BJ’s Restaurants reported that its latest-quarter traffic increased by 8% and sales grew 6.5% year over year. Average unit volume rose by roughly $500,000 and restaurant-level cash flow improved by about $220,000, contributing to a margin expansion of 240 basis points.
Beef inflation, which was about 20% in the second quarter, created a 70 basis point headwind to cost of sales. The company expects beef inflation to moderate to around 10% in the third quarter, turning that headwind into a 20 to 30 basis point tailwind year over year. This shift is estimated to deliver a 90 to 100 basis point margin benefit.
Loyalty program members visit the chain about four times annually, compared with just under two visits for non‑members. A reallocation of marketing spend from the first to the second quarter generated a 60% increase in impressions during the celebration season.
Pizza, burgers and chicken sandwiches together account for roughly 25% of sales, while pizza alone represents 6% to 7% of sales but appears on about 20% of checks. The incidence of the Pizookie dessert doubled year over year in the latest quarter.
The company operates approximately 220 U.S. company‑owned restaurants. It plans to open one to two new units in 2024 and a handful in 2025, with a longer‑term target of double‑digit annual openings equal to about 5% of its current footprint. Development pipeline lead times for leases and landlord agreements run 12 to 24 months.
About one‑third of restaurants now use an AI‑forecasted, activity‑based labor model. Over the next 12 to 18 months, the menu roadmap will focus on steaks, slow‑roast items, shareables and appetizers, salads and specialty entrees, with a new prototype and brand standards rollout slated to begin at the end of 2024 and continue into 2025.
Executives noted that the strong traffic and sales growth should allow the company to leverage fixed costs, and expressed confidence in the direction of the business.
