BJS RESTAURANTS INC, 10-Q filed on 8/8/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
6 Months Ended
Jul. 01, 2025
Aug. 06, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jul. 01, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Trading Symbol BJRI  
Entity Registrant Name BJ’S RESTAURANTS, INC.  
Entity Central Index Key 0001013488  
Current Fiscal Year End Date --01-03  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Common Stock, Shares Outstanding   22,124,179
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 0-21423  
Entity Tax Identification Number 33-0485615  
Entity Address, Address Line One 7755 Center Avenue  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Huntington Beach  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92647  
City Area Code 714  
Local Phone Number 500-2400  
Title of 12(b) Security Common Stock, No Par Value  
Security Exchange Name NASDAQ  
Entity Incorporation, State or Country Code CA  
Document Quarterly Report true  
Document Transition Report false  
v3.25.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jul. 01, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 25,964 $ 26,096
Accounts and other receivables, net 17,922 20,402
Inventories, net 12,466 12,768
Prepaid expenses and other current assets 16,214 20,299
Total current assets 72,566 79,565
Property and equipment, net 513,237 510,581
Operating lease assets 322,692 336,936
Goodwill 4,673 4,673
Equity method investment 4,041 4,266
Deferred income taxes, net 64,425 62,318
Other assets, net 43,603 42,725
Total assets 1,025,237 1,041,064
Current liabilities:    
Accounts payable 49,970 51,011
Accrued expenses 97,377 105,316
Current operating lease obligations 42,611 39,982
Total current liabilities 189,958 196,309
Long-term operating lease obligations 374,548 394,129
Long-term debt 60,500 66,500
Other liabilities 13,667 14,109
Total liabilities 638,673 671,047
Commitments and contingencies
Shareholders’ equity:    
Preferred stock, 5,000 shares authorized, none issued or outstanding
Common stock, no par value, 125,000 shares authorized and 22,181 and 22,697 shares issued and outstanding as of July 1, 2025 and December 31, 2024, respectively
Capital surplus 73,193 77,576
Retained earnings 313,371 292,441
Total shareholders’ equity 386,564 370,017
Total liabilities and shareholders’ equity $ 1,025,237 $ 1,041,064
v3.25.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jul. 01, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, issued 0 0
Preferred stock, outstanding 0 0
Common stock, par value $ 0 $ 0
Common stock, shares authorized 125,000,000 125,000,000
Common stock, shares issued 22,181,000 22,697,000
Common stock, shares outstanding 22,181,000 22,697,000
v3.25.2
Unaudited Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Income Statement [Abstract]        
Revenues $ 365,597 $ 349,927 $ 713,570 $ 687,261
Restaurant operating costs (excluding depreciation and amortization):        
Cost of sales 90,803 89,836 177,623 174,789
Labor and benefits 129,374 126,309 255,026 251,330
Occupancy and operating 83,300 79,566 163,211 156,424
General and administrative 21,750 20,604 43,502 43,601
Depreciation and amortization 18,736 18,163 37,013 36,036
Restaurant opening 225 300 663 890
Loss on disposal and impairment of assets, net 195 1,928 368 2,712
Total costs and expenses 344,383 336,706 677,406 665,782
Income from operations 21,214 13,221 36,164 21,479
Other (expense) income:        
Interest expense, net (1,272) (1,259) (2,502) (2,670)
Other income, net (1) [1] 3,761 2,772 3,700 3,468
Total other income 2,489 1,513 1,198 798
Income before income taxes 23,703 14,734 37,362 22,277
Income tax expense (benefit) 1,495 (2,423) 1,662 (2,603)
Net income $ 22,208 $ 17,157 $ 35,700 $ 24,880
Net income per share:        
Basic $ 1 $ 0.74 $ 1.59 $ 1.07
Diluted $ 0.97 $ 0.72 $ 1.54 $ 1.04
Weighted average number of shares outstanding:        
Basic 22,220 23,309 22,452 23,313
Diluted 22,962 23,921 23,130 23,954
[1] For the thirteen weeks ended July 1, 2025 and July 2, 2024, related party costs included in other income, net was an equity method investment loss of $66,000 and $146,000, respectively. For the twenty-six weeks ended July 1, 2025 and July 2, 2024, related party costs included in other income, net was an equity method investment loss of $225,000 and $293,000, respectively. See Note 10 for further information.
v3.25.2
Unaudited Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Income Statement [Abstract]        
Related party net loss related to equity method investment $ 66,000 $ 146,000 $ 225,000 $ 293,000
v3.25.2
Unaudited Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Capital Surplus [Member]
Retained Earnings [Member]
Beginning Balance at Jan. 02, 2024 $ 365,761   $ 77,036 $ 288,725
Beginning Balance (in shares) at Jan. 02, 2024   23,184,000    
Exercise of stock options 168 $ 251 (83)  
Exercise of stock options (in shares)   5,000    
Issuance of restricted stock units (892) $ 9,430 (10,322)  
Issuance of restricted stock units (in shares)   203,000    
Repurchase, retirement and reclassification of common stock (8,835) $ (9,681)   846
Repurchase, retirement and reclassification of common stock (in shares)   (254,000)    
Stock-based compensation 5,406   5,406  
Adjustment to dividends previously accrued 1     1
Net income 24,880     24,880
Ending Balance at Jul. 02, 2024 386,489   72,037 314,452
Ending Balance (in shares) at Jul. 02, 2024   23,138,000    
Beginning Balance at Apr. 02, 2024 375,352   70,213 305,139
Beginning Balance (in shares) at Apr. 02, 2024   23,369,000    
Issuance of restricted stock units (31) $ 990 (1,021)  
Issuance of restricted stock units (in shares)   23,000    
Repurchase, retirement and reclassification of common stock (8,835) $ (990)   (7,845)
Repurchase, retirement and reclassification of common stock (in shares)   (254,000)    
Stock-based compensation 2,845   2,845  
Adjustment to dividends previously accrued 1     1
Net income 17,157     17,157
Ending Balance at Jul. 02, 2024 386,489   72,037 314,452
Ending Balance (in shares) at Jul. 02, 2024   23,138,000    
Beginning Balance at Dec. 31, 2024 370,017   77,576 292,441
Beginning Balance (in shares) at Dec. 31, 2024   22,697,000    
Exercise of stock options $ 6,700 $ 9,486 (2,786)  
Exercise of stock options (in shares) 185,000 185,000    
Issuance of restricted stock units $ (649) $ 4,974 (5,623)  
Issuance of restricted stock units (in shares)   141,000    
Repurchase, retirement and reclassification of common stock $ (29,230) $ (14,460)   (14,770)
Repurchase, retirement and reclassification of common stock (in shares) (842,000) (842,000)    
Stock-based compensation $ 4,026   4,026  
Net income 35,700     35,700
Ending Balance at Jul. 01, 2025 386,564   73,193 313,371
Ending Balance (in shares) at Jul. 01, 2025   22,181,000    
Beginning Balance at Apr. 01, 2025 371,481   74,061 297,420
Beginning Balance (in shares) at Apr. 01, 2025   22,436,000    
Exercise of stock options 6,020 $ 8,410 (2,390)  
Exercise of stock options (in shares)   162,000    
Issuance of restricted stock units   $ 464 (464)  
Issuance of restricted stock units (in shares)   21,000    
Repurchase, retirement and reclassification of common stock (15,131) $ (8,874)   (6,257)
Repurchase, retirement and reclassification of common stock (in shares)   (438,000)    
Stock-based compensation 1,986   1,986  
Net income 22,208     22,208
Ending Balance at Jul. 01, 2025 $ 386,564   $ 73,193 $ 313,371
Ending Balance (in shares) at Jul. 01, 2025   22,181,000    
v3.25.2
Unaudited Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Cash flows from operating activities:    
Net income $ 35,700 $ 24,880
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 37,013 36,036
Non-cash lease expense 17,042 15,838
Amortization of financing costs 108 109
Deferred income taxes (2,107) (4,831)
Stock-based compensation expense 3,857 5,243
Loss on disposal and impairment of assets, net 368 2,712
Equity method investment 225 293
Changes in assets and liabilities:    
Accounts and other receivables 2,480 4,202
Inventories, net 634 188
Prepaid expenses and other current assets 2,976 4,454
Other assets, net (1,177) (3,779)
Accounts payable (2,088) (8,749)
Accrued expenses (7,939) (12,427)
Operating lease obligations (19,750) (23,761)
Other liabilities (442) 2,124
Net cash provided by operating activities 66,900 42,532
Cash flows from investing activities:    
Purchases of property and equipment (37,056) (41,349)
Proceeds from disposal of assets 37 0
Net cash used in investing activities (37,019) (41,349)
Cash flows from financing activities:    
Borrowings on line of credit 418,000 453,900
Payments on line of credit (424,000) (458,400)
Payments of debt issuance costs (834) 0
Taxes paid on vested stock units under employee plans (649) (892)
Proceeds from exercise of stock options 6,700 168
Cash dividends accrued under stock compensation plans 0 (9)
Repurchase of common stock (29,230) (8,835)
Net cash used in financing activities (30,013) (14,068)
Net decrease in cash and cash equivalents (132) (12,885)
Cash and cash equivalents, beginning of period 26,096 29,070
Cash and cash equivalents, end of period 25,964 16,185
Supplemental disclosure of cash flow information:    
Cash paid for income taxes 1,248 3,712
Cash paid for interest, net of capitalized interest 2,018 2,311
Cash paid for operating lease obligations 32,443 31,153
Supplemental disclosure of non-cash investing and financing activities:    
Operating lease assets obtained in exchange for operating lease obligations 2,798 13,552
Property and equipment acquired and included in accounts payable 5,654 8,639
Stock-based compensation capitalized [1] $ 169 $ 163
[1] Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets.
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 22,208 $ 17,157 $ 35,700 $ 24,880
v3.25.2
Insider Trading Arrangements
3 Months Ended
Jul. 01, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Basis of Presentation
6 Months Ended
Jul. 01, 2025
Accounting Policies [Abstract]  
Basis of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements include the accounts of BJ’s Restaurants, Inc. (referred to herein as the “Company,” “we,” “us” and “our”) and our wholly owned subsidiaries. The consolidated financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of our financial condition, results of operations, shareholders’ equity and cash flows for the periods presented. Our consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in consolidated financial statements in accordance with U.S. GAAP have been omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules.

