# BJs RESTAURANTS INC (BJRI) Informational only - not investment advice. CIK: 0001013488 SIC: 5812 Retail-Eating Places SIC breadcrumb: [Retail Trade](/division/G/) > [Eating And Drinking Places](/major-group/58/) > [SIC 5812 Retail-Eating Places](/industry/5812/) Latest 10-K filed: 2026-03-02 SEC page: https://www.sec.gov/edgar/browse/?CIK=1013488 Filing source: https://www.sec.gov/Archives/edgar/data/1013488/000119312526083331/bjri-20251230.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1399126000 | USD | 2025 | 2026-03-02 | | Net income | 48808000 | USD | 2025 | 2026-03-02 | | Assets | 1015455000 | USD | 2025 | 2026-03-02 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001013488.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2014 | 2015 | 2017 | 2018 | 2019 | 2020 | 2021 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | 993,052,000 | 1,031,782,000 | 1,161,450,000 | 778,510,000 | 1,087,038,000 | 1,283,926,000 | 1,357,302,000 | 1,399,126,000 | | Net income | 27,397,000 | 45,325,000 | 45,557,000 | 50,810,000 | 45,238,000 | -57,885,000 | -3,606,000 | 4,076,000 | 16,687,000 | 48,808,000 | | Operating income | 35,426,000 | 63,062,000 | 61,641,000 | 37,904,000 | 49,119,000 | -86,431,000 | -16,507,000 | -5,480,000 | 14,080,000 | 46,310,000 | | Diluted EPS | 0.97 | 1.73 | 1.88 | 2.06 | 2.20 | -2.74 | -0.16 | 0.17 | 0.70 | 2.16 | | Assets | 647,083,000 | 681,665,000 | 691,312,000 | 683,550,000 | 1,072,084,000 | 1,059,424,000 | 1,035,166,000 | 1,045,922,000 | 1,041,064,000 | 1,015,455,000 | | Liabilities | 298,394,000 | 365,182,000 | 416,415,000 | 424,821,000 | 781,797,000 | 765,636,000 | 701,395,000 | 700,407,000 | 671,047,000 | 649,262,000 | | Stockholders' equity | 348,689,000 | 316,483,000 | 274,897,000 | 258,729,000 | 290,287,000 | 293,788,000 | 333,771,000 | 345,515,000 | 370,017,000 | 366,193,000 | | Cash and cash equivalents | 30,683,000 | 34,604,000 | 22,761,000 | 24,335,000 | 22,394,000 | 51,664,000 | 38,527,000 | 24,873,000 | 26,096,000 | 23,781,000 | | Net margin | | | 4.59% | 4.92% | 3.89% | -7.44% | -0.33% | 0.32% | 1.23% | 3.49% | | Operating margin | | | 6.21% | 3.67% | 4.23% | -11.10% | -1.52% | -0.43% | 1.04% | 3.31% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001013488.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-28 | | | 0.01 | reported discrete quarter | | 2022-Q3 | 2022-09-27 | 311,348,000 | -1,642,000 | -0.07 | reported discrete quarter | | 2022-Q4 | 2023-01-03 | 344,152,000 | 3,961,000 | | derived Q4 = FY annual - nine-month YTD | | 2023-Q1 | 2023-04-04 | 341,280,000 | 3,481,000 | 0.15 | reported discrete quarter | | 2023-Q2 | 2023-07-04 | 349,670,000 | 11,932,000 | 0.50 | reported discrete quarter | | 2023-Q3 | 2023-10-03 | 318,644,000 | -3,804,000 | -0.16 | reported discrete quarter | | 2024-Q1 | 2024-04-02 | 337,334,000 | 7,723,000 | 0.32 | reported discrete quarter | | 2024-Q2 | 2024-07-02 | 349,927,000 | 17,157,000 | 0.72 | reported discrete quarter | | 2024-Q3 | 2024-10-01 | 325,702,000 | -2,927,000 | -0.13 | reported discrete quarter | | 2025-Q1 | 2025-04-01 | 347,973,000 | 13,492,000 | 0.58 | reported discrete quarter | | 2025-Q2 | 2025-07-01 | 365,597,000 | 22,208,000 | 0.97 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 330,157,000 | 465,000 | 0.02 | reported discrete quarter | | 2026-Q1 | 2026-03-31 | 358,118,000 | 9,034,000 | 0.41 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1013488/000119312526206922/bjri-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-05-06 Report date: 2026-03-31 Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS STATEMENT REGARDING FORWARD-LOOKING DISCLOSURE Certain information included in this Form 10-Q and other filings with the Securities and Exchange Commission, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers may contain “forward-looking” statements about our current and expected performance trends, growth plans, business goals and other matters. Words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should,” and similar expressions are intended to identify “forward-looking” statements. These statements, and any other statements that are not historical facts, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended from time to time. The cautionary statements made in this Form 10-Q should be read as being applicable to all related “forward-looking” statements wherever they appear in this Form 10-Q. These forward-looking statements are based on information available to us as of the date any such statements are made, and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the risk factors described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2025, as updated in our Form 10-Q for the thirteen weeks ended March 31, 2026, and in other reports filed subsequently with the SEC. GENERAL BJ’s Restaurants is a leading full-service restaurant brand differentiated by a high-quality, varied menu with compelling value, a dining experience that offers our customers (referred to as “guests”) best-in-class service, hospitality and enjoyment, in a high-energy, welcoming and approachable atmosphere. BJ’s is a national restaurant chain that, as of May 5, 2026, owns and operates 219 restaurants located in 31 states. The first BJ’s restaurant opened in 1978 in Orange County, California, and was a small sit-down pizzeria that featured Chicago style deep-dish pizza with a unique California twist. In 1996, we introduced our proprietary craft beers and expanded