Latest news with #PizookieMealDeal
Yahoo
3 days ago
- Business
- Yahoo
BJ's Restaurants appoints CEO
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. BJ's Restaurants has promoted Lyle D. Tick to CEO and president, effective Thursday, the company said in a press release. In addition, the company's CFO, Thomas A. Houdek, will resign from his post on June 20. Tick, current president and chief concept officer, will succeed interim CEO C. Bradford Richmond, who will become special advisor to the CEO during Tick's transition. Richmond will remain a member of the board of directors. Tick joined BJ's Restaurants in September 2024, after serving as president and CEO at On the Border Mexican Grill & Cantina. He has played a key role in creating BJ's strategic vision, that is focused on the employee experience, menu and improved hospitality. BJ's Restaurants, which posted 1.7% same-store sales growth in Q1, has been without a permanent CEO since Gregory S. Levin stepped down from the role in late August. Levin was with the company for 19 years and became CEO in 2021. William Blair analyst Sharon Zackfia said Tick's promotion was 'unsurprising' and 'largely expected.' Tick has experience turning a brand around and driving sales. For roughly five years as brand president at Buffalo Wild Wings, Tick led a revitalization effort that included 'a return to its sport bar legacy, an updated design, and a revamped menu alongside the launch of the smaller delivery/takeout concept Buffalo Wild Wings GO,' Zackfia said. In the months since joining BJ's, Tick already has made a big impression. 'As President and Chief Concept Officer, Lyle has quickly re-focused the Company's core sales and profit-driving initiatives to further differentiate our concept while capturing opportunities to reduce operational complexity,' Lea Anne S. Ottinger, BJ's board chair, said in a statement. 'We are confident that under his leadership, BJ's will continue to drive sustainable growth and create long-term shareholder value.' The company's ongoing strategy to drive sales includes menu innovation, like its Pizookie Meal Deal, Tick said in the company's Q1 2025 earnings release. That item improved the chain's value proposition, he said during an earnings call. A Pizookie Platter, which combined four regular sized Pizookie's into one treat, gained significant play on social media, generating 57 million organic social impressions. The chain sold more than 24,000 platters, Tick said. Menu innovation contributed to a 2.7% traffic bump during the quarter. The chain also has been working on improving team member experience, such as updating its point-of-sales and kitchen display systems that can help employees input menu items, boost accuracy and speed of service. This has helped reduce comping of food and beverages by 13% year over year, Tick said. Recommended Reading BJ's Restaurants CEO, president Gregory Levin steps down
Yahoo
16-05-2025
- Business
- Yahoo
BJRI Q1 Earnings Call: Margin Expansion, Menu Upgrades, and Cautious Unit Growth Drive Outlook
American restaurant chain BJ's Restaurants (NASDAQ:BJRI) met Wall Street's revenue expectations in Q1 CY2025, with sales up 3.2% year on year to $348 million. Its non-GAAP profit of $0.59 per share was 53.4% above analysts' consensus estimates. Is now the time to buy BJRI? Find out in our full research report (it's free). Revenue: $348 million vs analyst estimates of $348 million (3.2% year-on-year growth, in line) Adjusted EPS: $0.59 vs analyst estimates of $0.38 (53.4% beat) Adjusted EBITDA: $35.35 million vs analyst estimates of $32.1 million (10.2% margin, 10.1% beat) EBITDA guidance for the full year is $135.5 million at the midpoint, above analyst estimates of $130.5 million Operating Margin: 4.3%, up from 2.4% in the same quarter last year Free Cash Flow was -$12.06 million, down from $448,000 in the same quarter last year Locations: 219 at quarter end, up from 217 in the same quarter last year Same-Store Sales rose 1.7% year on year (-1.7% in the same quarter last year) Market Capitalization: $963.8 million BJ's Restaurants delivered first quarter results shaped by strong traffic gains and improved restaurant-level efficiencies, supported by operational simplification and targeted value promotions. Interim CEO Brad Richmond credited margin expansion to a combination of higher guest counts, successful labor management, and process improvements, stating, 'We have a really nice balance right now of being able to drive traffic in with a great value message as well as delivering these profits.' Looking forward, management's updated guidance reflects confidence in the durability of current margin gains and the rollout of strategic initiatives. President Lyle Tick highlighted plans to upgrade menu