Q4 2025 BJs Restaurants Inc Earnings Call

February 25, 2026

Bj's restaurants fourth quarter 2025 earnings conference call, all participants will be in listen only mode.

Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad.

To withdraw your question. Please press Star then two.

Please note this event is being recorded.

I'd now like to turn the conference over to Ronny Schirmer director of SEC reporting. Please go ahead.

Thank you operator, good afternoon, everyone and welcome to our fiscal year 2020 by fourth quarter Investor Conference call and webcast.

After the market closed today, we released our financial results for our fiscal 2020 by fourth quarter.

The full text of our earnings release on our website at Www Dot Bj's restaurants, dotcom I will begin by reminding you that our comments on the conference call today will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095 investors are cautioned that forward looking statements are not.

Guarantees of future performance and undue reliance should not be placed on such statements.

These statements are based on management's current business and market expectations and our actual results could differ materially from those projections in the forward looking statements. We undertake no obligation to publicly update or revise any forward looking statements or to make any other forward looking statements whether as a result of new information.

Future events or otherwise unless required to do so by the securities laws investors are referred to the full discussion of risks and uncertainties associated with forward looking statements contained in the company's filings with the Securities and Exchange Commission, we will start today's call with prepared remarks from biotech our chief Executive Officer.

Evidence followed by Todd Wilson, our Chief Financial Financial Officer, after which we will take your questions and with that I will turn the call over to Lyle tick Lal.

Good afternoon, everyone and thank you for joining us today Q.

Q4 was another strong quarter for bj's, delivering our sixth consecutive quarter of sales and traffic growth as well as our fifth consecutive quarter of profit and margin expansion.

From a topline perspective in Q4, we delivered two 6% same store sales growth driven by four 5% and traffic growth.

On the private side, we delivered 16, 1% restaurant level operating margins and 10% adjusted EBITDA margins, representing an improvement of 70, and 40 basis points, respectively year over year.

Given the strong performance in Q4, 2024, I'm, particularly proud of how the team work together to deliver a strong finish to 2025.

Worth double clicking on is the implied check compression between the comp sales and traffic in Q4.

Our traffic momentum builds on the progress we have made throughout the year and underlines. The continued improvements in operations. The residents of the zucchini meal deal and Bj's relevancy in the holiday and social Splurge occasion.

Two additional drivers in Q4 beyond these foundational elements are the buzz around our <unk>, which brought in a hard to reach younger demographic and drove an increase in the number of what we call the <unk> trial checks.

As well as our continued outperformance in late night.

While both of these occasions carry a lower dollar check they help us continue to introduce bj's to new customers give existing guests new reasons to come back and sustainably grow sales and profit dollars.

For the full year 2025 on the sales side. We ended at 2% same store sales growth driven by two 8% in traffic and from a profit perspective, we landed at 15, 5% restaurant level operating margins of nine 6% adjusted EBITDA margins, representing an improvement of one one.

<unk> 10, and 100 basis points, respectively year over year.

As I've talked about previously 2025 was a year of strengthening foundations and learning guided by our four strategic priorities.

We created alignment understanding and shared ownership of our strategy.

Rebuild trust improved accountability and showed resilience when encountering performance challenges.

We added three strong new leadership team members, who have integrated well and made a difference with Gen Jaffe, our chief people Officer, Tom Kowalski, our chief supply chain Officer, and most recently Todd Wilson, our Chief Financial Officer.

We clarified our growth drivers and continue to refine how to leverage them most effectively.

In Q4, specifically the combination of better execution value rooted in the Paducah meal deal and compelling product news driven by seasonally relevant <unk> and the renovated pizza platform allowed us to continue to deliver strong traffic driven growth.

We evolved our marketing strategy leaning more heavily into social and word of mouth to support our product news, while leveraging broader paid channels to deliver value through the <unk> meal deal messaging further refining how we deploy media and message most effectively.

Throughout Q4, consistent with 2025 overall, our key metrics continued to build confidence in our progress with improvements across our NPS scores are team member retention operational metrics and frequency across age and income cohorts.

Some key callouts with respect to Q4.

On the team member experience side, we completed the rollout of our new manager and hourly team member training.

On the menu front, we built on our seasonal pursue key momentum with two successful LTE OS with the return of the Monkey bread Paducah and the introduction of the Dubai Chocolate pursuit, which also had an accompanying Marty.

We launched the renovated pizza platform, which is resonating well with guests and performing consistently with what we saw in test markets with incidents up just under 10% and check and margin in line with expectations.

Operator: Good afternoon, and welcome to the BJ's Restaurants Q4 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Rana Schirmer, Director of SEC Reporting. Please go ahead.

We ended 2025 with a net reduction of six menu items and for ingredient skus.

We evolved our marketing strategy leading more heavily into social and Word of Mouth to support our product news. While leveraging broader paid channels to deliver value through the pazooki meal, deal messaging further refining how we deploy media and message most effectively,

From a brand perspective, our marketing teams continued to do a great job optimizing how we deploy our media industry.

In Q4, we lean more heavily into word of mouth, and social with relevant product news, which drove significant dialogue interest and trial as reflected in our traffic numbers.

Throughout Q4, consistent with 2025, overall our key metrics continued to build confidence in our progress, with improvements across our NPS scores, our team member retention, operational metrics, and frequency across age and income cohorts.

Together these launches generated a four times increase in <unk> impressions quarter over quarter outperforming what had previously been our strongest social performance with spooky pursue key in Q3.

Some key callouts with respect to Q4 on the team member experience side: we completed the rollout of our new manager and hourly team member training.

Rana Schirmer: Thank you, operator. Good afternoon, everyone, and welcome to our fiscal year 2025 Q4 Investor Conference Call and webcast. After the market closed today, we released our financial results for our fiscal 2025 Q4. You can view the full text of our earnings release on our website at www.bjsrestaurants.com. I will begin by reminding you that our comments on the conference call today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These statements are based on management's current business and market expectations, and our actual results could differ materially from those projections in the forward-looking statements.

It also drove overall organic social impressions up 12 times year over year in Q4.

On the operations front, we continue to lean into our core initiatives to drive everyday table Stakes improvements and made further progress across our key guest and team member metrics with NPS recommend scores up just under 10% in the fourth quarter led by improvements in pace value and food scores weed.

On the menu front, we built on our seasonal Pizookie momentum with two successful LTOs, with the return of the Monkey Bread Pizookie and the introduction of the Dubai Chocolate Pizookie, which also had an accompanying martini.

We launched the renovated, Pizza platform, which is resonating well with guests and Performing consistently with what we saw in. Test markets with incidents up. Just under 10% and check in margin in line with expectations.

Deployed our AI based activity based labor model to 30% of the system at the year end and intend to deploy to the full system in 2026 and pilot a follow on use case.

We ended 2025 with a net reduction of 6 menu items and 4 ingredient skus.

From a brand perspective, our marketing teams continue to do a great job, optimizing. How we deploy our media and matching.

With respect to keeping our atmosphere fresh in 2025, we COVID-19 remodels, bringing the total to just shy of 50% of our pre 2016 fleet as of year end.

Rana Schirmer: We undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events, or otherwise, unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the company's filings with the Securities and Exchange Commission. We will start today's call with prepared remarks from Lyle Tick, our Chief Executive Officer and President, followed by Todd Wilson, our Chief Financial Officer, after which we will take your questions. With that, I will turn the call over to Lyle Tick. Lyle?

In Q4, we lean more heavily into word of mouth and social with relevant, product news, which drove significant dialogue, interests, and trial as reflected in our traffic numbers.

We also modernized our facilities program tagging and tracking all of our equipment moving from a more reactive to a more plan full approach to ensuring that our team members have the tools they need to deliver on our high standards and we can put our best foot forward with our guests.

Together, these launches generated a four-times increase in Pizookie impressions quarter over quarter, outperforming what had previously been our strongest social performance with Spooky Pizookie in Q3.

It also drove overall organic social Impressions up, 12 times year-over-year in Q4.

As we enter 2026, we've continued to see positive momentum in the business, while calendar shifts and weather always create noise in Q1, I'm pleased with our performance so far in the quarter and our performance versus Black box, which continues to outperform on both sales and traffic year to date.

On the operations front, we continue to lean into our core initiatives. To drive everyday table Stakes improvements, and made further progress across our key guests and team member metrics, with NPS, recommend scores up, just under 10% in the fourth quarter, led by improvements in Pace value and food scores,

Lyle Tick: Good afternoon, everyone, and thank you for joining us today. Q4 was another strong quarter for BJ's, delivering our sixth consecutive quarter of sales and traffic growth, as well as our fifth consecutive quarter of profit and margin expansion. From a top-line perspective, in Q4, we delivered 2.6% same-store sales growth, driven by 4.5% in traffic growth. On the profit side, we delivered 16.1% restaurant-level operating margins and 10% Adjusted EBITDA margins, representing an improvement of 70 and 40 basis points, respectively, year-over-year. Given the strong performance in Q4 2024, I'm particularly proud of how the team worked together to deliver a strong finish to 2025. Worth double-clicking on is the implied check compression between the comp sales and traffic in Q4.

As I look ahead through 2026, I'm confident in our plans and we remain focused on delivering consistent growth and improving shareholder value by putting the guest and team member at the center of everything we do.

We deployed our AI based activity based labor model to 30% of the system at the year end and intend to deploy to the full system in 2026 and pilot a follow-on use case.

Our four strategic priorities remain unchanged, we will continue to focus on investing in our people ensuring they have the tools and support needed to bring our brand to life every day.

With respect to keeping our atmosphere fresh in 2025. We completed 19 remodels, bringing the total to just shy of 50% of our pre-2016 Fleet as of year end.

We will advance our operational excellence initiatives focused on making bj's better and easier for both team members and guests.

We will progress our menu renovation work.

Set the foundation for future net unit growth.

Our team members are the heart and soul of Bj's in 2026, our key priorities with respect to the team member experience will be training.

We also modernized our facilities program tagging and tracking all of our equipment, moving from a more reactive to a more planful approach to ensuring that our team members have the tools. They need to deliver on our high standards and we can put our best foot forward with our guests.

As we enter 2026, we've continued to see positive momentum in the business.

Embedding the new manager and team member training, ensuring our teams have the right support to deliver for our guests.

Leadership development refreshing our high potential development programs as we continue to build restaurants and above restaurant management pipeline to support future growth.

Lyle Tick: Our traffic momentum builds on the progress we have made throughout the year and underlines the continued improvements in operations, the resonance of the Pizookie Meal Deal, and BJ's relevancy in the holiday and social splurge occasion. Two additional drivers in Q4 beyond these foundational elements are the buzz around our LTO Pizookies, which brought in a hard-to-reach younger demographic and drove an increase in the number of what we call Pizookie trial checks, as well as our continued outperformance in late night. While both of these occasions carry a lower dollar check, they help us continue to introduce BJ's to new customers, give existing guests new reasons to come back, and sustainably grow sales and profit dollars. For the full year 2025, on the sales side, we ended at 2% same-store sales growth, driven by 2.8% in traffic.

While calendar shifts and whether always create noise and q1, I'm pleased with our performance so far in the quarter and our performance versus blackbox which continues to outperform on both sales and traffic year to date.

And culture, continuing to build engagement and alignment around our values and behaviors.

With respect to handcrafted food and beverage, we will progress our menu renovation work across our priority categories. We kicked off the year building on 2025 momentum with the butter fingers seasonal Paducah are first <unk> pizza with Mike's Hot Honey, which quickly became our third most popular flavor out of nine and a Korean <unk>.

As I look ahead through 2026, I'm confident in our plans, and we remain focused on delivering consistent growth and improving shareholder value by putting the guests and team members at the center of everything we do.

Our forest, strategic priorities remain unchanged. We will continue to focus on investing in our people ensuring. They have the tools and support needed to bring our brand to life every day.

Vicki rib appetizer, leveraging an existing wing source and ribs to create an easy and craveable new option.

We will advance our operational excellence initiatives focused on making BJ's better and easier for both team members and guests.

We will progress our menu, renovation work and set the foundation for future. Net unit growth.

We also removed two lower performing items that were heavy on single use skus, which resulted in the removal of five single use ingredient skus.

Our team members are the heart and soul of BJ's in 2026. Our key priorities with respect to the team member experience will be training.

As we move forward in 2026, our culinary priorities will be to continue to drive buzz and engagement with seasonal <unk> and I'm excited about the pipeline rebuilt.

