BJRI Q3 Deep Dive: Menu Refresh and Marketing Drive Traffic Amid Flat Same-Store Sales

American restaurant chain BJ’s Restaurants (NASDAQ:BJRI) missed Wall Street’s revenue expectations in Q3 CY2025 as sales only rose 1.4% year on year to $330.2 million. Its non-GAAP profit of $0.04 per share was $0.01 above analysts’ consensus estimates.

Is now the time to buy BJRI? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

BJ’s Restaurants’ third quarter generated a positive response from the market, despite revenue coming in slightly below Wall Street’s expectations. Management pointed to the success of its Pizookie Meal Deal and increased social media engagement as key drivers supporting traffic gains and improved restaurant-level profitability. CEO Lyle Tick credited foundational operational changes and heightened guest satisfaction for “increasing momentum and strong traffic-driven growth year-on-year.” The company also cited effective cost controls and double-digit improvements in core operational metrics as crucial supports for margin expansion.

Looking ahead, BJ’s Restaurants is focused on accelerating menu innovation and rolling out a refreshed pizza platform, with management expecting these initiatives to enhance both guest frequency and average check. CEO Lyle Tick explained, “We are now on the cusp of launching our first major renovation—our pizza refresh—which we expect to build over time as we drive trial.” The company also aims to expand its remodeling program, pilot new restaurant prototypes, and continue leveraging social and influencer-driven marketing strategies. These efforts are designed to foster sustainable sales growth while maintaining a disciplined approach to pricing and operational efficiency.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to increased guest frequency, successful value-driven promotions, and ongoing operational improvements, while noting margin gains from cost discipline and menu simplification.

• Traffic driven by value platforms: The Pizookie Meal Deal continued to attract new customers and increase visit frequency, with management noting the platform’s effectiveness at driving incremental traffic, even as check averages remained flat or compressed.
• Social media and influencer marketing: BJ’s leaned into social and influencer engagement, achieving a 350% year-over-year increase in overall engagement and doubling impressions. The popularity of limited-time offerings like the Spooky Pizookie and the All-American Smash Burger generated significant buzz and contributed to traffic gains.
• Menu simplification and operational efficiency: Ongoing efforts to streamline menu offerings—resulting in net menu item reductions—improved both guest and team member experiences, reducing operational friction and supporting higher restaurant-level margins.
• Late-night and daypart trends: Growth in late-night visits and popularity of lower-check offerings like the Pizookie Meal Deal contributed to overall traffic gains, although these trends put slight pressure on average check size.
• Remodel and prototype investment: The company completed 20 remodels in 2025, covering 50% of pre-2016 restaurants, and plans to pilot two new prototype locations. Management expects these initiatives to drive incremental sales and inform future expansion strategies.

Drivers of Future Performance

BJ’s outlook is shaped by continued investment in menu innovation, remodeling, and targeted marketing, with a focus on sustaining traffic growth and improving guest experience.

• Menu innovation and product refresh: Management believes the upcoming pizza refresh and launch of new seasonal Pizookies will build on recent momentum, driving both guest engagement and check growth. Early test locations for the pizza refresh showed a 10% uplift in pizza incidence and a modest increase in average check.
• Expansion and remodel program: BJ’s plans to continue its remodel program at a slightly moderated pace while piloting new restaurant prototypes in the back half of 2026. The company will focus on expanding in markets with existing brand presence to maximize operational leverage and accelerate future unit growth.
• Pricing and guest value focus: The company intends to maintain a disciplined approach to pricing, balancing guest value perceptions with the opportunity to drive mix and check through category management. Management highlighted a willingness to take selective price increases as long as guest satisfaction and value scores remain strong.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be closely monitoring (1) the impact of the pizza refresh and new seasonal menu items on guest frequency and check averages, (2) execution and return on investment from ongoing remodels and the launch of new restaurant prototypes, and (3) the effectiveness of social media-driven marketing in sustaining traffic growth. Further improvements in off-premise digital offerings and expansion within existing markets will also be important signposts for progress.

BJ's currently trades at $30.50, up from $28.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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