Group 1 - Traditional investments can still yield strong returns despite the dominance of advanced sectors like technology [1] - There are notable growth opportunities in brick-and-mortar businesses, indicating that not all high-performing companies are in tech [1]

Company Announcement - Texas Roadhouse, Inc. will release its first quarter 2025 financial results on May 8, 2025, after market close [1] - A conference call will take place at 5:00 PM ET, which will be webcast live on the company's investor relations website [1] Conference Call Details - Listeners can access the call by dialing (888) 440-5667 for domestic calls or (646) 960-0476 for international calls, referencing the Texas Roadhouse, Inc. First Quarter 2025 Earnings [2] - A replay of the call will be available until May 15, 2025, using the numbers (800) 770-2030 for domestic and (609) 800-9909 for international calls with conference ID 7714420 [2] Company Overview - Texas Roadhouse is a growing restaurant company in the casual dining segment, established in 1993, with over 790 restaurants across 49 states, one U.S. territory, and ten foreign countries [3] - For more information, the company's website is available at www.texasroadhouse.com [3]

LOUISVILLE, Ky., April 10, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH) announced today that it will release first quarter 2025 financial results on Thursday, May 8, 2025 after the market close. A conference call will follow at 5:00 PM ET and will be webcast live from the investor relations portion of the Company's website at www.texasroadhouse.com. Listeners may also access the call by dialing (888) 440-5667 or (646) 960-0476 for international calls and referencing the Texas Roadhouse, I ...

Revenue and Sales Performance - Total revenue increased by $741.7 million or 16.0% to $5.4 billion in 2024 compared to $4.6 billion in 2023, driven by an increase in comparable restaurant sales and store weeks[276]. - Comparable restaurant sales increased by 8.5% and store weeks increased by 7.5% at company restaurants in 2024[277]. - The increase in comparable restaurant sales was attributed to higher guest traffic and an increase in per person average check[277]. - The additional week in 2024 contributed $114.7 million in revenue and provided a 2% benefit to store week growth[277]. - Franchise royalties and fees increased by $4.4 million or 16.1% in 2024, driven by comparable franchise restaurant sales growth of 6.4%[298]. - Comparable restaurant sales growth was 8.5% in 2024, supported by a 4.4% increase in guest traffic counts and a 4.1% increase in per person average check[293]. - Total revenue for 2024 was $5,373.3 million, a 16.0% increase from $4,631.7 million in 2023[283]. Restaurant Operations and Expansion - In 2024, the company opened 31 company restaurants, including 26 Texas Roadhouse restaurants, four Bubba's 33 restaurants, and one Jaggers restaurant[255]. - The company continues to evaluate opportunities for expansion in both domestic and international markets[251]. - The company focuses on maintaining and improving restaurant-level profitability through various operational strategies[255]. Financial Performance - Net income increased by $128.7 million or 42.2% to $433.6 million in 2024 compared to $304.9 million in 2023, primarily due to higher restaurant margin dollars[278]. - Restaurant margin dollars increased by $207.8 million or 29.4% to $915.8 million in 2024, with restaurant margin as a percentage of sales rising to 17.1% from 15.4%[279]. - Net cash provided by operating activities was $753.6 million in 2024, up from $565.0 million in 2023[318]. Cost Management - Food and beverage costs decreased to 33.4% of restaurant and other sales in 2024 from 34.6% in 2023, despite commodity inflation of 0.7%[300]. - Restaurant labor expenses decreased to 33.1% of restaurant and other sales in 2024 from 33.4% in 2023, despite wage inflation of 4.6%[301]. - General and administrative expenses decreased to 4.2% of total revenue in 2024 from 4.3% in 2023[309]. - Pre-opening expenses were $28.1 million in 2024, a decrease from $29.2 million in 2023[306]. Capital Allocation and Shareholder Returns - The company has a stock repurchase program approved for up to $500 million, replacing the previous program of $300 million[257]. - In 2024, the company repurchased 461,662 shares of common stock for $79.8 million, totaling $763.3 million repurchased since inception[258]. - The Board declared a quarterly cash dividend of $0.68 per share, representing an 11% increase compared to the prior year[259]. - Capital allocation in 2024 included capital expenditures of $354.3 million, dividends of $162.9 million, and stock repurchases of $79.8 million[280]. - Capital expenditures totaled $354.3 million in 2024, compared to $347.0 million in 2023[322]. Tax and Impairment - The effective tax rate increased to 15.3% in 2024 from 12.5% in 2023, with a forecasted rate of 15% to 16% for 2025[312]. - In 2024, the company recorded impairment and closure costs of $1.2 million related to a building impairment and ongoing closure costs for relocated stores[344]. - Impairment and closure costs increased to $1.2 million in 2024 from $0.3 million in 2023[308]. Market Risks and Commodity Management - The company has been operating during periods of inflation, primarily driven by wage and commodity inflation, with some impacts offset by menu price increases[348]. - The company is exposed to market risk from changes in interest rates on variable rate debt, with no outstanding borrowings on its credit facility as of December 31, 2024[349]. - The company employs various purchasing and pricing contract techniques to secure low-cost ingredients, but extreme increases in commodity prices could adversely affect future results[350]. - The beef supply is highly dependent on four vendors, posing a risk of supply shortages or higher costs if these vendors fail to fulfill their obligations[351]. - The company may face unpredictable price volatility in commodities due to prevailing market conditions[350]. - The company does not currently use financial instruments to hedge commodity prices but will continue to evaluate their effectiveness[350]. Goodwill and Impairment Testing - As of December 31, 2024, the Texas Roadhouse reporting unit had allocated goodwill of $169.7 million, with no other reporting units having goodwill balances[346]. - The company conducts annual goodwill impairment tests and assesses qualitative factors to determine potential impairment[345]. - No indicators of impairment were identified for the Texas Roadhouse reporting unit through the end of the fourth quarter[347].