Lyle Tick: From a profit perspective, we landed at 15.5% restaurant-level operating margins and 9.6% Adjusted EBITDA margins, representing an improvement of 110 and 100 basis points, respectively, year-over-year. As I've talked about previously, 2025 was a year of strengthening foundations and learning, guided by our four strategic priorities. We created alignment, understanding, and shared ownership of our strategy. We built trust, improved accountability, and showed resilience when encountering performance challenges. We added three strong new leadership team members who have integrated well and made a difference with Jen Jaffe, our Chief People Officer, Tom Kowalski, our Chief Supply Chain Officer, and most recently, Todd Wilson, our Chief Financial Officer. We clarified our growth drivers and continued to refine how to leverage them most effectively.

Embedding the new manager and team member training, ensuring our teams have the right support to deliver for our guests.

Continue to renovate our core categories refresh strong sellers with clear NPS and execution opportunities.

Leadership development refreshing our high potential development programs, as we continue to build restaurant and above-restaurant management pipeline to support future growth.

And continue to find opportunities to simplify while maintaining and protecting the turf coverage that allows us to win across so many occasions and consumer groups.

And culture continuing to build engagement and Alignment around our values and behaviors.

With respect to handcrafted food and beverage, we will progress our menu renovation work across our priority categories.

We're currently in market in the early stages of testing refreshes to our Burger category and chicken sandwiches.

Our culinary team has been hard at work and we have a pipeline of category and core item improvement tests that will follow suit.

These refreshes are still in their early stages and like we did with pizza. We will follow we will follow a structured approach to gain operational and guest feedback and make adjustments ahead of rollout.

Leveraging, an existing wing sauce, and ribs to create an easy and craveable new option.

And also like with Pizza I will provide further updates as appropriate.

We also remove 2 lower performing items that were heavy on single-use skus which resulted in the removal of 5 single-use ingredient skus.

Lyle Tick: In Q4, specifically, the combination of better execution, value rooted in the Pizookie Meal Deal, and compelling product news driven by seasonally relevant Pizookies and the renovated pizza platform, allowed us to continue to deliver strong traffic-driven growth. We evolved our marketing strategy, leaning more heavily into social and word of mouth to support our product news, while leveraging broader paid channels to deliver value through the Pizookie Meal Deal messaging, further refining how we deploy media and message most effectively. Throughout Q4, consistent with 2025 overall, our key metrics continued to build confidence in our progress with improvements across our NPS scores, our team member retention, operational metrics, and frequency across age and income cohorts. Some key callouts with respect to Q4. On the team member experience side, we completed the rollout of our new manager and hourly team member training.

Our third priority is delivering while hospitality our focus in 2026 is to build off the foundations, we've laid and continue to improve our guest satisfaction throughput and efficiency.

As we move forward in 2026, our culinary priorities will be to continue to drive buzzed and engagement with seasonal pizookies, and I'm excited about the pipeline we built.

Continue to renovate. Our core categories.

We will continue to focus on great fundamentals and not ceding Concord ground by continuing to drive accountability through our directors of operations in Gm's, having clear and consistent kpis lifting up our outliers and driving best practices.

Refresh strong sellers, with clear NPS and executional opportunities.

And continue to find opportunities to simplify while maintaining and protecting the turf coverage that allows us to win across so many occasions and consumer groups.

Our simplification team continues to work to remove unnecessary barriers and complications things.

We're currently in Market in the early stages of testing refreshes to our Burger category and chicken sandwiches.

Things like integrating Apple pay and to pay at the table simplifying split check procedures for our team members, simplifying <unk> and cocktail ordering and ring in processes and so on.

Our culinary team has been hard at work, and we have a pipeline of category and core item Improvement tests that will follow suit.

As mentioned previously we will continue to advance our technology initiatives to help our Gms and managers have the right people in the right place at the right time.

These refreshes are still in their early stages, and like we did with pizza, we will follow a structured approach to gain operational and guest feedback and make adjustments ahead of rollout.

2026 is an important year for our fourth strategic pillar, keeping our atmosphere fresh we're going to continue to invest in our remodel program, which has shown strong results and pilot a refreshed bj's prototype setting the foundation to grow our restaurant portfolio.

And also, like, with pizza, I will provide further updates as appropriate.

Lyle Tick: On the menu front, we built on our seasonal Pizookie momentum with two successful LTOs, with the return of the Monkey Bread Pizookie and the introduction of the Dubai Chocolate Pizookie, which also had an accompanying martini. We launched the renovated pizza platform, which is resonating well with guests and performing consistently with what we saw in test markets, with incidents up just under 10% and check-in margin in line with expectations. We ended 2025 with a net reduction of 6 menu items and 4 ingredient SKUs. From a brand perspective, our marketing teams continued to do a great job optimizing how we deploy our media and messaging. In Q4, we leaned more heavily into word of mouth and social, with relevant product news, which drove significant dialogue, interest, and trial, as reflected in our traffic numbers.

Our third priority is delivering, wow. Hospitality—our focus in 2026 is to build off the foundations we've laid and continue to improve our guest satisfaction, throughput, and efficiency.

With the progress we're making on the core business. We're now laying the groundwork to reignite net unit growth. We're actively building a flexible pipeline as we target up to two new openings in the second half of 'twenty six to pilot a refreshed prototype and set the foundation for further growth in 2027 and beyond.

We'll continue to focus on great fundamentals and not ceding Concord ground by continuing to drive accountability through our directors of operations and GMs having clear and consistent KPIs, lifting up our outliers, and driving best practices.

You will see this reflected in our capital allocation for 2026, which Todd will talk about in more detail.

Before I close I would like to once again express my thanks to all our Bj's team members from our restaurants through the support center for their passion and commitment.

Our simplification team continues to work to remove unnecessary, barriers, and complications things, like integrating Apple pay, and to pay at the table simplifying. Split check procedures for our team members, simplifying Pizookie, and cocktail ordering, and ringing in processes, and so on.

Proud of the progress we made in 2025 and excited about the road ahead.

Lyle Tick: Together, these launches generated a 4 times increase in Pizookie impressions quarter-over-quarter, outperforming what had previously been our strongest social performance with Spooky Pizookie in Q3. It also drove overall organic social impressions up 12 times year-over-year in Q4. On the operations front, we continued to lean into our core initiatives to drive everyday table stakes improvements and made further progress across our key guests and team member metrics, with NPS recommend scores up just under 10% in Q4, led by improvements in pace, value, and food scores. We deployed our AI-based, activity-based labor model to 30% of the system at the year-end and intend to deploy to the full system in 2026 and pilot a follow-on use case.

I'll now turn it over to Todd to provide further color on how we close the year and our 2026 outlook.

As mentioned previously, we'll continue to advance our technology initiatives to help our GMS and managers have the right people in the right place at the right time.

Thank you Lyle and good afternoon, everyone.

2026 is an important year for our fourth, strategic pillar, keeping our atmosphere fresh.

That's why it was just outlines the bj's brand and business are healthy and thriving.

In fiscal 2025, Bj's delivered growth across all key financial measures sales traffic restaurant level profit net income EPS and adjusted EBITDA comp.

We're going to continue to invest in our remodel program, which is shown strong results and piloted a refresh BJ's prototype. Setting, the foundations to grow our restaurant portfolio.

Comparable restaurant sales increased 2% restaurant level profitability increased 110 basis points to 15, 5% and adjusted EBITDA increased 14, 5% to $134 1 million.

With the progress, we're making on the Core Business. We're now laying the groundwork to reignite. Net unit growth. We're actively building a flexible pipeline as we target up to 2 new openings in the second half of 26, to Pilot a refresh prototype, and set the foundation for further growth in 2027 and Beyond.

Turning now to the fourth quarter.

You will see this reflected in our Capital allocation for 2026 which Todd will talk about in more detail.

In the fourth quarter, we generated total revenue of $355 4 million, a three 2% increase versus last year.

Lyle Tick: With respect to keeping our atmosphere fresh in 2025, we completed 19 remodels, bringing the total to just shy of 50% of our pre-2016 fleet as of year-end. We also modernized our facilities program, tagging and tracking all of our equipment, moving from a more reactive to a more planful approach to ensuring that our team members have the tools they need to deliver on our high standards, and we can put our best foot forward with our guests. As we enter 2026, we've continued to see positive momentum in the business. While calendar shifts and weather always create noise in Q1, I'm pleased with our performance so far in the quarter and our performance versus Black Box, which continues to outperform on both sales and traffic year to date.

Comparable restaurant sales increased two 6% led by four 5% traffic growth.

Before I close, I would like to once again express my thanks to all our BJ's team members, from our restaurants through the support center, for their passion and commitment. I'm proud of the progress we made in 2025 and excited about the road ahead.

A one 9% lower average check led by the drivers while outlined earlier.

I will now turn it over to Todd to provide further color on how we close the year and our 2026 Outlook.

Restaurant level operating profit increased from 15, 4% last year to 16, 1%. This year led by low leverage benefit of growing sales and continued efficiency gains captured by our operators.

Thank you, L and good afternoon everyone.

As well as just outlined, the BJ's brand and business are healthy and thriving.

Cost of sales was 25, 5% 40 basis points favorable to last year.

In fiscal 2025, BJ's delivered growth across all key financial measures: sales, traffic, restaurant-level profit, net income, EPS, and adjusted EBITDA.

The favorability was led by menu price increases and continued gains from our gross to net initiative focused on simplifying the efforts of our team members and more consistent execution for guests.

Lyle Tick: As I look ahead through 2026, I'm confident in our plans, and we remain focused on delivering consistent growth and improving shareholder value by putting the guest and team member at the center of everything we do. Our 4 strategic priorities remain unchanged. We will continue to focus on investing in our people, ensuring they have the tools and support needed to bring our brand to life every day. We will advance our operational excellence initiatives, focused on making BJ's better and easier for both team members and guests. We will progress our menu renovation work and set the foundation for future net unit growth. Our team members are the heart and soul of BJ's.

Comparable restaurant sales increased 2% restaurant level profitability, increase the 110 basis points to 15.5%. And adjust the Deepa dot increased 14.5% to 134.1 million.

This favorability outweighed food cost inflation led by beef costs of approximately 14% higher than last year and.

Turning now to the fourth quarter,

And increases in produce costs, partially offset by favorable poultry prices.

In the fourth quarter, we generated total revenue of 355.4 million dollars, a 3.2% increase versus last year.

Total labor expense is 35, 8% of sales in the fourth quarter.

While this result is unchanged versus last year, our restaurant teams continue to operate more efficiently while also delivering higher guest satisfaction.

Comparable restaurant sales increased 2.6%, led by 4.5% traffic growth and a 1.9% lower average check, led by the drivers I outlined earlier.

The efficiency gains are a credit to the great work of our operators and overall simplification efforts with contribution from the activity based labor management tool that is rolled out to approximately 30% of the system at year end.

Lyle Tick: In 2026, our key priorities with respect to the team member experience will be training, embedding the new manager and team member training, ensuring our teams have the right support to deliver for our guests. Leadership development, refreshing our high-potential development programs as we continue to build restaurant and above restaurant management pipeline to support future growth. Culture, continuing to build engagement and alignment around our values and behaviors. With respect to handcrafted food and beverage, we will progress our menu renovation work across our priority categories. We kicked off the year building on 2025 momentum with the Butterfinger seasonal Pizookie, our first LTO pizza with Mike's Hot Honey, which quickly became our third most popular flavor out of nine, and a Korean Sticky Ribs appetizer, leveraging an existing wing sauce and ribs to create an easy and cravable new option.

Restaurant level, operating profit increased from 15.4% last year to 16.1% this year. Led by The Leverage benefits of growing sales and continued efficiency gains captured by our operators.

These efficiency benefits were offset by increased bonus costs for restaurant management as a result of the sales and profit growth.

Cost of sales was 25.5%, 40 basis points favorable to last year.

And we continue to see higher workers' compensation expense due to rising medical costs, Despite our progress in reducing the number of claims.

Execution for guests.

Occupancy and operating expenses, which include marketing was 22, 6% of sales in the fourth quarter, a 30 basis point improvement versus last year sale.

This favorability outweighed food cost inflation led by beef costs of approximately 14% higher than last year.

Sales leverage more than outweighed inflationary pressure across the category.

And increases in produce costs, partially offset by favorable. Poultry prices.

General and administrative costs were $25 1 million and seven 1% of sales an increase of 20 basis points compared to last year.

