BJ's Restaurants Inc. (NASDAQ: BJRI) saw its stock price surge 7.02% in after-hours trading on Thursday following the release of its first-quarter earnings report that surpassed analysts' expectations. The casual dining chain delivered strong financial results and raised its annual earnings outlook, signaling confidence in its growth strategy and operational improvements.

For the first quarter ended April 1, 2025, BJ's Restaurants reported earnings per share (EPS) of $0.58, significantly beating the Wall Street consensus estimate of $0.38. This represents a substantial improvement from the $0.32 per share earned in the same quarter last year. The company's revenue came in at $348 million, slightly above analysts' expectations and showing a 3.2% increase year-over-year. Notably, comparable restaurant sales rose by 1.7%, indicating growing customer traffic and spending.

Brad Richmond, Interim Chief Executive Officer, commented on the results, saying, "We are growing increasingly confident in our strategic growth plans and the effectiveness of our near-term initiatives that are focused on driving sales and profitability." The company's strong performance has led management to raise and narrow its full-year earnings outlook, reflecting optimism about future growth prospects. Additionally, BJ's Restaurants increased its expectations for capital returns to shareholders, further boosting investor confidence.

The positive earnings report and improved guidance have resonated well with investors, as evidenced by the significant after-hours stock price increase. This upward movement suggests that the market is responding favorably to BJ's Restaurants' ability to navigate challenges in the restaurant industry while improving its financial performance and growth trajectory.