{"url_path":"/sec/bjri/10-k/2026/item-16","section_key":"item-16","section_title":"Item 16 FORM 10-K SUMMARY","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-02","source_url":"https://www.sec.gov/Archives/edgar/data/1013488/0001193125-26-083331-index.html","accession_number":"0001193125-26-083331","cik":"0001013488","ticker":"BJRI","issuer_name":"BJs RESTAURANTS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1013488/0001193125-26-083331-index.html","primary_entity_key":"0001013488","primary_entity_name":"BJs RESTAURANTS INC"},"word_count":11115,"has_tables":true,"body_markdown":"ITEM 16. FORM 10-K SUMMARY\n\nNot applicable.\n\n40\n\n \n\nSIGNATURES\n\nPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on our behalf by the undersigned, thereunto duly authorized.\n\n \n\n \n\nBJ’S RESTAURANTS, INC.\n\n \n\nBy:\n\n/s/ LYLE D. TICK\n\n \n\nFebruary 27, 2026\n\n \n\nLyle D. Tick\n\nChief Executive Officer, President and Director\n\n(Principal Executive Officer)\n\nPursuant to the requirements of the Securities and Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.\n\n \n\nSignature\n\n \n\nCapacity\n\n \n\nDate\n\nBy: /s/ LYLE D. TICK\n\n \n\n \n\n \n\n \n\n           Lyle D. Tick\n\n \n\nChief Executive Officer, President and Director\n\n(Principal Executive Officer)\n\n \n\nFebruary 27, 2026\n\nBy: /s/ J. TODD WILSON\n\n \n\n \n\n \n\n \n\n            J. Todd Wilson\n\n \n\nExecutive Vice President and Chief Financial Officer\n\n(Principal Financial and Accounting Officer)\n\n \n\nFebruary 27, 2026\n\n \n\nBy: /s/ BINA CHAURASIA\n\n \n\n \n\n \n\n \n\n            Bina Chaurasia\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ JAMES A. DAL POZZO\n\n \n\n \n\n \n\n \n\n            James A. Dal Pozzo\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ NOAH A. ELBOGEN\n\n \n\n \n\n \n\n \n\n            Noah A. Elbogen\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ LEA ANNE S. OTTINGER\n\n \n\n \n\n \n\n \n\n            Lea Anne S. Ottinger\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ C. BRADFORD RICHMOND\n\n \n\n \n\n \n\n \n\nC. Bradford Richmond\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ JULIUS W. ROBINSON, JR.\n\n \n\n \n\n \n\n \n\n            Julius W. Robinson, Jr.\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\nBy: /s/ JANET M. SHERLOCK\n\n \n\n \n\n \n\n \n\n            Janet M. Sherlock\n\n \n\nDirector\n\n \n\nFebruary 27, 2026\n\n \n\n41\n\n \n\nBJ’S RESTAURANTS, INC.\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n \n\nPage\n\n \n\n \n\n[Report of Independent Registered Public Accounting Firm](#report_independent_registered_public_acc)\n\nF-1\n\n[Consolidated Balance Sheets as of December 30, 2025 and](#consolidated_balance_sheets)[December 31, 2024](#consolidated_balance_sheets)\n\nF‑3\n\n[Consolidated Statements of Operations for Each of the Three Fiscal Years in the Period Ended December 30, 2025](#consolidated_statements_operations)\n\nF‑4\n\n[Consolidated Statements of Shareholders’ Equity for Each of the Three Fiscal Years in the Period Ended December 3](#consolidated_statements_shareholders_equ)[0, 2025](#consolidated_balance_sheets)\n\nF‑5\n\n[Consolidated Statements of Cash Flows for Each of the Three Fiscal Years in the Period Ended](#consolidated_statements_cash_flows)[December 30, 2025](#consolidated_balance_sheets)\n\nF‑6\n\n[Notes to Consolidated Financial Statements](#notes_to_consolidated_financial_statemen)\n\nF‑8\n\n \n\n \n\n \n\n42\n\n \n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo the Shareholders and the Board of Directors\nBJ’s Restaurants, Inc.:\n\nOpinion on the Consolidated Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of BJ’s Restaurants, Inc. and subsidiaries (the Company) as of December 30, 2025 and December 31, 2024, the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 30, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2025 and December 31, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 30, 2025, in conformity with U.S. generally accepted accounting principles.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 27, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.\n\nBasis for Opinion\n\nThese consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nEvaluation of long-lived assets for impairment\n\nAs discussed in Note 1 to the consolidated financial statements, the Company assesses long-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered include, but are not limited to, significant underperformance by a restaurant relative to historical operating results, significant changes in the manner of use of the assets or the strategy for the overall business, significant negative industry or economic trends, and the Company’s expectation to dispose of long-lived assets before the end of their previously estimated useful lives. The property and equipment, net, and operating lease asset balances as of December 30, 2025 were $502.1 million and $314.2 million, respectively.\n\nWe identified the evaluation of potential indicators of impairment of long-lived assets as a critical audit matter. Subjective auditor judgment was required to evaluate the Company’s assessment of whether any of the following were potential indicators for impairment: (1) restaurant-level cash flow results relative to historical operating results for underperforming restaurants, (2) significant changes in the manner of use of the assets or the strategy for the overall business, and (3) the impact of significant negative industry or economic trends on restaurant-level results.\n\n \n\nF-1\n\n \n\nThe following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s long-lived asset impairment process, including controls related to the identification and evaluation of potential indicators of impairment. We assessed the Company’s identification and evaluation of potential indicators of impairment by:\n\n•\ncomparing the restaurant-level cash flows of certain restaurants to historical operating results\n\n•\nconsidering other events or changes in circumstances that impact restaurant-level operating results for certain restaurants\n\n•\nreading board of directors meeting minutes for significant changes in the manner of the use of the assets or the strategy of the overall business\n\n•\nconsidering available industry and economic information for significant negative trends.\n\n \n\n/s/ KPMG LLP\n\n \n\nWe have served as the Company’s auditor since 2021.\n\n \n\nLos Angeles, California\n\nFebruary 27, 2026\n\nF-2\n\n \n\n \n\nBJ’S RESTAURANTS, INC.\n\nCONSOLIDATED BALANCE SHEETS\n\n(In thousands)\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nAssets\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n23,781\n\n \n\n \n\n$\n\n26,096\n\n \n\nAccounts and other receivables, net\n\n \n\n \n\n18,391\n\n \n\n \n\n \n\n20,402\n\n \n\nInventories, net\n\n \n\n \n\n13,106\n\n \n\n \n\n \n\n12,768\n\n \n\nPrepaid expenses and other current assets\n\n \n\n \n\n19,647\n\n \n\n \n\n \n\n20,299\n\n \n\nTotal current assets\n\n \n\n \n\n74,925\n\n \n\n \n\n \n\n79,565\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProperty and equipment, net\n\n \n\n \n\n502,108\n\n \n\n \n\n \n\n510,581\n\n \n\nOperating lease assets\n\n \n\n \n\n314,178\n\n \n\n \n\n \n\n336,936\n\n \n\nGoodwill\n\n \n\n \n\n4,673\n\n \n\n \n\n \n\n4,673\n\n \n\nEquity method investment\n\n \n\n \n\n4,083\n\n \n\n \n\n \n\n4,266\n\n \n\nDeferred income taxes, net\n\n \n\n \n\n67,300\n\n \n\n \n\n \n\n62,318\n\n \n\nOther assets, net\n\n \n\n \n\n48,188\n\n \n\n \n\n \n\n42,725\n\n \n\nTotal assets\n\n \n\n$\n\n1,015,455\n\n \n\n \n\n$\n\n1,041,064\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities and Shareholders’ Equity\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n38,353\n\n \n\n \n\n$\n\n51,011\n\n \n\nAccrued expenses\n\n \n\n \n\n105,336\n\n \n\n \n\n \n\n105,316\n\n \n\nCurrent operating lease obligations\n\n \n\n \n\n44,086\n\n \n\n \n\n \n\n39,982\n\n \n\nTotal current liabilities\n\n \n\n \n\n187,775\n\n \n\n \n\n \n\n196,309\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLong-term operating lease obligations\n\n \n\n \n\n361,672\n\n \n\n \n\n \n\n394,129\n\n \n\nLong-term debt\n\n \n\n \n\n85,000\n\n \n\n \n\n \n\n66,500\n\n \n\nOther liabilities\n\n \n\n \n\n14,815\n\n \n\n \n\n \n\n14,109\n\n \n\nTotal liabilities\n\n \n\n \n\n649,262\n\n \n\n \n\n \n\n671,047\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommitments and contingencies (Note 7)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nShareholders’ equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\nPreferred stock, 5,000 shares authorized, none issued or outstanding\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCommon stock, no par value, 125,000 shares authorized and 21,114 and\n22,697 shares issued and outstanding as of December 30, 2025 and\nDecember 31, 2024, respectively\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCapital surplus\n\n \n\n \n\n75,020\n\n \n\n \n\n \n\n77,576\n\n \n\nRetained earnings\n\n \n\n \n\n291,173\n\n \n\n \n\n \n\n292,441\n\n \n\nTotal shareholders’ equity\n\n \n\n \n\n366,193\n\n \n\n \n\n \n\n370,017\n\n \n\nTotal liabilities and shareholders’ equity\n\n \n\n$\n\n1,015,455\n\n \n\n \n\n$\n\n1,041,064\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-3\n\n \n\nBJ’S RESTAURANTS, INC.