Despite ongoing cost pressures, Texas Roadhouse's value-focused approach continues to drive industry-leading traffic growth.Texas Roadhouse (TXRH 1.73%) reported its fourth-quarter 2024 earnings on February 20, 2025, capping off what CEO Jerry Morgan described as a "memorable year" for the company. The casual dining chain delivered strong performance across its portfolio of brands, with positive traffic growth leading to record-setting average unit volumes. These insights provide important context for long- ...

It can be challenging for a restaurant chain to have a business portfolio with over 80% comprised by company-operated restaurants. Higher capital requirements and operating costs and expenses are typical. In addition, this setup requires higher risk tolerance rather than relying heavily onI have been working in the logistics sector for almost two decades. I have been into stock investing and macroeconomic analysis for almost a decade. Currently, I focus on ASEAN and NYSE/NASDAQ Stocks, particularly in banks ...

Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Group 1: Company Overview - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Group 2: Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these topics accessible to a broader audience [1]

Group 1 - Texas Roadhouse is recognized as a well-managed business in the U.S. with a strong focus on value proposition and customer satisfaction [1] - The investment strategy involves selecting companies with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them long-term [2] - The analyst manages a concentrated portfolio aimed at minimizing losses while maximizing exposure to high-potential companies [2] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [3] - The article reflects the author's personal opinions and is not influenced by compensation from any company [3] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [4]

Core Insights - Texas Roadhouse (NASDAQ: TXRH) stock is currently stabilizing but continues to report profits and enhance its financial performance [1] - The stock price has returned to mid-2024 levels, indicating a period of consolidation [1] Financial Performance - The company emphasizes long-term growth and dividend growth investing, focusing on profitability as a key driver of gains [1] - Important financial metrics include margins, free cash flow stability and growth, and returns on invested capital [1] Investment Strategy - The company seeks undervalued stocks and high-quality dividend-growing companies to reinvest cash [1] - Continuous research into high-quality companies is a priority for identifying potential investment opportunities [1]

Financial Data and Key Metrics Changes - Revenue for 2024 reached nearly $5.4 billion, with average unit volume exceeding $8 million for the first time in history, reflecting strong performance across all brands [6][7] - The company reported a 23.5% revenue growth for Q4 2024, driven by a 6.6% increase in comparable average unit volume and 13.7% store week growth [22] - Diluted earnings per share increased by 60.1% to $1.73, with restaurant margin dollars increasing by 37.3% to $243 million [22][23] Business Line Data and Key Metrics Changes - Same-store sales increased by 8.5% for the year, with traffic growth of 4.4% [15] - Weekly sales averaged $159,000 at Texas Roadhouse, $119,000 at Bubba's 33, and $71,000 at Jaggers, indicating strong performance across all brands [16] - Restaurant margin as a percentage of total sales increased by 172 basis points to 17% [26] Market Data and Key Metrics Changes - Comparable sales for Q4 increased by 7.7%, driven by 4.9% traffic growth and a 2.8% increase in average check [24] - The company experienced a 2.9% increase in comparable sales for the first seven weeks of Q1 2025, despite weather impacts [24][43] Company Strategy and Development Direction - The company plans to open approximately 30 company-owned restaurants across all brands in 2025, with an additional focus on franchise development [9][10] - A 1.4% menu price increase is expected in Q2 2025 to maintain everyday value, which is a competitive advantage [11] - The company is focused on technology initiatives, including the conversion to a digital kitchen and upgrades to the guest management system [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business despite recent performance irregularities due to external factors [39][40] - The company anticipates continued labor inflation of 4% to 5% and commodity inflation of 3% to 4% for 2025 [17][18] - Management remains optimistic about the company's ability to deliver high-level hospitality and maintain strong guest relationships [33][100] Other Important Information - The company celebrated its 20-year anniversary as a public company and opened its 750th systemwide restaurant in 2024 [7] - The company has a strong balance sheet with over $245 million in cash and generated over $750 million in cash flow from operations [16] Q&A Session Summary Question: Can you provide context on the quarter-to-date trend in Q1? - Management noted that restaurants are fully staffed and experienced strong sales during Valentine's week, indicating confidence in underlying business fundamentals despite some irregular performance [39][40] Question: How much visibility do you have on costs this year regarding inflation? - Management indicated that the majority of the inflation increase is driven by beef, with about 40% of the overall basket locked for the full year, providing some clarity on costs [49][50] Question: What are the margin drivers expected this year? - Management expects to see leverage on operating costs due to moderating costs, with labor inflation projected at 4% to 5% [55][57] Question: Can you clarify the components of comparable sales? - Management confirmed that the 7.7% sales growth included 4.9% traffic growth and a 2.8% increase in check, with some negative mix due to alcohol sales [63] Question: How is the company staying top of mind for consumers? - Management highlighted local store marketing efforts, early dine features, and value-driven promotions as key strategies to maintain consumer engagement [75][76] Question: What is the outlook for new unit openings? - Management confirmed a cautious approach to new openings, focusing on quality over quantity, with a target of 30 new restaurants [90][91] Question: What are the expectations for commodity inflation in 2025? - Management expects commodity inflation to remain in the 3% to 4% range, with ongoing supply issues affecting costs [18][135]