Total labor expense is 35.8% of sales in the fourth quarter.

The increase is a result of two primary factors.

While this result is unchanged versus last year, our restaurant teams continue to operate more efficiently while also delivering higher guest satisfaction.

First we determined that certain previously capitalized expenses no longer held future value and expense them in the quarter.

Lyle Tick: We also removed 2 lower performing items that were heavy on single-use SKUs, which resulted in the removal of 5 single-use ingredient SKUs. As we move forward in 2026, our culinary priorities will be to continue to drive buzz and engagement with seasonal Pizookies, and I'm excited about the pipeline we've built. Continue to renovate our core categories, refresh strong sellers with clear NPS and executional opportunities, and continue to find opportunities to simplify while maintaining and protecting the turf coverage that allows us to win across so many occasions and consumer groups. We're currently in market in the early stages of testing refreshes to our burger category and chicken sandwiches. Our culinary team has been hard at work, and we have a pipeline of category and core item improvement tests that will follow suit.

Second we incurred cost related to different aspects of leadership transition, particularly in the finance function.

The efficiency gains are a credit to the great work of our operators and overall simplification efforts with contribution from the activity-based Labor Management tool that is rolled out to approximately 30% of the system at year end.

Excluding these unusual expenses our run rate for the quarter would have been approximately $22 million or.

These efficiency benefits were offset by increased bonus. Costs for restaurant management as a result of the sales and profit growth.

Or six 2% of sales in line with expectations.

Depreciation expense increased 30 basis points compared to last year as a result of our investments in restaurant renovations and new restaurant openings.

And we continue to see higher workers compensation expense, due to Rising medical costs, despite our progress and reducing the number of claims.

These components delivered growth across all profitability measures.

Occupancy and operating expenses, which include marketing, were 22.6% of sales in the fourth quarter—a 30 basis point improvement versus last year.

Net income in the quarter increased to $12 6 million in 2025 as compared to a loss of $5 $3 million in 2024.

Sales leverage more than outweighed inflationary pressure across the category.

Adjusted EPS increased 40% to 66 cents per diluted share from 47 last year and.

General and administrative costs are 25.1 million and 7.1% of sales and increase of 20 basis points compared to last year.

Lyle Tick: These refreshes are still in their early stages, and like we did with pizza, we will follow a structured approach to gain operational and guest feedback and make adjustments ahead of rollout. Also, like with pizza, I will provide further updates as appropriate. Our third priority is delivering wow hospitality. Our focus in 2026 is to build off the foundations we've laid and continue to improve our guest satisfaction, throughput, and efficiency. We'll continue to focus on great fundamentals and not ceding conquered ground by continuing to drive accountability through our directors of operations and GMs, having clear and consistent KPIs, lifting up our outliers, and driving best practices. Our simplification team continues to work to remove unnecessary barriers and complications.

And adjusted EBITDA increased to $35 6 million or seven 4% increase compared to $33 1 million last year.

The increase is a result of 2 primary factors.

First, we determined that certain previously capitalized, expenses no longer held future value and expense them in the quarter.

In the fourth quarter, we repurchased and retired approximately 167000 common shares for $5 $4 million.

Second, we incurred costs related to different aspects of leadership transition, particularly in the finance function,

During fiscal 2025, we repurchased approximately 2 million shares at an average price of $33 80.

Excluding these unusual expenses, our run rate for the quarter would have been approximately $22 million, or 6.2% of sales, in line with expectations.

With over $90 million of board authorization to purchase additional shares remaining we have significant capacity funded by the business is durable and growing cash generation to repurchase shares when the market price is at a meaningful discount to its intrinsic value.

appreciation, expense increased 30 basis points, compared to last year, as a result of our investments in restaurant, Renovations, and new restaurant openings,

These components delivered growth across all profitability measures.

Importantly, our balance sheet remains healthy as we ended the fourth quarter with net funded debt of $61 $2 million comprised of a debt balance of $85 million.

Net income in the quarter increased to 12.6 million in 2025 as compared to a loss of 5.3 million in 2024.

Lyle Tick: Things like integrating Apple Pay into pay at the table, simplifying split check procedures for our team members, simplifying Pizookie and cocktail ordering and ring-in processes, and so on. As mentioned previously, we'll continue to advance our technology initiatives to help our GMs and managers have the right people in the right place at the right time. 2026 is an important year for our fourth strategic pillar, keeping our atmosphere fresh. We're going to continue to invest in our remodel program, which has shown strong results, and pilot a refreshed BJ's prototype, setting the foundations to grow our restaurant portfolio. With the progress we're making on the core business, we're now laying the groundwork to reignite net unit growth.

And cash and cash equivalents of $23 8 million.

Adjusted EPS increased 40% to 66 cents per diluted share from 47 cents last year.

Now turning to 2026, our financial guidance for 2026 is as follows.

And adjusted EBA increased to 35.6 million a 7.4% increase compared to 33.1 Million last year.

First comparable restaurant sales growth from 1% to 3%.

We expect continued traffic growth and a marginal increase in average check as we anniversary promotions that affected check in 2025 and implement prudent pricing action to address inflation.

In the fourth quarter, we repurchased and retired approximately 167,000 common shares for $5.4 million.

During fiscal 2025, we repurchased approximately 2 million shares at an average price of $33.80.

I would note comp sales results to date in the first quarter, including the impact of Winter storm firm in late January are in line with this annual guidance.

Lyle Tick: We're actively building a flexible pipeline as we target up to 2 new openings in the second half of 2026 to pilot a refresh prototype and set the foundation for further growth in 2027 and beyond. You will see this reflected in our capital allocation for 2026, which Todd will talk about in more detail. Before I close, I would like to once again express my thanks to all our BJ's team members, from our restaurants through the support center, for their passion and commitment. I'm proud of the progress we made in 2025 and excited about the road ahead. I will now turn it over to Todd to provide further color on how we closed the year and our 2026 outlook.

Second restaurant level operating profit of $221 million to $233 million.

With over 90 million dollars of board. Authorization to purchase additional shares remaining. We have significant capacity funded by the business's durable and growing cash generation to repurchase shares when the market price is at a meaningful discount to its intrinsic value.

We expect sales gains and further efficiency from initiatives, including gross to net in cost of sales activity based labor management and multiple initiatives from our supply chain team to drive this growth versus 2025.

Outweigh approximately 2% to 3% inflation in our commodity basket labor rates and other costs.

Importantly our balance sheet remains healthy as we entered the fourth quarter with net funded debt of 61.2 million comprised of a debt, balance of 85 million and cash and cash, equivalents of 23.8 million.

Now, turning to 2026 our financial guidance for 2026 is as follows.

Third adjusted EBITDA of $140 million to $150 million in.

First comparable restaurant sales growth from 1% to 3%.

In addition to the restaurant level operating profit, we anticipate total G&A costs will normalize near $90 million or six 2% of sales a 30 basis point improvement versus 2025.

Todd Wilson: Thank you, Lyle, and good afternoon, everyone. As Lyle has just outlined, the BJ's brand and business are healthy and thriving. In fiscal 2025, BJ's delivered growth across all key financial measures: sales, traffic, restaurant-level profit, net income, EPS, and Adjusted EBITDA. Comparable restaurant sales increased 2%, restaurant-level profitability increased 110 basis points to 15.5%, and Adjusted EBITDA increased 14.5% to $134.1 million. Turning now to Q4. In Q4, we generated total revenue of $355.4 million, a 3.2% increase versus last year. Comparable restaurant sales increased 2.6%, led by 4.5% traffic growth and a 1.9% lower average check, led by the drivers Lyle outlined earlier.

We expect continued traffic growth and a marginal increase in average. Check as we anniversary promotions that affected. Check in 2025 and Implement prudent pricing action to address inflation.

This G&A estimate is inclusive of approximately $11 million and stock based compensation expenses.

I would note comp sales results to date in the first quarter, including the impact of winter storm. Fern in late, January are in line with this annual guidance.

Fourth capital expenditures of $85 million to $95 million.

This is an accelerated pace from 2025 and represents incremental investments in it.

And the restart of our new restaurant opening pipeline.

On the new restaurant front, we expect to open up to two restaurants in the second half of 2026 with additional restaurants under construction in 2026 slated for 2027 opening.

Second restaurant-level operating profit of $221 to $233 million. We expect sales gains and further efficiency from initiatives, including gross to net and cost of sales, activity-based labor management, and multiple initiatives from our supply chain team to drive this growth versus 2025.

Fifth we may repurchase up to $50 million of stock depending on market conditions.

And outweigh approximately 2% to 3% inflation in our commodity basket, labor rates, and other costs.

This is an important lever that demonstrates the cash generating power of the business. We expect cash from operations to fund, our capex, including an accelerated pace of new restaurant openings and have flexibility to return excess cash to shareholders through the share repurchase program, where use it to further strengthen our balance sheet.

Third, adjusted ibida of 140, million to 150 million.

Todd Wilson: Restaurant-level operating profit increased from 15.4% last year to 16.1% this year, led by the leverage benefit of growing sales and continued efficiency gains captured by our operators. Cost of sales was 25.5%, 40 basis points favorable to last year. The favorability was led by menu price increases and continued gains from our gross to net initiative, focused on simplifying the efforts of our team members and more consistent execution for guests. This favorability outweighed food cost inflation, led by beef costs of approximately 14% higher than last year, and increases in produce costs, partially offset by favorable poultry prices. Total labor expense is 35.8% of sales in the Q4. While this result is unchanged versus last year, our restaurant teams continue to operate more efficiently while also delivering higher guest satisfaction.

Operating profit we anticipate. Total GNA costs will normalize near 90 million or 6.2% of sales, a 30 basis, point Improvement versus 2025.

As we demonstrated in 2025, we have the financial capacity and intend to put our capital to work buying back stock when the market undervalues our shares.

This G&A estimate is inclusive of approximately $11 million in stock-based compensation expenses.

Finally, as we model the quarterly shape of 2026 I would note two items.

Fourth, capital expenditures of $85 to $95 million.

First inflation accelerated in the second half of 2025 led by beef commodities and we expect that elevated inflation to carry through the first half of 2026 before moderating in the second half.

This is an accelerated Pace from 2025 and represents incremental investments in it and a restart of our new restaurant opening pipeline.

Second we expect a more even spread of G&A across the quarters in 2026, and 2025, resulting in a G&A increase in the first half of the year and reduction in the second half.

On the new restaurant Front, we expect to open up to 2 restaurants in the second half of 2026 with additional restaurants under construction in 2026, slated for 2027 opening.

While we expect to increase our profitability in all quarters. As a result of these factors, we expect growth to be more measured in the first half of the year then accelerate in the second half.

Todd Wilson: The efficiency gains are a credit to the great work of our operators and overall simplification efforts, with contribution from the activity-based labor management tool that is rolled out to approximately 30% of the system at year-end. These efficiency benefits were offset by increased bonus costs for restaurant management as a result of the sales and profit growth. We continue to see higher workers' compensation expense due to rising medical costs, despite our progress in reducing the number of claims. Occupancy and operating expenses, which include marketing, was 22.6% of sales in Q4, a 30 basis point improvement versus last year. Sales leverage more than outweighed inflationary pressure across the category. General and administrative costs are $25.1 million and 7.1% of sales, an increase of 20 basis points compared to last year.

In closing 2025 was a tremendously successful year for the Bj's business financial results across all key measures increase significantly as the team executed across all aspects of the strategy strategic plan Congrats.

Fifth, we may repurchase up to $50 million of stock, depending on market conditions. This is an important lever that demonstrates the cash-generating power of the business. We expect cash from operations to fund our capex, including an accelerated pace of new restaurant openings, and have flexibility to return excess cash to shareholders through the share repurchase program or use it to further strengthen our balance sheet.

as we demonstrated in 2025, we have the financial capacity and intent, to put our Capital to work buying back stock, when the market undervalues our shares,

Congratulations and thank you to our restaurant team members field operators and everyone at the restaurant support center.

finally, as we model, the quarterly shape of 2026, I would Note 2 items,

As we look forward to 2026, we are confident in our strategic direction and our ability to continue to sustainably grow the business to create value for shareholders.

First, inflation accelerated in the second half of 2025, led by beef Commodities, and we expect that elevated inflation to carry through the first half of 2026 before moderating in the second half.

With that we'll turn the call over to the operator for questions.

We will now begin the question and answer session.