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(In thousands, except per share data)\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRevenues\n\n \n\n$\n\n1,399,126\n\n \n\n \n\n$\n\n1,357,302\n\n \n\n \n\n$\n\n1,333,229\n\n \n\nRestaurant operating costs (excluding depreciation and amortization):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of sales\n\n \n\n \n\n353,293\n\n \n\n \n\n \n\n350,560\n\n \n\n \n\n \n\n346,569\n\n \n\nLabor and benefits\n\n \n\n \n\n504,537\n\n \n\n \n\n \n\n495,466\n\n \n\n \n\n \n\n491,314\n\n \n\nOccupancy and operating\n\n \n\n \n\n325,060\n\n \n\n \n\n \n\n315,683\n\n \n\n \n\n \n\n317,559\n\n \n\nGeneral and administrative\n\n \n\n \n\n91,005\n\n \n\n \n\n \n\n88,272\n\n \n\n \n\n \n\n82,103\n\n \n\nDepreciation and amortization\n\n \n\n \n\n76,571\n\n \n\n \n\n \n\n72,745\n\n \n\n \n\n \n\n70,992\n\n \n\nRestaurant opening\n\n \n\n \n\n663\n\n \n\n \n\n \n\n2,082\n\n \n\n \n\n \n\n2,808\n\n \n\nLoss on disposal and impairment of assets, net\n\n \n\n \n\n1,687\n\n \n\n \n\n \n\n18,414\n\n \n\n \n\n \n\n8,125\n\n \n\nTotal costs and expenses\n\n \n\n \n\n1,352,816\n\n \n\n \n\n \n\n1,343,222\n\n \n\n \n\n \n\n1,319,470\n\n \n\nIncome from operations\n\n \n\n \n\n46,310\n\n \n\n \n\n \n\n14,080\n\n \n\n \n\n \n\n13,759\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther income (expense):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense, net\n\n \n\n \n\n(4,745\n\n)\n\n \n\n \n\n(5,484\n\n)\n\n \n\n \n\n(4,915\n\n)\n\nOther income (expense), net (1)\n\n \n\n \n\n5,668\n\n \n\n \n\n \n\n(331\n\n)\n\n \n\n \n\n1,256\n\n \n\nTotal other income (expense)\n\n \n\n \n\n923\n\n \n\n \n\n \n\n(5,815\n\n)\n\n \n\n \n\n(3,659\n\n)\n\nIncome before income taxes\n\n \n\n \n\n47,233\n\n \n\n \n\n \n\n8,265\n\n \n\n \n\n \n\n10,100\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome tax benefit\n\n \n\n \n\n(1,575\n\n)\n\n \n\n \n\n(8,422\n\n)\n\n \n\n \n\n(9,560\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n48,808\n\n \n\n \n\n$\n\n16,687\n\n \n\n \n\n$\n\n19,660\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income per share:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n$\n\n2.22\n\n \n\n \n\n$\n\n0.72\n\n \n\n \n\n$\n\n0.84\n\n \n\nDiluted\n\n \n\n$\n\n2.16\n\n \n\n \n\n$\n\n0.70\n\n \n\n \n\n$\n\n0.82\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average number of shares outstanding:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n \n\n \n\n21,980\n\n \n\n \n\n \n\n23,132\n\n \n\n \n\n \n\n23,452\n\n \n\nDiluted\n\n \n\n \n\n22,622\n\n \n\n \n\n \n\n23,768\n\n \n\n \n\n \n\n23,923\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n(1)\nIncluded in other income (expense), net was an equity method investment loss of $0.2 million, $0.5 million and $0.2 million for fiscal 2025, 2024 and 2023, respectively. See Note 14 for further information. Also included in other income (expense), net was a $4.6 million charge related to Act III’s warrant extension for fiscal 2024. See Note 10 for further information.\n\n \n\nF-4\n\n \n\nBJ’S RESTAURANTS, INC.\n\nCONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY\n\n(In thousands)\n\n \n\n \n\n \n\nCommon Stock\n\n \n\n \n\nCapital\n\n \n\n \n\nRetained\n\n \n\n \n\n \n\n \n\n \n\n \n\nShares\n\n \n\n \n\nAmount\n\n \n\n \n\nSurplus\n\n \n\n \n\nEarnings\n\n \n\n \n\nTotal\n\n \n\nBalance, January 3, 2023\n\n \n\n \n\n23,392\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n74,459\n\n \n\n \n\n$\n\n271,056\n\n \n\n \n\n$\n\n345,515\n\n \n\nExercise of stock options\n\n \n\n \n\n28\n\n \n\n \n\n \n\n1,073\n\n \n\n \n\n \n\n(198\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n875\n\n \n\nIssuance of restricted stock units\n\n \n\n \n\n192\n\n \n\n \n\n \n\n7,934\n\n \n\n \n\n \n\n(8,507\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(573\n\n)\n\nRepurchase, retirement and reclassification of common stock\n\n \n\n \n\n(428\n\n)\n\n \n\n \n\n(9,007\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,992\n\n)\n\n \n\n \n\n(10,999\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n11,282\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n11,282\n\n \n\nAdjustment to dividends previously accrued\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n1\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n19,660\n\n \n\n \n\n \n\n19,660\n\n \n\nBalance, January 2, 2024\n\n \n\n \n\n23,184\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n77,036\n\n \n\n \n\n \n\n288,725\n\n \n\n \n\n \n\n365,761\n\n \n\nExercise of stock options\n\n \n\n \n\n7\n\n \n\n \n\n \n\n311\n\n \n\n \n\n \n\n(104\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n207\n\n \n\nIssuance of restricted stock units\n\n \n\n \n\n263\n\n \n\n \n\n \n\n11,842\n\n \n\n \n\n \n\n(12,964\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(1,122\n\n)\n\nRepurchase, retirement and reclassification of common stock\n\n \n\n \n\n(757\n\n)\n\n \n\n \n\n(12,153\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(12,972\n\n)\n\n \n\n \n\n(25,125\n\n)\n\nExtension of warrant\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,622\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,622\n\n \n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,986\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,986\n\n \n\nAdjustment to dividends previously accrued\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1\n\n \n\n \n\n \n\n1\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,687\n\n \n\n \n\n \n\n16,687\n\n \n\nBalance, December 31, 2024\n\n \n\n \n\n22,697\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n77,576\n\n \n\n \n\n \n\n292,441\n\n \n\n \n\n \n\n370,017\n\n \n\nExercise of stock options\n\n \n\n \n\n213\n\n \n\n \n\n \n\n10,870\n\n \n\n \n\n \n\n(3,237\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n7,633\n\n \n\nIssuance of restricted stock units\n\n \n\n \n\n209\n\n \n\n \n\n \n\n6,828\n\n \n\n \n\n \n\n(7,602\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(774\n\n)\n\nRepurchase, retirement and reclassification of common stock\n\n \n\n \n\n(2,005\n\n)\n\n \n\n \n\n(17,698\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(50,076\n\n)\n\n \n\n \n\n(67,774\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,283\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,283\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n48,808\n\n \n\n \n\n \n\n48,808\n\n \n\nBalance, December 30, 2025\n\n \n\n \n\n21,114\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n75,020\n\n \n\n \n\n$\n\n291,173\n\n \n\n \n\n$\n\n366,193\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\nF-5\n\n \n\nBJ’S RESTAURANTS, INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(In thousands)\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n48,808\n\n \n\n \n\n$\n\n16,687\n\n \n\n \n\n$\n\n19,660\n\n \n\nAdjustments to reconcile net income to net cash provided by operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization (1)\n\n \n\n \n\n77,243\n\n \n\n \n\n \n\n72,745\n\n \n\n \n\n \n\n70,992\n\n \n\nNon-cash lease expense\n\n \n\n \n\n34,529\n\n \n\n \n\n \n\n32,227\n\n \n\n \n\n \n\n33,030\n\n \n\nAmortization of financing costs\n\n \n\n \n\n226\n\n \n\n \n\n \n\n211\n\n \n\n \n\n \n\n217\n\n \n\nDeferred income taxes, net\n\n \n\n \n\n(4,982\n\n)\n\n \n\n \n\n(12,171\n\n)\n\n \n\n \n\n(11,835\n\n)\n\nStock-based compensation expense\n\n \n\n \n\n8,115\n\n \n\n \n\n \n\n8,629\n\n \n\n \n\n \n\n10,902\n\n \n\nLoss on disposal and impairment of assets, net\n\n \n\n \n\n1,687\n\n \n\n \n\n \n\n18,414\n\n \n\n \n\n \n\n8,125\n\n \n\nExtension of warrant\n\n \n\n \n\n—\n\n \n\n \n\n \n\n4,622\n\n \n\n \n\n \n\n—\n\n \n\nEquity method investment\n\n \n\n \n\n183\n\n \n\n \n\n \n\n504\n\n \n\n \n\n \n\n230\n\n \n\nChanges in assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts and other receivables, net\n\n \n\n \n\n1,972\n\n \n\n \n\n \n\n(83\n\n)\n\n \n\n \n\n10,776\n\n \n\nInventories, net\n\n \n\n \n\n(338\n\n)\n\n \n\n \n\n1,149\n\n \n\n \n\n \n\n(750\n\n)\n\nPrepaid expenses and other current assets\n\n \n\n \n\n(1,534\n\n)\n\n \n\n \n\n(1,879\n\n)\n\n \n\n \n\n(5,642\n\n)\n\nOther assets, net\n\n \n\n \n\n(6,798\n\n)\n\n \n\n \n\n(4,836\n\n)\n\n \n\n \n\n(3,227\n\n)\n\nAccounts payable\n\n \n\n \n\n(9,199\n\n)\n\n \n\n \n\n(4,323\n\n)\n\n \n\n \n\n6,052\n\n \n\nAccrued expenses\n\n \n\n \n\n20\n\n \n\n \n\n \n\n4,035\n\n \n\n \n\n \n\n4,070\n\n \n\nOperating lease obligations\n\n \n\n \n\n(40,124\n\n)\n\n \n\n \n\n(37,314\n\n)\n\n \n\n \n\n(37,144\n\n)\n\nOther liabilities\n\n \n\n \n\n706\n\n \n\n \n\n \n\n2,855\n\n \n\n \n\n \n\n381\n\n \n\nNet cash provided by operating activities\n\n \n\n \n\n110,514\n\n \n\n \n\n \n\n101,472\n\n \n\n \n\n \n\n105,837\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property and equipment\n\n \n\n \n\n(69,612\n\n)\n\n \n\n \n\n(76,900\n\n)\n\n \n\n \n\n(98,914\n\n)\n\nProceeds from sale of assets\n\n \n\n \n\n43\n\n \n\n \n\n \n\n7\n\n \n\n \n\n \n\n3\n\n \n\nNet cash used in investing activities\n\n \n\n \n\n(69,569\n\n)\n\n \n\n \n\n(76,893\n\n)\n\n \n\n \n\n(98,911\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBorrowings on credit facility\n\n \n\n \n\n1,167,324\n\n \n\n \n\n \n\n884,600\n\n \n\n \n\n \n\n762,000\n\n \n\nPayments on credit facility\n\n \n\n \n\n(1,148,824\n\n)\n\n \n\n \n\n(886,100\n\n)\n\n \n\n \n\n(754,000\n\n)\n\nPayments of debt issuance costs\n\n \n\n \n\n(845\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nTaxes paid on vested stock units under employee plans\n\n \n\n \n\n(774\n\n)\n\n \n\n \n\n(1,122\n\n)\n\n \n\n \n\n(573\n\n)\n\nProceeds from exercise of stock options\n\n \n\n \n\n7,633\n\n \n\n \n\n \n\n207\n\n \n\n \n\n \n\n875\n\n \n\nCash dividends accrued under stock-based compensation plans\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(13\n\n)\n\n \n\n \n\n(32\n\n)\n\nRepurchases of common stock\n\n \n\n \n\n(67,774\n\n)\n\n \n\n \n\n(25,125\n\n)\n\n \n\n \n\n(10,999\n\n)\n\nNet cash used in financing activities\n\n \n\n \n\n(43,260\n\n)\n\n \n\n \n\n(27,553\n\n)\n\n \n\n \n\n(2,729\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet (decrease) increase in cash and cash equivalents\n\n \n\n \n\n(2,315\n\n)\n\n \n\n \n\n(2,974\n\n)\n\n \n\n \n\n4,197\n\n \n\nCash and cash equivalents, beginning of year\n\n \n\n \n\n26,096\n\n \n\n \n\n \n\n29,070\n\n \n\n \n\n \n\n24,873\n\n \n\nCash and cash equivalents, end of year\n\n \n\n$\n\n23,781\n\n \n\n \n\n$\n\n26,096\n\n \n\n \n\n$\n\n29,070\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n(1)\nFiscal 2025 includes $0.6 million of depreciation expense related to brewery operations, which is recorded as Cost of sales on our Consolidated Statements of Operations.