BJs RESTAURANTS INC
BJRIBusiness Summary
BJ's Restaurants, Inc. operates in the full-service segment of the domestic restaurant industry, which is a large, highly fragmented segment with estimated annual sales in the $100+ billion range 1. The company competes within this landscape as a national restaurant chain that, as of February 27, 2026, owns and operates 219 restaurants located in 31 states 2. The first BJ's restaurant opened in 1978 in Orange County, California 3.
Primary competitors named in the filing include full-service, fast casual and quick service restaurant chains, as well as locally-owned restaurants and the trend toward convergence in grocery, deli and restaurant services 4. The company's stated competitive advantages include a high-energy atmosphere and facilities, a broad and distinctive menu with approximately 90 menu items 5, award-winning proprietary craft beer that has earned 275 medals at different beer festivals and events since 1996 6, an everyday value proposition with menu entrees generally ranging in price from $8.99 to $35.99 7, a culture committed to WOW hospitality and service, technology at the right time, and bringing the brewhouse home to guests. The company believes its ability to offer higher quality food and beverages at moderate prices with superior service in a distinctive dining environment provides the opportunity to capture additional market share in the full-service segment 8.
The company generates revenue from food and beverage sales from its restaurants, including takeout, delivery and catering sales 9. Revenues from restaurant sales are recognized when payment is tendered 10. The company also sells gift cards which do not have an expiration date, and estimated gift card breakage is recorded as revenue and recognized in proportion to historical redemption patterns 11. The BJ's Premier Rewards Plus loyalty program enables the company to engage guests with personalized email marketing and direct communication 12. The company's marketing related expenditures were approximately 2.2% of revenues for fiscal 2025 13.
The company's menu features a wide variety of choices including slow roasted entrees and wings, EnLIGHTened Entrees such as Cherry Chipotle Glazed Salmon, original signature deep-dish pizza, and the world-famous Pizookie dessert 14. In November 2025, the company reimagined its signature deep-dish pizza from the crust up, introducing reformulated hand-pressed dough, sauce made with vine-ripened tomatoes, and a new creamy mozzarella blend 15. The company offers 14 year-round signature BJ's beers and beyond beer options as well as one or more rotating seasonal BJ's beers on tap at any one time 16. The company also offers approximately 20 domestic, imported and guest craft beers on tap, in addition to a selection of bottled beers 17. The company's proprietary craft beer is produced at four in-house brewing facilities, two standalone brewpubs and by independent third-party brewers using proprietary recipes 18. During fiscal year 2025, the company internally brewed approximately 68% of its branded craft beers and flavored malt beverages 19. The company also produces proprietary non-alcoholic craft sodas that are sold in its restaurants 20.
The company's restaurants feature a broad menu with approximately 90 menu items 21. The company also offers Daily Brewhouse Specials, a weekday Pizookie Meal Deal and happy hour offerings, where permitted 22. The company offers a series of take-out and delivery specific Family Meals and Bundles that serve 4 to 6 guests, with packages starting at $50.00 23. The company's BJ's Brewhouse Beer Club is a subscription service available throughout most of California 24. The company's current restaurant prototype averaged approximately 7,500 square feet with seating for as many as 250 guests with a targeted all-in net construction cost of approximately $6.0 million 25. The company generally targets its new restaurants to achieve average annual sales at maturity of at least $6.5 million and an average four wall estimated operating cash flow margin in the range of 15% to 20% after all occupancy expenses 26.
During fiscal 2025, the company opened one new restaurant 27. The company's preopening expense was approximately $0.7 million for its new restaurant in fiscal 2025 28. During fiscal 2025, the company repurchased and retired approximately 2.0 million shares of its common stock at an average price of $33.80 per share for approximately $67.8 million 29. The Board of Directors approved a $50 million increase in the share repurchase program in both February 2024 and February 2025, and a $75 million increase in October 2025 30. As of December 30, 2025, the company has cumulatively repurchased shares valued at approximately $581.8 million in accordance with its approved share repurchase plan since its inception in 2014 31. Currently the company has $93.2 million available under its authorized $675 million share repurchase program 32.
Total revenues increased 3.1% to $1.4 billion 33 for fiscal 2025, compared to $1.36 billion 34 for fiscal 2024. Net income was $48.8 million 35 for fiscal 2025, compared to $16.7 million 36 for fiscal 2024. Diluted net income per share was $2.16 37 for fiscal 2025, compared to $0.70 38 for fiscal 2024. Comparable restaurant sales increased 2.0% 39 for fiscal 2025. The weekly sales average was approximately $123,000 40 for fiscal 2025. Restaurant level operating profit was $216.2 million 41 for fiscal 2025, or 15.5% of revenues 42. Adjusted EBITDA was $134.1 million 43 for fiscal 2025, or 9.6% of revenues 44.