the BJ’s concept to a full-service, high-energy restaurant when we opened our first large format restaurant with an on-site brewing operation in Brea, California. Today our restaurants feature a broad menu with approximately 90 menu items designed to offer something for everyone including: slow roasted entrees and wings, EnLIGHTened Entrees® such as our Cherry Chipotle Glazed Salmon, our original signature deep-dish pizza, and the world-famous Pizookie® dessert. We also offer our award-winning BJ’s craft beers, which are produced at four in-house brewing facilities, two standalone brewpubs and by independent third-party brewers using our proprietary recipes, alongside a full bar featuring innovative cocktails. Our revenues are comprised of food and beverage sales from our restaurants, including takeout, delivery and catering sales. Revenues from restaurant sales 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. Based 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 revenue and recognized in proportion to our historical redemption pattern, unless there is a legal obligation to remit the unredeemed gift cards to government authorities. Our 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. All of our restaurants are Company-owned. In calculating comparable restaurant sales, we include restaurants open for at least 18 months as of the beginning of the period presented. Guest traffic for our restaurants is estimated based on the number of guest checks. Cost 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 also may be impacted by changes in commodity prices, a shift in sales mix to items with different cost structures, or changes in level of promotional activities. Labor and benefit costs include direct hourly and management wages, bonuses, payroll taxes, fringe benefits and stock-based compensation, and workers’ compensation expense that are directly related to restaurant level team members. Occupancy and operating expenses include restaurant supplies, credit card fees, general liability and property insurance, third-party delivery company commissions, marketing costs, fixed rent, percentage rent, common area maintenance charges, utilities, real estate taxes, repairs and maintenance and other related restaurant costs. 13 General and administrative expenses include costs for our corporate administrative functions that support existing operations and provide infrastructure to facilitate our future growth. Components of this category include corporate management, field supervision and corporate hourly staff salaries and related team member benefits (including stock-based compensation expense and cash-based incentive compensation), travel and relocation costs, information systems, the cost to recruit and train new restaurant management team members, corporate rent, certain brand marketing-related expenses and legal and consulting fees. Depreciation and amortization are composed primarily of depreciation of capital expenditures for restaurant and brewing equipment and leasehold improvements. Restaurant opening expenses, which are expensed as incurred, consist of the costs of hiring and training the initial hourly work force for each new restaurant, travel, the cost of food and supplies used in training, grand opening promotional costs, the cost of the initial stock of operating supplies and other direct costs related to the opening of a restaurant, including rent expense during the in-restaurant training period. RESULTS OF OPERATIONS The following table provides, for the periods indicated, our unaudited Consolidated Statements of Income expressed as percentages of total revenues. The results of operations for the thirteen weeks ended March 31, 2026 and April 1, 2025, are not necessarily indicative of the results to be expected for the full fiscal year. Percentages below may not reconcile due to rounding. For the Thirteen Weeks Ended March 31, 2026 April 1, 2025 Revenues 100.0 % 100.0 % Restaurant operating costs (excluding depreciation and amortization): Cost of sales 25.1 25.0 Labor and benefits 36.3 36.1 Occupancy and operating 22.7 23.0 General and administrative 6.1 6.3 Depreciation and amortization 6.4 5.3 Restaurant opening - 0.1 Loss on disposal and impairment of assets, net 0.5 - Total costs and expenses 97.0 95.7 Income from operations 3.0 4.3 Other income (expense): Interest expense, net (0.3 ) (0.4 ) Other expense, net (0.1 ) - Total other expense (0.4 ) (0.4 ) Income before income taxes 2.5 3.9 Income tax expense - - Net income 2.5 % 3.9 % Thirteen Weeks Ended March 31, 2026 Compared to Thirteen Weeks Ended April 1, 2025 Revenues. Total revenues increased by $10.1 million, or 2.9%, to $358.1 million during the thirteen weeks ended March 31, 2026, from $348.0 million during the comparable thirteen-week period of 2025. The change in revenues primarily consisted of an increase of 2.4%, or $8.1 million, related to sales from restaurants in our comparable restaurant sales base, and $1.7 million related to sales from new restaurants. The increase in comparable restaurant sales was due to an increase in guest traffic of approximately 2.2%, coupled with an increase in average check of approximately 0.2%, resulting from changes in mix and menu price increases. Cost of Sales. Cost of sales increased by $3.1 million, or 3.6%, to $89.9 million during the thirteen weeks ended March 31, 2026, from $86.8 million during the comparable thirteen-week period of 2025. This increase was primarily due to higher guest traffic counts and higher commodity costs. As a percentage of revenues, cost of sales increased to 25.1% for the current thirteen-week period from 25.0% for the prior year comparable period. This increase was primarily due to higher commodity costs partially offset by menu price increases and the effectiveness of improved operations and our cost savings initiatives. 