\n\n \n\nF-6\n\n \n\nBJ’S RESTAURANTS, INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(In thousands)\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nSupplemental disclosure of cash flow information:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid for income taxes\n\n \n\n$\n\n5,107\n\n \n\n \n\n$\n\n5,256\n\n \n\n \n\n$\n\n489\n\n \n\nCash paid for interest, net of capitalized interest\n\n \n\n$\n\n4,003\n\n \n\n \n\n$\n\n4,659\n\n \n\n \n\n$\n\n3,758\n\n \n\nCash paid for operating lease obligations\n\n \n\n$\n\n65,065\n\n \n\n \n\n$\n\n62,748\n\n \n\n \n\n$\n\n63,504\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSupplemental disclosure of non-cash investing and financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease assets obtained in exchange for operating lease liabilities\n\n \n\n$\n\n11,771\n\n \n\n \n\n$\n\n19,922\n\n \n\n \n\n$\n\n15,934\n\n \n\nReceivable related to proceeds from disposal of assets\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,252\n\n \n\nProperty and equipment acquired and included in accounts payable\n\n \n\n$\n\n1,148\n\n \n\n \n\n$\n\n4,607\n\n \n\n \n\n$\n\n9,914\n\n \n\nStock-based compensation capitalized\n\n \n\n$\n\n168\n\n \n\n \n\n$\n\n357\n\n \n\n \n\n$\n\n380\n\n \n\n \n\n \n\nF-7\n\n \n\n \n\nBJ’S RESTAURANTS, INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\n1. The Company and Summary of Significant Accounting Policies\n\nDescription of Business\n\nBJ’s Restaurants, Inc. (referred to herein as the “Company,” “BJ’s,” “we,” “us” and “our”) was incorporated in California on October 1, 1991, to assume the management of five “BJ’s Chicago Pizzeria” restaurants and to develop additional BJ’s restaurants. As of December 30, 2025, we owned and operated 219 restaurants located in 31 states. During fiscal 2025, we opened one new restaurant. Four of our restaurants with in-house brewing facilities, in addition to our two brewpub locations in Texas, brew our signature, proprietary craft BJ’s beer. All of our other restaurants receive their BJ’s beer either from one of our restaurant brewing operations, our Texas brewpubs and/or independent third-party brewers using our proprietary recipes.\n\nBasis of Presentation\n\nThe accompanying consolidated financial statements include the accounts of BJ’s Restaurants, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the period.\n\nThe consolidated financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company had no components of other comprehensive income (loss) during any of the years presented, as such; a consolidated statement of comprehensive income (loss) is not presented.\n\nThe preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions for the reporting period and as of the financial statement date. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.\n\nOur fiscal year consists of 52 or 53 weeks and ends on the Tuesday closest to December 31 for financial reporting purposes. Fiscal years 2025, 2024 and 2023 ended on December 30, 2025, December 31, 2024, and January 2, 2024, respectively, and consisted of 52 weeks of operations.\n\nRecently Adopted Accounting Standards\n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. We adopted ASU 2023-09 retrospectively effective December 30, 2025, and the enhanced disclosures are included in Note 11 to our consolidated financial statements. The adoption of this ASU had no impact on our consolidated financial statements.\n\nRecently Issued Accounting Standards\n\nIn November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires public entities to disaggregate, in a tabular presentation, certain income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted, and may be applied retrospectively. We are currently evaluating the impact of adopting the new ASU on our consolidated financial statements and related disclosures.\n\nIn September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic: 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU modernizes certain aspects of the accounting for software costs to develop or obtain software for internal use under Accounting Standards Codification 350-40. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed and the software will be used for its intended purpose. The guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact of adopting this new ASU on our consolidated financial statements and related disclosures.\n\nF-8\n\n \n\nSegment Disclosure\n\nThe FASB ASC Topic 280, Segment Reporting, establishes standards for disclosures about different types of business activities in which we engage and the different economic environments in which we operate. We currently operate in one operating segment: full-service company-owned restaurants. Additionally, we operate in one geographic area: the United States of America.\n\nCash and Cash Equivalents\n\nCash and cash equivalents consist of highly liquid investments and money market funds with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair market value.\n\nConcentration of Credit Risk\n\nFinancial instruments that potentially subject us to a concentration of credit risk and credit losses are credit card receivables and trade receivables consisting primarily of amounts due from gift card resellers, third-party delivery companies and vendor rebates. We consider the concentration of credit risk for gift card resellers, third-party delivery companies and vendor rebates to be minimal due to the payment histories and general financial condition of these gift card resellers and vendors. See Note 3 for disclosure of trade receivables by category as of December 30, 2025, and December 31, 2024. Additionally, we currently maintain our day-to-day operating cash balances with a major financial institution. At times, our operating cash balances may be in excess of the FDIC insurance limit.\n\nConcentration of Supplier Risk\n\nWe rely on a leading foodservice distributor to deliver the majority of our food products to our restaurants. We also have an agreement with the largest nationwide foodservice distributor of fresh produce in the United States to service most of our restaurants and, where licensed, to distribute our proprietary craft beer to our restaurants. In instances where these parties fail to fulfill their obligations, we may be unable to find alternative suppliers.\n\nInventories\n\nInventories are comprised primarily of food and beverage products and are stated at the lower of cost (first-in, first-out) or net realizable value.\n\nProperty and Equipment\n\nProperty and equipment are recorded at cost and depreciated over their estimated useful lives. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the lease term, including reasonably assured renewal periods or exercised options, of the respective lease, whichever is shorter. Renewals and betterments that materially extend the life of an asset are capitalized while maintenance and repair costs are expensed as incurred. Internal costs associated with the acquisition, development and construction of our restaurants are capitalized and allocated to the projects which they relate. When property and equipment are sold or otherwise disposed of, the asset accounts and related accumulated depreciation or amortization accounts are relieved, and any gain or loss is included in earnings. Additionally, any interest capitalized for new restaurant construction is included in “Property and equipment, net” on our Consolidated Balance Sheets.\n\nDepreciation and amortization are recorded using the straight-line method over the following estimated useful lives:\n\n \n\nFurniture and fixtures\n\n3‑10 years\n\nEquipment\n\n5‑10 years\n\nBrewing equipment\n\n1-20 years\n\nBuilding improvements\n\nthe shorter of 20 years or the remaining lease term\n\nLeasehold improvements\n\nthe shorter of the useful life or the lease term,\n\n \n\nincluding reasonably assured renewal periods\n\nGoodwill\n\nWe perform impairment testing annually, during the fourth quarter, and more frequently if factors and circumstances indicate impairment may have occurred. When evaluating goodwill for impairment, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. We currently have one reporting unit, which is full-service company-owned restaurants in the United States of America. If it is concluded that the fair value of our reporting unit is less than the goodwill carrying value, we estimate the fair value of the reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying value of the reporting unit is\n\nF-9\n\n \n\ngreater than the estimated fair value, an impairment charge is recorded for the difference between the implied fair value of goodwill and its carrying amount. To calculate the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is first allocated to all of the other assets and liabilities of that unit based on their relative fair values. The excess of the reporting unit’s fair value over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized when the carrying amount of goodwill exceeds its implied fair value. This adjusted carrying value becomes the new goodwill accounting basis value. Based on our impairment assessment, we did not record any impairment to goodwill during fiscal 2025, 2024 or 2023.\n\nLong-Lived Assets\n\nWe assess the potential impairment of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The assets are generally reviewed for impairment on a restaurant level basis, and inclusive of property and equipment and lease right-of-use assets; or at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. Factors considered include, but are not limited to, significant underperformance by the restaurant relative to historical operating results; significant changes in the manner of use of the assets or the strategy for the overall business; significant negative industry or economic trends; or our expectation to dispose of long-lived assets before the end of their previously estimated useful lives. We use the undiscounted cash flow method to assess the recoverability of potentially impaired long-lived assets by comparing the carrying value of the assets to the undiscounted cash flows expected to be generated by the assets. If the carrying value of the assets exceeds the undiscounted cash flows expected to be generated by the assets, an impairment charge is recognized for the amount by which the carrying value exceeds the fair value of the assets. We measure the fair value by discounting estimated future cash flows using assumptions that are consistent with what a market participant would use. As a result of this analysis, in fiscal 2024 and fiscal 2023, we recorded a $12.1 million and $3.4 million impairment charge to operating income, respectively, for the amount by which the carrying value of the restaurant’s assets exceeded its fair value estimated using the discounted cash flow method. In fiscal 2025, the analysis did not result in an impairment charge.