staples and leverage data-driven operational changes, while CFO Tom Houdek noted the company is monitoring tariff impacts but expects only modest inflation in the second half. Management maintained a cautious but optimistic outlook, emphasizing continued focus on operational execution and measured restaurant growth. Management attributed quarterly performance to guest traffic outperformance and ongoing operational changes, while emphasizing early but encouraging progress on long-term brand and menu initiatives. Traffic Outperformance: BJ's achieved 2.7% traffic growth, notably outperforming the broader industry by over 300 basis points. Management credited this to value-driven promotions like the Pizookie Meal Deal, as well as increased social media engagement, which generated significant organic interest and sales. Margin Expansion Initiatives: Restaurant-level operating margins improved due to simplification efforts, including point-of-sale (POS) and kitchen display system (KDS) upgrades, and targeted labor scheduling using AI in select locations. Team member retention, now above industry norms, also contributed to operating efficiencies. Menu and Product Upgrades: The company is executing a structured category management approach to menu innovation, beginning with a full renovation of its signature pizza platform. Early market tests for the revamped pizza and new sauces have shown promising guest feedback and operational benefits. Remodels and New Units: Eight remodels were completed in the quarter, with more planned, and one new restaurant opened in a core geography to leverage existing operational infrastructure. Management is prioritizing infill growth in established markets to improve brand awareness and operational leverage. Operational Agility in Macroeconomic Uncertainty: Despite industry-wide concerns about consumer spending, management reported stable guest behavior across income cohorts. Approximately 85% of food supplies are sourced from USMCA countries and are not subject to new tariffs, limiting exposure to inflationary pressures in the near term. Management's outlook for the remainder of the year centers on maintaining operational efficiency and disciplined menu innovation, while closely monitoring consumer trends and potential cost pressures. Menu Optimization Rollout: Expansion of menu simplification and upgrades—including pizza renovation and SKU reductions—is expected to drive guest engagement and operational consistency, supporting both traffic and margins. AI-Driven Labor Scheduling: Continued deployment of AI-based forecasting and scheduling tools is anticipated to unlock further labor efficiencies, with management highlighting ongoing pilots yielding improved guest satisfaction and reduced labor costs. Tariff and Inflation Watch: Management has factored in potential impacts from tariffs and food cost inflation, mainly in the second half of the year. The company believes most inflation is contained but is prepared to adjust pricing and sourcing strategies as needed. Alex Slagle (Jefferies): Asked about the magnitude and sustainability of margin gains from process simplification; management noted ongoing benefits from labor efficiencies and balanced reinvestment into guest experience. Brian Bittner (Oppenheimer & Co.): Queried why BJ's traffic trends outperformed quick-service and fast-casual peers; executives cited higher-income customer base, strong value propositions, and focus on group occasions. Jeffrey Bernstein (Barclays): Questioned whether macroeconomic pressures are impacting value perceptions or guest mix; management reported stable behavior across cohorts and highlighted the unique appeal of the Pizookie Meal Deal. Sharon Zackfia (William Blair): Probed whether value promotions are attracting new customer segments; leadership indicated broad-based traffic growth without a fundamental shift in customer demographics. Brian Mullan (Piper Sandler): Sought details on the strategic importance and expected impact of the pizza platform upgrade; management described pizza as a core brand pillar and anticipated incremental traffic and check growth once fully rolled out. In the coming quarters, the StockStory team will monitor (1) the rollout and guest response to the revamped pizza platform and broader menu simplification, (2) the pace and financial impact of further remodeling and infill unit openings, and (3) the company's ability to sustain margin improvements amid evolving labor and food cost pressures. Execution in these areas will be critical for assessing whether BJ's can translate operational momentum into durable growth. BJ's currently trades at a forward P/E ratio of 25.6×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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