14 Labor and Benefits. Labor and benefit costs for our restaurants increased by $4.2 million, or 3.4%, to $129.9 million during the thirteen weeks ended March 31, 2026, from $125.7 million during the comparable thirteen-week period of 2025. This increase was primarily due to $2.7 million related to hourly labor, $0.8 million in taxes and benefits, and $0.5 million related to higher workers’ compensation costs. Included in labor and benefits for the thirteen weeks ended March 31, 2026 and April 1, 2025, was approximately $0.9 million and $0.4 million, or 0.2% and 0.1% of revenues, respectively, of stock-based compensation expense related to equity awards granted in accordance with our Gold Standard Stock Ownership Program for certain restaurant management team members. As a percentage of revenues, labor and benefit costs increased to 36.3% for the current thirteen-week period from 36.1% for the prior year comparable period. This increase was primarily due to higher stock-based compensation expense and workers’ compensation costs. Occupancy and Operating. Occupancy and operating expenses increased by $1.3 million, or 1.6%, to $81.2 million during the thirteen weeks ended March 31, 2026, from $79.9 million during the comparable thirteen-week period of 2025. This was primarily due to increases of $0.8 million in supplies, $0.6 million in utilities, $0.5 million in credit card processing fees, $0.1 million in repairs and maintenance, and $0.1 million in rent and related, offset by lower marketing-related expenses of $1.2 million. As a percentage of revenues, occupancy and operating expenses decreased to 22.7% for the current thirteen-week period from 23.0% for the prior year comparable period. This decrease was primarily due to reduced marketing spend during the thirteen weeks ended March 31, 2026. General and Administrative. General and administrative expenses increased by $0.2 million, or 1.0%, to $22.0 million during the thirteen weeks ended March 31, 2026, from $21.8 million during the comparable thirteen-week period of 2025. This was primarily due to increases of $0.7 million related to less internal costs capitalized with fewer new restaurant openings, $0.2 million related to higher stock-based compensation, and $0.2 million in corporate expenses, offset by decreases of $0.4 million related to our deferred compensation liability, $0.2 millio [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management’s Discussion and Analysis (“MD&A”) of Financial Condition and Results of Operations is intended to help you understand our Company, our operations and our current operating environment. For an understanding of the significant factors that influenced our performance, the MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes to Consolidated Financial Statements included in Part II, Item 8 - Financial Statements and Supplementary Data of our Annual Report. Our MD&A consists of the following sections: • Overview - a brief description of our business, financial highlights, strategy to increase shareholder value, key performance indicators, known and anticipated trends • Results of Operations - an analysis of our Consolidated Statements of Operations for fiscal year 2025 compared to fiscal year 2024 • Liquidity and Capital Resources - an analysis of cash flows, including capital expenditures, share issuance and repurchase activity, dividends, contractual obligations and commitments, and known trends that may impact liquidity • Critical Accounting Policies and Estimates - a discussion of accounting policies that require critical judgments and estimates, including new accounting standards, when applicable OVERVIEW As of February 27, 2026, we own and operate 219 restaurants located in 31 states as described in Item 2 - Properties - “Restaurant Locations” in this Form 10-K. Our restaurants are open every day of the year except for Thanksgiving and Christmas. All of our restaurants currently offer take-out and delivery services. Additionally, all of our restaurants offer a call-ahead or online wait list, on-line ordering for dine-in, guest pick-up or curbside delivery and reservations for large parties. Our menu features BJ’s award‑winning, signature deep-dish pizza, our proprietary craft and other beers, as well as a wide selection of appetizers, entrées, pastas, sandwiches, specialty salads and desserts, including our Pizookie® dessert. Our proprietary craft beer is produced at four of our restaurants with in-house brewing facilities, our Texas brewpub locations and by independent third-party brewers using our proprietary recipes. 