The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual amounts could differ from these estimates. Our operating results for the twenty-six weeks ended July 1, 2025 may not be indicative of operating results for the entire year.

A description of our accounting policies and other financial information is included in our audited consolidated financial statements filed with the SEC on Form 10-K for the fiscal year ended December 31, 2024. The disclosures included in our accompanying interim consolidated financial statements and footnotes should be read in conjunction with our consolidated financial statements and notes thereto included in the Annual Report on Form 10-K and our other reports filed from time to time with the Securities and Exchange Commission.

Recently Issued Accounting Standards

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The adoption of this ASU will have no impact on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires public entities to disaggregate, in a tabular presentation, certain income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively. We are currently evaluating the impact of adopting the new ASU on our consolidated financial statements and related disclosures.

We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to our consolidated financial statements.

v3.25.2
Revenue Recognition
6 Months Ended
Jul. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

2. REVENUE RECOGNITION

Our revenues are comprised of food and beverage sales from our restaurants, including takeout, delivery and catering sales. Revenues from restaurant sales are recognized when payment is tendered. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. We sell gift cards which do not have an expiration date, and we do not deduct non-usage fees from outstanding gift card balances. Gift card sales are recorded as a liability and recognized as revenues upon redemption in our restaurants. Based on historical redemption rates, a portion of our gift card sales are not expected to be redeemed and will be recognized as gift card “breakage.” Estimated gift card breakage is recorded as revenue and recognized in proportion to our historical redemption pattern, unless there is a legal obligation to remit the unredeemed gift cards to government authorities.

Our “BJ’s Premier Rewards Plus” guest loyalty program enables participants to earn points for qualifying purchases that can be redeemed for food and beverages in the future. We allocate the transaction price between the goods delivered and the future goods that will be delivered on a relative standalone selling price basis, and defer the revenues allocated to the points, less expected expirations, until such points are redeemed.

 

The liability related to our gift card and loyalty program, included in “Accrued expenses” on our Consolidated Balance Sheets is as follows (in thousands):

 

 

 

July 1, 2025

 

 

December 31, 2024

 

Gift card liability

 

$

10,618

 

 

$

15,668

 

Deferred loyalty revenue

 

$

3,066

 

 

$

2,910

 

 

Revenue recognized for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Revenue recognized from gift card liability

 

$

2,142

 

 

$

2,039

 

 

$

7,911

 

 

$

7,903

 

Revenue recognized from guest loyalty program

 

$

1,319

 

 

$

996

 

 

$

7,065

 

 

$

5,313

 

v3.25.2
Leases
6 Months Ended
Jul. 01, 2025
Leases [Abstract]  
Leases

3. LEASES

We determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. U.S. GAAP requires that our leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date, and the lease term used in the evaluation includes the non-cancellable period for which we have the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of our restaurant and office space leases are classified as operating leases. We have elected to account for lease and non-lease components as a single lease component for office and beverage equipment. We do not have any finance leases.

Lease costs included in “Occupancy and operating” on the Consolidated Statements of Operations consisted of the following (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Lease cost

 

$

14,821

 

 

$

14,442

 

 

$

29,497

 

 

$

28,831

 

Variable lease cost

 

 

1,098

 

 

 

997

 

 

 

2,040

 

 

 

1,792

 

Total lease costs

 

$

15,919

 

 

$

15,439

 

 

$

31,537

 

 

$

30,623

 

v3.25.2
Long-Term Debt
6 Months Ended
Jul. 01, 2025
Debt Disclosure [Abstract]  
Long-Term Debt

4. LONG-TERM DEBT

 

Line of Credit

On May 30, 2025, we entered into a Fifth Amended and Restated Credit Agreement (“Credit Facility”) with Bank of America, N.A. (“BofA”), JPMorgan Chase Bank, N.A., and certain other parties to amend and restate our revolving line of credit (the “Line of Credit”) to extend the maturity date, obtain a swingline subfacility, modify the interest rate, and revise certain loan covenants.

