BJ's Restaurants (BJRI) Q1 2026 earnings summary

Executive summary

• Achieved seventh consecutive quarter of sales and traffic growth, with improved profitability and EBITDA margin expansion.

• Total revenues rose 2.9% year-over-year to $358.1 million, driven by higher guest traffic and new restaurant openings.

• Comparable restaurant sales increased 2.4%, with guest traffic up 2.2% and average check up 0.2%, outperforming industry benchmarks.

• Net income for the quarter was $9.0 million, down from $13.5 million in the prior year, reflecting higher costs and increased depreciation.

• Notable Q1 events included record-setting Valentine's Day sales and strong performance despite 70 bps of weather-related headwinds.

Financial highlights

• Restaurant-level operating profit was $57.2 million (16% margin), a $1.6 million increase year-over-year.

• Adjusted EBITDA rose to $37.7 million (10.5% of sales), up 6.8% year-over-year.

• Diluted EPS was $0.41; adjusted diluted EPS was $0.57.

• Cost of sales was 25.1%, up 10 bps year-over-year due to beef inflation; labor expense was 36.3% of sales, up 20 bps.

• Cash and cash equivalents stood at $22.7 million at quarter-end.

Outlook and guidance

• Fiscal 2026 guidance reiterated: comparable restaurant sales growth of 1%-3%, operating profit expected between $221 million and $233 million.

• Adjusted EBITDA projected at $140 million to $150 million; capital expenditures forecasted at $85 million to $95 million.

• Q2 expected to be peak for commodity inflation; menu updates and pricing actions planned to offset inflation in H2.

• Construction underway for new units in Joliet, IL and Buckeye, AZ, with most preopening costs in Q4.

• Management expects current cash, cash flow from operations, and credit availability to be sufficient for at least the next twelve months.