As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the sit-down dining industry, including BJ's (NASDAQ:BJRI) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 11 sit-down dining stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 2.3% below.

Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $348 million, up 3.2% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

“We are growing increasingly confident in our strategic growth plans and the effectiveness of our near-term initiatives that are focused on driving sales and profitability,” commented Brad Richmond, Interim Chief Executive Officer.BJ's Total Revenue

Interestingly, the stock is up 24.2% since reporting and currently trades at $41.57.

Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free.

Best Q1: Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.43 billion, up 27.2% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.Brinker International Total Revenue

Brinker International scored the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.2% since reporting. It currently trades at $144.22.

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Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $282.2 million, up 16.4% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

As expected, the stock is down 16.4% since the results and currently trades at $15.55.

Read our full analysis of First Watch’s results here.

Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.05 billion, down 12.2% year on year. This print topped analysts’ expectations by 1.2%. However, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EBITDA estimates.

Bloomin' Brands had the slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $7.76.

Read our full, actionable report on Bloomin' Brands here, it’s free.

Denny's (NASDAQ:DENN)

Open around the clock, Denny’s (NASDAQ:DENN) is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $111.6 million, up 1.5% year on year. This number beat analysts’ expectations by 1.4%. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.

The stock is down 2% since reporting and currently trades at $3.71.

Read our full, actionable report on Denny's here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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