Our Credit Facility matures on May 30, 2030, and provides us with revolving loan commitments totaling $215 million, which may be increased up to $315 million, of which $50 million may be used for the issuance of letters of credit. Availability under the Credit Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. On July 1, 2025, there were borrowings of $60.5 million and letters of credit of $19.3 million outstanding, leaving $135.2 million available to borrow.

Borrowings under the Line of Credit bear interest at an annual rate equal to either (a) the Secured Overnight Financing Rate (“Term SOFR”), adjusted by 10 basis points regardless of the duration of the Term SOFR, plus a percentage not to exceed 2.00%, or (b) the Base Rate plus a percentage not to exceed 1.00%. As with swingline loans: (i) the percentage adjustment depends on the level of lease and debt obligations of the Company as compared to EBITDA and lease expenses; and (ii) there is a floor of 0.00% on Term SOFR plus the 10 basis point adjustment. The weighted average interest rate during the twenty-six weeks ended July 1, 2025 and July 2, 2024 was approximately 6.0% and 6.9%, respectively.

The Credit Agreement contains certain representations and warranties, affirmative and negative covenants and events of default that are customary for credit arrangements of this type, including covenants which restrict or limit the Company’s ability to, among other things, create liens, borrow money (other than purchase money indebtedness and trade credit, lease obligations incurred in the ordinary course, and similar ordinary course liabilities), make dividends, and engage in mergers, consolidations, significant asset sales, stock repurchases and certain other transactions. On July 1, 2025, we were in compliance with these covenants.

 

 

Pursuant to the Credit Agreement, the Company will be required to pay certain customary fees and expenses associated with maintenance and use of the Line of Credit including letter of credit issuance fees and unused commitment fees. Interest expense and commitment fees under the Credit Facility were approximately $2.5 million and $2.7 million, for the twenty-six weeks ended July 1, 2025 and July 2, 2024, respectively. We also capitalized approximately $0.1 million and $0.2 million of interest expense related to new restaurant construction during each of the twenty-six weeks ended July 1, 2025 and July 2, 2024, respectively. Additionally, we capitalized approximately $0.8 million of fees related to the Fifth Amended and Restated Credit Agreement, which are being amortized over the remaining term of the Credit Facility.

v3.25.2
Net Income Per Share
6 Months Ended
Jul. 01, 2025
Earnings Per Share [Abstract]  
Net Income Per Share

5. NET INCOME PER SHARE

Basic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based restricted stock units (“RSUs”) are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income per share computation (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

22,208

 

 

$

17,157

 

 

$

35,700

 

 

$

24,880

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding – basic

 

 

22,220

 

 

 

23,309

 

 

 

22,452

 

 

 

23,313

 

Dilutive effect of equity awards

 

 

742

 

 

 

612

 

 

 

678

 

 

 

641

 

Weighted-average shares outstanding – diluted

 

 

22,962

 

 

 

23,921

 

 

 

23,130

 

 

 

23,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.00

 

 

$

0.74

 

 

$

1.59

 

 

$

1.07

 

Diluted

 

$

0.97

 

 

$

0.72

 

 

$

1.54

 

 

$

1.04

 

 

For each of the thirteen weeks ended July 1, 2025 and July 2, 2024, there were approximately 0.4 million and 1.0 million, respectively, of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive. For each of the twenty-six weeks ended July 1, 2025 and July 2, 2024, there were approximately 0.6 million and 1.0 million, respectively, of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive.

v3.25.2
Stock-Based Compensation
6 Months Ended
Jul. 01, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

6. STOCK-BASED COMPENSATION

Our current shareholder approved stock-based compensation plan is the BJ’s Restaurants, Inc. 2024 Equity Incentive Plan, (as it may be amended from time to time, “the Plan”). Under the Plan, we may issue shares of our common stock to team members, officers, directors and consultants. We grant non-qualified stock options, and service- and performance-based RSUs. Since fiscal 2024, we also grant performance-based RSUs with market-based metrics. Additionally, we issue service-based RSUs in connection with the BJ’s Gold Standard Stock Ownership Program (the “GSSOP”), a long-term equity incentive program under the Plan for our restaurant general managers, executive kitchen managers, directors of operations and directors of kitchen operations. All GSSOP participants are required to remain in good standing during their vesting period.

All options granted under the Plan expire within 10 years of their date of grant. Awards of stock options or stock appreciation rights are charged against the Plan share reserve on the basis of one share for each option granted. All other awards are charged against the 2024 Plan share reserve on the basis of 1.5 shares for each award unit granted. We estimate forfeitures based on historical data and we take into consideration future expectations. The Plan also contains other limits on the terms of incentive grants such as the maximum number that can be granted to a team member during any fiscal year.

We use the Black-Scholes option-pricing model to determine the fair value of our stock options, and we use the Monte Carlo simulation model to determine the fair value of our performance-based RSUs that include a market-based metric. Both valuation models require management to make assumptions regarding stock price, volatility, the expected life of the award, risk-free interest rate and expected dividend yield. The fair value of service-based and performance-based RSUs without market-based metrics, is equal to the fair value of our common stock at market close on the grant date, or the last trading day prior to the grant date if the grant occurs on a day when the market is closed.

The grant date fair value of each stock option, service-based RSU, and performance-based RSU with market-based metrics is recognized as stock-based compensation expense on a straight-line basis over the applicable vesting period (e.g., one, three or five years). For performance-based RSUs without market-based metrics, stock-based compensation expense recognition is recognized based on the estimated number of awards that is expected to vest, which is reassessed each reporting period based on management’s current estimate of achievement of the applicable performance goals. Forfeitures are estimated based on historical experience and adjusted for future expectations.

The Plan permits our Board of Directors to set the vesting terms and exercise period for awards at their discretion; however, the grant of awards with no minimum vesting period or a vesting period less than one year may not exceed 5% of the total number of shares authorized under the Plan. Stock options and service-based RSUs cliff vest at one year or ratably over three years for non-GSSOP participants, and either cliff vest at five years or cliff vest at 33% on the third anniversary and 67% on the fifth anniversary for GSSOP participants. Performance-based RSUs cliff vest on the third anniversary of the grant date in an amount from 0% to 150% of the grant quantity, depending on the level of performance target achievement.

The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Labor and benefits

 

$

865

 

 

$

529

 

 

$

1,265

 

 

$

1,037

 

General and administrative

 

$

1,042

 

 

$

2,237

 

 

$

2,592

 

 

$

4,206

 

Capitalized (1)

 

$

79

 

 

$

79

 

 

$

169

 

 

$

163

 

Total stock-based compensation

 

$

1,986

 

 

$

2,845

 

 

$

4,026

 

 

$

5,406

 

 

(1)
Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets.