25 Financial Highlights for Fiscal 2025 Notable fiscal 2025 financial highlights compared to fiscal 2024 include: • Total revenues increased 3.1% to $1.4 billion • Total restaurant operating weeks increased 0.9% • Comparable restaurant sales increased 2.0% • Net income of $48.8 million compared to $16.7 million • Diluted net income per share of $2.16 compared to $0.70 Strategy to Increase Shareholder Value Our goal is to increase shareholder value by increasing our adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), earnings per share and return on invested capital through: • Growing restaurant revenue through positive comparable sales and new restaurant growth • Increasing restaurant margins through sales leverage, cost savings and culinary and menu strategies • Enhancing new restaurant economics through restaurant margin improvement and new restaurant prototype optimization • Returning capital to shareholders through share repurchase program Key Performance Indicators and Non-GAAP Financial Measures Key measures that we use in evaluating our restaurants and assessing our business include the following: Comparable Restaurant Sales. In calculating comparable restaurant sales, we include a restaurant in the comparable base after it has been open for 18 months. This measure highlights the performance of existing restaurants, while excluding the impact of new restaurant openings and closures. Comparable restaurant sales increased 2.0% for fiscal 2025. Weekly Sales Average. We calculate each restaurant’s average weekly sales to understand and manage the business trends and expectations. Our weekly sales average was approximately $123,000, $120,000 and $118,000 for fiscal 2025, 2024 and 2023, respectively. Restaurant Level Operating Profit. This non-GAAP financial measure is equal to the revenues generated by our restaurants, less their direct operating costs which consist of cost of sales, labor and benefits, and occupancy and operating costs. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other operating costs that are essential to conduct the Company’s business. We, similar to most of our competitors, use restaurant level operating profit as a supplemental measure of restaurant performance and believe restaurant level operating profit is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate restaurant level operating profit differently than we do, our restaurant level operating profit calculation may not be comparable to similarly titled measures reported by other companies. A reconciliation of income from operations to restaurant level operating profit for fiscal 2025, 2024 and 2023 is set forth below both in dollars and as percentages of total revenues (dollar amounts in thousands): Fiscal Year 2025 2024 2023 Income from operations $ 46,310 3.3 % $ 14,080 1.0 % $ 13,759 1.0 % General and administrative 91,005 6.5 88,272 6.5 82,103 6.2 Depreciation and amortization 76,571 5.5 72,745 5.4 70,992 5.3 Restaurant opening 663 — 2,082 0.2 2,808 0.2 Loss on disposal and impairment of assets, net 1,687 0.1 18,414 1.4 8,125 0.6 Restaurant level operating profit $ 216,236 15.5 % $ 195,593 14.4 % $ 177,787 13.3 % Adjusted Diluted Net Income Per Share. This is a non-GAAP financial measure that represents net income excluding net loss on disposal and impairment of assets, net leadership transition expenses and the related stock-based compensation credit, and charges associated with the 2024 extension of an outstanding warrant. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as our management. Because other companies may calculate this measure differently than we do, our adjusted diluted net income per share calculation may not be comparable to similarly titled measures reported by other companies. A reconciliation of net income to adjusted diluted net income per share for fiscal 2025, 2024 and 2023 is set forth below both in dollars and as percentages of total revenues (dollar amounts in thousands): 26 Fiscal Year 2025 2024 2023 Net income $ 48,808 3.5 % $ 16,687 1.2 % $ 19,660 1.5 % Loss on disposal and impairment of assets, net 1,687 0.1 18,414 1.4 8,125 0.6 Leadership transition expense, net 1,392 0.1 3,231 0.2 — — Stock-based compensation credit (1) — — (2,093 ) (0.2 ) — — Warrant extension — — 4,622 0.3 — — Total adjustments 3,079 0.2 24,174 1.8 8,125 0.6 Tax effect of adjustments (2) (745 ) (0.1 ) (5,850 ) (0.4 ) (1,966 ) (0.1 ) After tax effect of adjustments 2,334 0.2 18,324 1.4 6,159 0.5 Adjusted net income $ 51,142 3.7 % $ 35,011 2.6 % $ 25,819 1.9 % Diluted weighted average number of shares outstanding: 22,622 23,768 23,923 Diluted net income per share $ 2.16 $ 0.70 $ 0.82 Adjusted diluted net income per share $ 2.26 $ 1.47 $ 1.08 (1) Amount relates to stock-based compensation forfeited due to leadership transition. (2) The tax effect is based on the Company’s annual statutory tax rate of 24.2% for fiscal years ending December 30, 2025, December 31, 2024 and January 2, 2024. Adjusted EBITDA. This non-GAAP financial measure represents the sum of net income adjusted for certain expenses and gains/losses detailed within the reconciliation below. We use Adjusted EBITDA as a supplemental measure of our operating performance and believe this measure is useful to investors in that it highlights cash flow and trends in our business operations that may not otherwise be apparent to investors when relying solely on GAAP financial measures. Because other companies may calculate this measure differently than we do, our Adjusted EBITDA calculation may not be comparable to similarly titled measures reported by other companies. A reconciliation of net income to Adjusted EBITDA for fiscal 2025, 2024 and 2023 is set forth below both in dollars and as percentages of total revenues (dollar amounts in thousands): Fiscal Year 2025 2024 2023 Net income $ 48,808 3.5 % $ 16,687 1.2 % $ 19,660 1.5 % Interest