\n\nSelf-Insurance Liability\n\nWe retain large deductibles or self-insured retentions for a portion of our general liability insurance and our team member workers’ compensation programs. We maintain coverage with a third-party insurer to limit our total exposure for these programs. The accrued liability associated with these programs is based on our estimate of the ultimate costs within our retention amount to settle known claims as well as claims incurred but not yet reported to us (“IBNR claims”) as of the balance sheet dates. Our estimated liability is based on information provided by a third-party actuary, combined with our judgments regarding a number of assumptions and factors, including the frequency and severity of claims, our loss development factors, loss cost, history, case jurisdiction, related legislation, and our claims settlement practice. Significant judgment is required to estimate IBNR claims as parties have yet to assert such claims.\n\nRevenue Recognition\n\nRevenues from food and beverage sales at restaurants are recognized when payment is tendered. Amounts paid with a credit card are recorded in accounts and other receivables until payment is collected from the credit card processor. We sell gift cards which do not have an expiration date and we do not deduct non-usage fees from outstanding gift card balances. Gift card sales are recorded as a liability and recognized as revenues upon redemption in our restaurants.\n\nBased on historical redemption rates, a portion of our gift card sales are not expected to be redeemed and will be recognized as gift card “breakage.” Estimated gift card breakage is recorded as “Revenues” on our Consolidated Statements of Operations and recognized in proportion to our historical redemption pattern, unless there is a legal obligation to remit the unredeemed gift cards to government authorities.\n\nOur “BJ’s Premier Rewards Plus” guest loyalty program enables participants to earn points for qualifying purchases that can be redeemed for food and beverages in the future. We allocate the transaction price between the goods delivered and the future goods that will be delivered, on a relative standalone selling price basis, and defer the revenues allocated to the points, less expected expirations, until such points are redeemed.\n\nCost of Sales\n\nCost of sales is comprised of food and beverage costs, including the cost to produce and distribute our proprietary craft beer, soda and ciders. The components of cost of sales are variable and typically fluctuate directly with sales volumes but may be impacted by changes in commodity prices or promotional activities.\n\nF-10\n\n \n\nSales Taxes\n\nRevenues are presented net of sales tax collected. The obligations to the appropriate tax authorities are included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities.\n\nAdvertising Costs\n\nAdvertising costs are expensed as incurred. Advertising costs for fiscal 2025, 2024 and 2023 were approximately $30.5 million, $26.5 million and $23.4 million, respectively. Advertising costs are primarily included in “Occupancy and operating” expenses on our Consolidated Statements of Operations.\n\nIncome Taxes\n\nWe utilize the liability method of accounting for income taxes. Deferred income taxes are recognized based on the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities.\n\nWe provide for income taxes based on our expected federal and state tax liabilities. Our estimates include, but are not limited to, effective federal, state and local income tax rates, allowable tax credits for items such as Federal Insurance Contributions Act (“FICA”) taxes paid on reported tip income and estimates related to depreciation expense allowable for tax purposes. We usually file our income tax returns several months after our fiscal year-end. All tax returns are subject to audit by federal and state governments for years after the returns are filed and could be subject to differing interpretations of the tax laws.\n\nWe recognize the impact of a tax position in our financial statements if that position is more likely than not of being sustained through an audit, based on the technical merits of the position. Interest and penalties related to uncertain tax positions are included in “Income tax (benefit) expense” on our Consolidated Statements of Operations.\n\nRestaurant Opening Expense\n\nRestaurant payroll, supplies, training, other start-up costs and rent expense incurred prior to the opening of a new restaurant are expensed as incurred.\n\nLeases\n\nWe determine if a contract contains a lease at inception. Our material operating leases consist of restaurant locations and office space. U.S. GAAP requires that our leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date, and the lease term used in the evaluation includes the non-cancellable period for which we have the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option would result in an economic penalty. All of our restaurant and office space leases are classified as operating leases. We have elected to account for lease and non-lease components as a single lease component for office and beverage equipment. We do not have any finance leases.\n\nWe have elected the short-term lease recognition exemption for all classes of underlying assets. Leases with an initial term of 12 months or less that do not include an option to purchase the underlying asset that we are reasonably certain to exercise are not recorded on the balance sheet. Expense for short-term leases is recognized on a straight-line basis over the lease term.\n\nWe disburse cash for leasehold improvements, furniture and fixtures and equipment to build out and equip our leased premises. Tenant improvement allowance incentives may be available to partially offset the cost of developing and opening the related restaurants, pursuant to agreed-upon terms in our leases. Tenant improvement allowances can take the form of cash payments upon the opening of the related restaurants, full or partial credits against minimum or percentage rents otherwise payable by us, or a combination thereof. All tenant improvement allowances received by us are recorded as a contra operating lease asset and amortized over the term of the lease.\n\nThe lease term used for straight-line rent expense is calculated from the commencement date (the date we take possession of the premises) through the lease termination date (including any options where exercise is reasonably certain and failure to exercise such option would result in an economic penalty). We expense rent from commencement date through restaurant open date as preopening expense. Once a restaurant opens for business, we record straight-line rent expense plus any additional variable contingent rent expense to the extent it is due under the lease agreement.\n\nThere is potential for variability in the rent holiday period, which begins on the commencement date and ends on the restaurant open date, during which no cash rent payments are typically due under the terms of the lease. Factors that may affect the length\n\nF-11\n\n \n\nof the rent holiday period generally pertain to construction-related delays. Extension of the rent holiday period due to delays in restaurant opening will result in greater preopening rent expense recognized during the rent holiday period and lesser occupancy expense during the rest of the lease term (post-opening).\n\nWe record a lease liability equal to the present value of future payments discounted at the estimated fully collateralized incremental borrowing rate (discount rate) corresponding with the lease term. Our lease liability calculation is the total rent payable during the lease term, including rent escalations in which the amount of future rent is certain or fixed. This liability is reduced monthly by the minimum rents paid, offset by the imputed interest. A corresponding operating lease asset is also recorded equaling the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any lease incentives received. Monthly, this asset is reduced by the straight-line rent, offset by the imputed interest.\n\nCertain leases contain provisions that require additional rent payments based upon restaurant sales volume. Contingent rent is accrued each period as the liabilities are incurred, in addition to the straight-line rent expense noted above. This results in some variability in occupancy expense as a percentage of revenues over the term of the lease in restaurants where we pay contingent rent. We monitor for events or changes in circumstances that require reassessment of our leases. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the operating lease asset.\n\nManagement makes judgments regarding the reasonably certain lease term and incremental borrowing rate for each restaurant property lease, which can impact the classification and accounting for a lease as finance or operating, the rent holiday and/or escalations in payments that are taken into consideration when calculating straight-line rent, and the term over which leasehold improvements for each restaurant are amortized.\n\nNet Income Per Share\n\nBasic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.\n\nThe following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards that were included in the dilutive net income per share computation (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNumerator:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n48,808\n\n \n\n \n\n$\n\n16,687\n\n \n\n \n\n$\n\n19,660\n\n \n\nDenominator:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted-average shares outstanding - basic\n\n \n\n \n\n21,980\n\n \n\n \n\n \n\n23,132\n\n \n\n \n\n \n\n23,452\n\n \n\nDilutive effect of equity awards\n\n \n\n \n\n642\n\n \n\n \n\n \n\n636\n\n \n\n \n\n \n\n471\n\n \n\nWeighted-average shares outstanding - diluted\n\n \n\n \n\n22,622\n\n \n\n \n\n \n\n23,768\n\n \n\n \n\n \n\n23,923\n\n \n\n \n\nAt December 30, 2025, December 31, 2024, and January 2, 2024, there were approximately 0.6 million, 1.0 million, and 0.9 million, respectively, of common stock equivalents that have been excluded from the calculation of diluted net income per share because they are anti-dilutive.