Core Insights - Texas Roadhouse reported quarterly earnings of $1.73 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, and showing a significant increase from $1.08 per share a year ago, representing an earnings surprise of 4.22% [1] - The company achieved revenues of $1.44 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.60% and up from $1.16 billion year-over-year [2] Earnings Performance - Over the last four quarters, Texas Roadhouse has surpassed consensus EPS estimates three times, indicating a strong performance trend [2] - The company had a previous quarter expectation of $1.33 per share but reported $1.26, resulting in a surprise of -5.26% [1][2] Stock Performance and Outlook - Texas Roadhouse shares have declined approximately 3.6% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] - The company's earnings outlook is favorable, with current consensus EPS estimates of $2.01 for the coming quarter and $7.23 for the current fiscal year [7] Industry Context - The Retail - Restaurants industry, to which Texas Roadhouse belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a positive industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Texas Roadhouse reported a strong quarterly performance with a revenue increase of 23.5% to $1.44 billion and earnings per share (EPS) rising 60.1% to $1.73, driven by strategic expansions and effective management despite inflationary pressures [2][6]. Financial Performance - Total revenue for Q4 2024 was $1.44 billion, up from $1.16 billion in Q4 2023, reflecting a year-over-year increase of 23.5% [3][6]. - Net income rose by 59.9% to $115.8 million, compared to $72.4 million in the previous year [3][6]. - Comparable restaurant sales increased by 7.7%, although this was a decline from the previous year's 9.9% [3][7]. - Restaurant margins improved to 17.0% from 15.3% the previous year, attributed to higher sales volumes and improved labor productivity [7]. Strategic Developments - The company opened 31 company-run and 14 franchise locations in 2024, with plans to acquire 13 franchise restaurants in early 2025 [4][8]. - A strategic menu price increase of 1.4% is planned for early April 2025 to manage costs while maintaining competitiveness [9]. - Capital expenditures are projected at approximately $400 million, focusing on restaurant development and operational improvements [11]. Operational Efficiency - Income from operations increased by 65.4% to $138.6 million, indicating effective management and operational efficiencies [6]. - The company has implemented a competitive pricing strategy to combat rising inflation while maintaining quality standards [5]. Future Outlook - Management is optimistic about 2025, expecting comparable sales growth and a store week growth of approximately 5% [10]. - Inflationary pressures are anticipated, with commodity cost inflation forecasted between 3% and 4% and labor inflation between 4% and 5% [11].

Financial Performance - Total revenue for Q4 2024 was $1,437.9 million, a 23.5% increase from $1,164.4 million in Q4 2023[2] - Net income for Q4 2024 reached $115.8 million, up 59.9% from $72.4 million in Q4 2023[2] - Basic net income per common share attributable to Texas Roadhouse, Inc. was $1.74 for Q4 2024, compared to $1.08 for Q4 2023[17] - Net cash provided by operating activities for the fiscal year ended December 31, 2024, was $753.6 million, a 33.4% increase from $565.0 million in the previous year[21] - Total assets grew to $3,190.8 million as of December 31, 2024, compared to $2,793.4 million at the end of 2023[19] Sales and Restaurant Performance - Comparable restaurant sales increased by 7.7% at company restaurants and 6.3% at domestic franchise restaurants[3] - Average unit volume for Texas Roadhouse restaurants reached $2,211, a 17.1% increase from $1,888[23] - Restaurant and other sales increased to $1,428,780, a 23.5% rise compared to $1,157,362 in the previous year[23] - Comparable restaurant sales for Texas Roadhouse were 7.8%, down from 10.2% in the prior year[23] - Average weekly sales at company restaurants were $153,867, with to-go sales accounting for $20,067, compared to $141,653 and $17,793 respectively in the prior year[3] Restaurant Expansion - The company opened nine new company restaurants and five franchise restaurants during the fourth quarter[3] - The company opened 9 new restaurants in Q4 2024, compared to 12 in Q4 2023[26] - Total company restaurants increased to 666, up by 31 from 635 in the previous year[26] - Franchise restaurants increased to 118, up by 12 from 106 in the previous year[26] - The company plans to continue expanding its restaurant footprint, focusing on both domestic and international markets[26] Costs and Expenses - Restaurant margin for Q4 2024 was $242.6 million, representing 17.0% of restaurant and other sales, compared to 15.3% in Q4 2023[22] - The company reported a restaurant operating cost of $1,299.4 million for the fiscal year 2024, compared to $1,080.6 million in 2023[17] - Food and beverage costs as a percentage of sales decreased to 33.5%, down 65 basis points from 34.2%[23] - Labor costs remained stable at 33.0%, a slight decrease of 10 basis points from 33.1%[23] - Capital expenditures for property and equipment in the fiscal year 2024 were $354.3 million, slightly higher than $347.0 million in 2023[21] Future Outlook - For 2025, the company expects commodity cost inflation of 3% to 4% and comparable restaurant sales growth of 8.5% at company restaurants[6] - Capital expenditures for 2025 are projected to be approximately $400 million[13] Shareholder Returns - The quarterly cash dividend was increased by 11% to $0.68 per share, payable on April 1, 2025[8] - The company declared cash dividends of $0.61 per share in Q4 2024, up from $0.55 per share in Q4 2023[17] - A stock repurchase program of up to $500 million was approved, replacing the previous program of $300 million[9]

