BJ's Restaurants (BJRI) Q2 2026 earnings summary

Executive summary

• Achieved eighth consecutive quarter of sales and traffic growth and seventh consecutive quarter of profit growth, with Q2 2026 same-store sales up 6.5% and traffic up 8.3%, significantly outperforming casual dining benchmarks.

• Revenues for Q2 2026 increased 6.4% year-over-year to $388.9 million, driven by higher guest traffic, partially offset by a 1.8% decrease in average check size.

• Net income for Q2 2026 was $18.8 million, down from $22.2 million in the prior year, with diluted EPS of $0.86.

• Marketing efficiency improved, with impressions up 67% in Q2 and 146% in the first half, supporting broad-based sales growth across all geographies, day parts, and channels.

• Organizational investments included hiring a new Brand President and CTO, and continued focus on team member training, retention, and operational excellence.

Financial highlights

• Total revenue for Q2 2026 was $388.9 million, up 6.4% year-over-year.

• Restaurant-level operating profit increased by $4.7 million to $66.8 million, with margin improving to 17.2%.

• Adjusted EBITDA rose by $2.3 million to $44.4 million, with margin at 11.4%.

• Cost of sales increased to 25.5% (up 70 basis points), mainly due to 5% commodity inflation, especially a 20% increase in beef costs.

• Labor expense improved by 90 basis points to 34.5% of sales, driven by sales leverage and operational discipline.

Outlook and guidance

• Raised full-year 2026 guidance: comparable restaurant sales growth now expected at 3%-4% (previously 1%-3%), restaurant-level operating profit at $228M-$235M (previously $221M-$233M), and adjusted EBITDA at $145M-$152M (previously $140M-$150M).

• Capital expenditures expected to remain $85M-$95M, with share repurchases up to $50M.

• Management expects current cash, cash flows from operations, and credit availability to be sufficient for capital expenditures and working capital needs for at least the next twelve months.

• Q3 is off to a strong start, with continued outperformance versus casual dining benchmarks.

• Effective menu price increases of 3.7% in Q3, 2.6% in Q4, and 3% for the full year are anticipated.