BJs Restaurants, Inc. Analyst Presentation Safe Harbor Certain - PowerPoint PPT Presentation

September 2019 BJ’s Restaurants, Inc. – Analyst Presentation

Safe Harbor Certain statements in the following presentation and all other statements that are not purely historical constitute “forward - looking” statements for purposes of the Securities Act of 1933 and the Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. Such statements include, but are not limited to, those regarding expected comparable restaurant sales and margin growth in future periods, total potential domestic capacity, the success of various sales-building and productivity initiatives, future guest traffic trends, construction cost savings initiatives and the number and timing of new restaurants expected to be opened in future periods. These “forward - looking” statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those projected or anticipated. Factors that might cause such differences include, but are not limited to: (i) our ability to manage an increasing number of new restaurant openings, (ii) construction delays, (iii) labor shortages, (iv) increase in minimum wage and other employment related costs, including compliance with the Patient Protection and Affordable Care Act on our operations, (v) the effect of credit and equity market disruptions on our ability to finance our continued expansion on acceptable terms, (vi) food quality and health concerns, (vii) factors that impact California, Texas and Florida where a substantial number of our current restaurants are located, (viii) restaurant and brewery industry competition, (ix) impact of certain brewery business considerations, including without limitation, dependence upon suppliers, third party contractors and related hazards, (x) consumer spending trends in general for casual dining occasions, (xi) potential uninsured losses and liabilities due to limitations on insurance coverage, (xii) fluctuating commodity costs and availability of food in general and certain raw materials related to the brewing of our craft beers and energy, (xiii) trademark and service-mark risks, (xiv) government regulations and licensing costs, (xv) beer and liquor regulations, (xvi) loss of key personnel, (xvii) inability to secure acceptable sites, (xviii) legal proceedings, (xix) other general economic and regulatory conditions and requirements, (xx) the success of our key sales-building and related operational initiatives, (xxi) any failure of our information technology or security breaches with respect to our electronic systems and data, and (xxii) numerous other matters discussed in the Company’s filings with the Securities and Exchange Commission, including its recent reports on Forms 10-K, 10-Q and 8-K. The “forward - looking” statements contained in this presentation are based on current assumptions and expectations and, BJ’s Restaurants, Inc. undertakes no obligation to update or alter its “forward - looking” statements whether as a result of new information, future events or otherwise. 2

BJ’s Restaurants Overview 207 restaurants in 28 states 202 large-format restaurants (7,000 - 10,000 sq. ft.)  4 small-format restaurants (2,000 - 4,000 sq. ft.)   1 R&D test restaurant (6,000 interior sq. ft.) Our restaurants feature:  Broad, diversified menu for any dining occasion  Signature menu items including deep dish pizza, craft beer and our famous “ pizookie ” dessert Contemporary, high quality, “casual plus” positioning  Our restaurants generate: Industry-leading average unit volumes of $5.5 million  Industry-leading guest traffic   Per person average spend of $17 Note : Financial metrics as of Q2’19. Restaurant counts as of 08/27/2019. 3

Track Record of Delivering Best-in-Class Growth ($ in millions except per share data) System Sales $1,117 System Sales Growth 10.2% 8-yr. $514 CAGR #2 Rank (out of 9 CD peers $1BN+ in sales) 2010 2011 2012 2013 2014 2015 2016 2017 2018 $64 $140 EBITDA Dil. EPS $0.82 $2.35 8 SALES, EBITDA & EPS MORE THAN DOUBLED IN YEARS Source: Public company filings and industry research. 4

Key Investment Highlights 1 2 3 Significant Runway Category-Leading Consistent and Reliable For Growth Restaurant Productivity Financial Performance  Many new markets seeded for  $5.5mm system-wide AUV  Consistently grown sales and growth, and potential for 425+ EBITDA  Industry leader in guests per sq. ft. restaurants in the U.S .  Performance outpaces peers across  Strong four-wall restaurant margins many key indicators (i.e., Knapp- Track, BlackBox, etc.) 5 6 4 Best-in-Class Strong Restaurant Culture of Discipline, Management Returns Hospitality and Service  BJ’s is led by executives with  Trailing Twelve Months through  Retention rates better than the decades of combined experience May 2019, BJ’s restaurants averaged industry cash-on-cash returns of 22%,  Project Q to drive efficiencies  Management team proven they can spanning 2004 vintages to current grow new restaurants with quality  Gold Standard Kitchen Systems 5

