Shares of BJ's Restaurants (NASDAQ: BJRI) surged 7.02% in after-hours trading on Thursday following the company's impressive first-quarter earnings report and improved annual guidance. The casual dining chain's financial performance exceeded analyst expectations, demonstrating resilience in a challenging restaurant industry environment.

BJ's Restaurants reported earnings per share (EPS) of $0.58 for the first quarter, significantly outpacing the Wall Street consensus estimate of $0.38. This strong bottom-line performance represents a 79.8% increase from the $0.32 per share reported in the same period last year. The company's revenue for the quarter came in at $348 million, meeting analyst expectations and marking a 3.2% year-over-year increase.

Notably, BJ's Restaurants saw a 1.7% rise in comparable restaurant sales during the quarter, indicating improved customer traffic and spending. The company's management highlighted positive trends in guest satisfaction metrics, with food, value, and recommend scores hitting multi-year highs. Additionally, BJ's Restaurants managed to enhance its operational efficiency, resulting in a 100 basis point improvement in restaurant-level operating margins and a 150 basis point increase in Adjusted EBITDA margins year-over-year.

In light of these strong results, BJ's Restaurants raised its full-year 2025 outlook. The company now anticipates comparable restaurant sales growth of 2% to 3%, up from its previous guidance. Management also increased its expectations for capital returns to shareholders, signaling confidence in the company's financial position and future prospects.

Investors responded enthusiastically to the earnings beat and improved outlook, driving the stock higher in after-hours trading. The significant share price increase reflects growing optimism about BJ's Restaurants' ability to navigate industry challenges and deliver value to shareholders in the coming quarters.