Dive Brief:
- BJ’s Restaurants posted its eighth-consecutive quarter of traffic and sales growth, with same-store sales up by 6.5% and traffic up 8.3%, according to the company’s Q2 earnings release.
- The results are the chain’s strongest transaction gains in four years and its best sales increase in three years, according to a research note from William Blair.
- BJ’s has been working on a brand turnaround since 2024. The chain has employed a blend of value plays, menu innovation and improved employee training to help it capitalize on casual dining’s revival.
Dive Insight:
BJ’s strong second quarter reflected both its turnaround efforts and the brand’s positioning, CEO Lyle Tick said on BJ’s Q2 earnings call.
The results were “energizing from a performance standpoint, reinforcing our relevance in the social splurge occasion,” Tick said.
BJ’s has made significant investments in improved food quality across pizza, burgers and chicken, Tick said. In late June, the chain reworked its chicken sandwich lineup, focusing on three basic builds with different sauce varieties. That menu innovation could help sustain sales momentum in Q3.
“Each renovated category is driving higher incidence, more sales, higher average price, and higher dollar margin than before,” Tick said.
In terms of menu design, the Pizookie Meal Deal — an entree and the brand’s pizza-like dessert cookie for $13 — proved particularly beneficial, Tick said. The chain is testing potential variants of the meal deal, including a premium tier, but these tests are in their early stages, according to Tick.
“The seasonal Biscoff Pizookie was a standout performer during the quarter, with Pizookie incidents doubling year-over-year,” William Blair analyst Sharon Zackfia wrote.
BJ’s has also invested significantly in marketing, which helped sustain its momentum.
“Marketing efficiencies in particular were impressive, with a planned shift in dollars from the first quarter to the second driving 20 basis points of efficiency on the same dollar spend, while driving a 146% increase in impressions in the first half including 67% in the second quarter,” Zackfia noted.
The sales strength of recent quarters has positioned BJ’s to resume its unit development. The chain intends to open two new stores this year in Buckeye, Arizona, and Joliet, Illinois, and begin building up its development pipeline, Tick said. The chain has largely focused its capital expenditure on clearing up deferred maintenance and on select remodels.
Zackfia said an acceleration of unit growth was likely for the chain in 2027, continuing into 2028 and that the 219-unit has considerable room to grow.
“Our saturation analysis suggests the opportunity for over 400 locations based on BJ’s current density in the L.A. market,” Zackfia wrote.
BJ’s turnaround follows a similar trajectory to other successful casual dining brands — like Chili’s, which has outperformed the casual dining segment for several quarters. Investments in operations and maintenance, coupled with value plays and menu innovation, set the stage for an eventual return to unit growth.