To ask a question you May press Star then one on your telephone keypad.

Second. We expect a more even spread of GNA across the quarters in 2026 than 2025, resulting, in a GNA increase in the first half of the year and reduction in the second half.

If you are using a speakerphone please pick up your handset before pressing the keys.

Todd Wilson: The increase is a result of two primary factors: First, we determined that certain previously capitalized expenses no longer held future value and expensed them in the quarter. Second, we incurred costs related to different aspects of leadership transition, particularly in the finance function. Excluding these unusual expenses, our run rate for the quarter would have been approximately $22 million or 6.2% of sales in line with expectations. Depreciation expense increased 30 basis points compared to last year as a result of our investments in restaurant renovations and new restaurant openings. These components delivered growth across all profitability measures. Net income in the quarter increased to $12.6 million in 2025, as compared to a loss of $5.3 million in 2024.

To withdraw your question. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

While we expect to increase our profitability in all quarters, as a result of these factors, we expect growth to be more measured in the first half of the year then accelerate in the second half.

The first question is from Jeffrey Bernstein with Barclays. Please go ahead.

Great. Thank you very much.

In closing, 2025 was a tremendously successful year for BJ's. Business financial results across all key measures increased significantly as the team executed across all aspects of the strategic plan.

I wanted to talk a little bit about the comp components.

The traffic is very strong and seems to be driven by a lot of compelling value.

Congratulations. And thank you to our restaurant, team members field operators and everyone at the restaurant Support Center.

On the flip side I guess, you talked about how the.

The mix shift.

It seems to be down.

As we look forward to 2026, we are confident in our strategic Direction and our ability to continue to sustainably grow the business to create value for shareholders.

Somewhat large in the fourth quarter.

I'm just wondering how you think about your mix of sales on value. However, you define it.

With that, we'll turn the call over to the operator for questions.

We will now begin the question and answer session.

Where that is now versus where it was a year ago, and if youre comfortable with the balance of value versus premium or whether the value mix might be too high just trying to think about the.

Todd Wilson: Adjusted EPS increased 40% to $0.66 per diluted share from $0.47 last year. Adjusted EBITDA increased to $35.6 million, a 7.4% increase compared to $33.1 million last year. In Q4, we repurchased and retired approximately 167,000 common shares for $5.4 million. During fiscal 2025, we repurchased approximately 2 million shares at an average price of $33.80. With over $90 million of board authorization to purchase additional shares remaining, we have significant capacity, funded by the business's durable and growing cash generation, to repurchase shares when the market price is at a meaningful discount to its intrinsic value.

to ask a question, you may press star then 1 on your telephone keypad,

If you are using a speakerphone, please pick up your handset before pressing the keys.

The mix shift in general and what your expectation is as we look through 2006.

To withdraw your question, please press star, then 2.

Yeah sure Devin this is Lyle I'll start off and Todd you can you can build.

At this time, we will pause momentarily to assemble our roster.

I mean as you look at Q4, I wouldn't actually personally I wouldn't characterize it as value, particularly in Q4, taking a larger role right. Because it was in Q4 as I like to pursue key meal deals suddenly took a much larger role and thats what drove it it's <unk> meal deal.

The first question is from Jeffrey, Bernstein with Barclays. Please go ahead.

<unk> continues to resonate.

And have growth, but actually what drove some of that delta between sales and traffic, which is the implied check compression was the kind of resonance of the seasonal <unk> that we had and so we have people coming in they are not buying the <unk> on a discount per.

Great, thank you very much. Uh, I want to talk a little bit about the, uh, the comp components. Uh, clearly the traffic is very strong and it seems to be driven by a lot of compelling value. Um,

Todd Wilson: Importantly, our balance sheet remains healthy as we ended Q4 with net funded debt of $61.2 million, comprised of a debt balance of $85 million and cash and cash equivalents of $23.8 million. Now turning to 2026. Our financial guidance for 2026 is as follows: First, comparable restaurant sales growth from 1% to 3%. We expect continued traffic growth and a marginal increase in average check as we anniversary promotions that affected check in 2025 and implement prudent pricing action to address inflation. I would note comp sales results to date in Q1, including the impact of Winter Storm Fern in late January, are in line with this annual guidance. Second, restaurant-level operating profit of $221 to $233 million.

Let's say they are just coming in to try for zoo keys.

And you see what we see is.

Younger cohort coming in which I am pleased with right. Its a hard group to get and we we have more of those folks coming in.

But on the flip side, I guess, you talked about how the the mix shift, uh, seems to be down um, somewhat large in the fourth quarter. Um, just wondering how you think about your mix of sales on value, however, you define it, you know what, where that is now versus where it was a year ago. And if you're comfortable with the balance of value versus premium or whether the value mix might be too high, just trying to think about the the mix shift in general, and what your expectation is as we look through 26.

You combine that with better operations hopefully more of those folks will then choose to potentially come back, but but we are seeing more of those checks where it's.

Got him coming in and having a <unk> you are not everybody is having an entre or youre, having a <unk> in some drinks and so we saw a resonance and real movement, there and mix and then we continue to see the outperformance of of late night.

In Q4 so.

The things that drove more check compression in Q4, I wouldn't necessarily think about us.

Headwinds right, so to speak or like more from a discounting perspective.

Todd Wilson: We expect sales gains and further efficiency from initiatives including gross to net in cost of sales, Activity-based labor management, and multiple initiatives from our supply chain team to drive this growth versus 2025 and outweigh approximately 2 to 3% inflation in our commodity basket, labor rates, and other costs. Third, Adjusted EBITDA of $140 million to $150 million. In addition to the restaurant-level operating profit, we anticipate total G&A costs will normalize near $90 million or 6.2% of sales, a 30 basis point improvement versus 2025. This G&A estimate is inclusive of approximately $11 million in stock-based compensation expenses. Fourth, capital expenditures of $85 million to $95 million. This is an accelerated pace from 2025 and represents incremental investments in IT and a restart of our new restaurant opening pipeline.

Theres other small things in there like.

In our features for the holiday season. This year, we featured salmon over the ribeye given.

What was going on with the cost of steak that carried with it a bit of a lower check, but a better margin. So there is there is a number.

Little things in there, but I wouldn't say it was driven by a sudden jump in reliance on value in Q4 versus what we've been saying.

Just quickly add two items of <unk>.

Building on models point of the any quote unquote trade down in check or lower check is just a mathematical equation of we drove incremental traffic at a lower a lower check average with those especially those seasonal <unk>. The other piece I would call out and I think it was part of your where you are going as we look forward to 2026.

We do expect and we continue to see PMT grow and that's obviously a good thing for us is that value message resonates with guests and so we do expect to see some continued.

Coming in, they're not buying the pizookies on a discount per se, they're just coming in to try pizookies. And you see what we see is a, a younger cohort coming in which I'm pleased with, right? It's a hard group to get and we, we have more of those folks coming in. You know, you combine that with better operations, hopefully more of those folks will then choose to potentially come back. But, but we are seeing more of those checks where it's, it's them coming in and having a Pizookie or not, everybody's having an entree, or you're having a Pizookie and some drinks. And so, we saw a resonance and, and real movement there and mix. And then we continue to see the outperformance of of late night, um, in Q4. So, you know, the things that drove more check compression in, in, in Q4, I wouldn't necessarily think about, as, as headwinds, right? So to speak or like,

Check trade down, but not to the degree that we saw in 2026, meaning we do expect some expansion of net check.

Todd Wilson: On the new restaurant front, we expect to open up to 2 restaurants in the second half of 2026, with additional restaurants under construction in 2026, slated for 2027 opening. Fifth, we may repurchase up to $50 million of stock, depending on market conditions. This is an important lever that demonstrates the cash-generating power of the business. We expect cash from operations to fund our CapEx, including an accelerated pace of new restaurant openings, and have flexibility to return excess cash to shareholders through the share repurchase program or use it to further strengthen our balance sheet. As we demonstrated in 2025, we have the financial capacity and intent to put our capital to work buying back stock when the market undervalues our shares. Finally, as we model the quarterly shape of 2026, I would note 2 items.

And that's just a matter of the pricing to cover inflation.

Understood and can you can you share the just on the inflation side I think you called out a couple of particular commodities, but just wondering what the commodity and labor inflation was in the fourth quarter and what your outlook is for full year 2006.

More from a discounting perspective. You know, there are other small things in there, like in our features for the holiday season this year, we featured salmon over the ribeye, given what was going on with the cost of steak. That carried with it a bit of a lower check, but a better margin. So, there are a number of little things in there, but I wouldn't say it was driven by a sudden jump in relying.

On value in Q4, versus what we've been seeing.

Yeah, absolutely so the total basket.

In the fourth quarter.

About two 5%.

We called out beef, we called out produce as the big drivers of the commodity basket.

Labor was a similar ballpark between 2% and 3% in Q4, we think the first half of the year quite frankly will be in the 3% to 4% range in total in terms of total inflation those same drivers really drive the start of the year, but then we see that moderating in the back half.

Todd Wilson: First, inflation accelerated in the second half of 2025, led by beef commodities, and we expect that elevated inflation to carry through the first half of 2026 before moderating in the second half. Second, we expect a more even spread of G&A across the quarters in 2026 than 2025, resulting in a G&A increase in the first half of the year and reduction in the second half. While we expect to increase our profitability in all quarters, as a result of these factors, we expect growth to be more measured in the first half of the year, then accelerate in the second half. In closing, 2025 was a tremendously successful year for the BJ's business. Financial results across all key measures increased significantly as the team executed across all aspects of the strategic plan.

Great. Thank you.

Thank you.

Excuse me. The next question is from Brian Bittner with Oppenheimer <unk> Company. Please go ahead.

I'll just quickly add 2 items of, you know, building on lowest point of, you know, the the any quote unquote trade down and check or lower check is just a mathematical equation of we drove incremental traffic at a lower a lower check average with those especially those seasonal bazookies, the other piece I'd call out and I think it was part of your where you're going as we look forward to 2026, you know, we do expect you know, we continue to see PMD grow and that's obviously a good thing for us as that value message, resonates with guests. And so we do expect to see some uh continued uh, check trade down, but not to the degree that we saw in 2026. Uh, meaning we do expect some expansion of net check. Um, and the, you know, that's just a matter of the, the pricing to cover off, uh, inflation.

Hey, good afternoon.

4% traffic growth in the fourth quarter really impressive I think give us your sixth straight quarter of positive traffic and as you look to 2006, your 1% to 3% same store sales guidance I think.

Understood, and can you share just on the inflation side? I think you called out a couple of particular commodities, but just wondering what the commodity and labor inflation was in the fourth quarter, and what your outlook is for full year '26.

Clearly builds in a more balanced check and traffic I think in this kind of what you just said to Jeffs question. Then just seeing your internal models how are you anticipating.

Yeah, absolutely. So the total basket, um,

The overall comp trends should be throughout the year do you expect them to be pretty steady throughout the year is there any.

Interesting drivers, we should be aware of that that happened post first quarter.

Todd Wilson: Congratulations, thank you to our restaurant team members, field operators, and everyone at the Restaurant Support Center. As we look forward to 2026, we are confident in our strategic direction and our ability to continue to sustainably grow the business to create value for shareholders. With that, we'll turn the call over to the operator for questions.

I don't think Theres anything we call out there is obviously some.

And the fourth quarter. Uh, was about 2 and a half percent. Um, we called out beef we called out produce as the big drivers of the commodity basket. Um, you know, labor was a similar ballpark between 2 and 3% in Q4. We think the the first half of the Year, quite frankly it'll be in the 3-4 percent range in total in terms of total inflation. Uh, those same drivers really drive the start of the year, but then we see that moderating in the back half.

Movement in our internal models, but I don't think it's enough to call out.

Great. Thank you.

I'd go back to some of the comments we made in the call <unk> commented on this and I did as well that we're pleased with the start of the year I pointed to our annual 1% to 3% guide and that our results to date are in line with that and so that gives you a sense of what we're seeing at least so far in Q1.

Thank you. Excuse me. The next question is from Brian Bittner with Oppenheimer and Company. Please go ahead.

Operator: We will now begin the question-and-answer session. To ask a question, you may press Star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star, then 2. At this time, we will pause momentarily to assemble our roster. The first question is from Jeffrey Bernstein with Barclays. Please go ahead.

John.

I know theres been.