Business Outlook
The company generally targets its new restaurants to achieve average annual sales at maturity of at least $6.5 million 45 and an average four wall estimated operating cash flow margin in the range of 15% to 20% after all occupancy expenses 46. The company is developing a new prototype for future restaurant development, which is expected to maintain a similar number of guest seats, feature an improved bar statement, better hospitality and speed, more efficient labor as well as other restaurant expenses and a lower investment cost 47.
The company's primary growth vector is increasing market share in the full-service restaurant industry by consistently delivering on its Gold Standard of Operational Excellence promise to guests, while continuing its restaurant expansion program 48. The company generally targets geographic regions that allow it to build multiple restaurants in those areas, using a clustering approach that provides economic benefits including lower supply and distribution costs, improved marketing efficiencies, management supervision leverage and increased brand awareness 49. The company seeks to secure high-quality, high-profile locations for its restaurants, which it believes have the ability to draw guests from a larger area than most mass market full-service chain restaurants 50.
The company continues to focus on sales building initiatives to create more guest loyalty, increase the frequency of guest visits, further build its off-premise sales channel, better optimize its menu sales mix and develop other incremental opportunities to allow guests to utilize BJ's 51. The company has invested in the off-premise sales channel by creating new off-premise menu items, expanding its catering menu, collaborating with third-party delivery partners, updating its website, and continuing to improve its take-out and curbside experience 52. The company has enhanced its technology for the off-premise sales channel by leveraging its self-developed mobile application, its website and other platforms 53.
The company's goal is to increase shareholder value by increasing its adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), earnings per share and return on invested capital through growing restaurant revenue through positive comparable sales and new restaurant growth, increasing restaurant margins through sales leverage, cost savings and culinary and menu strategies, enhancing new restaurant economics through restaurant margin improvement and new restaurant prototype optimization, and returning capital to shareholders through share repurchase program 54.
The company expects to fund its net capital expenditures with its current cash on hand, cash flows from operations and its line of credit 55. During fiscal 2025, total capital expenditures were $69.6 million 56, including $8.5 million for new restaurants 57, $59.8 million for restaurant maintenance and remodels, and productivity initiatives 58, and $1.4 million for restaurant and corporate systems 59.
As of December 30, 2025, the company has $93.2 million available under its authorized $675 million share repurchase program 60. The company currently does not pay any cash dividends 61. The company's Credit Facility provides revolving loan commitments totaling $215 million 62. As of December 30, 2025, $85.0 million was outstanding 63.
Inflation has had an impact on the company's operations, new restaurant construction and corresponding return on invested capital 64. While the company has been able to partially offset inflation and other changes in the costs of key operating inputs by gradually increasing menu prices, coupled with more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that the company will be able to continue to do so in the future 65. Increases in inflation could have a severe impact on the United States and global economies, which will have an adverse impact on the company's business, financial condition and results of operations 66.
The company faces growing competition as a result of the trend toward convergence in grocery, deli and restaurant services, particularly in the supermarket industry which offers convenient meals in the form of improved entrees and side dishes 67. The company's restaurant concept is a relatively small varied menu full-service competitor compared to the mature mass market chains, and 59 of its restaurants are located in one state - California 68. The company's overall brand awareness and competitive presence in states outside of California is not as significant as that of its major full-service chain competitors 69.
Risk Factors
The restaurant industry is highly competitive, and the company competes with a large and diverse group of restaurant chains and individual restaurants, many of which have substantially greater financial, marketing and other resources 70. The company's inability or failure to successfully and sufficiently raise menu prices to offset rising costs and expenses may adversely affect guest traffic and results of operations 71. The company is subject to various federal, state and local laws, rules and regulations that affect its business, including alcoholic beverage control regulations, labor laws, and food safety regulations 72. The company's restaurants are concentrated in California, Texas and Florida, making it particularly sensitive to economic, regulatory, weather and other risk factors more prevalent in those states 73. The company relies heavily on electronic information systems and is subject to cybersecurity incidents which could result in unauthorized access, theft, modification or destruction of confidential information 74.
Management Priorities
Management's message emphasizes the company's Gold Standard of Operational Excellence promise to guests, which is a genuine commitment to take pride in passionately connecting with every guest on every visit, through flawless and relentless execution of every detail, during every shift, to create and keep fanatical fans of BJ's 75. The primary business objective is to increase market share in the full-service restaurant industry by consistently delivering on this promise while continuing the restaurant expansion program 76. The strategic priorities emphasized for the period ahead include growing restaurant revenue through positive comparable sales and new restaurant growth, increasing restaurant margins through sales leverage, cost savings and culinary and menu strategies, enhancing new restaurant economics through restaurant margin improvement and new restaurant prototype optimization, and returning capital to shareholders through the share repurchase program 77. The company's goal is to increase shareholder value by increasing Adjusted EBITDA, earnings per share and return on invested capital 78.