Stock Options

The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following assumptions:

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Volatility

 

64.1.%

 

 

 

67.5

%

Risk-free interest rate

 

 

4.5

%

 

 

3.9

%

Expected life (years)

 

5

 

 

5

 

Expected dividend yield

 

 

%

 

 

%

Fair value of options granted

 

$

20.69

 

 

$

18.86

 

Under our stock-based compensation plan, the exercise price of a stock option is required to equal or exceed the fair value of our common stock at market close on the option grant date or the last trading day prior to the date of grant when grants take place on a day when the market is closed. The following table presents stock option activity:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

Outstanding at December 31, 2024

 

 

933

 

 

$

39.10

 

 

 

741

 

 

$

41.00

 

Granted

 

 

45

 

 

 

36.21

 

 

 

 

 

 

 

Exercised

 

 

(185

)

 

 

36.12

 

 

 

 

 

 

 

Forfeited

 

 

(92

)

 

 

43.55

 

 

 

 

 

 

 

Outstanding at July 1, 2025

 

 

701

 

 

$

39.12

 

 

 

556

 

 

$

40.63

 

 

 

As of July 1, 2025, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $1.8 million, which is expected to be recognized over the next three years.

Restricted Stock Units

Service-Based Restricted Stock Units

The following table presents service-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

772

 

 

$

30.45

 

Granted

 

 

145

 

 

 

35.81

 

Released

 

 

(120

)

 

 

30.81

 

Forfeited

 

 

(56

)

 

 

31.26

 

Outstanding at July 1, 2025

 

 

741

 

 

$

31.38

 

 

As of July 1, 2025, total unrecognized stock-based compensation expense related to non-vested service-based RSUs was approximately $11.9 million, which is expected to be recognized over the next three to five years.

Performance-Based Restricted Stock Units

The following table presents performance-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

83

 

 

$

32.89

 

Granted

 

 

113

 

 

 

37.39

 

Released

 

 

(40

)

 

 

32.27

 

Forfeited

 

 

(25

)

 

 

34.54

 

Outstanding at July 1, 2025

 

 

131

 

 

$

36.63

 

 

The fair value of performance-based RSUs, which include a market-based metric, was estimated on the grant date using the Monte Carlo simulation model with the following assumptions:

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Volatility

 

 

48.0

%

 

 

49.8

%

Risk-free interest rate

 

 

4.2

%

 

 

3.8

%

Expected life (years)

 

 

3

 

 

3

 

Expected dividend yield

 

 

%

 

 

%

Fair value of market-based awards granted

 

$

37.98

 

 

$

34.79

 

 

As of July 1, 2025, the total unrecognized stock-based compensation expense related to non-vested performance-based RSUs was approximately $3.0 million, which is expected to be recognized over the next three to five years.

v3.25.2
Income Taxes
6 Months Ended
Jul. 01, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

7. INCOME TAXES

We calculate our interim income tax provision in accordance with ASC Topic 270, “Interim Reporting” and ASC Topic 740, “Accounting for Income Taxes.” The related tax expense or benefit is recognized in the interim period in which it occurs. In addition, the effect of changes in enacted tax laws, rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain significant estimates and judgment including the expected operating income for the year, permanent and temporary differences because of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current fiscal year. The accounting estimates used to compute income tax expense may change as new events occur, additional information is obtained or the tax environment changes.

Our effective income tax rate for the twenty-six weeks ended July 1, 2025 was an expense rate of 4.4% compared to a benefit rate of 11.7% for the comparable twenty-six weeks ended July 2, 2024. The effective tax rate expense and benefit for the twenty-six weeks ended July 1, 2025 and July 2, 2024, respectively, was different from the statutory tax rate primarily as a result of significant Federal Insurance Contributions Act (“FICA”) tax tip credits.

As of July 1, 2025, we had unrecognized tax benefits of approximately $0.9 million, which, if reversed, would impact our effective tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is the following (in thousands):

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Beginning gross unrecognized tax benefits

 

$

874

 

 

$

967

 

Increases for tax positions taken in the current year

 

 

67

 

 

 

51

 

Ending gross unrecognized tax benefits

 

$

941

 

 

$

1,018

 

 

Our uncertain tax positions are related to tax years that remain subject to examination by tax agencies. As of July 1, 2025, the earliest tax year still subject to examination by the Internal Revenue Service is 2021. The earliest year still subject to examination by a significant state or local taxing authority is 2020.

v3.25.2
Legal Proceedings
6 Months Ended
Jul. 01, 2025
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings

8. LEGAL PROCEEDINGS

We are subject to lawsuits, administrative proceedings and demands that arise in the ordinary course of our business and which typically involve claims from guests, team members and others related to operational, employment, real estate and intellectual property issues common to the foodservice industry. A number of these claims may exist at any given time. We are self-insured for a portion of our general liability, team member workers’ compensation and employment practice liability insurance requirements. We maintain coverage with a third-party insurer to limit our total exposure. We believe that most of our claims will be covered by our insurance, subject to coverage limits and the portion of such claims that are self-insured; however, punitive damages awards are not covered by our insurance. To date, we have not been ordered to pay punitive damages with respect to any claims, but there can be no assurance that punitive damages will not be awarded with respect to any future claims. We could be affected by adverse publicity resulting from allegations in lawsuits, claims and proceedings, regardless of whether these allegations are valid or whether we are ultimately determined to be liable. We currently believe that the final disposition of these types of lawsuits, proceedings and claims will not have a material adverse effect on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, proceedings or claims.

v3.25.2
Shareholders' Equity
6 Months Ended
Jul. 01, 2025
Equity [Abstract]  
Shareholders' Equity

9. SHAREHOLDERS’ EQUITY

Warrant

BJ’s Act III, LLC’s (“Act III”) warrant for 876,949 shares of common stock at an exercise price of $26.94 was set to expire on May 4, 2025, five years following the issuance. On December 30, 2024, the Company agreed to extend the termination date of the warrant by two years to May 4, 2027. The warrant extension was executed in conjunction with a Cooperation Agreement that contains material non-shareholder restrictions, such as those limiting Act III's ability to purchase additional Company shares.

Stock Repurchases

During the twenty-six weeks ended July 1, 2025, we repurchased and retired approximately 842,000 shares of our common stock at an average price of $34.72 per share for approximately $29.2 million, which is recorded as a reduction in common stock, with any excess charged to retained earnings. Our Board of Directors approved a $50 million increase in our share repurchase program both in February 2024 and February 2025. As of July 1, 2025, we had $56.7 million available under our authorized $600 million share repurchase program. Repurchases may be made at any time.