expense, net 4,745 0.3 5,484 0.4 4,915 0.4 Income tax benefit (1,575 ) (0.1 ) (8,422 ) (0.6 ) (9,560 ) (0.7 ) Depreciation and amortization 76,571 5.5 72,745 5.4 70,992 5.3 Leadership transition expense, net (1) 1,392 0.1 3,231 0.2 — — Stock-based compensation expense 8,115 0.6 8,629 0.6 10,902 0.8 Other (income) expense, net (5,668 ) (0.4 ) 331 — (1,256 ) (0.1 ) Loss on disposal and impairment of assets, net 1,687 0.1 18,414 1.4 8,125 0.6 Adjusted EBITDA $ 134,075 9.6 % $ 117,099 8.6 % $ 103,778 7.8 % (1) Amount relates to severance, relocation, signing bonus and bonus expenses related to our leadership transition. Known or Anticipated Trends Sales Growth. While most of our established restaurants operate close to full capacity during peak demand periods, we will continue to focus on ways to build sales, positively impact guest traffic and grow average check and weekly sales averages. We continue to focus on sales building initiatives to create more guest loyalty, increase the frequency of guest visits, further build our off-premise sales channel, better optimize our menu sales mix and develop other incremental opportunities to allow guests to utilize BJ’s. We believe that all of these efforts combined with new restaurant openings offer significant growth opportunities and upside for weekly sales averages and comparable restaurant sales. Restaurant Opening. Newly opened restaurants typically experience inefficiencies in the form of higher cost of sales, labor and direct operating and occupancy costs for several months after their opening relative to our more mature, established restaurants. Accordingly, the number and timing of new restaurant openings have had, and are expected to continue to have, an impact on restaurant opening expenses, cost of sales, labor and occupancy and operating expenses. 27 Impacts of Inflation. Inflation has had an impact on our operations, new restaurant construction and corresponding return on invested capital. While we have been able to partially offset inflation and other changes in the costs of key operating inputs by gradually increasing menu prices, coupled with more efficient purchasing practices, productivity improvements and greater economies of scale, there can be no assurance that we will be able to continue to do so in the future. Increases in inflation could have a severe impact on the United States and global economies, which will have an adverse impact on our business, financial condition and results of operations. In addition, macroeconomic conditions that impact consumer discretionary spending for food away from home could make additional menu price increases imprudent. Whether we are able to continue to offset the effects of inflation will determine to what extent, if any, inflation affects our restaurant profitability in future periods. Accounting Terms and Characteristics Revenues. Our revenues are comprised of food and beverage sales from our restaurants, including takeout, delivery and catering sales. Revenues from restaurant sales 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. Based 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 revenue and recognized in proportion to our historical redemption pattern, unless there is a legal obligation to remit the unredeemed gift cards to government authorities. Guest Loyalty Program. Our 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. Comparable Sales and Guest Traffic. All of our restaurants are company-owned. In calculating comparable restaurant sales, we include a restaurant in the comparable base after it has been open for 18 months. Guest traffic for our restaurants is estimated based on the number of guest checks. Cost of Sales. Cost 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 also may be impacted by changes in commodity prices, a shift in sales mix to higher cost proteins or other higher cost items, or varying levels of promotional activities. Labor and Benefits. Labor and benefit costs include direct hourly and management wages, bonuses, payroll taxes, fringe benefits and stock-based compensation, and workers’ compensation expense that are directly related to restaurant level team members. Occupancy and Operating. Occupancy and operating expenses include restaurant supplies, credit card fees, general liability and property insurance, third-party delivery company commissions, marketing costs, fixed rent, percentage rent, common area maintenance charges, utilities, real estate taxes, repairs and maintenance and other related restaurant costs. General and Administrative. General and administrative expenses include costs for our corporate administrative functions that support existing operations and provide infrastructure to facilitate our future growth. Components of this category include corporate management, field supervision and corporate hourly staff salaries and related team member benefits (including stock-based compensation expense and cash-based incentive compensation), travel and relocation costs, information systems, the cost to recruit and train new restaurant management team members, corporate rent, certain brand marketing-related expenses and legal and consulting fees. Depreciation and Amortization. Depreciation and amortization are composed primarily of depreciation of capital expenditures for restaurant and brewing equipment and leasehold improvements. Restaurant Opening. Restaurant opening expenses, which are expensed as incurred, consist of the costs of hiring and training the initial hourly work force for each new restaurant, travel, the cost of food and supplies used in training, grand opening promotional costs, the cost of the initial stock of operating supplies and other direct costs related to the opening of a restaurant, including rent expense during the in-restaurant training period. 