BJ's Restaurants Inc. (NASDAQ: BJRI) stock is soaring 6.24% in pre-market trading on Friday, following the release of its impressive first-quarter 2025 earnings report. The casual dining chain significantly outperformed analyst expectations and raised its profit guidance for the year, sparking investor enthusiasm.

The company reported a robust first quarter, with revenue increasing 3.2% year-over-year to $348 million. Comparable restaurant sales rose 1.7%, driven by a notable 2.7% traffic growth that outpaced the industry average by 320 basis points. BJ's achieved substantial margin improvements, with restaurant-level operating margin reaching 16% and adjusted EBITDA margin hitting 10.2%, representing year-over-year increases of 100 and 150 basis points, respectively. Net income surged to $13.5 million, with diluted earnings per share of $0.58, marking an impressive 80% increase from the previous year.

Looking ahead, BJ's Restaurants has raised its 2025 profit guidance, now expecting restaurant-level operating profit between $210 million and $219 million, and adjusted EBITDA ranging from $131 million to $140 million. This optimistic outlook, coupled with the company's successful operational improvements and promotions like the Pezuki meal deal, has caught the attention of analysts. Barclays responded by raising its target price for BJRI from $31 to $33. With Wall Street's median 12-month price target at $40.00, the stock's current movement suggests investors are aligning with the company's positive trajectory.