1013488--3/9/2010--BJs_RESTAURANTS

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{condition, economic, financial}

{financial, litigation, operation}

{acquisition, growth, future}

{operation, natural, condition}

{regulation, change, law}

{system, service, information}

{cost, contract, operation}

{cost, operation, labor}

{customer, product, revenue}

{capital, credit, financial}

{stock, price, operating}

{product, market, service}

{stock, price, share}

{product, candidate, development}

{property, intellectual, protect}

{loss, insurance, financial}

{control, financial, internal}

{competitive, industry, competition}

{cost, regulation, environmental}

Continued weakness in general economic conditions may also continue to adversely affect consumer spending for restaurant occasions and, as a result, may adversely affect our revenues, operating results and liquidity. If we do not successfully expand our restaurant operations, our growth rate and results of operations would be adversely affected. Our ability to open new restaurants on schedule in accordance with our projected growth rate may be adversely affected by delays or problems associated with securing suitable restaurant locations and leases and by other factors, some of which are beyond our control and the timing of which is difficult to forecast accurately. Access to sources of capital and our ability to raise capital in the future may be limited, which could adversely affect our business. We may issue additional equity securities without the consent of shareholders and such issuances could adversely affect our stock price and the rights of existing shareholders. Deterioration in general economic conditions could have a material adverse impact on our landlords or on businesses neighboring our locations, which could adversely affect our business. Any failure of our existing or new restaurants to achieve expected results could have a negative impact on our consolidated sales and financial results, including a potential impairment of the long-lived assets of certain restaurants. Our growth may strain our infrastructure and resources, which could slow our development of new restaurants and adversely affect our ability to manage our existing restaurants. Our decision to reduce openings or accelerate the pace of openings may positively or adversely affect our comparative financial performance. Our recent trends in average restaurant sales or our trends in comparable restaurant sales may not be indicative of future trends or future operating results. Our menu development and marketing programs may not be successful. We have experienced significant increases in the costs for certain food, labor, energy and supply items in the past, and we may be unable to successfully and sufficiently raise menu prices to offset rising costs and expenses. Our future operating results may fluctuate significantly due to our relatively small number of existing restaurants and the expenses required to open new restaurants. Our inability to renew existing leases on favorable terms may adversely affect our results of operations. Our operations could be adversely affected if our suppliers are not able to continue to do business with us or are forced to alter the terms on which they do business with us. A significant number of our restaurants are concentrated in California and other Western states, which make us particularly sensitive to economic, regulatory, weather and other conditions in those states. We are dependent upon consumer trends and upon high levels of consumer traffic at the sites where our restaurants are located, and any adverse change in such consumer trends or traffic levels could adversely affect our business, revenues and results of operations. Our success depends on our ability to compete effectively in the restaurant industry. New information or attitudes regarding diet, health and the consumption of alcoholic beverages could result in changes in regulations and consumer consumption habits that could adversely affect our results of operations. Health concerns arising from outbreaks of flu viruses or other diseases, or regional or global health pandemics, could severely affect our business. Negative publicity about us, our restaurants, other restaurants, others across the food supply chain, or the consumption of beef, seafood, poultry/produce, beer or alcoholic beverages, whether or not accurate, could adversely affect the reputation and popularity of our restaurants and our results of operations. Our operations are susceptible to changes in our food and supply costs, which could adversely affect our margins. If our distributors or suppliers do not provide food and beverages to us in a timely fashion, we may experience short-term supply shortages, increased food and beverage costs and quality control problems. Failure to protect our trademarks, service marks, trade secrets or other intellectual property could adversely affect our business. Federal, state and local beer, liquor and food service regulations may have a significant adverse impact on our operations. Our increasing dependence on contract brewers could have an adverse effect on our operations if they cease to supply us with our proprietary beer. Other government laws and regulations affecting the operation of our restaurants, particularly those that apply to the acquisition and maintenance of our brewing and retail liquor licenses, could increase our operating costs and restrict our growth. Limitations in our insurance coverage or rising insurance costs could adversely affect our business or financial condition in certain circumstances. Labor shortages or increases in labor costs could slow our growth or adversely affect our business. Litigation could have a material adverse effect on our business. The occurrence or threat of extraordinary events, including terrorist attacks, could cause consumer spending to decline, which would adversely affect our sales and results of operations. Natural disasters could unfavorably affect our operations. Future changes in financial accounting standards may cause adverse unexpected operating results and affect our reported results of operations The market price of our common stock could be subject to significant fluctuations. Failure to establish, maintain and apply adequate internal control over our financial reporting could affect our reported results of operations. We are heavily dependent on information technology and any material failure of that technology could impair our ability to efficiently operate our business. We outsource certain essential business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs. We may incur costs resulting from security risks we face in connection with our electronic processing and transmission of confidential customer information. Our federal, state and local tax returns may, from time to time, be selected for audit by the taxing authorities, which may result in tax assessments or penalties that could have a material adverse impact on our results of operations and financial position. An increase in beer excise taxes could adversely affect our financial results.

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1013488--3/9/2010--BJs_RESTAURANTS_INC