BJ's Restaurants, Inc. Q4 FY2025 earnings call

• Strategic priorities: investing in people, operational excellence, menu renovation, and keeping atmosphere fresh.
• Q4 highlights: 6th consecutive quarter of sales and traffic growth, 5th consecutive quarter of profit and margin expansion. Completed new manager and hourly team member training, launched seasonal pizookies and renovated pizza platform, leaned into social and word of mouth marketing, deployed AI-based activity-based labor model to 30% of system.
• 2026 priorities: Continue team member training and leadership development, progress menu renovation, focus on WOW hospitality, invest in remodel program and pilot refreshed prototype for net unit growth.

In Q4 2025, BJ's delivered 2.6% same store sales growth driven by 4.5% traffic growth. Restaurant level operating margins were 16.1% and adjusted EBITDA margins were 10%, improving 70 and 40 basis points year over year. For full year 2025, same store sales grew 2% driven by 2.8% traffic, restaurant-level operating margins were 15.5% and adjusted EBITDA margins were 9.6%, improving 110 and 100 basis points year over year. Key drivers included Pazuki meal deal, LTO Pazukis, late night outperformance, and operational improvements.

• Comparable restaurant sales growth 1% - 3% in 2026.
• Restaurant-level operating profit $221 - $233 million in 2026.
• Adjusted EBITDA $140 - $150 million in 2026.
• Capital expenditures $85 - $95 million in 2026, with up to two new restaurant openings in second half of 2026.
• May repurchase up to $50 million of stock depending on market conditions.

Q: Jeffrey Bernstein with Barclays asked about mix shift and value balance.

A: Lyle and Todd responded that Q4 mix shift was due to seasonal Pazukis, younger cohort traffic, and late night outperformance, not sudden value discounting.

Q: Brian Bittner with Oppenheimer & Company asked about comp trends and restaurant profit guidance.

A: Lyle and Todd said comp trends are expected to be steady with sales growth, leverage, and operational initiatives driving margin expansion.

Q: Sharon Zaxia with William Blair asked about LTO engagement and social media.

A: Lyle said it's too early to definitively say on LTO engagement, but social media changed to influencer-produced content.

Q: Brian Mullen with Piper Sandler asked about burger and chicken sandwich refreshes.

A: Lyle said process similar to pizza relaunch, but too early to discuss details.

Q: Todd Brooks with Benchmark Stonex asked about activity-based labor rollout and improvement.

A: Lyle said judicious rollout in 2026, and PACE metric showing most improvement.

Q: John Tower with Citi asked about late night business and new store prototype.

A: Lyle said late night business strong with no specific unique push, new prototype is familiar but contemporized with evolved branding elements.