28 RESULTS OF OPERATIONS The following table sets forth, for the years indicated, our Consolidated Statements of Operations both in dollars and as percentages of total revenues (dollar amounts in thousands). All fiscal years presented consist of 52 weeks. Percentages below may not reconcile due to rounding. Fiscal Year 2025 2024 2023 Revenues $ 1,399,126 100.0 % $ 1,357,302 100.0 % $ 1,333,229 100.0 % Restaurant operating costs (excluding depreciation and amortization): Cost of sales 353,293 25.3 350,560 25.8 346,569 26.0 Labor and benefits 504,537 36.1 495,466 36.5 491,314 36.9 Occupancy and operating 325,060 23.2 315,683 23.3 317,559 23.8 General and administrative 91,005 6.5 88,272 6.5 82,103 6.2 Depreciation and amortization 76,571 5.5 72,745 5.4 70,992 5.3 Restaurant opening 663 — 2,082 0.2 2,808 0.2 Loss on disposal and impairment of assets, net 1,687 0.1 18,414 1.4 8,125 0.6 Total costs and expenses 1,352,816 96.7 1,343,222 99.0 1,319,470 99.0 Income from operations 46,310 3.3 14,080 1.0 13,759 1.0 Other income (expense): Interest expense, net (4,745 ) (0.3 ) (5,484 ) (0.4 ) (4,915 ) (0.4 ) Other income (expense), net 5,668 0.4 (331 ) — 1,256 0.1 Total other income (expense) 923 0.1 (5,815 ) (0.4 ) (3,659 ) (0.3 ) Income before income taxes 47,233 3.4 8,265 0.6 10,100 0.8 Income tax benefit (1,575 ) (0.1 ) (8,422 ) (0.6 ) (9,560 ) (0.7 ) Net income $ 48,808 3.5 % $ 16,687 1.2 % $ 19,660 1.5 % 52 WEEKS ENDED DECEMBER 30, 2025 (FISCAL 2025) COMPARED TO THE 52 WEEKS ENDED DECEMBER 31, 2024 (FISCAL 2024) Revenues. Total revenues increased by $41.8 million, or 3.1%, to $1.40 billion during fiscal 2025, compared to $1.36 billion during fiscal 2024. The increase in revenues primarily consisted of a 2.0%, or $26.5 million, increase in comparable restaurant sales, and a $16.0 million increase in sales from new restaurants not yet in our comparable restaurant sales base. Revenue increases were offset primarily by a $1.1 million decrease related to closed restaurants. The increase in comparable restaurant sales was due to an increase in guest traffic of approximately 2.8%, offset by an average check decrease of approximately 0.8%. The decrease in average check results from our introduction and the growth of the Pizookie Meal Deal platform, seasonal Pizookie visits, and growth in the late night daypart that have driven gains in guest traffic but carry a lower than average check, partially mitigated by menu price increases. Cost of Sales. Cost of sales increased by $2.7 million, or 0.8%, to $353.3 million during fiscal 2025, compared to $350.6 million during fiscal 2024. This increase was primarily due to increased guest counts, coupled with costs related to our new restaurant and a full year of costs related to our restaurants opened in the prior year. As a percentage of revenues, cost of sales decreased to 25.3% for fiscal 2025 from 25.8% for the prior fiscal year. This decrease was primarily due to menu price increases and the effectiveness of our cost savings initiatives, partially offset by higher commodity costs. Labor and Benefits. Labor and benefit costs for our restaurants increased by $9.1 million, or 1.8%, to $504.5 million during fiscal 2025, compared to $495.5 million during fiscal 2024. This increase was primarily due to $3.4 million related to higher restaurant management compensation, $3.0 million related to higher workers’ compensation insurance expense, $1.4 million in taxes and benefits, and $1.3 million related to hourly labor, influenced by increased guest counts and costs related to our new restaurant opening, and a full year of costs related to restaurants opened in the prior year. Included in labor and benefits for fiscal 2025 and 2024 was approximately $2.4 million and $2.5 million, respectively, or 0.2% of revenues, of stock-based compensation expense, related to equity awards granted in accordance with our Gold Standard Stock Ownership Program for certain restaurant management team members. As a percentage of revenues, labor and benefit costs decreased to 36.1% for fiscal 2025 from 36.5% for the prior fiscal year. This decrease was primarily due to leveraging our comparable restaurant sales growth, menu price increases and improved labor efficiency driven by our cost savings initiatives. 