• Revenue: $348 million, a 3.2% increase from last year.
• Comparable Restaurant Sales: Increased by 1.7%, driven by 2.7% traffic growth.
• Restaurant Level Operating Margin: 16%, a 100 basis point improvement year over year.
• Adjusted EBITDA Margin: 10.2%, representing a 150 basis point improvement year over year.
• Net Income: $13.5 million, with diluted net income per share of $0.58, an 80% increase from $0.32 per share last year.
• Share Repurchase: Approximately 404,000 shares repurchased at a cost of $14.1 million during the quarter.
• Net Debt: $66.5 million, with a debt balance of $85.5 million and cash equivalents of $19 million.
• Updated 2025 Financial Outlook: Raised profit guidance with expected restaurant level operating profit of $210 million to $219 million and adjusted EBITDA of $131 million to $140 million.
• Capital Expenditures: Expected to be $65 million to $75 million for the year.

• Warning! GuruFocus has detected 3 Warning Signs with DLB.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BJ's Restaurants Inc (NASDAQ:BJRI) reported a strong first quarter with a 2.7% traffic growth, outperforming the industry average by 320 basis points.
• The company achieved a 16% restaurant level operating margin and a 10.2% adjusted EBITDA margin, marking improvements of 100 and 150 basis points year over year, respectively.
• BJ's Restaurants Inc (NASDAQ:BJRI) raised its earnings expectations and increased its planned share buyback range due to stronger margin performance.
• The Pezuki meal deal and social media engagement have driven significant traffic growth, with over 57 million organic social impressions and a 17 times increase in Pezuki platter sales.
• The company has successfully implemented operational improvements, including a 13% reduction in comp food and beverage costs and a 4% reduction in repair and maintenance spend.

Negative Points

• Sales were slightly behind internal expectations, particularly in February, due to adverse weather and delays in federal income tax refund processing.
• Despite strong traffic growth, the mix component was lighter, with some nominal increase in Pezuki meal deal incidents affecting overall check growth.
• The company faces potential macroeconomic headwinds in 2025, with anticipated modest incremental inflation in the second half due to tariffs.
• BJ's Restaurants Inc (NASDAQ:BJRI) has a long lead time for new restaurant openings, with expected benefits not materializing until the back half of 2026.
• The off-premise business, particularly third-party delivery, has room for improvement, with current consumer experience friction and merchandising not fully optimized.

Q & A Highlights

Q: Can you help us understand the impact of your simplification and process changes on restaurant-level margins? A: Thomas Houdek, CFO: The 100 basis point margin improvement year-over-year was partly due to leveraging sales and traffic. We saw strong performance on the labor side, continuing from Q4 into Q1. Our guidance expects these levels to continue. We're using AI for labor scheduling in a small subset of restaurants, which is incremental. We're balancing efficiencies with modest pricing to drive traffic and maintain margins without new investments.

Q: Your same-store sales trends are holding up well. Why do you think casual dining is performing better than quick service and quick casual segments? A: Lyle Tick, President: Our customers tend to have higher incomes, providing resilience. We focus on execution, value, and craveable products, reflected in strong consumer scores. In uncertain times, consumers prioritize experiences worth their value, and our atmosphere and service are compelling. Our brand excels in everyday celebration occasions, which are resilient compared to more transactional occasions.

Q: What is driving the impressive labor cost performance, and how sustainable are these impacts? A: Thomas Houdek, CFO: The improvements are sustainable, driven by better scheduling, reducing overtime, and focusing on efficiency without compromising guest experience. Our team member retention is strong, and our net promoter scores are at multi-year highs, indicating sustainable improvements. We continue to find opportunities for efficiency while maintaining service quality.

Q: How do you define value, and are you seeing any signs of a challenging macro environment in your data? A: Lyle Tick, President: We're seeing traffic gains across all income cohorts, with some increase in lower-income cohorts using the Pezuki meal deal. Overall, traffic and operations are strong, with no fundamental changes in traffic patterns or income cohorts. The Pezuki meal deal is a unique value offering that drives traffic, especially during weekdays when we have capacity.

Q: Can you discuss your unit growth strategy and potential for acceleration in new openings? A: C. Bradford Richmond, Interim CEO: We see significant white space for growth and are optimistic about future openings. However, lead times for new sites are long, and we expect benefits from new openings in the back half of 2026. We're focusing on improving existing unit economics and growing AUVs while planning for future expansion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.