BJ’s Restaurants delivered a quarter that aligned with Wall Street’s revenue expectations but saw a significant negative market reaction, likely reflecting investor concerns despite stronger-than-expected non-GAAP profit. Management attributed top-line growth to increased guest traffic, particularly during key celebration periods, and highlighted operational improvements, such as more efficient restaurant execution and a focus on guest experience. CEO Lyle Tick pointed to “continued resonance of the brand” and rising Net Promoter Scores (NPS) as evidence of BJ’s progress, while also noting that cost control efforts and improvements in menu execution contributed to higher margins.

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

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From BJ's’s Q2 Earnings Call

• Alexander Russell Slagle (Jefferies) asked about the evolution of the value proposition and next steps for the Pizookie Meal Deal. CEO Lyle Tick described plans for upgrades and menu add-ons to drive repeat visits and check growth.
• Jon Michael Tower (Citigroup) inquired about the mix shift and its impact on sales. Tick explained that while check averages declined due to value-focused traffic, guest frequency and overall platform health provided a strong foundation for future growth.
• Jeffrey Andrew Bernstein (Barclays) questioned how management plans to lap tough comps in the fourth quarter. Tick cited planned menu and beverage initiatives, along with ongoing marketing around core platforms, as strategies to maintain momentum.
• Todd Morrison Brooks (The Benchmark Company) asked about the potential of the new pizza platform and its impact on sales mix. Tick and Daniel Doran, SVP of Strategy, described early test results as positive, with increased pizza incidence and healthy check averages.
• Brian Hugh Mullan (Piper Sandler) raised questions about optimizing the off-premise (takeout and delivery) business. Tick highlighted opportunities to reduce friction, improve order accuracy, and better tailor menus for off-premise occasions.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be monitoring (1) the nationwide rollout and guest adoption of BJ’s revamped pizza platform, (2) the impact of activity-based labor model expansion on guest satisfaction and margins, and (3) progress on remodels and new prototype designs as leading indicators for future unit growth. The company’s ability to optimize its off-premise business and sustain traffic-driven sales growth amid a shifting consumer landscape will also be key signposts.

BJ's currently trades at $34.16, down from $35.46 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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