BJ's (NASDAQ:BJRI) Reports Q2 In Line With Expectations

American restaurant chain BJ’s Restaurants (NASDAQ:BJRI) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 4.5% year on year to $365.6 million. Its non-GAAP profit of $0.97 per share was 35.1% above analysts’ consensus estimates.

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“We are pleased with the continued growth and improvement of our sales and profitability and the progress we are making against our short- and long-term strategic initiatives,” commented Lyle Tick, Chief Executive Officer and President.

Company Overview

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $1.38 billion in revenue over the past 12 months, BJ's is a mid-sized restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

As you can see below, BJ’s 3.2% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was sluggish as its restaurant footprint remained unchanged and it barely increased sales at existing, established dining locations.

This quarter, BJ's grew its revenue by 4.5% year on year, and its $365.6 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months, similar to its six-year rate. This projection doesn't excite us and implies its newer menu offerings will not lead to better top-line performance yet.

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Restaurant Performance

Number of Restaurants

The number of dining locations a restaurant chain operates is a critical driver of how quickly company-level sales can grow.

BJ's listed 219 locations in the latest quarter and has kept its restaurant count flat over the last two years while other restaurant businesses have opted for growth.

When a chain doesn’t open many new restaurants, it usually means there’s stable demand for its meals and it’s focused on improving operational efficiency to increase profitability.

Same-Store Sales

A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year.

BJ’s demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company’s same-store sales have grown by 1.3% per year. Given its flat restaurant base over the same period, this performance stems from a mixture of higher prices and increased foot traffic at existing locations.

In the latest quarter, BJ’s same-store sales rose 2.9% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign.

Key Takeaways from BJ’s Q2 Results

We enjoyed seeing BJ's beat analysts’ EPS expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $35.18 immediately following the results.

So do we think BJ's is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.