BJ's Restaurants (BJRI) Q1 2026 earnings summary

Executive summary

• Achieved seventh consecutive quarter of sales and traffic growth, with total revenues rising 2.9% year-over-year to $358.1 million for Q1 2026, driven by higher guest traffic and new restaurant openings.

• Comparable restaurant sales rose 2.4%, led by 2.2% traffic growth and a 0.2% increase in average check, outperforming Black Box casual dining benchmarks.

• Net income for the quarter was $9.0 million, down from $13.5 million in the prior year, reflecting higher costs and increased depreciation.

• Restaurant-level operating margins reached 16%, and adjusted EBITDA margins improved to 10.5%, up 30 bps year-over-year.

• Guest metrics and Net Promoter Score improved by roughly 10% since Q3 2024; team member retention and turnover better than pre-pandemic and industry benchmarks.

Financial highlights

• Restaurant-level operating profit was $57.2 million, a 2.8% increase year-over-year, with a margin of 16%.

• Adjusted EBITDA rose to $37.7 million (10.5% of sales), up 6.8% from last year.

• Diluted EPS was $0.41; adjusted diluted EPS was $0.57.

• Cash and cash equivalents stood at $22.7 million at quarter-end.

• Net cash provided by operating activities was $43.0 million, mainly due to timing of accounts payable.

Outlook and guidance

• Fiscal 2026 guidance reiterated: comparable restaurant sales growth of 1% to 3%.

• Restaurant-level operating profit expected between $221 million and $233 million; adjusted EBITDA projected at $140 million to $150 million.

• Capital expenditures forecasted at $85 million to $95 million.

• Q2 expected to be peak for commodity inflation; menu and pricing actions planned to offset inflation in H2.

• Management expects current cash, cash flow from operations, and credit availability to be sufficient for at least the next twelve months.