\n\nStock‑Based Compensation\n\nOur current shareholder approved stock-based compensation plan is the BJ’s Restaurants, Inc. 2024 Equity Incentive Plan, (as it may be amended from time to time, “the Plan”). Under the Plan, we may issue shares of our common stock to team members, officers, directors and consultants. We grant non-qualified stock options, and service- and performance-based RSUs. Since fiscal 2024, we also grant performance-based RSUs with market-based metrics. Additionally, we issue service-based RSUs in connection with the BJ’s Gold Standard Stock Ownership Program (the “GSSOP”), a long-term equity incentive program under the Plan for our restaurant general managers, executive kitchen managers, directors of operations and directors of kitchen operations. All GSSOP participants are required to remain in good standing during their vesting period.\n\nF-12\n\n \n\nAll options granted under the Plan expire within 10 years of their date of grant. Awards of stock options or stock appreciation rights are charged against the Plan share reserve on the basis of one share for each option granted. All other awards are charged against the 2024 Plan share reserve on the basis of 1.5 shares for each award unit granted. We estimate forfeitures based on historical data and we take into consideration future expectations. The Plan also contains other limits on the terms of incentive grants such as the maximum number that can be granted to a team member during any fiscal year.\n\nWe use the Black-Scholes option-pricing model to determine the fair value of our stock options, and we use the Monte Carlo simulation model to determine the fair value of our performance-based RSUs that include a market-based metric. Both valuation models require management to make assumptions regarding stock price, volatility, the expected life of the award, risk-free interest rate and expected dividend yield. The fair value of service-based and performance-based RSUs without market-based metrics, is equal to the fair value of our common stock at market close on the grant date, or the last trading day prior to the grant date if the grant occurs on a day when the market is closed.\n\nThe grant date fair value of each stock option, service-based RSU, and performance-based RSU with market-based metrics is recognized as stock-based compensation expense on a straight-line basis over the applicable vesting period (e.g., one, three or five years). For performance-based RSUs without market-based metrics, stock-based compensation expense recognition is recognized based on the estimated number of awards that is expected to vest, which is reassessed each reporting period based on management’s current estimate of achievement of the applicable performance goals. Forfeitures are estimated based on historical experience and adjusted for future expectations.\n\nThe Plan permits our Board of Directors to set the vesting terms and exercise period for awards at their discretion; however, the grant of awards with no minimum vesting period or a vesting period less than one year may not exceed 5% of the total number of shares authorized under the Plan. Stock options and service-based RSUs cliff vest at one year or ratably over three years for non-GSSOP participants, and either cliff vest at five years or cliff vest at 33% on the third anniversary and 67% on the fifth anniversary for GSSOP participants. Performance-based RSUs cliff vest on the third anniversary of the grant date in an amount from 0% to 150% of the grant quantity, depending on the level of performance target achievement.\n\n2. Revenue Recognition\n\nRevenue recognized on our Consolidated Statements of Operations for the redemption of gift cards and loyalty rewards deferred at the beginning of each respective fiscal year were as follows (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRevenue recognized from gift card liability\n\n \n\n$\n\n10,691\n\n \n\n \n\n$\n\n10,629\n\n \n\n \n\n$\n\n11,261\n\n \n\nRevenue recognized from guest loyalty program\n\n \n\n$\n\n9,139\n\n \n\n \n\n$\n\n7,031\n\n \n\n \n\n$\n\n7,166\n\n \n\n \n\n3. Accounts and Other Receivables\n\nAccounts and other receivables consisted of the following (in thousands):\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nCredit cards\n\n \n\n$\n\n8,191\n\n \n\n \n\n$\n\n8,526\n\n \n\nThird-party gift card sales\n\n \n\n \n\n4,128\n\n \n\n \n\n \n\n3,984\n\n \n\nThird-party delivery\n\n \n\n \n\n939\n\n \n\n \n\n \n\n3,885\n\n \n\nIncome taxes\n\n \n\n \n\n2,144\n\n \n\n \n\n \n\n864\n\n \n\nOther\n\n \n\n \n\n2,989\n\n \n\n \n\n \n\n3,143\n\n \n\n \n\n \n\n$\n\n18,391\n\n \n\n \n\n$\n\n20,402\n\n \n\nr\n\nF-13\n\n \n\n4. Property and Equipment\n\nProperty and equipment consisted of the following (in thousands):\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nLand\n\n \n\n$\n\n3,472\n\n \n\n \n\n$\n\n2,523\n\n \n\nBuilding improvements\n\n \n\n \n\n433,514\n\n \n\n \n\n \n\n428,366\n\n \n\nLeasehold improvements\n\n \n\n \n\n360,152\n\n \n\n \n\n \n\n345,916\n\n \n\nFurniture and fixtures\n\n \n\n \n\n176,831\n\n \n\n \n\n \n\n172,804\n\n \n\nEquipment\n\n \n\n \n\n454,589\n\n \n\n \n\n \n\n424,839\n\n \n\nConstruction in progress\n\n \n\n \n\n3,262\n\n \n\n \n\n \n\n13,269\n\n \n\nProperty and equipment, gross\n\n \n\n \n\n1,431,820\n\n \n\n \n\n \n\n1,387,717\n\n \n\nAccumulated depreciation and amortization\n\n \n\n \n\n(929,712\n\n)\n\n \n\n \n\n(877,136\n\n)\n\nProperty and equipment, net\n\n \n\n$\n\n502,108\n\n \n\n \n\n$\n\n510,581\n\n \n\n \n\n5. Accrued Expenses\n\nAccrued expenses consisted of the following (in thousands):\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nPayroll related\n\n \n\n$\n\n27,543\n\n \n\n \n\n$\n\n24,669\n\n \n\nWorkers’ compensation and general liability\n\n \n\n \n\n23,442\n\n \n\n \n\n \n\n22,216\n\n \n\nDeferred revenue from gift cards\n\n \n\n \n\n16,060\n\n \n\n \n\n \n\n15,668\n\n \n\nDeferred loyalty revenue\n\n \n\n \n\n3,023\n\n \n\n \n\n \n\n2,910\n\n \n\nInsurance related\n\n \n\n \n\n4,981\n\n \n\n \n\n \n\n4,164\n\n \n\nSales taxes\n\n \n\n \n\n7,011\n\n \n\n \n\n \n\n7,254\n\n \n\nOther taxes\n\n \n\n \n\n7,891\n\n \n\n \n\n \n\n8,694\n\n \n\nOther current rent related\n\n \n\n \n\n3,279\n\n \n\n \n\n \n\n2,806\n\n \n\nUtilities\n\n \n\n \n\n2,655\n\n \n\n \n\n \n\n2,475\n\n \n\nMerchant cards\n\n \n\n \n\n2,422\n\n \n\n \n\n \n\n2,239\n\n \n\nMaintenance related\n\n \n\n \n\n912\n\n \n\n \n\n \n\n289\n\n \n\nLeadership transition related\n\n \n\n \n\n835\n\n \n\n \n\n \n\n2,829\n\n \n\nConsulting related\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2,135\n\n \n\nOther\n\n \n\n \n\n5,282\n\n \n\n \n\n \n\n6,968\n\n \n\n \n\n \n\n$\n\n105,336\n\n \n\n \n\n$\n\n105,316\n\n \n\n \n\n6. Leases\n\nLease costs included on the Consolidated Statements of Operations consisted of the following (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nLease cost\n\n \n\n$\n\n59,104\n\n \n\n \n\n$\n\n57,836\n\n \n\n \n\n$\n\n59,268\n\n \n\nVariable lease cost\n\n \n\n \n\n3,770\n\n \n\n \n\n \n\n3,567\n\n \n\n \n\n \n\n3,864\n\n \n\nTotal lease costs\n\n \n\n$\n\n62,874\n\n \n\n \n\n$\n\n61,403\n\n \n\n \n\n$\n\n63,132\n\n \n\n \n\nWeighted-average lease term and discount rate were as follows:\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\nDecember 31, 2024\n\nWeighted-average remaining lease term\n\n \n\n9.6 Years\n\n \n\n10.3 Years\n\nWeighted-average discount rate\n\n \n\n5.9\n\n \n\n5.9\n\n \n\nF-14\n\n \n\nOperating lease obligation maturities as of December 30, 2025, were as follows (in thousands):\n\n \n\n2026\n\n \n\n$\n\n66,527\n\n \n\n2027\n\n \n\n \n\n65,120\n\n \n\n2028\n\n \n\n \n\n62,322\n\n \n\n2029\n\n \n\n \n\n56,731\n\n \n\n2030\n\n \n\n \n\n49,240\n\n \n\nThereafter\n\n \n\n \n\n246,888\n\n \n\nTotal lease payments\n\n \n\n \n\n546,828\n\n \n\nLess: imputed interest\n\n \n\n \n\n(141,070\n\n)\n\nPresent value of operating lease obligations\n\n \n\n$\n\n405,758\n\n \n\n \n\n7. Commitments and Contingencies\n\nLegal Proceedings\n\nWe are subject to lawsuits, administrative proceedings and demands that arise in the ordinary course of our business and which typically involve claims from guests, team members and others related to operational, employment, real estate and intellectual property issues common to the foodservice industry. A number of these claims may exist at any given time. We are self-insured for a portion of our general liability, team member workers’ compensation and employment practice liability insurance requirements. We maintain coverage with a third-party insurer to limit our total exposure. We believe that most of our claims will be covered by our insurance, subject to coverage limits and the portion of such claims that are self-insured; however, punitive damages awards are not covered by our insurance. To date, we have not been ordered to pay punitive damages with respect to any claims, but there can be no assurance that punitive damages will not be awarded with respect to any future claims. We could be affected by adverse publicity resulting from allegations in lawsuits, claims and proceedings, regardless of whether these allegations are valid or whether we are ultimately determined to be liable. We currently believe that the final disposition of these types of lawsuits, proceedings and claims will not have a material adverse effect on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, proceedings or claims.\n\nLetters of Credit\n\nWe have irrevocable standby letters of credit outstanding, as required under our workers’ compensation insurance arrangements, of $20.2 million as of December 30, 2025. Our standby letters of credit automatically renew each October 31 for one year unless 30 days’ notice, prior to such renewal date, is given by the financial institution that provides the letters. The standby letters of credit issued under our Credit Facility reduce the amount available for borrowing.\n\nPurchase Commitments\n\nPurchase obligations, which include inventory purchases, equipment purchases, information technology and other miscellaneous commitments, were $63.6 million and $41.2 million at December 30, 2025 and December 31, 2024, respectively. These purchase obligations are primarily due within three years and recorded as liabilities when goods are received, or services rendered.