Thought internally and externally about Anniversarying PMD, which the company did successfully back in 2025 and so we're always looking ahead to make sure that were planned for and those things I think you'll see that in the fourth quarter with the seasonal <unk> that kept that momentum going so we tried to be very plan full there, but ultimately I wouldn't call out anything as big.

Jeffrey Bernstein: Great. Thank you very much. I want to talk a little bit about the comp components. Clearly, the traffic is very strong and seems to be driven by a lot of compelling value. On the flip side, I guess you talked about how the mix shift seems to be down somewhat large in Q4. Just wondering how you think about your mix of sales on value, however you define it, you know, where that is now versus where it was a year ago, and if you're comfortable with the balance of value versus premium, or whether the value mix might be too high. Just trying to think about the mix shifts in general and what your expectation is as we look through 2026.

Movements within the quarters, but to be clear, we are looking to grow comp sales and expect to grow comp sales and traffic in every quarter.

Hey, good afternoon, um 4%, traffic growth, in the fourth quarter, really impressive. I think it was your your 6 Straight quarter of positive traffic. And as you looked at 26, your 1 to 3%, same store, sales guidance, I think you know it it clearly builds in a more balanced uh check in traffic. I think. And that's kind of what you just said to to just question and just in your internal models. How are you anticipating the overall comp Trends could be throughout the year? Do you expect them to be pretty steady throughout the year? Is there any, um, interesting drivers? We should be aware of that that happened post first quarter

Okay. Thanks, and just follow up on the on the restaurant profit.

Guidance I think it assumes kind of.

<unk> basis point expansion in restaurant level margins. If you can just kind of confirm that.

<unk> been on this really strong margin expansion pack recently, what's going to keep the margins expanding as we look forward to 2006 is that 50 basis points is the right kind of base case, where is that coming from.

Yes, I'll start and Todd you can you can jump in.

Lyle Tick: Yeah, sure, Jeffrey, this is Lyle. I'll start off, and Todd, you can build. I mean, as you look at Q4, yeah, I wouldn't actually, I mean, personally, I wouldn't characterize it as value, particularly in Q4, taking a larger role, right? Because it wasn't in Q4, it's not like the Pizookie Meal Deal suddenly took a much larger role, and that's what drove it. It's the Pizookie Meal Deal continues to resonate, and have growth. Actually, what drove some of that delta between sales and traffic, which is the, you know, implied check compression, was the kind of resonance of the seasonal Pizookies that we had. So we have people coming in, they're not buying the Pizookies on a discount per se, they're just coming in to try Pizookies.

The as we look at next year I mean, I think there's three components to it right. One is is <unk>.

Delivering consistent sales growth right and having some leverage on the top line, which.

I think I mean.

Maybe even a little bit.

<unk> on is that we're really focused on delivering a more consistent and durable bj's that delivers that kind of consistent growth so that helps.

Pizookies that that kept that momentum going. So, you know, we try to be very planful there, but ultimately, I wouldn't call out anything as big, uh, movements within the quarters. But to be clear, we are looking to grow comp sales and expect to grow comp sales and traffic in every quarter.

Number two would be the continued focus on the programs that I've.

<unk> talked about previously which is.

We have a really strong core set of Kpis that we're driving accountability down through our teams were really focused on bringing up our outliers are kind of our bottom quartile of performance. So continuing to bring that bottom up and so youll see ideally everybody getting more efficient, but that bottom coming up and getting.

Lyle Tick: You see, what we see is a younger cohort coming in, which I'm pleased with, right? It's a hard group to get, and we have more of those folks coming in. You know, you combine that with better operations, hopefully, more of those folks will then choose to potentially come back. We are seeing more of those checks where it's them coming in and having a Pizookie, or not everybody's having an entree, or you're having a Pizookie and some drinks. We saw a resonance and real movement there in mix. Then we continued to see the outperformance of late night in Q4. You know, the things that drove more check compression in Q4, I wouldn't necessarily think about as headwinds, right? So to speak, or like more from a discounting perspective.

Okay. Thanks and just follow up on the on the restaurant profits. Um, guidance, I think it assumes kind of a 50-ish basis point expansion and restaurant level margins. If you can just kind of confirm that and, you know, you've been on this really strong margin expansion path. Recently, what's going to keep the margins expanding as we look forward to 26, if if that 50 basis points is the right kind of base case, where is that coming from?

More efficient than the rest.

yeah, I I'll

And then as you look at things like our gross to net that is going to be a continued focus that we are there.

Start with Todd. You can, you can.

can jump in, um,

The.

3 components to it, write 1 is is

We're pushing against with a particular focus.

On comp food and beverage right that is a continued area for us.

delivering consistent sales growth, right and having some leverage on the top line which you know, I think I've

A real focus because for me that is the best indication of when you are moving that that suggests you are executing better.

Conversations with gas you can turn tables quicker so.

None of that is as is totally wrung out.

<unk> also.

Maybe been a little bit, you know, repetitive on is that we're really focused on delivering a more consistent and durable, BJs that delivers that kind of consistent growth. So that helps, um, number 2 would be the continued, focus on the programs that I've, you know, talked about previously, which is, uh, you know, we have a really strong core set of C.

Talked about previously as we look at continuing to rollout the activity based labor model.

Lyle Tick: You know, there's other small things in there, like, in our features for the holiday season. This year, we featured salmon over the rib eye, given what was going on with the cost of steak. That carried with it a bit of a lower check, but a better margin. There's a number of little things in there, but I wouldn't say it was driven by a sudden jump in reliance on value in Q4 versus what we've been seeing.

That can be rolled out over 2026, we're going to do that.

In a measured fashion, because you kind of roll it out you need to.

And get adoption from the Gms and keep going and you don't want to see Concord ground. So it may be more of a 2027.

Impact.

But that as that rolls out.

The BLM is suggesting there some hours that we can save I think I've talked about this a little bit before on the shoulders and on our lower shifts in in the high times, we actually need more labor, but the real focus for us on the ABL M has been.

Todd Wilson: I'll just quickly add two items of, you know, building on Lyle's point of, you know, the any, quote-unquote, trade down in check or lower check, is just a mathematical equation of we drove incremental traffic at a lower check average with those, especially those seasonal Pizookies. The other piece I'd call out, I think it was part of your, where you're going. As we look forward to 2026, you know, we do expect, you know, we continue to see PMD grow. That's obviously a good thing for us as that value message resonates with guests.

Consumer metrics right and are we seeing improvement across.

Across our our pace across our food quality across hospitality, that's the real kind of I think focus on having the right people in the right place at the right time.

API that we're driving accountability down through our teams, we're really focused on bringing up our outliers or kind of our bottom quartile of performance. So continuing to bring that bottom up and so you see, ideally everybody getting more efficient but that bottom coming up and getting more efficient than the rest. Um and then as you look at things like our gross to net, that is going to be a continued Focus that we are um that we're pushing against with a particular Focus, you know, on comp food and beverage, right. That is a continued area for us, you know, of real Focus. Because for me, that is the best indication of when you're moving that, that suggests, you're executing better, you have less bad conversations with guests, you can turn tables quicker. So you know, none of that is is is is is totally wrung out. I think also

But I think as you observed on a lot of those initiatives I think last year, we were able to get.

Todd Wilson: We do expect to see some continued check trade down, but not to the degree that we saw in 2026, meaning we do expect some expansion of net check, and, you know, that's just a matter of the pricing to cover off inflation.

You know, I talked about previously as we look at continuing to roll out, you know the activity based labor model.

A lot of what was.

Kind of more obvious if you will in that as we come into this year you are seeing the level of expansion not be quite as big right and it's because as we come over that while there is more to have there each year, we come over that we expect to get more efficient and effective but the degree of it is going to evolve over time.

Jeffrey Bernstein: Understood. Can you share just the, on the inflation side, I think you called out a couple of particular commodities, but just wondering what the commodity and labor inflation was in Q4 and what your outlook is for full year 2026?

You know, that's, that's going to be rolled out over 2026. We're going to do that uh in a in a measured fashion because you know, you kind of roll it out, you need to learn. Get adoption from the GMS and keep going and you don't want to see Concord ground so it may be more of a 2027, you know, impact. Um but that is that rolls out.

Hey, Brian just quickly confirming that the you mentioned, the 50 basis points or so.

We're thinking about it the same way I would say in broad strokes. That's in the range of what we would expect so your math aligns with ours.

Todd Wilson: Yeah, absolutely. The total basket in Q4 was about 2.5%. We called out beef, we called out produce as the big drivers of the commodity basket. You know, labor was a similar ballpark between 2% and 3% in Q4. We think the first half of the year, quite frankly, will be in the 3% to 4% range in terms of total inflation. Those same drivers really drive the start of the year. We see that moderating in the back half.

Great. Thank you guys.

The next question is from Sharon Zackfia with William Blair. Please go ahead.

Hi, Thanks for taking the question.

It's really interesting that continued to hear about the <unk> on the <unk> zucchini is bringing in younger demographics and it sounds like it really accelerated.

For you in the fourth quarter. It maybe too early about why those engagement look like.

Um, the ablm is suggesting, there are some hours that we can save. I think I talked about this a little bit before on the shoulders and on our lower shifts and in the high times we actually need more labor. But the real Focus for us on the ablm has been, uh, consumer metrics, right? And are we seeing Improvement across, you know, across our our, our Pace across, uh, our food quality across Hospitality. That's the real kind of, I think focus on having the right people in the right place the right time. Um, but I think as you observed on a lot of those initiatives, I think last year we were able to get you know, a lot of what was

Those customers after they do come in for now <unk> seen kind of a tale of engagement with those cohorts.

Jeffrey Bernstein: Great. Thank you.

Todd Wilson: Thank you.

Operator: Excuse me. The next question is from Brian Bittner with Oppenheimer and Company. Please go ahead.

Youre right I mean, given average frequency of our business and full service. It's too short of a time for me to feel comfortable saying I definitively am or not so I want to get more time under our belt I think big picture as we looked across 2025, we did.

Brian Bittner: Hey, good afternoon. 4% traffic growth in Q4, really impressive. I think it was your 6th straight quarter of positive traffic. As you look to 2026, your 1% to 3% same-store sales guidance, I think, you know, it clearly builds in a more balanced check in traffic, I think, and that's kind of what you just said to Jeff's question. Just in your internal models, how are you anticipating the overall comp trends to be throughout the year? Do you expect them to be pretty steady throughout the year? Is there any interesting drivers we should be aware of that happen post Q1?

Uh, I don't, you know, kind of more obvious if you will and then as we come into this year, you are seeing the the level of expansion not be quite as big, right? And it's because as we come over that while there's more to have their, you know, each year we come over that we expect to get more efficient and effective but the degree of it is going to evolve over time.

Increases in frequency across our agent income cohorts with a little bit more on the younger and a little bit more on the older.

Hey, Brian. Just quickly confirming that, you know, the you mentioned the 50 basis points or so you know that we're thinking about it the same way I'd say in Broad Strokes that's in the range of what we would expect. So your your math aligns with ours,

Great. Thank you guys.

And more actually on the lower income cohorts and I think those dynamics to me show.

The next question is from Sharon Zakia with William Blair, please go ahead.

This is again my inference.

But you look at it and you look at the growth and you look at the mix.

<unk> are correlated to the residents of PMT and the residents of pursuit, but.

Todd Wilson: I don't think there's anything we call out. There's obviously some movement in our internal models, but I don't think it's enough to call out. You know, I go back to some of the comments we made in the call. You know, Lyle commented on this, and I did as well, that we're pleased with the start of the year. You know, I pointed to our annual 1% to 3% guide and that our results to date are in line with that. You know, that gives you a sense of what we're seeing, at least so far in Q1. I know there's been thought and internally and externally about anniversarying PMD, which the company did successfully back in 2025. We're always looking ahead to make sure that we're planful in those things.

But it's too early for me Sharon yet definitively tell from that that is true.

That's completely fair are you doing something different in social media augmented capabilities, there or is that.

Two is that just organic and coming from your consumers.

No no no. It's we've we've changed kind of the way we go to market I mean, we did we did bring on a new team member here Who's doing a great job, who is far more socially conversant then.

Then Todd awry or Ron of anyone in this room in fairness.

We also have looked at some of our agency resources, but when you look at it at this shift a lot of our social previously was what I would call a kind of brand produced top down that we would then push out and we have not only increased our investment as a person.

