BJ's Restaurants, Inc. Q1 FY2026 earnings call

Q1 was a strong quarter with seventh consecutive quarter of sales and traffic growth, sixth consecutive quarter of profit dollar growth and EBITDA margin expansion. Valentine's Day performance exceptional with half restaurants setting new daily sales records. Marketing spend optimized with 20% lower year over year. Navigated weather-related headwinds effectively. Positive results from tests and programming. Progress across strategic priorities like building culture, improving food, enhancing atmosphere. Prototype work progressing with two planned openings later this year.

Same-store sales increased 2.4%, driven primarily by 2.2% traffic growth. Restaurant-level operating margins were 16%, and adjusted EBITDA margins reached 10.5%, up 30 basis points year over year. Total revenue for the quarter was $358.1 million, a 2.9% increase versus last year. Comparable restaurant sales increased 2.4%, led by a 2.2% traffic growth and a 0.2% increase in average check.

Reiterating 2026 full year financial guidance. Second quarter comparable restaurant sales and traffic trends strong and beat black box casual dining benchmark. Expect second quarter to be peak for commodity inflation with cost of sales percentage marginally higher than Q1, tracking towards mid-year menu update to offset inflation impact. Occupancy and operating expenses expected to be approximately 23% of sales in Q2. Construction underway for new restaurants with pre-opening expenses expected.

Weather-related headwinds, market dynamic environment, potential impact of gas price volatility on consumer behavior, commodity inflation pressures

Q: About same-store sales and average check.

A: Lyle and Todd discussed traffic growth, moderation of check compression, planful approach with menu work to allow both traffic and check levers to work.

Q: On unit growth.

A: Lyle talked about geographical decision, new prototype design, plans for mid-single digits growth next year moving towards double digits.

Q: On comp and brand in early innings.

A: Lyle explained brand still in early innings with foundational work done, more opportunity ahead in menu work, operations, etc.

Q: On Pazuki meal deal.

A: Alex Slagle asked about Pazuki, Lyle talked about its resonance, evolving with chicken sandwich work and tiering test.

Q: On labor.

A: Todd talked about labor margins opportunity, activity-based labor model rollout status and impact on guest metrics.

Q: On celebration season and World Cup.

A: Lyle and Todd talked about celebration season progress, World Cup planning for tailwinds and marketing.