BJs RESTAURANTS INC Stock Compensation Disclosure
12. Stock-Based Compensation Plans
The following table presents the stock-based compensation recognized within our consolidated financial statements (in thousands):
|
|
Fiscal Year |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Labor and benefits |
|
$ |
2,407 |
|
|
$ |
2,452 |
|
|
$ |
2,583 |
|
General and administrative |
|
|
5,708 |
|
|
|
6,177 |
|
|
|
8,319 |
|
Capitalized (1) |
|
|
168 |
|
|
|
357 |
|
|
|
380 |
|
Total stock-based compensation |
|
$ |
8,283 |
|
|
$ |
8,986 |
|
|
$ |
11,282 |
|
(1) Capitalized stock-based compensation relates to our restaurant development personnel and is included in “Property and equipment, net” on our Consolidated Balance Sheets.
Stock Options
The fair value of each stock option was estimated on the grant date using the Black‑Scholes option-pricing model with the following assumptions:
|
|
Fiscal Year |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Expected volatility |
|
|
54.7 |
% |
|
|
67.6 |
% |
|
|
66.9 |
% |
Risk-free interest rate |
|
|
4.1 |
% |
|
|
3.9 |
% |
|
|
3.6 |
% |
Expected option life |
|
5 years |
|
|
5 years |
|
|
5 years |
|
|||
Dividend yield |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Fair value of options granted |
|
$ |
19.19 |
|
|
$ |
19.00 |
|
|
$ |
18.24 |
|
Under 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:
|
|
Options Outstanding |
|
|
Options Exercisable |
|
||||||||||||||
|
|
Shares |
|
|
Weighted |
|
|
Shares |
|
|
Weighted |
|
|
Weighted |
|
|||||
Outstanding at January 3, 2023 |
|
|
824 |
|
|
$ |
40.48 |
|
|
|
601 |
|
|
$ |
41.57 |
|
|
|
4.7 |
|
Granted |
|
|
124 |
|
|
$ |
31.19 |
|
|
|
|
|
|
|
|
|
|
|||
Exercised |
|
|
(28 |
) |
|
$ |
29.18 |
|
|
|
|
|
|
|
|
|
|
|||
Forfeited |
|
|
(53 |
) |
|
$ |
37.43 |
|
|
|
|
|
|
|
|
|
|
|||
Outstanding at January 2, 2024 |
|
|
867 |
|
|
$ |
39.70 |
|
|
|
648 |
|
|
$ |
41.65 |
|
|
|
4.4 |
|
Granted |
|
|
156 |
|
|
$ |
32.09 |
|
|
|
|
|
|
|
|
|
|
|||
Exercised |
|
|
(7 |
) |
|
$ |
31.60 |
|
|
|
|
|
|
|
|
|
|
|||
Forfeited |
|
|
(83 |
) |
|
$ |
32.89 |
|
|
|
|
|
|
|
|
|
|
|||
Outstanding at December 31, 2024 |
|
|
933 |
|
|
$ |
39.10 |
|
|
|
741 |
|
|
$ |
41.00 |
|
|
|
3.9 |
|
Granted |
|
|
118 |
|
|
$ |
37.81 |
|
|
|
|
|
|
|
|
|
|
|||
Exercised |
|
|
(213 |
) |
|
$ |
35.77 |
|
|
|
|
|
|
|
|
|
|
|||
Forfeited |
|
|
(121 |
) |
|
$ |
41.98 |
|
|
|
|
|
|
|
|
|
|
|||
Outstanding at December 30, 2025 |
|
|
717 |
|
|
$ |
39.39 |
|
|
|
538 |
|
|
$ |
40.64 |
|
|
|
3.6 |
|
Information relating to significant option groups outstanding as of December 30, 2025, is as follows (shares in thousands):
|
|
Options Outstanding |
|
|
Options Exercisable |
|
||||||||||||||
Range of |
|
Outstanding |
|
|
Weighted |
|
|
Weighted |
|
|
Exercisable |
|
|
Weighted |
|
|||||
$22.27 – $31.86 |
|
|
100 |
|
|
|
7.5 |
|
|
$ |
31.45 |
|
|
|
39 |
|
|
$ |
31.22 |
|
$31.95 – $34.26 |
|
|
73 |
|
|
|
7.7 |
|
|
$ |
32.63 |
|
|
|
52 |
|
|
$ |
32.40 |
|
$34.28 – $35.95 |