Todd Wilson: I think you see that in the Q4 with the seasonal Pizookies, that kept that momentum going. You know, we try to be very planful there, but ultimately, I wouldn't call out anything as big movements within the quarters. To be clear, we are looking to grow comp sales and expect to grow comp sales and traffic in every quarter.

Signage of our overall spend in social and Influencer, but now that content is really influence our produced versus brand produced so.

Brian Bittner: Okay, thanks. Just follow up on the, on the restaurant profit guidance. I think it assumes kind of a 50-ish basis point expansion in restaurant level margins, if you can just kind of confirm that. You know, you've been on this really strong margin expansion path recently. What's going to keep the margins expanding as we look forward to 2026? If that 50 basis points is the right kind of base case, where is that coming from?

Uh, you're right. I mean, given average frequency of our business in full service. It's too short of a time for me to feel comfortable, saying, I definitively am or not. So I want to get more time under our belt. I think big picture as we looked across 2025. We did see, um, increases in frequency across our agent income, cohorts, with a little bit more on the younger and a little bit more on the older and more actually on the lower income cohorts. And I think those Dynamics to me, show what? And this is again my inference. Um, but you look at it and you look at the growth and you look at the mix, you know, our correlative to the Resonance of PMD and the Resonance of Pizookie. But, but it's too early for me. Sharon, you had a definitively tell you that that is true.

People speaking on behalf of us versus us just speaking on behalf of ourselves.

Great and then last question now that we kind of fully lapped the meal deal.

How does the weekend the traffic one comparisons leap day.

That's completely fair. Are you doing something different in social media? Have you augmented your capabilities there? Or is that increase that you alluded to just organic and coming from your consumers?

As we look through Q4, we saw growth through Q4.

<unk>.

Lyle Tick: Yeah, I'll start, and Todd, you can jump in. You know, as we look at next year, I mean, I think there's three components to it, right? One is delivering consistent sales growth, right? Having some leverage on the top line, which, you know, I think I've maybe been a little bit repetitive on, is that we're really focused on delivering a more consistent and durable BJ's that delivers that kind of consistent growth. That helps. Number two would be the continued focus on the programs that I've, you know, talked about previously, which is, you know, we have a really strong core set of KPIs that we're driving accountability down through our teams. We're really focused on bringing up our outliers or kind of our bottom quartile of performance, continuing to bring that bottom up.

All day parts.

Grew with the highest growth coming from.

No, no, no. It's we've, we've, we've changed kind of the way we go to market. I mean, we did we did bring on a new team member here. Uh, who's doing a great job, who is far more socially conversent than you know anyone than Todd or I or Rana anyone in this room In fairness. Uh uh we are also uh, have looked at

From late night, but yes, im looking at it right now so as we look at all day parts grew and late night was the biggest grower with mid afternoon and dinner being quite similar in lunch growing but not quite to the same amount. So so that's what we saw from a day part point of view in Q4.

Thank you.

The next question is from Brian Mullan with Piper Sandler. Please go ahead.

Hi, This is Allison <unk> on for Brian Mullan. Thank you for taking the question.

At some of our agency resources. But when you look at at the shift, a lot of our social previously, was what I would call kind of brand produced top down that we would then push out, and we've not only increased our investment as a percentage of our overall spend in Social and influencer. But now that content is really influencer produced versus brand produced. So, you know, people speaking on behalf of US versus us, just speaking on behalf of ourselves.

On the refresh as to the Burger category and chicken sandwiches curious if you could speak more about what led to the decision on these two platforms and what opportunity might be there and if we should expect a similar timeline a stage gate process is the pizza relaunch.

Great. And then last question now that we've

Fully elapsed the meal.

How does the weekend traffic look versus weekday?

Um,

Lyle Tick: You see, ideally, everybody getting more efficient, but that bottom coming up and getting more efficient than the rest. Then as you look at things like our gross to net, that is going to be a continued focus that we are that we're pushing against, with a particular focus, you know, on comp food and beverage, right? That is a continued area for us, you know, a real focus, because for me, that is the best indication of when you're moving that suggests you're executing better, you have less bad conversations with guests, you can turn tables quicker. You know, none of that is totally wrung out.

Yes, I mean, so working backwards.

In terms of the process that the process will be similar for most.

Most things that we take to market right, we're going to we're going to identify opportunities through two things. One is as we look at our menu satisfaction intent to reorder value perceptions all of those things that helps us identify areas of opportunity.

We look at kind of what our driver categories or what categories attached to a lot of checks and then generally upstream on the big categories will do some screener work to get a sense of conceptually area in the REIT space from a consumer and then as we go to market.

you know, as we look through Q4, we saw growth through Q4 of, um, all day Parts, uh, grew with the highest growth coming from, uh, from late night. But yeah, I'm looking at it right now. So as we look at all day Parts, grew and late night was the biggest grower with mid-afternoon and dinner being quite similar in lunch growing, but not quite to the same amount. So, so that's what we saw from a day park point of view, uh, in Q4,

Yes, thank you.

Thank you.

The next question is from Brian Mullen with Piper Sandler. Please go ahead.

Lyle Tick: I think also, you know, I've talked about previously, as we look at continuing to roll out, you know, the Activity-Based Labor Model, you know, that's going to be rolled out over 2026. We're going to do that in a measured fashion, because, you know, you kind of roll it out, you need to learn, get adoption from the GMs, and keep going, and you don't want to cede conquered ground. It may be more of a 2027, you know, impact. That, as that rolls out, the ABLM is suggesting there are some hours that we can save. I think I've talked about this a little bit before, on the shoulders and on our lower shifts, and in the high times, we actually need more labor.

Operations feedback guest feedback.

Just like with Pizza I would expect we will have to do some tweaking when we get that and then and there.

Then go to market. So the process will be the same I may have answered both questions there about kind of.

Hi, this is Alison. Arthur on for Brian. Mullen. Thank you for taking the question. Um, on the refresh is to the Burger category and chicken sandwiches, curious. If you could speak more about what led to the decision on these 2 platforms and then what opportunity might be there, and if we should expect a similar timeline or stage gate process is the pizza relaunch

How we identify it but we're too early in it.

It actually being in test market for me to have any material stuff to talk about.

Thank you.

The next question is from Todd Brooks with benchmark <unk>. Please go ahead.

Hey, Thanks for taking my questions first question on the activity based labor I.

Lyle Tick: The real focus for us on the ABLM has been consumer metrics, right? Are we seeing improvement across, you know, across our pace, across our food quality, across hospitality? That's the real kind of, I think, focus on having the right people in the right place at the right time. I think as you observed on a lot of those initiatives, I think last year we were able to get, you know, a lot of what was, I don't, you know, kind of more obvious, if you will. As we come into this year, you are seeing the level of expansion not be quite as big, right?

I think you've talked about a ratable rollout across the course of this year, 30% was in the bond last year.

I mean my celebration season. This year, you think youre kind of 50% penetrated with having it rolled out.

I don't know if it will be all the way to 50 I would say celebration season is probably the season, where we are most cautious about creating disruption so.

Uh yeah, I mean so we're working backwards uh in terms of the process that yeah, the process will be similar for, you know, most things that we take to market, right? We're going to we're going to identify opportunities through 2 things. 1 is as we look at our menu, satisfaction intent, to reorder value perceptions. All of those things that helps us identify areas of opportunity. Um, we look at kind of what are driver categories. So what categories attached to to a lot of checks and then generally Upstream on the big categories. We'll do some screener work to get a sense of. Conceptually are we in the right space from a consumer and then as we go to market, you know, operations feedback, guest feedback.

I think in the first half will have we will have some more rollout I don't know if we'll get all the way to 50% I think.

Our windows for rolling something out that we have the kind of intake and get comfortable with.

Lyle Tick: It's because as we come over that, while there's more to have there, you know, each year we come over that, we expect to get more efficient and effective, but the degree of it is going to evolve over time.

Q1 is a pretty good window and Q3 are pretty good windows. So it's not that we won't.

You know, just like with pizza, I would expect we'll have to do some tweaking when we get that and then and then go to market. So, so the process will be the same. I may have answered both questions there about kind of, you know, how we identify it but we're we're we're too early in in the it actually being in test market for me to have any material stuff to to talk about

Thank you.

Advance it at all but we wanted to be really judicious about any disruption that we might cause during celebration season is as gm's get used to it because there is a there is a getting used to it right. When you go now to getting that labor schedule from the AI and kind of learning how to balance.

Todd Wilson: Hey, Brian, just quickly confirming that, you know, you mentioned the 50 basis points or so, you know, that we're thinking about it the same way. I'd say in broad strokes, that's in the range of what we would expect. Your math aligns with ours.

The next question is from Todd Brooks with Benchmark stonex. Please go ahead.

Hey, thanks for taking my question. First question on the activity based labor.

Brian Bittner: Great. Thank you, guys.

Operator: The next question is from Sharon Zackfia with William Blair. Please go ahead.

You know the Gm's overlay with AI, there is a bit of a learning process, which we've seen in terms of getting comfortable with it so.

30% was in the barn last year. What I mean by celebration season this year, you think you're kind of 50% penetrated with having it rolled out.

Sharon Zackfia: Hi, thanks for taking the question. You know, it's really interesting to continue to hear about the LTOs on the Pizookies, bringing in younger demographics, and it sounds like it really accelerated for you in Q4. It may be too early, but what does engagement look like with those customers after they do come in for an LTO? Are you seeing kind of a tail of engagement with those cohorts?

We will be judicious about how much of that happens over celebration season.

And just kind of looking at some of the earlier.

Units that have implemented the platform you talk about wanting to see.

Higher in certain scores key start to put a framework around how much improvement you do see once the stores on our platform.

Lyle Tick: You're right. I mean, given average frequency of our business in full service, it's too short of a time for me to feel comfortable saying I definitively am or not. I want to get more time under our belt. I think big picture, as we looked across 2025, we did see increases in frequency across our age and income cohorts, with a little bit more on the younger and a little bit more on the older, and more actually on the lower income cohorts. I think those dynamics to me show, and this is, again, my inference, but you look at it and you look at the growth and you look at the mix, you know, are correlative to the resonance of PMD and the resonance of Pizookie. It's too early for me, Sharon, yeah, to definitively tell you.

Um, I don't know if we'll be all the way to 50. I would say celebration season is probably the season where we are most cautious about creating disruption. So, um, you know, I think in the first half we'll have, we'll have some more roll out. I don't know if we'll get all the way to 50%, you know, I think you're, you know, our windows for Rolling something out that we have to kind of intake and get comfortable with

I mean.

Im not going to be I won't give specific numbers at this point, but when I look at the shape, where we're seeing improvement we're seeing improvement pretty much. When you look at the pre imposed versus the control group across pretty much all of our metrics. The one that we're actually seeing moved the most is pace.

Is which I'm I'm incur.

Encouraged by because it's about getting the right people in the right place at the right time, So thats, where I would like to see the most movement.

The others were seeing moves.

Movement, but.

Varying degrees of movement, but pace seems to be the one that is getting the most improvement which would be.

Again, as you might imagine a core metric for getting the right people in the right place right time.

You know, q1 is a is a pretty good window and, uh, Q3 are pretty good windows. So it's not that we won't, uh, Advanced it at all. But we want to be really judicious about any disruption that we might cause during celebration. Season is, is GMS, get used to it? Because there is a, there is a getting used to it. Right. When you go now to getting that labor schedule from the AI, and kind of learning how to balance, you know, the, the GMS overlay with AI. There's a bit of a learning process, uh, which we've seen in terms of getting comfortable with it. So, um, we we'll be judicious about how much that happens over celebrations.

And just kind of looking at some of the earlier.

Okay, Great and a final one for me Todd you said earlier in Q&A.

Sharon Zackfia: Yeah.

Lyle Tick: That is true.

Sharon Zackfia: That's completely fair. Are you doing something different in social media? Have you augmented your capabilities there, or is that increase that you alluded to, is that just organic and coming from your consumers?

units that have implemented the platform, you talked about wanting to see

The key to seize a persistent meal deal grow can you talk to what.

Mix looked like in the fourth quarter, maybe versus what you were seeing in Q3 as far as percentage of checks on PMD. Thanks.

A Bend higher in certain scores. Can you start to put a framework around? How much improvement you do? See once the store is on that platform.