Cash Dividends

We currently do not pay any cash dividends. Any payment of quarterly cash dividends will be subject to our Board of Directors determining that the payment of dividends is in the best interest of the Company and its shareholders.

v3.25.2
Related Party Transactions
6 Months Ended
Jul. 01, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

10. RELATED PARTY TRANSACTIONS

BJ's Act III, LLC

On December 30, 2024, the Company agreed to extend Act III's warrant termination date by two years to May 4, 2027, and recorded a related expense of $4.6 million within “Other (expense) income, net” on our Consolidated Statements of Operations. See Note 9 for further information.

 

Equity Method Investment

During fiscal 2022, we contributed assets valued at $5.0 million to a company, in which our Board member and former Chief Executive Officer has a less than 1% interest. We recorded this non-cash contribution, in exchange for a 20% ownership of the company, as an investment within “Equity method investment” on our Consolidated Balance Sheets, and the related gain within “Loss on disposal and impairment of assets, net” on our Consolidated Statements of Operations. For the twenty-six weeks ended July 1, 2025 and July 2, 2024, we recorded a net loss related to the investment of $0.2 million and $0.3 million, respectively, within “Other income, net,” and accordingly adjusted the investment carrying amount on our Consolidated Balance Sheets.

v3.25.2
Segment Information
6 Months Ended
Jul. 01, 2025
Segment Reporting [Abstract]  
Segment Information

11. SEGMENT INFORMATION

We currently operate in one operating segment: full-service company-owned restaurants and in one geographic area: the United States of America. We do not have intra-entity sales or transfers. Our revenues are comprised of food and beverage sales from our restaurants, including takeout, delivery and catering sales. Our Chief Operating Decision Maker (“CODM”) is our chief executive officer and president, and he assesses performance and decides how to allocate resources based on income (loss) from operations, which is also reported on our Consolidated Statements of Operations. Additionally, the measure of segment assets is reported on our Consolidated Balance Sheets as total assets. Our CODM uses net income to evaluate income generated from our segment assets and decides whether to reinvest profits into other parts of our business.

Reported segment revenue and expenses is presented below (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Revenues

 

$

365,597

 

 

$

349,927

 

 

$

713,570

 

 

$

687,261

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

90,396

 

 

 

89,394

 

 

 

176,831

 

 

 

173,928

 

Labor and benefits

 

 

126,322

 

 

 

123,539

 

 

 

249,493

 

 

 

246,333

 

Occupancy and operating

 

 

86,759

 

 

 

82,778

 

 

 

169,536

 

 

 

162,282

 

Other segment items (1)

 

 

22,170

 

 

 

22,832

 

 

 

44,533

 

 

 

47,203

 

Depreciation and amortization

 

 

18,736

 

 

 

18,163

 

 

 

37,013

 

 

 

36,036

 

Income from operations

 

 

21,214

 

 

 

13,221

 

 

 

36,164

 

 

 

21,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

1,272

 

 

 

1,259

 

 

 

2,502

 

 

 

2,670

 

Other expense (income), net

 

 

(3,761

)

 

 

(2,772

)

 

 

(3,700

)

 

 

(3,468

)

Income tax expense (benefit)

 

 

1,495

 

 

 

(2,423

)

 

 

1,662

 

 

 

(2,603

)

Net income

 

$

22,208

 

 

$

17,157

 

 

$

35,700

 

 

$

24,880

 

 

(1) Other segment items consist of amounts related to general and administrative expenses, restaurant opening expenses, and loss on disposal of and impairment of assets.

v3.25.2
Subsequent Events
6 Months Ended
Jul. 01, 2025
Subsequent Events [Abstract]  
Subsequent Events

12. SUBSEQUENT EVENTS

Subsequent to the end of our second fiscal quarter, on July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA amends U.S. tax law, including provisions related to bonus depreciation, research and development expensing, and interest expense deduction, among other provisions. The Company is currently evaluating the impact of the OBBBA on our consolidated financial statements and related disclosures.

v3.25.2
Basis of Presentation (Policies)
6 Months Ended
Jul. 01, 2025
Accounting Policies [Abstract]  
Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of BJ’s Restaurants, Inc. (referred to herein as the “Company,” “we,” “us” and “our”) and our wholly owned subsidiaries. The consolidated financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of our financial condition, results of operations, shareholders’ equity and cash flows for the periods presented. Our consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in consolidated financial statements in accordance with U.S. GAAP have been omitted pursuant to the U.S. Securities and Exchange Commission (“SEC”) rules.

The preparation of financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual amounts could differ from these estimates. Our operating results for the twenty-six weeks ended July 1, 2025 may not be indicative of operating results for the entire year.

A description of our accounting policies and other financial information is included in our audited consolidated financial statements filed with the SEC on Form 10-K for the fiscal year ended December 31, 2024. The disclosures included in our accompanying interim consolidated financial statements and footnotes should be read in conjunction with our consolidated financial statements and notes thereto included in the Annual Report on Form 10-K and our other reports filed from time to time with the Securities and Exchange Commission.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The adoption of this ASU will have no impact on our consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires public entities to disaggregate, in a tabular presentation, certain income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively. We are currently evaluating the impact of adopting the new ASU on our consolidated financial statements and related disclosures.

We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to our consolidated financial statements.

Net (Loss) Income Per Share

Basic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based restricted stock units (“RSUs”) are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.

v3.25.2
Revenue Recognition (Tables)
6 Months Ended
Jul. 01, 2025
Revenue from Contract with Customer [Abstract]  
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets

The liability related to our gift card and loyalty program, included in “Accrued expenses” on our Consolidated Balance Sheets is as follows (in thousands):

 

 

 

July 1, 2025

 

 

December 31, 2024

 

Gift card liability

 

$

10,618

 

 

$

15,668

 

Deferred loyalty revenue

 

$

3,066

 

 

$

2,910

 

Revenue Recognized for Redemption of Gift Cards and Loyalty Rewards Deferred

Revenue recognized for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year is as follows (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Revenue recognized from gift card liability

 

$

2,142

 

 

$

2,039

 

 

$

7,911

 

 

$

7,903

 

Revenue recognized from guest loyalty program

 

$

1,319

 

 

$

996

 

 

$

7,065

 

 

$

5,313

 

v3.25.2
Leases (Tables)
6 Months Ended
Jul. 01, 2025
Leases [Abstract]  
Summary of Lease Costs

Lease costs included in “Occupancy and operating” on the Consolidated Statements of Operations consisted of the following (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Lease cost

 

$

14,821

 

 

$

14,442

 

 

$

29,497

 

 

$

28,831

 

Variable lease cost

 

 

1,098

 

 

 

997

 

 

 

2,040

 

 

 

1,792

 

Total lease costs

 

$

15,919

 

 

$

15,439

 

 

$

31,537

 

 

$

30,623

 

v3.25.2
Net Income Per Share (Tables)
6 Months Ended
Jul. 01, 2025
Earnings Per Share [Abstract]  
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income per share computation (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

22,208

 

 

$

17,157

 

 

$

35,700

 

 

$

24,880

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding – basic

 

 

