BJ's Restaurants Reports 6.4% Revenue Growth in Q2 Fiscal 2026, Net Income Declines

BJ's Restaurants, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a revenue increase of 6.4% to $388.9 million compared to $365.6 million in the same period last year. The growth was primarily driven by a 6.5% rise in comparable restaurant sales, attributed to an 8.3% increase in guest traffic, although this was partially offset by a 1.8% decrease in average check due to changes in product mix. For the first half of the fiscal year, total revenues reached $747.0 million, up 4.7% from $713.6 million in the prior year.

Despite the revenue growth, BJ's Restaurants experienced a decline in profitability. Net income for the second quarter fell to $18.8 million, or $0.86 per diluted share, down from $22.2 million, or $0.97 per diluted share, in the same quarter of the previous year. For the first half, net income decreased to $27.8 million, or $1.27 per diluted share, compared to $35.7 million, or $1.54 per diluted share, in the prior year. The decline in net income was attributed to increased operating costs, including a 9.1% rise in cost of sales driven by inflation in commodity prices, particularly beef.

Operationally, BJ's Restaurants reported a total of 219 locations across 31 states as of July 30, 2026. The company has focused on enhancing its customer experience and menu offerings, which include approximately 90 items and proprietary craft beers. The restaurant chain also noted an increase in general and administrative expenses, which rose by 21.1% in the second quarter, largely due to legal and leadership transition costs, as well as higher stock-based compensation.

In terms of liquidity, BJ's Restaurants ended the quarter with $14.4 million in cash and cash equivalents, down from $23.8 million at the end of the previous fiscal year. The company reported a net cash provided by operating activities of $74.0 million for the first half of the year, an increase from $66.9 million in the prior year. However, net cash used in financing activities increased to $43.0 million, primarily due to higher repayments of borrowings. The company continues to maintain a share repurchase program, with $85.5 million remaining under its authorized plan.

Looking ahead, BJ's Restaurants expressed optimism about its growth strategy, which includes ongoing investments in restaurant maintenance and remodels, as well as potential new restaurant openings. The company believes that its current cash position, along with cash generated from operations and available credit, will be sufficient to meet its capital expenditure and working capital needs for the next twelve months. However, it acknowledged that future performance will be influenced by economic conditions and various external factors.