Um,

Lyle Tick: No, no. We've changed kind of the way we go to market. I mean, we did bring on a new team member here, who's doing a great job, who is far more socially conversant than, you know, anyone, than Todd or I or Rana, anyone in this room, in fairness. We also have looked at some of our agency resources, but when you look at the shift, a lot of our social previously was what I would call a kind of brand-produced top-down that we would then push out. We've not only increased our investment as a percentage of our overall spend in social and influencer, but now that content is really influencer-produced versus brand-produced. You know, people speaking on behalf of us versus us just speaking on behalf of ourselves.

Yes, absolutely.

When we look back at Q4 PMD grew.

16% of checks in the fourth quarter that was up almost 2% versus the fourth quarter, a year ago and an increase versus Q3. So broadly that platform continues to grow for us, which there is there's obviously been a lot of traffic associated with that over the last five or six quarters. So it's good to see that that does com while hit on this the check.

I mean, not— not gonna be— I won't give specific numbers at this point, but when I look at the shape, where we're seeing improvement, we're seeing improvement pretty much... When you look at the pre-post versus the control group across pretty much all of our, uh, metrics, the one that we're actually seeing move the most is pace, which is— which I'm—

It's just a little bit lower is what we see on the PMD checks, it's about 5% lower.

So theres a little bit of a check tradeoff, there, but obviously getting that traffic and is a big win for our business and the other things I would build on or the percentage margin of those checks looks a lot like the percentage margin of our other checks.

Encouraged by because it's about getting the right people in the right place at the right time. So that's where I'd like to see the most movement. Um the others we're seeing, you know, movement but you know, varying degrees of movement. But but Pace seems to be the 1 that's getting the most Improvement which would be again. As you might imagine a core metric for for getting the right people in the right place at the right time.

Okay, great. And the final 1 for me, uh, Todd, you said earlier in Q&A

If you look at over the course of all of 2025, it's about 15, 5% of checks in Q4 was a bit a little bit higher than that.

Sharon Zackfia: Great. Then last question. Now that we've kind of fully lapped the meal deal, how does the weekend traffic look versus weekday?

Uh, you're continuing to see the Puzzle Meal Deal. Can you talk to what—?

And when you look at it as kind of a percentage mix of sales its more like 6% now that's four week, Brian I know, we've talked about in the past, which remains true that during the week here and kind of Oh, Todd sorry, Youre in Youre in the low twenties, Todd when Youre looking at during the week.

Makes looked like in the fourth quarter, maybe versus what you were seeing in in Q3 as far as percentage checks on PM date. Thanks.

Lyle Tick: You know, as we look through Q4, we saw growth through Q4 of all day parts grew, with the highest growth coming from late night. I'm looking at it right now. As we look at all day parts grew, and late night was the biggest grower, with mid-afternoon and dinner being quite similar, and lunch growing, but not quite to the same amount. That's what we saw from a day part point of view in Q4.

Okay perfect. Thank you Bob.

Okay.

Thanks.

Thanks Scott.

The next question is from Jon Tower with Citi. Please go ahead.

Hey, Thanks, guys for taking the question.

I'm curious to hear that you guys are.

Being relatively strong late night business.

Good to hear I'm, just curious what if youre doing anything special to drive it relative to what you've done in the past and is that also inclusive of the off premise business when you speak to the strength there.

Sharon Zackfia: Okay. Thank you.

Lyle Tick: Thank you.

Operator: The next question is from Brian Mullan with Piper Sandler. Please go ahead.

Allison Arfstrom: Hi, this is Allison Arfstrom for Brian Mullan. Thank you for taking the question. On the refreshes to the burger category and chicken sandwiches, curious if you could speak more about what led to the decision on these two platforms, what opportunity might be there, if we should expect a similar timeline or stage gate process as the pizza relaunch?

Well so the <unk>.

All of late night is growing I'll, let Todd pick up on the channel mix, because I don't have that answer to hand.

John I wish I could tell you that we were doing something super unique to drive the late night business.

Yeah, absolutely Todd. Um, you know, when we look back at Q4 PMD grew, uh, almost 16% of checks and the fourth quarter that was up almost 2% versus the fourth quarter a year ago, uh, and an increase versus Q3. So you know, broadly that platform continued to grow to grow for us, which, you know. There's there's obviously been a lot of traffic associated with that over the last 5 or 6 quarters. So it's good to see that. That does come lie, hit on this. The check is just a little bit lower. It's what we see on the PMD checks, it's about 5% lower. Um, so there's a little bit of a check trade off there, but obviously getting that traffic in is, uh, is a big win for our business. Yeah. And the other things I would build on or the percentage margin of those checks, looks a lot like the percentage margin of our other checks. Um, if you look at over the course of all of 2025, it's about 15 and a half percent of checks and Q4 was a bit a little bit higher than that. Um, and when you look at it, it's kind of a percentage mix

You know I think we have a great environment I think we have a good offer because our happy hour offer we offer at late night and I think I've talked about this before I do think some of it is supply and demand.

Lyle Tick: Yeah, I mean, so working backwards, in terms of the process, that, yeah, the process will be similar for, you know, most things that we take to market, right? We're gonna identify opportunities through two things. One is, as we look at our menu satisfaction, intent to reorder, value perceptions, all of those things, that helps us identify areas of opportunity. We look at kind of what are driver categories, so what categories attach to a lot of checks. Generally, upstream on the big categories, we'll do some screener work to get a sense of, conceptually, are we in the right space from a consumer? As we go to market, you know, operations feedback, guest feedback.

Sales. It's more like 6% now. That's that's full week, Brian. I know we've talked about in the past which remains true that during the week, you're in kind of the of Todd. Sorry. You're in the you're in the low 20s Todd, when you're looking at during the week,

Okay, perfect. Thank you.

On balance in the past several years, if anything you've seen less people kind of either extend or go back to kind of full hours and I think there is less less late nights supply I think we probably have some demand coming back and I think we are a great.

Thanks. Next up.

The next question is from John Tower with Citi. Please, go ahead.

Our better alternative to a lot of folks for late night, and I think that's helping us win but but we don't have like a specific marketing push or very specific unique like offer late night that is uniquely driving it.

Hey, thanks guys. For taking the question. Um, maybe I'm curious to hear that. You guys are, um, seeing relatively strong late night business. It's, it's good to hear, I'm just curious 1. If you're doing anything special to drive it relative to what you've done in the past, and is that also inclusive of the off premise business when you speak to the strength there,

Lyle Tick: You know, just like with pizza, I would expect we'll have to do some tweaking when we get that and then, and then go to market. The process will be the same. I may have answered both questions there about kind of, you know, how we identify it. We're too early in the, it actually being in test market for me to have any material stuff to talk about.

Got it John I'll try again.

Hey, John just to give us the Todd here I'll give you some quick color on an off prem versus on.

As we look at if you just split our business into on Prem versus off Prem.

The dine in business the on Prem business is incredibly strong.

Obviously, that's the.

Environment. I think we have a a, a good offer because, you know, our happy hour offer, we offer at late night. And I think I've talked about this before, I do think some of it is supply and demand.

The majority of our business in the quarter traffic and dine in was up almost 7% a little over 7%. So just tremendously strong there.

Allison Arfstrom: Thank you.

Operator: The next question is from Todd Brooks with The Benchmark Company. Please go ahead.

The off Prem part of our business has seen declines.

Todd Brooks: Hey, thanks for taking my questions. First question, on the Activity-Based Labor, I think you talked about a ratable rollout across the course of this year. 30% was in the barn last year. Do you mean by celebration season this year, you think you're kind of 50% penetrated with having it rolled out?

That wasn't new in Q4.

Been a headwind for us for the past few quarters.

And so it's a matter of we've got folks dedicated to work to address that but the strength of the diamond business is particularly strong.

Okay and just following up on the comment regarding the late night.

Lyle Tick: I don't know if we'll be all the way to 50. I would say celebration season is probably the season where we are most cautious about creating disruption. You know, I think in the first half we'll have, we'll have some more rollout. I don't know if we'll get all the way to 50%. You know, I think you're, you know, our windows for rolling something out that we have to kind of intake and get comfortable with, you know, Q1 is a pretty good window, and Q3 are pretty good windows. It's not that we won't advance it at all, but we wanna be really judicious about any disruption that we might cause during celebration season as GMs get used to it. Because there is a getting used to it, right?

Not anywhere near like if you guys were to recover.

Yes from an average weekly sales standpoint back to peak like how much more room do you have to go are better asked like how far is off late night decline relative to your kind of peak times of peak.

I think on balance in the past several years, if anything you've seen less people kind of either extend or go back to to kind of full hours and I think there's less less late night Supply. I think we probably have some demand coming back and I think we are a great or better alternative to a lot of folks for late night and I think that's helping us win, but but we don't have like a specific marketing push or very specific unique like offer for late night. That is uniquely driving it.

Got it, John. I'll tag in on.

Windows or years.

I mean, I honestly I don't have the number to hand of weather, where there are weather late night. If we look back I assume we're talking about kind of pre COVID-19 like like what the late night.

Uh huh.

<unk> was I mean.

Say as part of what we talked about in Q1.

Which is the continued momentum we're seeing in Q1 the shape of that continues to see particular strength in late night. So that has that has continued.

Lyle Tick: When you go now to getting that labor schedule from the AI and kind of learning how to balance, you know, the GMs overlay with AI. There's a bit of a learning process, which we've seen in terms of getting comfortable with it. We'll be judicious about how much that happens over celebration season.

Hey John, just to give you his Todd here. I'll give you some quick color on on, uh, off-prem versus on, you know, as we look at, if you just split our business into on-prem versus off-prem, the the dine in business, the on-prem business is incredibly strong. Um, you know, obviously that's, uh, the, the majority of our business in the quarter, you know, traffic and Dinan was up almost 7% a little over 7%, so just tremendously, strong there, the off-prem part of our business has seen declines. Uh, that wasn't new in Q4 that that has uh been a a headwind for us.

For the past few quarters. Um,

Into into this quarter so far.

I don't know Tom if you have.

and so it's a matter of, you know, we've got folks dedicated to to work to address that. But uh, the strength of the D in business is particularly strong.

And in terms of specific.

John maybe we can tag tag that is.

Okay.

Todd Brooks: Just kind of looking at some of the earlier units that have implemented the platform, you talk about wanting to see a bend higher in certain scores. Can you start to put a framework around how much improvement you do see once a store is on that platform?

Okay. Hopefully you guys can still hear me.

Just one last question that I had okay great.

Just you had mentioned.

Okay? And and just following up on the comment regarding the late night. Is that anywhere near like, if you guys were to recover, you know, I guess from an average weekly sales standpoint back to Peak, like, how much more room do you have to go or better? Ask like, how far has late night declined relative to your kind of peak times, or Peak windows or years?

You are going to be opening new stores in the back half of this year can you just speak to what the new prototype might look like high level features that are different versus the baseline data that could get even just be square footage.

Lyle Tick: I mean, I won't give specific numbers at this point, when I look at the shape where we're seeing improvement, we're seeing improvement pretty much when you look at the pre/post versus the control group, across pretty much all of our metrics. The one that we're actually seeing move the most is pace, which I'm encouraged by, because it's about getting the right people in the right place at the right time. That's where I'd like to see the most movement. The others, we're seeing, you know, movement, but, you know, varying degrees of movement. But pace seems to be the one that's getting the most improvement, which would be, again, as you might imagine, a core metric for getting the right people in the right place at the right time.

But I would assume there is probably a little bit of a differential even off premise access to the stores versus maybe some of the legacy asset base that you have today and even the cost to build.

I I don't, I mean I honestly I don't have the number to handle whether we're there or whether late night. If we look back, I, I assume we're talking like, kind of preco like, like what the late night um,

uh,

Yes, so I mean, as we look at it right I mean from a from a design perspective.

I think well.

What we're what we're ultimately trying to achieve is a contemporary expression of our brand that is familiar to the people, who know and love us, but also kind of exciting to new guests and we leveraged our brand positioning to do that design work and so you know.

Au was I mean, you know what I can say is as as part of what we talked about in q1 uh which is the Continuum momentum we're seeing in q1, the shape of that continues to see particular strengths and late nights. So that has that has continued uh into into this quarter so far.

I don't know, Ty, if you have

been in terms of the night specific, a John maybe we can tag tag that as a

I think I think it will feel.

Familiar, but but contemporary and yes, we have I think some branding elements that we're bringing in that are involved in new I think how we're using some of the nod towards our craft brew heritage with the silos is going to be involved in new.