29 Occupancy and Operating. Occupancy and operating expenses increased by $9.4 million, or 3.0%, to $325.1 million during fiscal 2025, compared to $315.7 million during fiscal 2024. This was primarily due to increases of $4.0 million in marketing-related expenses, $2.6 million in utilities, $1.9 million in repairs and maintenance, and $1.6 million in rent and related expenses, offset by a decrease of $1.5 million in supplies. These increases were partially due to our new restaurant and a full year of costs related to our restaurants opened in the prior year. As a percentage of revenues, occupancy and operating expenses decreased to 23.2% for fiscal 2025 from 23.3% for the prior fiscal year. This decrease was primarily due to leveraging our comparable restaurant sales growth, coupled with improved efficiency driven by our cost savings initiatives. General and Administrative. General and administrative expenses increased by $2.7 million, or 3.1%, to $91.0 million during fiscal 2025, compared to $88.3 million during fiscal 2024. This was primarily due to increases of $3.5 million related to less internal costs capitalized in the current year versus prior year given there were fewer new restaurant openings, $1.7 million related to office expenses, $1.3 million in external services, including consulting fees, and $0.8 million related to recruiting expenses. These costs were offset by decreases of $2.7 million in legal fees and $1.9 million in corporate expenses, including meeting related costs. Included in general and administrative costs for fiscal 2025 and 2024 was approximately $5.7 million and $6.2 million, or 0.4% and 0.5% of revenues, of stock-based compensation expense, respectively. This reduction was due to equity forfeitures associated with leadership changes during the year. As a percentage of revenues, general and administrative expenses remained consistent at 6.5% for fiscal 2025 and the prior fiscal year. Depreciation and Amortization. Depreciation and amortization increased by $3.8 million, or 5.3%, to $76.6 million during fiscal 2025, compared to $72.7 million during fiscal 2024. This increase was primarily related to depreciation expense related to our new restaurant and a full year of depreciation related to our restaurants opened in the prior year, coupled with depreciation related to our remodeled restaurants. As a percentage of revenues, depreciation and amortization increased to 5.5% for fiscal 2025 from 5.4% for the prior fiscal year. Restaurant Opening. Restaurant opening expense decreased by $1.4 million, or 68.2%, to $0.7 million during fiscal 2025, compared to $2.1 million during fiscal 2024. This decrease was primarily due to the number of openings. Loss on Disposal and Impairment of Assets, Net. Loss on disposal and impairment of assets, net, was $1.7 million during fiscal 2025, compared to $18.4 million during fiscal 2024. In fiscal 2025, these costs primarily related to disposals of assets in conjunction with initiatives to keep our restaurants up to date. In fiscal 2024, these costs primarily related to the impairment and reduction in the carrying value of the long-lived assets related to six of our restaurants, coupled with the disposals of assets in conjunction with initiatives to keep our restaurants up to date and the closure of one of our restaurants. Interest Expense, Net. Interest expense, net, decreased by $0.7 million to $4.7 million during fiscal 2025, compared to $5.5 million during fiscal 2024. This decrease was primarily due to a lower weighted average interest rate in 2025. Other Income (Expense), Net. Other income (expense), net, was income of $5.7 million during fiscal 2025, compared to an expense of $0.3 million during fiscal 2024. This change is primarily due to the prior year charge associated with the extension of an outstanding warrant. Income Tax Benefit. Our effective income tax rate for fiscal 2025 reflected a 3.3% tax benefit compared to a 101.9% tax benefit for fiscal 2024. The effective tax rate benefit for fiscal 2025 and 2024 was different than the statutory tax rate primarily due to Federal Insurance Contributions Act (“FICA”) tax tip credits. 52 WEEKS ENDED DECEMBER 31, 2024 (FISCAL 2024) COMPARED TO THE 53 WEEKS ENDED JANUARY 2, 2024 (FISCAL 2023) For discussion related to the results of operations and changes in financial condition for fiscal 2024 compared to fiscal 2023 refer to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our fiscal 2024 Form 10-K, which was filed with the United States Securities and Exchange Commission on February 26, 2025. 30 LIQUIDITY AND CAPITAL RESOURCES The following table provides, for the periods indicated, a summary of our key liquidity measurements (dollar amounts in thousands): December 30, 2025 December 31, 2024 Cash and cash equivalents $ 23,781 $ 26,096 Net working capital $ (112,850 ) $ (116,744 ) Current ratio 0.4:1.0 0.4:1.0 Our capital requirements are driven by our fundamental financial objective to improve total shareholder return through a balanced approach of new restaurant expansion plans, enhancements and initiatives focused on existing restaurants and return of capital to our shareholders through our share repurchase program. Based on current operations, we believe that our current cash and cash equivalents, coupled with cash generated from operations and availability under our credit agreement will be adequate to meet our capital expenditure and working capital needs for at least the next twelve months. Our future operating performance will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control. Similar to many restaurant chains, we typically utilize operating lease arrangements (principally ground leases) for our restaurant locations. We believe our operating lease arrangements provide appropriate leverage for our capital structure in a financially efficient manner. However, we are not limited to the use of lease arrangements as our only method of opening new restaurants and from time to time have purchased the underlying land for new restaurants. We typically lease our restaurant locations for periods of 10 to 20 years under operating lease arrangements. Our rent structures vary from lease to lease, but generally provide for the payment of