\n\n8. Long-Term Debt\n\nLine of Credit\n\nOn May 30, 2025, we entered into a Fifth Amended and Restated Credit Agreement (“Credit Facility”) with Bank of America, N.A. (“BofA”), JPMorgan Chase Bank, N.A., and certain other parties to amend and restate our revolving line of credit (the “Line of Credit”) to extend the maturity date, obtain a swingline subfacility, modify the interest rate, and revise certain loan covenants.\n\nOur Credit Facility matures on May 30, 2030, and provides us with revolving loan commitments totaling $215 million, which may be increased up to $315 million, of which $50 million may be used for the issuance of letters of credit. Availability under the Credit Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. On December 30, 2025, there were borrowings of $85.0 million and letters of credit of $20.2 million outstanding, leaving $109.8 million available to borrow.\n\nBorrowings under the Line of Credit bear interest at an annual rate equal to either (a) the Secured Overnight Financing Rate (“Term SOFR”), adjusted by 10 basis points regardless of the duration of the Term SOFR, plus a percentage not to exceed\n\nF-15\n\n \n\n2.00%, or (b) the Base Rate plus a percentage not to exceed 1.00%. As with swingline loans: (i) the percentage adjustment depends on the level of lease and debt obligations of the Company as compared to EBITDA and lease expenses; and (ii) there is a floor of 0.00% on Term SOFR plus the 10 basis point adjustment. The weighted average interest rate during fiscal 2025 and 2024 was approximately 5.8% and 6.7%, respectively.\n\nThe Credit Agreement contains certain representations and warranties, affirmative and negative covenants and events of default that are customary for credit arrangements of this type, including covenants which restrict or limit the Company’s ability to, among other things, create liens, borrow money (other than purchase money indebtedness and trade credit, lease obligations incurred in the ordinary course, and similar ordinary course liabilities), make dividends, and engage in mergers, consolidations, significant asset sales, stock repurchases and certain other transactions. On December 30, 2025, we were in compliance with these covenants.\n\nPursuant to the Credit Agreement, the Company will be required to pay certain customary fees and expenses associated with maintenance and use of the Line of Credit including letter of credit issuance fees and unused commitment fees. Interest expense and commitment fees under the Credit Facility were approximately $4.7 million, $5.5 million and $4.9 million for fiscal 2025, 2024 and 2023, respectively. We also capitalized approximately $0.1 million and $0.3 million of interest expense related to new restaurant construction during fiscal 2025 and 2024.\n\nAdditionally, we capitalized approximately $0.8 million of fees related to the Fifth Amended and Restated Credit Agreement, which are being amortized over the remaining term of the Credit Facility. These fees are presented as an asset and recorded in “Other assets, net” on our Consolidated Balance Sheets. For the years ended December 30, 2025 and December 31, 2024, we amortized $0.2 million of these fees, which is included as a component of “Interest expense, net” on our Consolidated Statements of Operations. At December 30, 2025 and December 31, 2024, unamortized fees were $1.0 million and $0.4 million, respectively.\n\n9. Fair Value Measurements\n\nASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. Fair value measurements are estimated based on valuation techniques and inputs categorized as follows:\n\n \n\n•\nLevel 1: Quoted prices in active markets for identical assets or liabilities.\n\n•\nLevel 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.\n\n•\nLevel 3: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its own assumptions.\n\n \n\nThere were no transfers among levels within the fair value hierarchy during the year ended December 30, 2025. The following table presents the fair values for our financial assets and liabilities measured on a recurring basis (in thousands):\n\n \n\n \n\n \n\nLevel\n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nDeferred compensation plan - liabilities\n\n \n\n1\n\n \n\n$\n\n14,042\n\n \n\n \n\n$\n\n13,179\n\n \n\n \n\nThe Company’s financial statements include cash and cash equivalents, accounts and other receivables, accounts payable, and accrued expenses for which the carrying amounts approximate fair value due to their short-term maturity. At December 30, 2025 and December 31, 2024, the fair value of our Credit Facility approximated its carrying value since it is a variable rate credit facility (Level 2).\n\nF-16\n\n \n\n10. Shareholders’ Equity\n\nWarrant\n\nBJ’s Act III, LLC’s (“Act III”) warrant for 876,949 shares of common stock at an exercise price of $26.94 was set to expire on May 4, 2025, five years following the issuance. On December 30, 2024, the Company agreed to extend the termination date of the warrant by two years to May 4, 2027, and recorded a related expense of $4.6 million within “Other income (expense), net” on our Consolidated Statements of Operations. The warrant extension was executed in conjunction with a Cooperation Agreement that contains material non-shareholder restrictions, such as those limiting Act III's ability to purchase additional Company shares.\n\nPreferred Stock\n\nWe are authorized to issue 5.0 million shares of one or more series of preferred stock and we are authorized to determine the rights, preferences, privileges and restrictions to be granted to, or imposed upon, any such series, including the voting rights, redemption provisions (including sinking fund provisions), dividend rights, dividend rates, liquidation rates, liquidation preferences, conversion rights and the description and number of shares constituting any wholly unissued series of preferred stock. No shares of preferred stock were issued or outstanding at December 30, 2025 or December 31, 2024. We currently have no plans to issue shares of preferred stock.\n\nCommon Stock\n\nShareholders are entitled to one vote for each share of common stock held of record. Pursuant to the requirements of California law, shareholders are entitled to accumulate votes in connection with the election of directors. Shareholders of our outstanding common stock are entitled to receive dividends if and when declared by the Board of Directors.\n\nCash Dividends\n\nWe currently do not pay any cash dividends. Any decision to pay cash dividends will be subject to our Board of Directors determining that the such dividend payments are in the best interest of the Company and its shareholders. As such, the only cash dividends paid during fiscal 2024 and 2023 were related to dividends declared prior to fiscal 2020 on restricted stock grants, which vested under our stock-based compensation plans. No cash dividends were paid in fiscal 2025.\n\nStock Repurchases\n\nDuring fiscal 2025, we repurchased and retired approximately 2.0 million shares of our common stock at an average price of $33.80 per share for approximately $67.8 million, which is recorded as a reduction in common stock, with any excess charged to retained earnings. Our Board of Directors approved a $50 million increase in our share repurchase program in both February 2024 and February 2025, and a $75 million increase in October 2025. Currently we have $93.2 million available under our authorized $675 million share repurchase program. Repurchases may be made at any time.\n\n11. Income Taxes\n\nIncome before income tax expense (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nUnited States\n\n \n\n$\n\n47,233\n\n \n\n \n\n$\n\n8,265\n\n \n\n \n\n$\n\n10,100\n\n \n\nTotal income before income taxes\n\n \n\n$\n\n47,233\n\n \n\n \n\n$\n\n8,265\n\n \n\n \n\n$\n\n10,100\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nF-17\n\n \n\nIncome tax benefit consists of the following (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n1,085\n\n \n\n \n\n$\n\n2,780\n\n \n\n \n\n$\n\n1,378\n\n \n\nState\n\n \n\n \n\n2,322\n\n \n\n \n\n \n\n969\n\n \n\n \n\n \n\n897\n\n \n\n \n\n \n\n \n\n3,407\n\n \n\n \n\n \n\n3,749\n\n \n\n \n\n \n\n2,275\n\n \n\nDeferred:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n \n\n(5,167\n\n)\n\n \n\n \n\n(10,891\n\n)\n\n \n\n \n\n(11,344\n\n)\n\nState\n\n \n\n \n\n185\n\n \n\n \n\n \n\n(1,280\n\n)\n\n \n\n \n\n(491\n\n)\n\n \n\n \n\n \n\n(4,982\n\n)\n\n \n\n \n\n(12,171\n\n)\n\n \n\n \n\n(11,835\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome tax benefit\n\n \n\n$\n\n(1,575\n\n)\n\n \n\n$\n\n(8,422\n\n)\n\n \n\n$\n\n(9,560\n\n)\n\n \n\nThe provision for income taxes differs from the amount that would result from applying the federal statutory rate as follows (dollar amounts in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nIncome tax at statutory rates\n\n \n\n$\n\n9,919\n\n \n\n \n\n21.0\n\n%\n\n \n\n$\n\n1,739\n\n \n\n \n\n21.0\n\n%\n\n \n\n$\n\n2,121\n\n \n\n \n\n21.0\n\n%\n\nState income taxes, net of federal benefit (1)\n\n \n\n \n\n2,168\n\n \n\n \n\n4.6\n\n \n\n \n\n \n\n458\n\n \n\n \n\n5.5\n\n \n\n \n\n \n\n583\n\n \n\n \n\n5.8\n\n \n\nPermanent differences\n\n \n\n \n\n(427\n\n)\n\n \n\n(0.9\n\n)\n\n \n\n \n\n875\n\n \n\n \n\n10.6\n\n \n\n \n\n \n\n776\n\n \n\n \n\n7.7\n\n \n\nIncome tax credits (2)\n\n \n\n \n\n(12,547\n\n)\n\n \n\n(26.5\n\n)\n\n \n\n \n\n(12,186\n\n)\n\n \n\n(147.1\n\n)\n\n \n\n \n\n(11,910\n\n)\n\n \n\n(117.9\n\n)\n\nReturn to provision\n\n \n\n \n\n49\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n35\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n90\n\n \n\n \n\n0.9\n\n \n\nStock warrant extension\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n971\n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\nPrior year tax credit true-up\n\n \n\n \n\n(30\n\n)\n\n \n\n(0.1\n\n)\n\n \n\n \n\n357\n\n \n\n \n\n4.3\n\n \n\n \n\n \n\n(649\n\n)\n\n \n\n(6.4\n\n)\n\nChange in unrecognized tax benefit\n\n \n\n \n\n(127\n\n)\n\n \n\n(0.3\n\n)\n\n \n\n \n\n(14\n\n)\n\n \n\n(0.2\n\n)\n\n \n\n \n\n(237\n\n)\n\n \n\n(2.3\n\n)\n\nChange in valuation allowance\n\n \n\n \n\n(186\n\n)\n\n \n\n(0.4\n\n)\n\n \n\n \n\n(703\n\n)\n\n \n\n(8.5\n\n)\n\n \n\n \n\n(262\n\n)\n\n \n\n(2.6\n\n)\n\nOther, net\n\n \n\n \n\n(394\n\n)\n\n \n\n(0.8\n\n)\n\n \n\n \n\n46\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(72\n\n)\n\n \n\n(0.9\n\n)\n\n \n\n \n\n$\n\n(1,575\n\n)\n\n \n\n(3.3\n\n)%\n\n \n\n$\n\n(8,422\n\n)\n\n \n\n(101.9\n\n)%\n\n \n\n$\n\n(9,560\n\n)\n\n \n\n(94.7\n\n)%\n\n \n\n(1)\nState taxes in California made up the majority (greater than 50%) of the tax effect in this category for all years presented.