Core Viewpoint - Texas Roadhouse, Inc. reported strong financial results for the fourth quarter and fiscal year ended December 31, 2024, with significant increases in revenue, net income, and earnings per share compared to the previous year [2][4]. Financial Results - Total revenue for Q4 2024 was $1,437.9 million, a 23.5% increase from $1,164.4 million in Q4 2023 [2]. - For the fiscal year 2024, total revenue reached $5,373.3 million, up 16.0% from $4,631.7 million in 2023 [2]. - Net income for Q4 2024 was $115.8 million, a 59.9% increase from $72.4 million in Q4 2023 [2]. - Diluted earnings per share for Q4 2024 were $1.73, a 60.1% increase from $1.08 in Q4 2023 [2]. Comparable Restaurant Sales - Comparable restaurant sales increased by 7.7% at company restaurants and 6.3% at domestic franchise restaurants for Q4 2024 [3]. - Average weekly sales at company restaurants were $153,867, with to-go sales contributing $20,067, compared to $141,653 and $17,793 respectively in the prior year [3]. Restaurant Margin and Costs - Restaurant margin dollars increased by 37.3% to $242.6 million from $176.7 million in the prior year, with restaurant margin as a percentage of sales rising to 17.0% from 15.3% [3]. - Labor inflation was reported at 5.0%, while commodity inflation was at 0.3% [3]. Capital Allocation and Growth - The company opened nine new company restaurants and five franchise restaurants during the year [3]. - Capital expenditures for the year totaled $107.8 million, with dividends of $40.7 million and stock repurchases of $35.1 million [3]. Franchise Acquisition - On the first day of the 2025 fiscal year, Texas Roadhouse completed the acquisition of 13 domestic franchise restaurants for approximately $78 million [5]. 2025 Outlook - For the first seven weeks of Q1 2025, comparable restaurant sales increased by 2.9% compared to the same period in 2024 [6]. - The company plans to implement a menu price increase of approximately 1.4% in early April 2025 [6]. - Commodity cost inflation is expected to be between 3% to 4% for 2025 [6]. Dividend and Stock Repurchase - The Board of Directors approved a quarterly cash dividend of $0.68 per share, representing an 11% increase from the previous year [6]. - A new stock repurchase program was authorized for up to $500 million, replacing the previous program of $300 million [7].

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging [1] Group 1: Company Overview - Texas Roadhouse (TXRH) is currently recommended as a growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 45.3%, with projected EPS growth of 13% this year, surpassing the industry average of 12.5% [4] Group 2: Financial Metrics - Texas Roadhouse's year-over-year cash flow growth is 12.5%, higher than the industry average of 11.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 12%, compared to the industry average of 5.1% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Texas Roadhouse, with a 0.1% increase in the Zacks Consensus Estimate for the current year over the past month [7] - The company has earned a Growth Score of B and carries a Zacks Rank 2, indicating it is a solid choice for growth investors [9]

Core Viewpoint - Texas Roadhouse (TXRH) is expected to report quarterly earnings of $1.66 per share, reflecting a year-over-year increase of 53.7%, with revenues projected at $1.42 billion, up 21.6% from the previous year [1]. Earnings Estimates - Analysts have not revised the consensus EPS estimate for the quarter over the past 30 days, indicating stability in projections [1]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts estimate 'Revenue- Franchise royalties and fees' at $8.88 million, indicating a year-over-year increase of 26.8% [4]. - The average prediction for 'Revenue- Restaurant and other sales' is $1.41 billion, reflecting a year-over-year change of 21.6% [4]. Comparable Restaurant Sales Growth - 'Comparable restaurant sales growth - Company restaurants' is expected to reach 7.6%, down from 9.9% in the same quarter last year [5]. - For 'U.S. Franchise-owned restaurants', the growth is projected at 6.7%, compared to 8.9% a year ago [6]. Restaurant Count Projections - Analysts forecast 'Restaurants at the end - Total' to reach 784, up from 741 in the same quarter last year [5]. - 'Restaurants at the end - Company - Total' is expected to be 665, compared to 635 a year ago [6]. - 'Restaurants at the end - Franchise - Total' is projected at 118, up from 106 in the previous year [7]. New Openings and Store Weeks - The number of restaurants opened by the company is expected to be 7, down from 12 a year ago [6]. - For franchises, the estimate for new openings stands at 4, compared to 7 last year [7]. - 'Store weeks - Company restaurants' is projected to reach 9,268, up from 8,158 in the same quarter last year [8]. Stock Performance - Over the past month, shares of Texas Roadhouse have returned -3.9%, while the Zacks S&P 500 composite has changed by +4.9% [9]. - Texas Roadhouse currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [9].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Texas Roadhouse (TXRH) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 45.3%, with projected EPS growth of 13.5% this year, surpassing the industry average of 12.5% [5] Group 2: Financial Metrics - Texas Roadhouse exhibits a year-over-year cash flow growth of 12.5%, which is above the industry average of 11.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 12%, compared to the industry average of 5.4% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Texas Roadhouse, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 2 positions Texas Roadhouse favorably for potential outperformance in the market [10][11]

Core Viewpoint - Texas Roadhouse, Inc. is set to release its fourth quarter 2024 financial results on February 20, 2025, after market close, followed by a conference call at 5:00 PM ET [1] Financial Results Announcement - The fourth quarter 2024 financial results will be released on February 20, 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] Accessing the Conference Call - Listeners can access the call by dialing (888) 440-5667 for domestic calls or (646) 960-0476 for international calls, referencing Texas Roadhouse, Inc. Fourth Quarter 2024 Earnings [2] - A replay of the call will be available until February 27, 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 780 restaurants across 49 states, one U.S. territory, and ten foreign countries [3] - For more information, the company's website is www.texasroadhouse.com [3]

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

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