22,220

 

 

 

23,309

 

 

 

22,452

 

 

 

23,313

 

Dilutive effect of equity awards

 

 

742

 

 

 

612

 

 

 

678

 

 

 

641

 

Weighted-average shares outstanding – diluted

 

 

22,962

 

 

 

23,921

 

 

 

23,130

 

 

 

23,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.00

 

 

$

0.74

 

 

$

1.59

 

 

$

1.07

 

Diluted

 

$

0.97

 

 

$

0.72

 

 

$

1.54

 

 

$

1.04

 

 

v3.25.2
Stock-Based Compensation (Tables)
6 Months Ended
Jul. 01, 2025
Stock-Based Compensation Recognized within Our Consolidated Financial Statements

The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Labor and benefits

 

$

865

 

 

$

529

 

 

$

1,265

 

 

$

1,037

 

General and administrative

 

$

1,042

 

 

$

2,237

 

 

$

2,592

 

 

$

4,206

 

Capitalized (1)

 

$

79

 

 

$

79

 

 

$

169

 

 

$

163

 

Total stock-based compensation

 

$

1,986

 

 

$

2,845

 

 

$

4,026

 

 

$

5,406

 

 

(1)
Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets.
Black-Scholes Option-Pricing Model, Assumptions to Estimate the Fair Value of Each Stock Option

The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following assumptions:

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Volatility

 

64.1.%

 

 

 

67.5

%

Risk-free interest rate

 

 

4.5

%

 

 

3.9

%

Expected life (years)

 

5

 

 

5

 

Expected dividend yield

 

 

%

 

 

%

Fair value of options granted

 

$

20.69

 

 

$

18.86

 

Stock Option Activity

Under our stock-based compensation plan, the exercise price of a stock option is required to equal or exceed the fair value of our common stock at market close on the option grant date or the last trading day prior to the date of grant when grants take place on a day when the market is closed. The following table presents stock option activity:

 

 

 

Options Outstanding

 

 

Options Exercisable

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

 

Shares
(in thousands)

 

 

Weighted
Average
Exercise
Price

 

Outstanding at December 31, 2024

 

 

933

 

 

$

39.10

 

 

 

741

 

 

$

41.00

 

Granted

 

 

45

 

 

 

36.21

 

 

 

 

 

 

 

Exercised

 

 

(185

)

 

 

36.12

 

 

 

 

 

 

 

Forfeited

 

 

(92

)

 

 

43.55

 

 

 

 

 

 

 

Outstanding at July 1, 2025

 

 

701

 

 

$

39.12

 

 

 

556

 

 

$

40.63

 

 

Service-Based Restricted Stock Units  
Restricted Stock Unit Activity

The following table presents service-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

772

 

 

$

30.45

 

Granted

 

 

145

 

 

 

35.81

 

Released

 

 

(120

)

 

 

30.81

 

Forfeited

 

 

(56

)

 

 

31.26

 

Outstanding at July 1, 2025

 

 

741

 

 

$

31.38

 

Market-Based and Performance-Based Restricted Stock Units  
Monte Carlo Simulation Model, Assumptions Used to Estimate the Fair Value of Performance-Based RSUs

The fair value of performance-based RSUs, which include a market-based metric, was estimated on the grant date using the Monte Carlo simulation model with the following assumptions:

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Volatility

 

 

48.0

%

 

 

49.8

%

Risk-free interest rate

 

 

4.2

%

 

 

3.8

%

Expected life (years)

 

 

3

 

 

3

 

Expected dividend yield

 

 

%

 

 

%

Fair value of market-based awards granted

 

$

37.98

 

 

$

34.79

 

Performance-Based Restricted Stock Units  
Restricted Stock Unit Activity

The following table presents performance-based restricted stock unit activity:

 

 

 

Shares
(in thousands)

 

 

Weighted
Average
Fair Value

 

Outstanding at December 31, 2024

 

 

83

 

 

$

32.89

 

Granted

 

 

113

 

 

 

37.39

 

Released

 

 

(40

)

 

 

32.27

 

Forfeited

 

 

(25

)

 

 

34.54

 

Outstanding at July 1, 2025

 

 

131

 

 

$

36.63

 

v3.25.2
Income Taxes (Tables)
6 Months Ended
Jul. 01, 2025
Income Tax Disclosure [Abstract]  
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is the following (in thousands):

 

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

Beginning gross unrecognized tax benefits

 

$

874

 

 

$

967

 

Increases for tax positions taken in the current year

 

 

67

 

 

 

51

 

Ending gross unrecognized tax benefits

 

$

941

 

 

$

1,018

 

v3.25.2
Segment Information (Tables)
6 Months Ended
Jul. 01, 2025
Segment Reporting [Abstract]  
Summary of Reported Segment Revenue and Expenses

Reported segment revenue and expenses is presented below (in thousands):

 

 

 

For the Thirteen Weeks Ended

 

 

For the Twenty-Six Weeks Ended

 

 

 

July 1, 2025

 

 

July 2, 2024

 

 

July 1, 2025

 

 

July 2, 2024

 

Revenues

 

$

365,597

 

 

$

349,927

 

 

$

713,570

 

 

$

687,261

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

90,396

 

 

 

89,394

 

 

 

176,831

 

 

 

173,928

 

Labor and benefits

 

 

126,322

 

 

 

123,539

 

 

 

249,493

 

 

 

246,333

 

Occupancy and operating

 

 

86,759

 

 

 

82,778

 

 

 

169,536

 

 

 

162,282

 

Other segment items (1)

 

 

22,170

 

 

 

22,832

 

 

 

44,533

 

 

 

47,203

 

Depreciation and amortization

 

 

18,736

 

 

 

18,163

 

 

 

37,013

 

 

 

36,036

 

Income from operations

 

 

21,214

 

 

 

13,221

 

 

 

36,164

 

 

 

21,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

1,272

 

 

 

1,259

 

 

 

2,502

 

 

 

2,670

 

Other expense (income), net

 

 

(3,761

)

 

 

(2,772

)

 

 

(3,700

)

 

 

(3,468

)

Income tax expense (benefit)

 

 

1,495

 

 

 

(2,423

)

 

 

1,662

 

 

 

(2,603

)

Net income

 

$

22,208

 

 

$

17,157

 

 

$

35,700

 

 

$

24,880

 

 

(1) Other segment items consist of amounts related to general and administrative expenses, restaurant opening expenses, and loss on disposal of and impairment of assets.