\n\n(2)\nThe FICA tax tip credit benefit made up the majority (greater than 90%) for all periods presented.\n\n \n\nIncome taxes paid consisted of the following (in thousands):\n\n \n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nU.S. Federal\n\n \n\n$\n\n3,100\n\n \n\n \n\n$\n\n2,027\n\n \n\n \n\n$\n\n(4\n\n)\n\nState\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCalifornia\n\n \n\n \n\n950\n\n \n\n \n\n \n\n496\n\n \n\n \n\n \n\n(1,200\n\n)\n\nTexas\n\n \n\n \n\n140\n\n \n\n \n\n \n\n429\n\n \n\n \n\n \n\n355\n\n \n\nVirginia\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(10\n\n)\n\n \n\n \n\n37\n\n \n\nOther\n\n \n\n \n\n559\n\n \n\n \n\n \n\n383\n\n \n\n \n\n \n\n83\n\n \n\nState subtotal\n\n \n\n \n\n1,649\n\n \n\n \n\n \n\n1,298\n\n \n\n \n\n \n\n(725\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal cash paid for income taxes (net of refunds)\n\n \n\n$\n\n4,749\n\n \n\n \n\n$\n\n3,325\n\n \n\n \n\n$\n\n(729\n\n)\n\n \n\nF-18\n\n \n\nThe components of the deferred income tax asset (liability) consist of the following (in thousands):\n\n \n\n \n\n \n\nDecember 30, 2025\n\n \n\n \n\nDecember 31, 2024\n\n \n\nDeferred income tax asset:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccrued expenses\n\n \n\n$\n\n12,251\n\n \n\n \n\n$\n\n12,526\n\n \n\nOther\n\n \n\n \n\n4,518\n\n \n\n \n\n \n\n8,436\n\n \n\nDeferred revenues\n\n \n\n \n\n—\n\n \n\n \n\n \n\n23\n\n \n\nGift cards\n\n \n\n \n\n1,223\n\n \n\n \n\n \n\n1,128\n\n \n\nStock-based compensation\n\n \n\n \n\n4,245\n\n \n\n \n\n \n\n3,667\n\n \n\nOperating lease liability\n\n \n\n \n\n104,620\n\n \n\n \n\n \n\n111,254\n\n \n\nIncome tax credits\n\n \n\n \n\n86,933\n\n \n\n \n\n \n\n74,826\n\n \n\nNet operating losses\n\n \n\n \n\n4,263\n\n \n\n \n\n \n\n4,831\n\n \n\nState tax\n\n \n\n \n\n496\n\n \n\n \n\n \n\n358\n\n \n\nGross deferred income tax asset\n\n \n\n \n\n218,549\n\n \n\n \n\n \n\n217,049\n\n \n\nValuation allowance\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(186\n\n)\n\nDeferred income tax asset, net of valuation allowance\n\n \n\n \n\n218,549\n\n \n\n \n\n \n\n216,863\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeferred income tax liability:\n\n \n\n \n\n \n\n \n\nProperty and equipment\n\n \n\n \n\n(53,754\n\n)\n\n \n\n \n\n(51,516\n\n)\n\nIntangible assets\n\n \n\n \n\n(2,821\n\n)\n\n \n\n \n\n(2,807\n\n)\n\nOperating lease assets\n\n \n\n \n\n(89,943\n\n)\n\n \n\n \n\n(96,255\n\n)\n\nSmallwares\n\n \n\n \n\n(4,731\n\n)\n\n \n\n \n\n(3,967\n\n)\n\nDeferred income tax liability\n\n \n\n \n\n(151,249\n\n)\n\n \n\n \n\n(154,545\n\n)\n\nNet deferred income tax asset\n\n \n\n$\n\n67,300\n\n \n\n \n\n$\n\n62,318\n\n \n\nAt December 30, 2025, we had federal and state income tax credit carryforwards of approximately $87.1 million and $0.1 million, respectively, consisting primarily of the credit for FICA taxes paid on reported team member tip income. The FICA tax credits will begin to expire in 2039.\n\nAt December 30, 2025, we have state and city net operating loss carryforwards of $90.5 million with statutory carryforward periods ranging from 5 years to 20 years. The earliest year that a material state net operating loss will expire is 2027.\n\nWe have completed an analysis of our ability to use our federal and state tax credit and net operating loss carry forwards. As of December 30, 2025, we have determined that no valuation allowance is required against federal tax credit carryforwards or against certain state net operating loss and tax credit carryforwards. As of December 31, 2024, we determined that no valuation allowance is required against federal tax credit carryforwards; however, we recorded a $0.2 million valuation allowance against certain state net operating loss and tax credit carryforwards, net of the federal benefit which were not more likely than not to be realized prior to expiration.\n\nChanges in valuation allowance were as follows (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nValuation allowance beginning of the year\n\n \n\n$\n\n186\n\n \n\n \n\n$\n\n889\n\n \n\n \n\n$\n\n1,151\n\n \n\nAllowances taken or written off\n\n \n\n \n\n(186\n\n)\n\n \n\n \n\n(703\n\n)\n\n \n\n \n\n(262\n\n)\n\nValuation allowance end of the year\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n186\n\n \n\n \n\n$\n\n889\n\n \n\nWe recognize interest and penalties related to uncertain tax positions in income tax expense. At December 30, 2025 and December 31, 2024, we had accrued $0.1 million for interest and penalties with respect to uncertain tax positions.\n\nF-19\n\n \n\nAs of December 30, 2025, unrecognized tax benefits recorded was approximately $0.8 million, of which approximately $0.8 million, if reversed would impact our effective tax rate. We anticipate no change in our liability for unrecognized tax benefits within the next twelve-month period.\n\nA reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nGross unrecognized tax benefits at beginning of year\n\n \n\n$\n\n874\n\n \n\n \n\n$\n\n967\n\n \n\n \n\n$\n\n1,249\n\n \n\nIncreases for tax positions taken in prior years\n\n \n\n \n\n—\n\n \n\n \n\n \n\n29\n\n \n\n \n\n \n\n102\n\n \n\nDecreases for tax positions taken in prior years\n\n \n\n \n\n(46\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nIncreases for tax positions taken in the current year\n\n \n\n \n\n89\n\n \n\n \n\n \n\n134\n\n \n\n \n\n \n\n104\n\n \n\nLapse in statute of limitations\n\n \n\n \n\n(123\n\n)\n\n \n\n \n\n(256\n\n)\n\n \n\n \n\n(488\n\n)\n\nGross unrecognized tax benefits at end of year\n\n \n\n$\n\n794\n\n \n\n \n\n$\n\n874\n\n \n\n \n\n$\n\n967\n\n \n\nOur uncertain tax positions are related to tax years that remain subject to examination by tax agencies. As of December 30, 2025, the earliest tax year still subject to examination by the Internal Revenue Service is 2022. The earliest year still subject to examination by a significant state or local taxing authority is 2021.\n\n12. Stock-Based Compensation Plans\n\nThe following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nLabor and benefits\n\n \n\n$\n\n2,407\n\n \n\n \n\n$\n\n2,452\n\n \n\n \n\n$\n\n2,583\n\n \n\nGeneral and administrative\n\n \n\n \n\n5,708\n\n \n\n \n\n \n\n6,177\n\n \n\n \n\n \n\n8,319\n\n \n\nCapitalized (1)\n\n \n\n \n\n168\n\n \n\n \n\n \n\n357\n\n \n\n \n\n \n\n380\n\n \n\nTotal stock-based compensation\n\n \n\n$\n\n8,283\n\n \n\n \n\n$\n\n8,986\n\n \n\n \n\n$\n\n11,282\n\n \n\n \n\n(1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets.\n\nStock Options\n\nThe fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following assumptions:\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nExpected volatility\n\n \n\n \n\n54.7\n\n%\n\n \n\n \n\n67.6\n\n%\n\n \n\n \n\n66.9\n\n%\n\nRisk-free interest rate\n\n \n\n \n\n4.1\n\n%\n\n \n\n \n\n3.9\n\n%\n\n \n\n \n\n3.6\n\n%\n\nExpected option life\n\n \n\n5 years\n\n \n\n \n\n5 years\n\n \n\n \n\n5 years\n\n \n\nDividend yield\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nFair value of options granted\n\n \n\n$\n\n19.19\n\n \n\n \n\n$\n\n19.00\n\n \n\n \n\n$\n\n18.24\n\n \n\n \n\nF-20\n\n \n\nUnder our stock-based compensation plan, the exercise price of a stock option is required to equal or exceed the fair value of our common stock at market close on the option grant date or the last trading day prior to the date of grant when grants take place on a day when the market is closed. The following table presents stock option activity:\n\n \n\n \n\n \n\nOptions Outstanding\n\n \n\n \n\nOptions Exercisable\n\n \n\n \n\n \n\nShares\n(in thousands)\n\n \n\n \n\nWeighted\nAverage Exercise\nPrice\n\n \n\n \n\nShares\n(in thousands)\n\n \n\n \n\nWeighted\nAverage Exercise\nPrice\n\n \n\n \n\nWeighted\nAverage\nRemaining\nContractual Life\n\n \n\nOutstanding at January 3, 2023\n\n \n\n \n\n824\n\n \n\n \n\n$\n\n40.48\n\n \n\n \n\n \n\n601\n\n \n\n \n\n$\n\n41.57\n\n \n\n \n\n \n\n4.7\n\n \n\nGranted\n\n \n\n \n\n124\n\n \n\n \n\n$\n\n31.19\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExercised\n\n \n\n \n\n(28\n\n)\n\n \n\n$\n\n29.18\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(53\n\n)\n\n \n\n$\n\n37.43\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at January 2, 2024\n\n \n\n \n\n867\n\n \n\n \n\n$\n\n39.70\n\n \n\n \n\n \n\n648\n\n \n\n \n\n$\n\n41.65\n\n \n\n \n\n \n\n4.4\n\n \n\nGranted\n\n \n\n \n\n156\n\n \n\n \n\n$\n\n32.09\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExercised\n\n \n\n \n\n(7\n\n)\n\n \n\n$\n\n31.60\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(83\n\n)\n\n \n\n$\n\n32.89\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at December 31, 2024\n\n \n\n \n\n933\n\n \n\n \n\n$\n\n39.10\n\n \n\n \n\n \n\n741\n\n \n\n \n\n$\n\n41.00\n\n \n\n \n\n \n\n3.9\n\n \n\nGranted\n\n \n\n \n\n118\n\n \n\n \n\n$\n\n37.81\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExercised\n\n \n\n \n\n(213\n\n)\n\n \n\n$\n\n35.77\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(121\n\n)\n\n \n\n$\n\n41.98\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at December 30, 2025\n\n \n\n \n\n717\n\n \n\n \n\n$\n\n39.39\n\n \n\n \n\n \n\n538\n\n \n\n \n\n$\n\n40.64\n\n \n\n \n\n \n\n3.6\n\n \n\n \n\nInformation relating to significant option groups outstanding as of December 30, 2025, is as follows (shares in thousands):\n\n \n\n \n\n \n\nOptions Outstanding\n\n \n\n \n\nOptions Exercisable\n\n \n\nRange of\n Exercise Prices\n\n \n\nOutstanding\n\n \n\n \n\nWeighted\nAverage\nRemaining\nContractual Life\n\n \n\n \n\nWeighted\nAverage Exercise\nPrice\n\n \n\n \n\nExercisable\n\n \n\n \n\nWeighted\nAverage Exercise\nPrice\n\n \n\n$22.27 – $31.86\n\n \n\n \n\n100\n\n \n\n \n\n \n\n7.5\n\n \n\n \n\n$\n\n31.45\n\n \n\n \n\n \n\n39\n\n \n\n \n\n$\n\n31.22\n\n \n\n$31.95 – $34.26\n\n \n\n \n\n73\n\n \n\n \n\n \n\n7.7\n\n \n\n \n\n$\n\n32.63\n\n \n\n \n\n \n\n52\n\n \n\n \n\n$\n\n32.40\n\n \n\n$34.28 – $35.95\n\n \n\n \n\n96\n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n$\n\n35.46\n\n \n\n \n\n \n\n67\n\n \n\n \n\n$\n\n35.95\n\n \n\n$37.10 – $37.10\n\n \n\n \n\n2\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n$\n\n37.10\n\n \n\n \n\n \n\n2\n\n \n\n \n\n$\n\n37.10\n\n \n\n$37.70 – $37.70\n\n \n\n \n\n98\n\n \n\n \n\n \n\n2.0\n\n \n\n \n\n$\n\n37.70\n\n \n\n \n\n \n\n98\n\n \n\n \n\n$\n\n37.70\n\n \n\n$38.90 – $38.90\n\n \n\n \n\n94\n\n \n\n \n\n \n\n4.0\n\n \n\n \n\n$\n\n38.90\n\n \n\n \n\n \n\n94\n\n \n\n \n\n$\n\n38.90\n\n \n\n$39.33 – $42.41\n\n \n\n \n\n84\n\n \n\n \n\n \n\n6.9\n\n \n\n \n\n$\n\n40.53\n\n \n\n \n\n \n\n25\n\n \n\n \n\n$\n\n42.12\n\n \n\n$44.10 – $45.92\n\n \n\n \n\n11\n\n \n\n \n\n \n\n8.4\n\n \n\n \n\n$\n\n44.41\n\n \n\n \n\n \n\n2\n\n \n\n \n\n$\n\n45.92\n\n \n\n$46.91 – $46.91\n\n \n\n \n\n74\n\n \n\n \n\n \n\n4.9\n\n \n\n \n\n$\n\n46.91\n\n \n\n \n\n \n\n74\n\n \n\n \n\n$\n\n46.91\n\n \n\n$48.75 – $53.22\n\n \n\n \n\n85\n\n \n\n \n\n \n\n3.0\n\n \n\n \n\n$\n\n53.16\n\n \n\n \n\n \n\n85\n\n \n\n \n\n$\n\n53.16\n\n \n\n$22.27 – $53.22\n\n \n\n \n\n717\n\n \n\n \n\n \n\n4.9\n\n \n\n \n\n$\n\n39.39\n\n \n\n \n\n \n\n538\n\n \n\n \n\n$\n\n40.64\n\n \n\nAs of December 30, 2025, total unrecognized stock-based compensation expense related to non-vested stock options was approximately $1.9 million, which is expected to be recognized over a weighted average remaining recognition period of 2.0 years.