Todd Brooks: Okay, great. The final one from me. Todd, you said earlier in Q&A that you're continuing to see the Pizookie Meal Deal grow. Can you talk to what mix looked like in Q4, maybe versus what you were seeing in Q3 as far as percentage checks on PMD? Thanks.

So there's a number of things, but it wont be it'll be a familiar about contemporize version as we look at.

Lyle Tick: Yeah, absolutely, Todd.

Todd Wilson: When we look back at Q4, PMD grew 16% of checks in the Q4. That was up almost 2% versus the Q4 a year ago, and an increase versus Q3. Broadly, you know, that platform continued to grow for us, which, you know, there's obviously been a lot of traffic associated with that over the last five or six quarters. It's good to see that. That does come, Lyle hit on this, the check is just a little bit lower, is what we see on the PMD checks. It's about 5% lower. There's a little bit of a check trade-off there, but obviously getting that traffic in is a big win for our business.

Lyle Tick: When we look back at Q4, PMD grew 16% of checks in the Q4. That was up almost 2% versus the Q4 a year ago, and an increase versus Q3. Broadly, you know, that platform continued to grow for us, which, you know, there's obviously been a lot of traffic associated with that over the last five or six quarters. It's good to see that. That does come, Lyle hit on this, the check is just a little bit lower, is what we see on the PMD checks. It's about 5% lower. There's a little bit of a check trade-off there, but obviously getting that traffic in is a big win for our business.

The footprint of it.

Okay. Hopefully you guys can still hear me. Um, just 1 1 last question that I had. Okay, great is, um, just you had mentioned, um, obviously you're gonna be opening new stores in the back half of this year. Can you just speak to what the new prototype might look like high level features that are different versus the Baseline day? Heck, you could even just be square footage, um, but I, I would assume there's probably a little bit of a differential even off premise, uh, access to the stores versus maybe some of the Legacy asset base that you have today, and even the cost to build.

I'm, a big believer in right size right costs right place.

Now the first couple that you build in my experience doing this are generally relatively prototyping.

And then as you kind of go forward and so as we look into <unk>.

The next couple as we move into 2027.

I think we will be looking to look at it.

Building them not always at the same square footage maybe in certain markets. It would be relevant to go smaller I think we're looking at conversions in the in the appropriate market. So we're not going to be dogmatic about every time. It has to be just a prototype ground up build.

Lyle Tick: The other things I would build on are the percentage margin of those checks looks a lot like the percentage margin of our other checks. If you look at over the course of all of 2025, it's about 15.5% of checks, and Q4 was a little bit higher than that. When you look at it as kind of a percentage mix of sales, it's more like 6%. Now, that's full week, Brian, I know we've talked about in the past, which remains true, that during the week, you're in kind of a, Oh, Todd, sorry, you're in the low 20s, Todd, when you're looking at during the week.

Todd Wilson: The other things I would build on are the percentage margin of those checks looks a lot like the percentage margin of our other checks. If you look at over the course of all of 2025, it's about 15.5% of checks, and Q4 was a little bit higher than that. When you look at it as kind of a percentage mix of sales, it's more like 6%. Now, that's full week, Brian, I know we've talked about in the past, which remains true, that during the week, you're in kind of a, Oh, Todd, sorry, you're in the low 20s, Todd, when you're looking at during the week.

Yeah. So I mean as as we look at it, right? I mean from a, from a design perspective, you know, I think well, you know what, we're what we're ultimately trying to achieve is, you know, is is a contemporary expression of our brand that is familiar to the people who know and love us, but also kind of exciting to new guests and, you know, we leveraged our brand positioning to do that design work. And so, you know, I think I think it'll feel

And so part of that influence the design process, whereby what we really coming out with is a clear set of brand standards for Bj's that we can apply.

Two different sizes different shapes, but it always looks and feels like a bj's.

With that on a cost to build size I mean really what we look at by each individual.

Jeffrey Bernstein: Okay, perfect. Thank you, both.

Todd Brooks: Okay, perfect. Thank you, both.

Familiar. But but contemporary and you know, we have, I think some branding elements that we're bringing in that are evolved in new. I think how we're using some of the nods towards. Our craft brew Heritage with the silos is going to be involved in new. Um, so there's there's there's a number of things but it won't be it'll be a familiar about contemporize version. And as we look at, um, the footprint of it, you know, I I'm a big believer in right, size, right cost, right place.

Lyle Tick: Yep.

Evaluation of the New unit is do we feel like it's delivering an attractive IRR. So that we're being good stewards of the capital.

Jeffrey Bernstein: Thanks.

Lyle Tick: Thanks, Todd.

Operator: The next question is from Jon Tower with Citi. Please go ahead.

Jon Tower: Hey, thanks, guys, for taking the question. Maybe I'm curious to hear that you guys are seeing relatively strong late night business. It's good to hear. I'm just curious, one, if you're doing anything special to drive it relative to what you've done in the past. Is that also inclusive of the off-premise business when you speak to the strength there?

But we are obviously just of.

What has gone on with construction and inflation.

And so as we built the new design, we are looking for opportunities with that kit of parts to be able to apply them flexibly flexibly.

And get the kind of cost to build to sales and profit and ultimately IRR, where we want it but.

Lyle Tick: Well, I mean, all of late night is growing. I'll let Todd pick up on the channel mix because I don't have that answer to hand. You know, Jon, I wish I could tell you that we were doing something super unique to drive the late-night business. You know, I think we have a great environment. I think we have a good offer because, you know, our happy hour offer, we offer at late night, and I think I've talked about this before. I do think some of it is supply and demand. I think on balance, in the past several years, if anything, you've seen less people kind of either extend or go back to kind of full hours, and I think there's less late-night supply.

I think what Youll see going forward John is in certain markets youre going to see.

Something that looks quite like the.

The size of a bj's right now because it's appropriate for that market and in another market you might see something of a smaller footprint or a conversion that allows us to deliver the right return.

For the capital we put it.

Alright, and have you shared this irr's before that you're targeting.

I don't know that we've that I think that we've shared it before I mean in the past I.

I think we talked about like mid teens IRR wood.

Obviously have us at a place where it exceeds our weighted cost of capital but.

Building them not always at the same square footage, maybe in certain markets, it would be relevant to go smaller. I think we're looking at conversions in the in the appropriate market. So we're not going to be dogmatic about every time it has to be just a prototype ground up build. Um, and so part of that influence, the design process whereby what we really coming out with is a clear set of brand standards for BJ's that, we can apply, uh, to different sizes, different shapes. But it always looks and feels like a BJ's, um, with that on a cost to build size. I mean, really what we look at by each individual, um, evaluation of a new unit is, do we feel like it's delivering an attractive irr, so that we're being good, stewards of the capital. Um, but we are obviously conscious of, you know, what has gone on with construction and inflation. And, um, and so, you know, as we've built the new

Our ambition is for better than that.

Lyle Tick: I think we probably have some demand coming back, and I think we are a great or better alternative to a lot of folks for late night, and I think that's helping us win. We don't have, like, a specific marketing push or very specific, unique like, offer for late night that is uniquely driving it.

Awesome, Thanks for taking the questions.

Yes.

This concludes our question and answer session and the conference is also now concluded. Thank you for attending.

Ending today's presentation you may now disconnect.

Jon Tower: Got it.

Lyle Tick: Jon, I'll tag in on.

Todd Wilson: Hey, Jon, just to give you. It's Todd here. I'll give you some quick color on off-prem versus on. You know, as we look at if you just split our business into on-prem versus off-prem, the dine-in business, the on-prem business, is incredibly strong. You know, obviously, that's the majority of our business in the quarter. You know, traffic in dine-in was up almost 7%, a little over 7%, so just tremendously strong there. The off-prem part of our business has seen declines. That wasn't new in Q4. That has been a headwind for us for the past few quarters. It's a matter of, you know, we've got folks dedicated to work to address that, but the strength of the dine-in business is particularly strong.

New design, we are looking for opportunities with that kit, apart to be able to apply them flexibly—flexibly, uh—and get the kind of cost to build to sales and profit and ultimately IRR where we want it. But I think what you'll see going forward, John, is in certain markets, you're going to see, you know, something that looks quite like the, you know, the size of a BJ's right now because it's appropriate for that market, and in another market, you might see something of a—

Smaller footprint or a conversion that allows us to deliver the right return. Uh, for the capital we put in

Right? And have you shared those IRs before that you're targeting?

um, I don't know that we've that I think that we've shared it before, I mean in the, in the past,

You know, I think we talked about like mid-teens IRR would, um, obviously have us at a place where it exceeds our weighted cost of capital, but, you know, I think our ambition is for better than that.

Awesome. Thanks for taking the questions.

Yeah.

Jon Tower: Okay. Just following up, on the comment regarding your late night, is that anywhere near? Like, if you guys were to recover, you know, I guess, from an average weekly sales standpoint back to peak, like, how much more room do you have to go? Better asked, like, how far has late night declined relative to your kind of peak times or peak windows or years?

This concludes our question and answer session, and the conference is also. Now concluded, thank you for attending today's presentation. You may now disconnect

Lyle Tick: I mean, I honestly, I don't have the number to hand of whether we're there or whether late night... If we look back, I assume we're talking, like, kind of pre-COVID, like, what the late night AUV was. I mean, you know, what I can say is as part of what we talked about in Q1, which is the continued momentum we're seeing in Q1, the shape of that continues to see particular strength in late night. That has continued into this quarter so far. I don't know, Todd, if you have... And in terms of the night specific AUV.

Todd Wilson: Jon, maybe we can tag that as a-.

Jon Tower: Okay. Hopefully, you guys can still hear me. Just one last question...

Lyle Tick: Yeah.

Jon Tower: that I had. Okay, great. Just you had mentioned, obviously, you're gonna be opening new stores in the back half of this year. Can you just speak to what the new prototype might look like? High-level features that are different versus the baseline day. Heck, it could even just be square footage, but I would assume there's probably a little bit of a differential, even off-premise access to the stores versus maybe some of the legacy asset base that you have today, and even the cost to build.

Lyle Tick: Yeah.

Lyle Tick: Yeah. I mean, as we look at it, right? I mean, from a design perspective, you know, I think, you know, what we're ultimately trying to achieve is, you know, a contemporized expression of our brand that is familiar to the people who know and love us, but also kind of exciting to new guests. You know, we leverage our brand positioning to do that design work. You know, I think, I think it'll feel familiar, but contemporary. You know, we have, I think, some branding elements that we're bringing in that are evolved and new. I think how we're using some of the nods towards our craft brew heritage with the silos is gonna be evolved and new.

Lyle Tick: There's a number of things, but it'll be a familiar but contemporized version. As we look at the footprint of it, you know, I'm a big believer in right size, right cost, right place. Now, the first couple that you build, in my experience doing this, are generally relatively prototypey. As you kind of go forward, as we look into, you know, the next couple, as we move into 2027, you know, I think we will be looking to look at building them not always at the same square footage. Maybe in certain markets it would be relevant to go smaller. I think we're looking at conversions in the appropriate markets. We're not gonna be dogmatic about every time it has to be just a prototype ground-up build.

Lyle Tick: Part of that influenced the design process, whereby what we're really coming out with is a clear set of brand standards for BJ's, that we can apply to different sizes, different shapes, but it always looks and feels like a BJ's. With that, on a cost to build size, I mean, really what we look at by each individual evaluation of a new unit is, do we feel like it's delivering an attractive IRR so that we're being good stewards of the capital? We are obviously conscious of, you know, what has gone on with construction and inflation.

Lyle Tick: you know, as we've built the new design, we are looking for opportunities with that kit of parts to be able to apply them flexibly and get the kind of cost to build, to sales and profit, and ultimately IRR, where we want it. I think what you'll see going forward, Jon, is in certain markets, you're gonna see, you know, something that looks quite like the, you know, the size of a BJ's right now, 'cause it's appropriate for that market. In another market, you might see something of a smaller footprint or a conversion that allows us to deliver the right return for the capital we put in.

Jon Tower: Great. Have you shared those IRRs before that you're targeting?

Lyle Tick: I don't know that, I think, that we've shared it before. I mean, in the past, you know, I think we talked about, like, mid-teens IRR would obviously have us at a place where it exceeds our weighted cost of capital. You know, I think our ambition is for better than that.

Jon Tower: Awesome. Thanks for taking the questions.

Lyle Tick: Yeah.

Operator: This concludes our question and answer session, and the conference is also now concluded. Thank you for attending today's presentation. You may now disconnect.

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