v3.25.2
Gift Card Liability and Loyalty Program Included in Accrued Expenses on Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Jul. 01, 2025
Dec. 31, 2024
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]    
Gift card liability $ 10,618 $ 15,668
Deferred loyalty revenue $ 3,066 $ 2,910
v3.25.2
Revenue Recognized for Redemption of Gift Cards and Loyalty Rewards Deferred (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Disaggregation of Revenue [Abstract]        
Revenue recognized from gift card liability $ 2,142 $ 2,039 $ 7,911 $ 7,903
Revenue recognized from guest loyalty program $ 1,319 $ 996 $ 7,065 $ 5,313
v3.25.2
Leases - Summary of Lease Costs (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Leases [Abstract]        
Lease cost $ 14,821 $ 14,442 $ 29,497 $ 28,831
Variable lease cost 1,098 997 2,040 1,792
Total lease costs $ 15,919 $ 15,439 $ 31,537 $ 30,623
v3.25.2
Long-Term Debt - Additional Information (Detail) - USD ($)
$ in Millions
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Line of Credit Facility [Line Items]    
Loan agreement, initiation Date May 30, 2025  
Floor rate 0.00%  
Weighted average interest rate 6.00% 6.90%
Credit Facility Debt Instrument    
Line of Credit Facility [Line Items]    
Loan agreement, expiration date May 30, 2030  
Revolving loan commitments under loan agreement $ 215.0  
Letters of credit outstanding amount 19.3  
Line of credit outstanding amount 60.5  
Available borrowings under credit facility 135.2  
Interest expense and commitment fees 2.5 $ 2.7
Interest expense on line of credit 0.1 $ 0.2
Debt instrument fees 0.8  
Letter of Credit    
Line of Credit Facility [Line Items]    
Revolving loan commitments under loan agreement $ 50.0  
SOFR    
Line of Credit Facility [Line Items]    
Debt instrument, description of variable rate basis Term SOFR plus the 10 basis  
Maximum | Credit Facility Debt Instrument    
Line of Credit Facility [Line Items]    
Increase in line of credit $ 315.0  
Maximum | SOFR | Credit Facility Debt Instrument    
Line of Credit Facility [Line Items]    
Line of credit, adjustment to interest rate 2.00%  
Minimum | Base Rate    
Line of Credit Facility [Line Items]    
Line of credit, adjustment to interest rate 1.00%  
v3.25.2
Reconciliation of Basic and Diluted Net Income Per Share Computations and Number of Dilutive Equity Awards Included in Dilutive Net Income Per Share Computation (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Earnings Per Share [Abstract]        
Net income $ 22,208 $ 17,157 $ 35,700 $ 24,880
Weighted-average shares outstanding – basic 22,220 23,309 22,452 23,313
Dilutive effect of equity awards 742 612 678 641
Weighted-average shares outstanding – diluted 22,962 23,921 23,130 23,954
Net income per share:        
Basic $ 1 $ 0.74 $ 1.59 $ 1.07
Diluted $ 0.97 $ 0.72 $ 1.54 $ 1.04
v3.25.2
Net Income Per Share - Additional Information (Detail) - shares
shares in Millions
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Equity Awards and Warrants        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of net income per share 0.4 1.0 0.6 1.0
v3.25.2
Stock-Based Compensation - Additional Information (Detail)
$ in Millions
6 Months Ended
Jul. 01, 2025
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares charged to reserve per option granted | shares 1
Number of shares charged to reserve per award unit granted | shares 1.5
Expiration term of stock options 10 years
Vesting terms The Plan permits our Board of Directors to set the vesting terms and exercise period for awards at their discretion; however, the grant of awards with no minimum vesting period or a vesting period less than one year may not exceed 5% of the total number of shares authorized under the Plan.
Stock Option, Service-based RSU, and Performance-based RSU With Market-based Metrics [Member] | Vesting Period One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 1 year
Stock Option, Service-based RSU, and Performance-based RSU With Market-based Metrics [Member] | Vesting Period Two  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 3 years
Stock Option, Service-based RSU, and Performance-based RSU With Market-based Metrics [Member] | Vesting Period Three  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 5 years
Stock Options and Service-based RSUs [Member] | Vesting Period One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 1 year
Stock Options and Service-based RSUs [Member] | Vesting Period Two  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 3 years
Stock Options and Service-based RSUs [Member] | Cliff Vesting Third Anniversary  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 33.00%
Stock Options and Service-based RSUs [Member] | Cliff Vesting Fifth Anniversary  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 67.00%
Stock Options and Service-based RSUs [Member] | Cliff Vesting Period One  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period (in years) 5 years
Stock Options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expense $ 1.8
Unrecognized stock-based compensation expenses recognition period (in years) 3 years
Performance Based Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expense $ 3.0
Performance Based Restricted Stock Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expenses recognition period (in years) 3 years
Performance Based Restricted Stock Units | Minimum | Cliff Vesting Third Anniversary  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 0.00%
Performance Based Restricted Stock Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expenses recognition period (in years) 5 years
Performance Based Restricted Stock Units | Maximum | Cliff Vesting Third Anniversary  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting percentage 150.00%
Service-Based Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expense $ 11.9
Service-Based Restricted Stock Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expenses recognition period (in years) 3 years
Service-Based Restricted Stock Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized stock-based compensation expenses recognition period (in years) 5 years
v3.25.2
Stock-Based Compensation Recognized within Our Consolidated Financial Statements (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Stock-based compensation $ 1,986 $ 2,845 $ 4,026 $ 5,406
Capitalized [1] 79 79 169 163
Labor and benefits        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Stock-based compensation 865 529 1,265 1,037
General and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Stock-based compensation $ 1,042 $ 2,237 $ 2,592 $ 4,206
[1] Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on the Consolidated Balance Sheets.
v3.25.2
Black-Scholes Option-Pricing Model, Assumptions to Estimate the Fair Value of Each Stock Option (Detail) - $ / shares
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Volatility 64.10% 67.50%
Risk-free interest rate 4.50% 3.90%
Expected life (years) 5 years 5 years
Fair value of options granted $ 20.69 $ 18.86
v3.25.2
Stock Option Activity (Detail)
shares in Thousands
6 Months Ended
Jul. 01, 2025
$ / shares
shares
Options Outstanding, Shares  
Outstanding, Beginning Balance | shares 933
Granted | shares 45
Exercised | shares (185)
Forfeited | shares (92)
Outstanding, Ending Balance | shares 701
Options Outstanding, Weighted Average Exercise Price  
Outstanding, Beginning Balance | $ / shares $ 39.1
Granted | $ / shares 36.21
Exercised | $ / shares 36.12
Forfeited | $ / shares 43.55
Outstanding, Ending Balance | $ / shares $ 39.12
Options Exercisable, Shares  
Options Exercisable Outstanding, Beginning Balance | shares 741