\n\nF-21\n\n \n\nRestricted Stock Units\n\nService-Based Restricted Stock Units\n\nThe following table presents service-based restricted stock unit activity:\n\n \n\n \n\n \n\nShares\n(in thousands)\n\n \n\n \n\nWeighted\nAverage\nFair Value\n\n \n\nOutstanding at January 3, 2023\n\n \n\n \n\n729\n\n \n\n \n\n$\n\n34.10\n\n \n\nGranted\n\n \n\n \n\n344\n\n \n\n \n\n$\n\n28.93\n\n \n\nReleased\n\n \n\n \n\n(169\n\n)\n\n \n\n$\n\n37.69\n\n \n\nForfeited\n\n \n\n \n\n(82\n\n)\n\n \n\n$\n\n31.62\n\n \n\nOutstanding at January 2, 2024\n\n \n\n \n\n822\n\n \n\n \n\n$\n\n31.46\n\n \n\nGranted\n\n \n\n \n\n306\n\n \n\n \n\n$\n\n33.13\n\n \n\nReleased\n\n \n\n \n\n(232\n\n)\n\n \n\n$\n\n37.80\n\n \n\nForfeited\n\n \n\n \n\n(124\n\n)\n\n \n\n$\n\n29.94\n\n \n\nOutstanding at December 31, 2024\n\n \n\n \n\n772\n\n \n\n \n\n$\n\n30.45\n\n \n\nGranted\n\n \n\n \n\n230\n\n \n\n \n\n$\n\n36.08\n\n \n\nReleased\n\n \n\n \n\n(192\n\n)\n\n \n\n$\n\n28.91\n\n \n\nForfeited\n\n \n\n \n\n(105\n\n)\n\n \n\n$\n\n31.12\n\n \n\nOutstanding at December 30, 2025\n\n \n\n \n\n705\n\n \n\n \n\n$\n\n32.62\n\n \n\nAs of December 30, 2025, total unrecognized stock-based compensation expense related to non-vested service-based RSUs was approximately $10.1 million, which is expected to be recognized over a weighted average remaining recognition period of 2.9 years.\n\nPerformance-Based Restricted Stock Units\n\nThe following table presents performance-based restricted stock unit activity:\n\n \n\n \n\n \n\nShares\n(in thousands)\n\n \n\n \n\nWeighted\nAverage\nFair Value\n\n \n\nOutstanding at January 3, 2023\n\n \n\n \n\n123\n\n \n\n \n\n$\n\n38.89\n\n \n\nGranted\n\n \n\n \n\n52\n\n \n\n \n\n$\n\n31.87\n\n \n\nReleased\n\n \n\n \n\n(40\n\n)\n\n \n\n$\n\n38.90\n\n \n\nForfeited\n\n \n\n \n\n(7\n\n)\n\n \n\n$\n\n35.01\n\n \n\nOutstanding at January 2, 2024\n\n \n\n \n\n128\n\n \n\n \n\n$\n\n36.24\n\n \n\nGranted\n\n \n\n \n\n79\n\n \n\n \n\n$\n\n39.09\n\n \n\nReleased\n\n \n\n \n\n(65\n\n)\n\n \n\n$\n\n46.91\n\n \n\nForfeited\n\n \n\n \n\n(59\n\n)\n\n \n\n$\n\n32.93\n\n \n\nOutstanding at December 31, 2024\n\n \n\n \n\n83\n\n \n\n \n\n$\n\n32.89\n\n \n\nGranted\n\n \n\n \n\n112\n\n \n\n \n\n$\n\n37.39\n\n \n\nReleased\n\n \n\n \n\n(40\n\n)\n\n \n\n$\n\n32.27\n\n \n\nForfeited\n\n \n\n \n\n(37\n\n)\n\n \n\n$\n\n35.23\n\n \n\nOutstanding at December 30, 2025\n\n \n\n \n\n118\n\n \n\n \n\n$\n\n36.63\n\n \n\n \n\nF-22\n\n \n\nThe fair value of performance-based RSUs, which include a market-based metric, was estimated on the grant date using the Monte Carlo simulation model with the following assumptions:\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\nVolatility\n\n \n\n \n\n48.0\n\n%\n\n \n\n \n\n49.8\n\n%\n\n \n\nn/a\n\nRisk-free interest rate\n\n \n\n \n\n4.2\n\n%\n\n \n\n \n\n3.8\n\n%\n\n \n\nn/a\n\nExpected life (years)\n\n \n\n3\n\n \n\n \n\n3\n\n \n\n \n\nn/a\n\nExpected dividend yield\n\n \n\n \n\n—\n\n%\n\n \n\n \n\n—\n\n%\n\n \n\nn/a\n\nFair value of market-based awards granted\n\n \n\n$\n\n37.98\n\n \n\n \n\n$\n\n34.79\n\n \n\n \n\nn/a\n\nAs of December 30, 2025, the total unrecognized stock-based compensation expense related to non-vested performance-based RSUs was approximately $2.0 million, which is expected to be recognized over a weighted average remaining recognition period of 1.8 years.\n\n13. Benefit Plans\n\nWe maintain a voluntary, contributory 401(k) plan for eligible team members. Team members may elect to contribute up to the IRS maximum for the plan year. Additionally, eligible participants may also elect catch-up contributions as provided for by the IRS. Our executive officers and other highly compensated team members are not eligible to participate in the 401(k) plan. Team member contributions are matched by us at a rate of 33% for the first 6% of deferred earnings. We contributed approximately $0.9 million, $0.8 million and $0.8 million in fiscal 2025, 2024 and 2023, respectively.\n\nWe also maintain a non-qualified deferred compensation plan (the “DCP”) for our executive officers and other highly compensated team members, as defined in the DCP, who are otherwise ineligible for participation in our 401(k) plan. The DCP allows participating team members to defer the receipt of a portion of their base compensation and up to 100% of their eligible bonuses. Additionally, the DCP allows for a voluntary company match as determined by our compensation committee. During fiscal 2025, there were no Company contributions made or accrued. We pay for related administrative costs, which were not material during fiscal 2025. Team member deferrals are deposited into a rabbi trust, and the funds are generally invested in individual variable life insurance contracts owned by us that are specifically designed to informally fund savings plans of this nature. Our investment in variable life insurance contracts, reflected in “Other assets, net” on our Consolidated Balance Sheets, was $13.5 million and $12.8 million as of December 30, 2025, and December 31, 2024, respectively. Our obligation to participating team members, included in “Other liabilities” on the accompanying Consolidated Balance Sheets, was $14.0 million and $13.2 million as of December 30, 2025, and December 31, 2024, respectively. All income and expenses related to the rabbi trust are reflected in our Consolidated Statements of Operations.\n\n14. Related Party Transactions\n\nBJ’s Act III, LLC\n\nOn December 30, 2024, the Company agreed to extend Act III's warrant termination date by two years to May 4, 2027, and recorded a related expense of $4.6 million within “Other (expense) income, net” on our Consolidated Statements of Operations. See Note 10 for further information.\n\nEquity Method Investment\n\nDuring fiscal 2022, we contributed assets valued at $5.0 million to a company, in which our former Board member and former Chief Executive Officer has a less than 1% interest. We recorded this non-cash contribution, in exchange for a 20% ownership of the company, as an investment within “Equity method investment” on our Consolidated Balance Sheets, and the related gain within “Loss on disposal and impairment of assets, net” on our Consolidated Statements of Operations. During fiscal 2025, the company obtained additional funding, and as a result our ownership interest decreased from 20% to 17%. For fiscal 2025, 2024, and 2023, we recorded a net loss related to the investment of $0.2 million, $0.5 million and $0.2 million, respectively, within “Other income, net,” and accordingly adjusted the investment carrying amount on our Consolidated Balance Sheets.\n\n15. Segment Information\n\nWe currently operate in one operating segment: full-service company-owned restaurants and in one geographic area: the United States of America. We do not have intra-entity sales or transfers. Our revenues are comprised of food and beverage sales from our restaurants, including takeout, delivery and catering sales. Our Chief Operating Decision Maker (“CODM”) is our chief\n\nF-23\n\n \n\nexecutive officer and president, and he assesses performance and decides how to allocate resources based on income from operations, which is also reported on our Consolidated Statements of Operations. Additionally, the measure of segment assets is reported on our Consolidated Balance Sheets as total assets. Our CODM uses net income to evaluate income generated from our segment assets and decides whether to reinvest profits into other parts of our business.\n\nReported segment revenue and expenses is presented below (in thousands):\n\n \n\n \n\n \n\nFiscal Year\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRevenues\n\n \n\n$\n\n1,399,126\n\n \n\n \n\n$\n\n1,357,302\n\n \n\n \n\n$\n\n1,333,229\n\n \n\nLess:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of sales\n\n \n\n \n\n351,688\n\n \n\n \n\n \n\n348,835\n\n \n\n \n\n \n\n344,945\n\n \n\nLabor and benefits\n\n \n\n \n\n492,609\n\n \n\n \n\n \n\n486,330\n\n \n\n \n\n \n\n480,867\n\n \n\nOccupancy and operating\n\n \n\n \n\n338,593\n\n \n\n \n\n \n\n326,544\n\n \n\n \n\n \n\n329,630\n\n \n\nOther segment items (1)\n\n \n\n \n\n93,355\n\n \n\n \n\n \n\n108,768\n\n \n\n \n\n \n\n93,036\n\n \n\nDepreciation and amortization\n\n \n\n \n\n76,571\n\n \n\n \n\n \n\n72,745\n\n \n\n \n\n \n\n70,992\n\n \n\nIncome from operations\n\n \n\n \n\n46,310\n\n \n\n \n\n \n\n14,080\n\n \n\n \n\n \n\n13,759\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReconciliation to net income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest expense, net\n\n \n\n \n\n(4,745\n\n)\n\n \n\n \n\n(5,484\n\n)\n\n \n\n \n\n(4,915\n\n)\n\nOther income (expense), net\n\n \n\n \n\n5,668\n\n \n\n \n\n \n\n(331\n\n)\n\n \n\n \n\n1,256\n\n \n\nIncome tax benefit\n\n \n\n \n\n1,575\n\n \n\n \n\n \n\n8,422\n\n \n\n \n\n \n\n9,560\n\n \n\nNet income\n\n \n\n$\n\n48,808\n\n \n\n \n\n$\n\n16,687\n\n \n\n \n\n$\n\n19,660\n\n \n\n \n\n(1) Other segment items consist of amounts related to general and administrative expenses, restaurant opening expenses, and loss on disposal of and impairment of assets, net.\n\n \n\nF-24"}