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References
- [1] Item 1, Business — Business Strategy
- [2] Item 1, Business — Introduction
- [3] Item 1, Business — Introduction
- [4] Item 1, Business — Competition
- [5] Item 1, Business — Business Strategy
- [6] Item 1, Business — Business Strategy
- [7] Item 1, Business — Business Strategy
- [8] Item 1, Business — Competition
- [9] Item 7, MD&A — Accounting Terms and Characteristics
- [10] Item 7, MD&A — Accounting Terms and Characteristics
- [11] Item 7, MD&A — Accounting Terms and Characteristics
- [12] Item 1, Business — Marketing and Advertising
- [13] Item 1, Business — Marketing and Advertising
- [14] Item 1, Business — Introduction
- [15] Item 1, Business — Business Strategy
- [16] Item 1, Business — Business Strategy
- [17] Item 1, Business — Business Strategy
- [18] Item 1, Business — Introduction
- [19] Item 1, Business — Brewing Operations
- [20] Item 1, Business — Brewing Operations
- [21] Item 1, Business — Introduction
- [22] Item 1, Business — Business Strategy
- [23] Item 1, Business — Business Strategy
- [24] Item 1, Business — Business Strategy
- [25] Item 1, Business — Targeted New Restaurant Economics
- [26] Item 1, Business — Targeted New Restaurant Economics
- [27] Item 7, MD&A — Liquidity and Capital Resources
- [28] Item 1, Business — Restaurant Opening Expenses
- [29] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [30] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [31] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [32] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [33] Item 7, MD&A — Results of Operations
- [34] Item 7, MD&A — Results of Operations
- [35] Item 7, MD&A — Results of Operations
- [36] Item 7, MD&A — Results of Operations
- [37] Item 7, MD&A — Results of Operations
- [38] Item 7, MD&A — Results of Operations
- [39] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [40] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [41] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [42] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [43] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [44] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [45] Item 1, Business — Targeted New Restaurant Economics
- [46] Item 1, Business — Targeted New Restaurant Economics
- [47] Item 1, Business — Targeted New Restaurant Economics
- [48] Item 1, Business — Business Strategy
- [49] Item 1, Business — Restaurant Site Selection and Expansion Objectives
- [50] Item 1, Business — Restaurant Site Selection and Expansion Objectives
- [51] Item 7, MD&A — Known or Anticipated Trends
- [52] Item 1, Business — Business Strategy
- [53] Item 1, Business — Business Strategy
- [54] Item 7, MD&A — Strategy to Increase Shareholder Value
- [55] Item 7, MD&A — Liquidity and Capital Resources
- [56] Item 7, MD&A — Liquidity and Capital Resources
- [57] Item 7, MD&A — Liquidity and Capital Resources
- [58] Item 7, MD&A — Liquidity and Capital Resources
- [59] Item 7, MD&A — Liquidity and Capital Resources
- [60] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [61] Item 5, Market for Registrant's Common Equity — Dividend Policy and Stock Repurchases
- [62] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
- [63] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
- [64] Item 7, MD&A — Known or Anticipated Trends
- [65] Item 7, MD&A — Known or Anticipated Trends
- [66] Item 7, MD&A — Known or Anticipated Trends
- [67] Item 1, Business — Competition
- [68] Item 1, Business — Competition
- [69] Item 1, Business — Competition
- [70] Item 1A, Risk Factors
- [71] Item 1A, Risk Factors
- [72] Item 1, Business — Government Regulations
- [73] Item 1A, Risk Factors
- [74] Item 1A, Risk Factors
- [75] Item 1, Business — Business Strategy
- [76] Item 1, Business — Business Strategy
- [77] Item 7, MD&A — Strategy to Increase Shareholder Value
- [78] Item 7, MD&A — Strategy to Increase Shareholder Value
- [79] Item 8, Consolidated Statements of Operations
- [80] Item 8, Consolidated Statements of Operations
- [81] Item 8, Consolidated Statements of Operations
- [82] Item 8, Consolidated Statements of Operations
- [83] Item 8, Consolidated Statements of Operations
- [84] Item 8, Consolidated Statements of Operations
- [85] Item 8, Consolidated Statements of Operations
- [86] Item 8, Consolidated Statements of Operations
- [87] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [88] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [89] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [90] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [91] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [92] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [93] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [94] Item 7, MD&A — Key Performance Indicators and Non-GAAP Financial Measures
- [95] Item 7, MD&A — Liquidity and Capital Resources
- [96] Item 7, MD&A — Liquidity and Capital Resources
- [97] Item 8, Consolidated Balance Sheets
- [98] Item 8, Consolidated Balance Sheets
- [99] Item 8, Consolidated Balance Sheets
- [100] Item 8, Consolidated Balance Sheets
- [101] Item 8, Consolidated Statements of Operations
- [102] Item 8, Consolidated Statements of Operations
- [103] Item 7, MD&A — Results of Operations
- [104] Item 7, MD&A — Results of Operations
Analysis on 6/21/2026