Options Exercisable Outstanding, Ending Balance | shares 556
Options Exercisable, Weighted Average Exercise Price  
Options Exercisable, Beginning Balance | $ / shares $ 41
Options Exercisable, Ending Balance | $ / shares $ 40.63
v3.25.2
Time-Based Restricted Stock Unit Activity (Detail) - Service-Based Restricted Stock Units
shares in Thousands
6 Months Ended
Jul. 01, 2025
$ / shares
shares
Shares Outstanding  
Outstanding Beginning Balance, Shares | shares 772
Granted, Shares | shares 145
Released. Shares | shares (120)
Forfeited, Shares | shares (56)
Outstanding Ending Balance, Shares | shares 741
Weighted Average Fair Value  
Outstanding Beginning Balance, Weighted Average Fair Value | $ / shares $ 30.45
Granted, Weighted Average Fair Value | $ / shares 35.81
Released, Weighted Average Fair Value | $ / shares 30.81
Forfeited, Weighted Average Fair Value | $ / shares 31.26
Outstanding Ending Balance, Weighted Average Fair Value | $ / shares $ 31.38
v3.25.2
Performance-Based Restricted Stock Unit Activity (Detail) - Performance-Based Restricted Stock Units
shares in Thousands
6 Months Ended
Jul. 01, 2025
$ / shares
shares
Shares Outstanding  
Outstanding Beginning Balance, Shares | shares 83
Granted, Shares | shares 113
Released. Shares | shares (40)
Forfeited, Shares | shares (25)
Outstanding Ending Balance, Shares | shares 131
Weighted Average Fair Value  
Outstanding Beginning Balance, Weighted Average Fair Value | $ / shares $ 32.89
Granted, Weighted Average Fair Value | $ / shares 37.39
Released, Weighted Average Fair Value | $ / shares 32.27
Forfeited, Weighted Average Fair Value | $ / shares 34.54
Outstanding Ending Balance, Weighted Average Fair Value | $ / shares $ 36.63
v3.25.2
Monte Carlo Simulation Model, Assumptions Used to Estimate the Fair Value of Performance-Based RSUs (Details) - $ / shares
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Volatility 64.10% 67.50%
Risk-free interest rate 4.50% 3.90%
Expected life (years) 5 years 5 years
Fair value of market-based awards granted $ 20.69 $ 18.86
Performance-Based Restricted Stock Units    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Volatility 48.00% 49.80%
Risk-free interest rate 4.20% 3.80%
Expected life (years) 3 years 3 years
Fair value of market-based awards granted $ 37.98 $ 34.79
v3.25.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Dec. 31, 2024
Jan. 02, 2024
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]        
Income tax expense (benefit) rate 4.40% (11.70%)    
Unrecognized tax benefits $ 941 $ 1,018 $ 874 $ 967
Federal        
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]        
Income tax examination, years open 2021      
State or Local Taxing Jurisdiction        
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]        
Income tax examination, years open 2020      
v3.25.2
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Thousands
6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Income Tax Disclosure [Abstract]    
Beginning gross unrecognized tax benefits $ 874 $ 967
Increases for tax positions taken in the current year 67 51
Ending gross unrecognized tax benefits $ 941 $ 1,018
v3.25.2
Shareholders' Equity - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Jan. 21, 2021
Share Repurchase Program [Line Items]          
Number of shares repurchased during the period     842,000    
Repurchased average price per share     $ 34.72    
Shares repurchased, value $ 15,131,000 $ 8,835,000 $ 29,230,000 $ 8,835,000  
Common stock remaining under the share repurchase plan 56,700,000   56,700,000    
Current amount authorized under the share repurchase plan 600,000,000   600,000,000    
Additional authorized amount $ 50,000,000   50,000,000    
Cash dividends     $ 0    
Common Stock          
Share Repurchase Program [Line Items]          
Number of shares repurchased during the period 438,000 254,000 842,000 254,000  
Shares repurchased, value $ 8,874,000 $ 990,000 $ 14,460,000 $ 9,681,000  
Number of shares issuable on exercise of warrants         876,949
Warrants exercise price, per share         $ 26.94
Date on which warrant expires         May 04, 2025
Term of warrants         5 years
v3.25.2
Related Party Transactions - Additional Information (Detail) - USD ($)
6 Months Ended 12 Months Ended
Dec. 30, 2024
Jul. 01, 2025
Jul. 02, 2024
Jan. 03, 2023
Dec. 31, 2024
Related Party Transaction [Line Items]          
Equity method investment   $ 4,041,000     $ 4,266,000
Loss related to investment   $ (225,000) $ (293,000)    
Other (Expense) Income, Net          
Related Party Transaction [Line Items]          
Warrant extension related expense $ 4,600        
Other Current Assets | Assets          
Related Party Transaction [Line Items]          
Equity method investment       $ 5,000,000  
Purchasing Company of Assets | Maximum          
Related Party Transaction [Line Items]          
Equity method investment interest percentage       20.00%  
v3.25.2
Segment Information - Additional Information (Detail)
6 Months Ended
Jul. 01, 2025
Segment
Segment Reporting [Abstract]  
Number of operating segments 1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember, srt:PresidentMember
Segment reporting, CODM, profit (loss) measure, how used, description he assesses performance and decides how to allocate resources based on income (loss) from operations, which is also reported on our Consolidated Statements of Operations.
Segment reporting, expense information used by CODM, description Our CODM uses net income to evaluate income generated from our segment assets and decides whether to reinvest profits into other parts of our business.
v3.25.2
Segment Information - Summary of Reported Segment Revenue and Expenses (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jul. 01, 2025
Jul. 02, 2024
Jul. 01, 2025
Jul. 02, 2024
Segment Reporting Information [Line Items]        
Revenues $ 365,597 $ 349,927 $ 713,570 $ 687,261
Less:        
Cost of sales 90,803 89,836 177,623 174,789
Labor and benefits 129,374 126,309 255,026 251,330
Occupancy and operating 83,300 79,566 163,211 156,424
Depreciation and amortization 18,736 18,163 37,013 36,036
Income from operations 21,214 13,221 36,164 21,479
Interest expense, net (1,272) (1,259) (2,502) (2,670)
Other expense (income), net [1] 3,761 2,772 3,700 3,468
Income tax expense (benefit) 1,495 (2,423) 1,662 (2,603)
Net income 22,208 17,157 35,700 24,880
Operating Segment        
Segment Reporting Information [Line Items]        
Revenues 365,597 349,927 713,570 687,261
Less:        
Cost of sales 90,396 89,394 176,831 173,928
Labor and benefits 126,322 123,539 249,493 246,333
Occupancy and operating 86,759 82,778 169,536 162,282
Other segment items [2] 22,170 22,832 44,533 47,203
Depreciation and amortization 18,736 18,163 37,013 36,036
Income from operations 21,214 13,221 36,164 21,479
Reconciliation to Net Income        
Less:        
Interest expense, net 1,272 1,259 2,502 2,670
Other expense (income), net (3,761) (2,772) (3,700) (3,468)
Income tax expense (benefit) $ 1,495 $ (2,423) $ 1,662 $ (2,603)
[1] For the thirteen weeks ended July 1, 2025 and July 2, 2024, related party costs included in other income, net was an equity method investment loss of $66,000 and $146,000, respectively. For the twenty-six weeks ended July 1, 2025 and July 2, 2024, related party costs included in other income, net was an equity method investment loss of $225,000 and $293,000, respectively. See Note 10 for further information.
[2] Other segment items consist of amounts related to general and administrative expenses, restaurant opening expenses, and loss on disposal of and impairment of assets.