain life insurance policies under our deferred compensation plan.

Previous wording

Net cash used in investing activities was $16.6 million during the thirteen weeks ended April 1, 2025, representing a $5.2 million decrease from the $21.9 million used during the thirteen weeks ended April 2, 2024. The decrease over prior year is primarily due to the number of new restaurant openings coupled with the timing of restaurant remodel activity.

Current wording

Net cash used in investing activities was $37.0 million during the twenty-six weeks ended July 1, 2025, representing a $4.3 million decrease from the $41.3 million used during the twenty-six weeks ended July 2, 2024. The decrease over prior year is primarily due to the number of new restaurant openings coupled with the timing of restaurant remodel activity.

Previous wording

As of May 5, 2025, we have opened one new restaurant and we currently plan to remodel up to 30 existing locations in fiscal 2025. We currently anticipate our total capital expenditures for fiscal 2025 to be approximately $65 million to $75 million. This estimate includes costs to open new restaurants and remodel existing locations and excludes anticipated proceeds from tenant improvement allowances. We expect to fund our net capital expenditures with our current cash balance on hand, cash flows from operations and our line of credit. Our future cash requirements will depend on many factors, including the pace of our expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords.

Current wording

As of August 8, 2025, we have opened one new restaurant and currently plan to remodel approximately 20 existing locations in fiscal 2025. We currently anticipate our total capital expenditures for fiscal 2025 to be approximately $65 million to $75 million. This estimate includes costs to open new restaurants and remodel existing locations and excludes anticipated proceeds from tenant improvement allowances. We expect to fund our net capital expenditures with our current cash balance on hand, cash flows from operations and our line of credit. Our future cash requirements will depend on many factors, including the pace of our expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords.

Previous wording

Inflation has had an impact on our operations, new restaurant construction and corresponding return on invested capital. While we have been able to partially offset inflation and other changes in the costs of key operating inputs by gradually increasing menu prices, coupled with more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to continue to do so in the future. Increases in inflation, including the effects of any tariff increases on food and other restaurant operating and construction costs, could adversely affect our business, financial condition and results of operations. In addition, increases in inflation could have a severe impact on the United States and global economies, which will have an adverse impact on our business, financial condition and results of operations. Macroeconomic conditions that impact consumer discretionary spending for food away from home could make additional menu price increases imprudent to offset the effects of inflation. Whether we are able to continue to offset the effects of inflation will determine to what extent, if any, inflation affects our restaurant profitability in future periods.

Current wording

Inflation has had an impact on our operations, new restaurant construction and corresponding return on invested capital. While we have been able to partially offset inflation and other changes in the costs of key operating inputs by gradually increasing menu prices, coupled with more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to continue to do so in the future. Increases in inflation, including the effects of any tariff increases or other changes in trade policies on food and other restaurant operating and construction costs, could adversely affect our business, financial condition and results of operations. In addition, increases in inflation could have a severe impact on the United States and global economies, which will have an adverse impact on our business, financial condition and results of operations. Macroeconomic conditions that impact consumer discretionary spending for food away from home could make additional menu price increases imprudent to offset the effects of inflation. Whether we are able to continue to offset the effects of inflation will determine to what extent, if any, inflation affects our restaurant profitability in future periods.

Previous wording

A summary of our other critical accounting policies is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. During the thirteen weeks ended April 1, 2025, there were no significant changes in our critical accounting policies.

Current wording

A summary of our other critical accounting policies is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. During the twenty-six weeks ended July 1, 2025, there were no significant changes in our critical accounting policies.