0001193125-25-266346
SEC filingYTD revenue grew 3.0% to $1.04B, with operating margin expanding to 3.4% from 1.9% driven by lower commodity costs and labor efficiencies.
For the thirty-nine weeks ended September 30, 2025, BJ's Restaurants reported total revenues of $1.04 billion, a 3.0% increase from $1.01 billion in the prior-year period. Comparable restaurant sales grew 1.8%, driven by a 2.2% increase in guest traffic partially offset by a 0.4% decline in average check due to daypart and channel mix changes. Cost of sales decreased to 25.2% of revenue from 25.8%, reflecting lower commodity costs and cost savings initiatives. Labor and benefit costs improved to 36.2% from 36.7%, aided by leverage from comparable sales growth and operational efficiencies. Occupancy and operating expenses edged up to 23.5% from 23.4% due to higher marketing investments. As a result, operating income rose 85.3% to $35.4 million, and operating margin expanded 150 basis points to 3.4%. Net income increased to $36.4 million from $22.8 million, benefiting from a lower effective tax rate (0.5% vs. a benefit of 15.0% in the prior year).
BJ's Restaurants operates a single reporting segment. Revenue growth was driven by new restaurants (not yet in comparable base) contributing $14.8 million and a 1.8% increase in comparable restaurant sales. Guest traffic increased 2.2%, but average check decreased 0.4% due to shifts in daypart and channel mix, partially offset by menu price increases. The company's cost savings initiatives and lower commodity costs helped improve gross margin by 60 basis points to 74.8%. Operating margin improvement was driven by reductions in cost of sales and labor costs as a percentage of revenue.
Management expects to accelerate restaurant openings in 2026, with two openings planned for the second half of fiscal 2025. Capital expenditures for fiscal 2025 are anticipated to be between $65 million and $75 million, covering new restaurant construction and remodeling of approximately 20 existing locations. The company believes its cash position, operating cash flows, and credit facility are adequate to meet capital needs for at least the next twelve months. Inflationary pressures and potential tariff impacts are noted as risks, but menu price increases and efficiency initiatives are expected to mitigate some effects. The company continues to focus on balanced capital allocation, including share repurchases and maintaining a flexible balance sheet.
As of September 30, 2025, BJRI had long-term debt of $89.5 million under its revolving credit facility, up from $66.5 million at December 31, 2024. The company maintains $215 million in revolving commitments, with $106.2 million available after considering borrowings and $19.3 million in letters of credit. The weighted average interest rate during the thirty-nine week period was 5.9%, down from 6.9% a year ago.
No purchase commitments were disclosed in the Notes. The company’s primary contractual obligations are operating lease obligations, which are detailed in the lease footnote (Note 3). Total lease costs for the thirty-nine weeks ended September 30, 2025 were $47.3 million, including variable costs. The lease liability on the balance sheet is comprised of $43.5 million current and $367.8 million long-term.
During the first three quarters of 2025, BJRI repurchased 1.8 million shares for $62.4 million at an average price of $33.95 per share. The board increased the share repurchase program by $50 million in February 2025, and by an additional $75 million in October 2025 (post-period end). As of September 30, 2025, $23.5 million remained under the $600 million program. No cash dividends were paid or declared. The company does not have a dividend policy.
BJRI operates as a single reporting segment: full-service company-owned restaurants within the United States. All revenue is derived from food and beverage sales, including takeout, delivery, and catering. The segment reported revenues of $330.2 million for the third quarter of 2025 (up 1.4% YoY) and an operating loss of $1.0 million. For the thirty-nine week period, operating income was $35.2 million, representing a 3.4% margin.
The provided cash flow statement excerpt does not include the full operating, investing, and financing sections. The only explicit cash flow line is "Net decrease in cash and cash equivalents," which was ($0.7M) for the thirty-nine weeks ended September 30, 2025, compared to ($10.6M) for the same period in 2024. This improvement in net cash flow is significant, though the underlying drivers are not disclosed.
Supplemental disclosures show cash paid for income taxes of $4.9M, interest of $2.9M, and operating leases of $48.8M. Non-cash investing and financing activities include $7.1M of operating lease assets obtained in exchange for lease obligations and $3.7M of property and equipment acquired but not yet paid. These items indicate ongoing capital expenditure and leasing activity, but without explicit CFO or capex figures, a full assessment of cash flow quality is not possible. The company ended the period with $25.4M in cash, providing a modest liquidity buffer.
Note: This analysis is limited by incomplete data. For a comprehensive evaluation, the full cash flow statement would be required.