American restaurant chain BJ’s Restaurants (NASDAQ: BJRI) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue up 8.6% year on year to $358.6 million. Its non-GAAP profit of $0.33 per share was 96.8% above analysts’ consensus estimates.

For more on BJ's, read our free full research report.

“As we continue to make meaningful progress in our journey to unlock the full potential of this great brand, we delivered another strong quarter,” commented Lyle Tick, Chief Executive Officer and President. “The third quarter marked our ninth consecutive quarter of sales and traffic growth, with both comparable restaurant sales and traffic up approximately 8%, and our eighth quarter of profit growth, increasing restaurant level operating profit margin by 220 basis points year over year. Looking ahead, we remain confident in our strategic growth drivers and will continue to invest in our team members, advance menu innovation that re-enforces compelling value and drives seasonal excitement, enhance the guest experience and ensure our 219 restaurants are places where our teams are proud to work and our guests are excited to return to,” concluded Tick.

Revenue growth

A company’s long-term revenue performance is one signal of its overall quality. Even a bad business can perform well for one or two quarters, but a high-quality one grows for years.

With $1.46 billion in revenue over the past 12 months, BJ's is a mid-sized restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

BJ’s revenue grew at a sluggish 3.5% compounded annual growth rate over the last seven years as its restaurant footprint remained unchanged.

This quarter, BJ's reported year-on-year revenue growth of 8.6%, and its $358.6 million in revenue exceeded Wall Street’s consensus estimates by 3.4%.

Looking ahead, sell-side analysts expect revenue to grow 2.5% over the next 12 months, according to S&P, similar to its seven-year rate. This underwhelming projection implies its newer menu offerings will not accelerate revenue growth yet.

Restaurant performance

Number of restaurants

BJ's listed 219 locations in the latest quarter and has kept its restaurant count flat over the last two years while other restaurant businesses have opted for growth.

When a chain doesn’t open many new restaurants, it usually means there’s stable demand for its meals and it’s focused on improving operational efficiency to increase profitability.

Same-store sales

A company’s restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. The same-store sales metric provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year.

BJ’s demand has been strong for a restaurant chain over the last two years. On average, the company has increased its same-store sales by 3.8% per year. Given its flat restaurant base over the same period, this performance stems from a mixture of higher prices and increased foot traffic at existing locations.

In the latest quarter, BJ’s same-store sales rose 8.1% year on year. This growth marked an acceleration from its historical levels, a positive sign.

Key takeaways from BJ’s Q3 results

BJ's delivered a solid quarter, with EBITDA beating Wall Street’s consensus estimates by a wide margin and EPS also topping analysts’ consensus estimates. Shares remained flat at $58.48 immediately after the results.

BJ's had a positive quarter, but one earnings result doesn’t necessarily make the stock a buy. The latest quarter is only one piece of the longer-term business quality picture. Quality, when combined with valuation, can help determine if the stock is a buy. For more on BJ's, read the full research report here (it’s free).