It has been about a month since the last earnings report for BJ's Restaurants (BJRI Quick QuoteBJRI - Free Report) . Shares have added about 9.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is BJ's Restaurants due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for BJ's Restaurants, Inc. before we dive into how investors and analysts have reacted as of late.

BJ's Restaurants Q1 Earnings Miss Estimates, Revenues Beat

BJ's Restaurants reported first-quarter 2026 results, with earnings missing the Zacks Consensus Estimate and decreasing on a year-over-year basis. However, revenues beat the estimate and increased from the prior year's figures.

Revenue growth reflected steady demand across the system, supported by higher guest counts rather than pricing. Average check increased only modestly, underscoring that the brand’s recent gains have been built mainly on traffic and frequency.

Management highlighted strong performance around key occasions and described marketing optimization efforts that reduced spending in the quarter while still supporting sales. The company also noted stabilization in total beverage sales, helped by growth in nonalcoholic offerings and a successful seasonal beer program.

BJRI’s Q1 Earnings & Revenues

In the quarter under review, the company reported an adjusted earnings per share (EPS) of 57 cents per share, down 3.4% year over year and missing the Zacks Consensus Estimate by 6.6%.

Total revenues increased 2.9% year over year to $358.1 million and edged past the consensus mark of $356 million by 0.6%.

Comparable restaurant sales rose 2.4% on 2.2% higher guest traffic. Management also pointed to improved profitability versus industry benchmarks, despite weather-related volatility during the quarter.

BJRI’s Margins Hold, But Cost Pressure Persists

Restaurant-level operating profit increased 2.8% to $57.2 million, and restaurant-level operating margin held at 16%, signaling stable store-level performance in a shifting cost environment. Adjusted EBITDA rose 6.8% to $37.7 million, with margin expanding 30 basis points to 10.5%.

Still, several cost lines reflected pressure. Cost of sales rose to 25.1% of revenues from 25% a year ago, with management pointing to anticipated beef inflation, partly offset by operational improvements such as reduced food waste and simplification initiatives. Labor and benefits increased to 36.3% of revenues, driven by higher workers’ compensation costs tied to rising medical expenses, despite fewer claims. 

And operating costs declined to 22.7% from 23% in the prior-year period. General and administrative expenses fell to 6.1% of sales, compared with 6.3% in the year-ago quarter.

BJ’s Restaurants' Cash Flow Supports Deleveraging

Cash and cash equivalents were $22.7 million at quarter-end, compared with $23.8 million at fiscal 2025-end. Total debt was reduced to $62 million from $85 million at the end of fiscal 2025, reflecting meaningful paydown during the period.

Operating cash flow was $43.0 million, compared with $4.6 million in the year-ago quarter, aided by working-capital timing. The company invested $15.8 million in capital expenditures, largely tied to restaurant maintenance and remodel activity, as it continues upgrading the guest experience and supporting operational execution.

BJRI repurchased and retired about 151,000 shares for roughly $5.3 million during the quarter. The remaining authorization stood at about $87.9 million as of March 31, 2026, keeping buybacks in play as a key lever in capital allocation.

BJ’s Restaurants Reiterates Outlook for 2026

For 2026, management reiterated its full-year outlook, calling for comparable restaurant sales growth of 1% to 3%. The company continues to expect restaurant-level operating profit of $221 million to $233 million and adjusted EBITDA of $140 million to $150 million.

Management also guided to capital expenditures of $85 million to $95 million and share repurchases of up to $50 million, subject to market conditions. Executives noted that commodity inflation is expected to be most pronounced in the second quarter, with planned pricing and menu actions intended to offset pressure in the back half of the year. 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

Currently, BJ's Restaurants has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

BJ's Restaurants has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

BJ's Restaurants belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Cheesecake Factory (CAKE Quick QuoteCAKE - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Cheesecake Factory reported revenues of $978.83 million in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $1.05 for the same period compares with $0.93 a year ago.

For the current quarter, Cheesecake Factory is expected to post earnings of $1.13 per share, indicating a change of -2.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.9% over the last 30 days.

Cheesecake Factory has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.