Why Guests Choose BJ’s BREADTH OF APPEAL STRONG VALUE PROPOSITION GUESTS RELEVANT FOOD, DRINKS & ATMOSPHERE UNMATCHED EXECUTION 6

“Premium Casual” Experience at “Mass Market” Price $33 $27 $23 $23 $22 $19 $17 $17 $16 $15 $15 $14 $13 Note: Represents average check data. Source: Public company filings as of FY2018 and industry research. 7

Industry Leader in Average Unit Sales ($ in millions) $10.7 $8.3 $5.5 $5.2 $4.8 $4.3 $4.3 $3.6 $3.4 $3.0 $3.0 $2.9 $2.4 Source: Public company filings as of FY2018 and industry research. 8

Broad Consumer Appeal for All Dayparts System Mix Daypart Mix Gross Margin on 26% of Sales from Pizza & Alcohol: ~80%+ Off-Peak Meal Periods 9

Our Focus Continue Sales Momentum Leverage Enhance our Margins & Culture Drive ROIC New Restaurant Growth 10

Ongoing Sales Building Initiatives 11

Sales Building Initiatives Awareness Off-Premise Food Investment Operational Loyalty through Opportunities Improvements Innovation in Value Better Marketing  Slow Roast ovens  EnLIGHT ened  Delivery  2018 rollout of  Focus on target  Enhanced for new center of sandwich & salad revised program (millennial Scheduling  Mobile app usage the plate entrees offerings parents) process  Simpler and and sandwiches  Catering and  New lunch items easier to use  Consistent  Handheld server large party menu  EnLIGHT ened program for our messaging; tablets  Nearly doubled item expansion guests closer to core level of  Gold Standard around lower promotional  Next phase:  Social, digital, Kitchen Systems - calorie and super spend since 2015 segment noteworthy Prep/Line hour foods marketing to events integration  Significant price  New small bite loyalty guests investment in  “Promotions with  NPS system and appetizers and based on new Happy Hour a purpose” to increased add-ons behavior lower overall investment in  Daily Brewhouse  Pizookie spend (Pi-Day, mystery shopper Specials franchise free mini-pizza program expansion delivery day) 12

Sales Initiatives Driving Outperformance to Black Box BJ’s vs . Industry: Sales BJ’s vs. Industry: Traffic (Comparable Restaurant Gap to Black Box) (Comparable Restaurant Gap to Black Box) 5.3% 4.8% 3.9% 4.3% 3.3% 2.8% 2.3% 2.6% 2.0% 1.8% 2.1% 1.7% 1.5% 1.2% 1.3% 1.3% 0.8% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 -0.5% -0.8% -2.1% SSS: (1.3%) (1.4%) (1.7%) 1.6% 4.2% 5.6% 6.9% 4.5% 2.0% 2.0% Traffic: (4.2%) (4.2%) (3.1%) 0.7% 0.4% 2.5% 2.6% 1.1% 0.7% (1.0%) 8 CONSECUTIVE QUARTERS BEATING THE INDUSTRY IN BOTH SALES & TRAFFIC 13

Slow Roast Ovens Driving Average Check Slow Roast Incidence Launched new Slow Roast initiative in Q2’17 (per 100 checks) to further differentiate food quality  New menu items: Prime Rib, Double Bone-in Pork Chop, Turkey Dip Sandwich, Prime Rib Dip Sandwich and Slow 25.7 Roasted Turkey Club Upgraded existing items: Baby Back Pork Ribs, BBQ Pulled  18.6 Pork Sandwich, Meatballs 15.3 14.6 14.0 13.7  Added Tri Tip Sirloin in Q2’19 including Tri Tip combos Augments existing pizza oven and broilers Simplicity of item execution consistent with Project Q efficiency goals Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 14

Off-Premise Continues to Drive Incremental Sales Off-Premise  Off-Premise sales have increased (Delivery & Take Out as % of Total Sales) from 5.6% of sales in 2016 to 10% 2017: 6.4% 2018: 8.4% YTD’19: 10.0% YTD 2019 10.1% 9.8% 9.5% Selling BJ’s Beer and wine to go  8.7% (where permissible) 7.7% 7.5% 7.1% 6.6% 6.0%  Implementing new Catering and 5.8% Large Party packages in Q3’19 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 15