|
|
96 |
|
|
|
3.4 |
|
|
$ |
35.46 |
|
|
|
67 |
|
|
$ |
35.95 |
|
$37.10 – $37.10 |
|
|
2 |
|
|
|
0.9 |
|
|
$ |
37.10 |
|
|
|
2 |
|
|
$ |
37.10 |
|
$37.70 – $37.70 |
|
|
98 |
|
|
|
2.0 |
|
|
$ |
37.70 |
|
|
|
98 |
|
|
$ |
37.70 |
|
$38.90 – $38.90 |
|
|
94 |
|
|
|
4.0 |
|
|
$ |
38.90 |
|
|
|
94 |
|
|
$ |
38.90 |
|
$39.33 – $42.41 |
|
|
84 |
|
|
|
6.9 |
|
|
$ |
40.53 |
|
|
|
25 |
|
|
$ |
42.12 |
|
$44.10 – $45.92 |
|
|
11 |
|
|
|
8.4 |
|
|
$ |
44.41 |
|
|
|
2 |
|
|
$ |
45.92 |
|
$46.91 – $46.91 |
|
|
74 |
|
|
|
4.9 |
|
|
$ |
46.91 |
|
|
|
74 |
|
|
$ |
46.91 |
|
$48.75 – $53.22 |
|
|
85 |
|
|
|
3.0 |
|
|
$ |
53.16 |
|
|
|
85 |
|
|
$ |
53.16 |
|
$22.27 – $53.22 |
|
|
717 |
|
|
|
4.9 |
|
|
$ |
39.39 |
|
|
|
538 |
|
|
$ |
40.64 |
|
As 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.
Restricted Stock Units
Service-Based Restricted Stock Units
The following table presents service-based restricted stock unit activity:
|
|
Shares |
|
|
Weighted |
|
||
Outstanding at January 3, 2023 |
|
|
729 |
|
|
$ |
34.10 |
|
Granted |
|
|
344 |
|
|
$ |
28.93 |
|
Released |
|
|
(169 |
) |
|
$ |
37.69 |
|
Forfeited |
|
|
(82 |
) |
|
$ |
31.62 |
|
Outstanding at January 2, 2024 |
|
|
822 |
|
|
$ |
31.46 |
|
Granted |
|
|
306 |
|
|
$ |
33.13 |
|
Released |
|
|
(232 |
) |
|
$ |
37.80 |
|
Forfeited |
|
|
(124 |
) |
|
$ |
29.94 |
|
Outstanding at December 31, 2024 |
|
|
772 |
|
|
$ |
30.45 |
|
Granted |
|
|
230 |
|
|
$ |
36.08 |
|
Released |
|
|
(192 |
) |
|
$ |
28.91 |
|
Forfeited |
|
|
(105 |
) |
|
$ |
31.12 |
|
Outstanding at December 30, 2025 |
|
|
705 |
|
|
$ |
32.62 |
|
As 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.
Performance-Based Restricted Stock Units
The following table presents performance-based restricted stock unit activity:
|
|
Shares |
|
|
Weighted |
|
||
Outstanding at January 3, 2023 |
|
|
123 |
|
|
$ |
38.89 |
|
Granted |
|
|
52 |
|
|
$ |
31.87 |
|
Released |
|
|
(40 |
) |
|
$ |
38.90 |
|
Forfeited |
|
|
(7 |
) |
|
$ |
35.01 |
|
Outstanding at January 2, 2024 |
|
|
128 |
|
|
$ |
36.24 |
|
Granted |
|
|
79 |
|
|
$ |
39.09 |
|
Released |
|
|
(65 |
) |
|
$ |
46.91 |
|
Forfeited |
|
|
(59 |
) |
|
$ |
32.93 |
|
Outstanding at December 31, 2024 |
|
|
83 |
|
|
$ |
32.89 |
|
Granted |
|
|
112 |
|
|
$ |
37.39 |
|
Released |
|
|
(40 |
) |
|
$ |
32.27 |
|
Forfeited |
|
|
(37 |
) |
|
$ |
35.23 |
|
Outstanding at December 30, 2025 |
|
|
118 |
|
|
$ |
36.63 |
|
The 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:
|
|
Fiscal Year |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
||
Volatility |
|
|
48.0 |
% |
|
|
49.8 |
% |
|
n/a |
Risk-free interest rate |
|
|
4.2 |
% |
|
|
3.8 |
% |
|
n/a |
Expected life (years) |
|
3 |
|
|
3 |
|
|
n/a |
||
Expected dividend yield |
|
|
— |
% |
|
|
— |
% |
|
n/a |
Fair value of market-based awards granted |
|
$ |
37.98 |
|
|
$ |
34.79 |
|
|
n/a |
As 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2023 | |
| 2021 | Feb 25, 2022 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.