both minimum and contingent (percentage) rent based on sales, as well as other expenses related to the leases (for example, our pro-rata share of common area maintenance, property tax and insurance expenses). Many of our lease arrangements include the opportunity to secure tenant improvement allowances to partially offset the cost of developing and opening the related restaurants. Generally, landlords recover the cost of such allowances from increased minimum rents. There can be no assurance that such allowances will be available to us on each project. From time to time, we may also decide to purchase the underlying land for a new restaurant if that is the only way to secure a highly desirable site. Currently, we own the underlying land for our Texas brewpub locations. We also own parcels of land adjacent to two of our restaurants. It is not our current strategy to own a large number of land parcels that underlie our restaurants. Therefore, in many cases we have subsequently entered into sale-leaseback arrangements for land parcels that we previously purchased. We disburse cash for certain site-related work, buildings, leasehold improvements, furnishings, fixtures and equipment to build our leased and owned premises. We own substantially all of the equipment, furniture and trade fixtures in our restaurants and currently plan to do so in the future. CASH FLOWS The following tables set forth, for the years indicated, our cash flows from operating, investing, and financing activities (dollar amounts in thousands): Fiscal Year 2025 2024 2023 Net cash provided by operating activities $ 110,514 $ 101,472 $ 105,837 Net cash used in investing activities (69,569 ) (76,893 ) (98,911 ) Net cash used in financing activities (43,260 ) (27,553 ) (2,729 ) Net (decrease) increase in cash and cash equivalents $ (2,315 ) $ (2,974 ) $ 4,197 Operating Cash Flows Net cash provided by operating activities was $110.5 million during fiscal 2025, representing a $9.0 million increase compared to the $101.5 million provided during fiscal 2024. This increase is primarily due to improved net income, partially offset by the timing of accounts payable payments and accrued expenses. Investing Cash Flows Net cash used in investing activities was $69.6 million during fiscal 2025, representing a $7.3 million decrease compared to the $76.9 million used in fiscal 2024. This decrease is primarily due to fewer new restaurant openings offset by the number of restaurant remodels. The following table provides, for the years indicated, the components of capital expenditures (dollar amounts in thousands): 31 Fiscal Year 2025 2024 2023 New restaurants $ 8,455 $ 28,766 $ 39,942 Restaurant maintenance and remodels, and productivity initiatives 59,766 47,205 57,631 Restaurant and corporate systems 1,391 929 1,341 Total capital expenditures $ 69,612 $ 76,900 $ 98,914 During fiscal 2025, we opened one new restaurant. We expect to fund our net capital expenditures with our current cash on hand, cash flows from operations and our line of credit. Our future cash requirements will depend on many factors, including the pace of our expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords. Financing Cash Flows Net cash used in financing activities was $43.3 million during fiscal 2025, representing a $15.7 million increase in cash used compared to the $27.6 million used in fiscal 2024. This increase is primarily due to the increase in share repurchases, partially offset by the increase in proceeds from stock option exercises and higher borrowings under our credit facility. Contractual Obligations and Commitments We believe we have sufficient liquidity to fund our operations and meet our short-term and long-term obligations. Our cash requirements greater than twelve months from contractual obligations and commitments include: • Operating Leases — Refer to Note 1 and Note 6, Leases, of the notes to the Consolidated Financial Statements for further information of our obligations and the timing of expected payments. • Purchase Obligations— Refer to Note 7, Commitments and Contingencies, of the notes to the Consolidated Financial Statements for further detail of our obligations and the timing of expected future payments. • Long-term Debt, Standby Letters of Credit and Interest Payments — Refer to Note 8, Long-Term Debt, of the notes to the Consolidated Financial Statements for further information of our obligations and the timing of expected payments. Off-Balance Sheet Arrangements We do not participate in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or variable interest entities (“VIEs”), which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow limited purposes. As of December 30, 2025, we are not involved in any off-balance sheet arrangements. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our significant accounting policies are more fully described in Note 1 of Notes to Consolidated Financial Statements in Part IV, Item 15. Judgments or uncertainties regarding the application of these policies may result in materially different amounts being reported under different conditions or using different assumptions. We consider the following policy to be the most critical in understanding the judgments that are involved in preparing our consolidated financial statements. Impairment of Long-Lived Assets We 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. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. 32