[Texas Roadhouse, Inc. Q3 2024 Earnings Release](index=1&type=section&id=Texas%20Roadhouse%2C%20Inc.%20Announces%20Third%20Quarter%202024%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Results) Texas Roadhouse reported strong financial results for the third quarter and first 39 weeks of 2024, with significant year-over-year growth in total revenue, income from operations, and diluted earnings per share, driven by robust comparable restaurant sales growth and improved restaurant-level margins Financial Results (in thousands, except per share amounts) | Metric (in thousands, except per share amounts) | 13 Weeks Ended Sep 24, 2024 | 13 Weeks Ended Sep 26, 2023 | % change | 39 Weeks Ended Sep 24, 2024 | 39 Weeks Ended Sep 26, 2023 | % change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | 1,272,999 | 1,121,752 | 13.5% | 3,935,418 | 3,467,311 | 13.5% | | **Income from operations** | 102,023 | 73,859 | 38.1% | 377,967 | 270,216 | 39.9% | | **Net income** | 84,412 | 63,788 | 32.3% | 317,759 | 232,446 | 36.7% | | **Diluted earnings per share** | 1.26 | 0.95 | 32.5% | 4.74 | 3.46 | 37.0% | [Third Quarter (13 Weeks) Performance](index=1&type=section&id=Q3%202024%20Performance) In the third quarter of 2024, the company achieved an 8.5% increase in comparable restaurant sales and a 32.5% rise in diluted EPS, with restaurant margin improving to 16.0% from 14.6% year-over-year, driven by higher sales and improved labor productivity, which offset inflation, while also opening 7 new company restaurants and 3 franchise locations Q3 2024 Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Comparable Restaurant Sales (Company) | 8.5% | 8.2% | | Average Weekly Sales (Company) ($) | 149,176 | 138,668 | | Restaurant Margin % | 16.0% | 14.6% | | Diluted EPS | $1.26 | $0.95 | - Capital allocation for Q3 2024 included **$91.1 million** in capital expenditures, **$40.7 million** in dividends, and **$9.6 million** in common stock repurchases[2](index=2&type=chunk) [Year-to-Date (39 Weeks) Performance](index=2&type=section&id=YTD%202024%20Performance) For the first 39 weeks of 2024, comparable restaurant sales at company restaurants grew by 8.8%, and diluted EPS increased by 37.0%, with restaurant margin expanding to 17.2% from 15.4% in the prior year, benefiting from higher average guest checks and labor productivity, and 22 company and 9 franchise restaurants were opened during this period 39 Weeks 2024 Performance | Metric | 39 Weeks 2024 | 39 Weeks 2023 | | :--- | :--- | :--- | | Comparable Restaurant Sales (Company) | 8.8% | Not specified | | Average Weekly Sales (Company) ($) | 155,807 | 144,583 | | Restaurant Margin % | 17.2% | 15.4% | | Diluted EPS | $4.74 | $3.46 | - Year-to-date capital allocation included **$246.5 million** in capital expenditures, **$122.2 million** in dividends, and **$44.7 million** in stock repurchases[3](index=3&type=chunk) [Management Commentary and Strategy](index=2&type=section&id=Management%20Commentary%20and%20Strategy) CEO Jerry Morgan highlighted continued traffic growth across all brands, attributing it to the company's operators, and looking forward, management is confident in its strong development pipeline for 2025 and a planned acquisition of 13 domestic franchise restaurants, which are expected to drive long-term shareholder value - Management reported continued traffic growth at each of its brands in a competitive environment[4](index=4&type=chunk) - The company has a strong development pipeline for 2025, with **10** new company restaurants already under construction[4](index=4&type=chunk) - The company has tentatively agreed to acquire **13** domestic franchise restaurants, with a targeted closing date at the beginning of the 2025 fiscal year[4](index=4&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company provided an updated outlook for the remainder of 2024 and initial guidance for 2025, expecting commodity inflation below 1% and wage inflation around 4.5% for 2024, and anticipating positive comparable sales growth, commodity inflation of 2-3%, and wage inflation of 4-5% for 2025, with significant capital expenditures planned for both years - Comparable restaurant sales for the first four weeks of Q4 2024 increased by **8.3%** compared to 2023[5](index=5&type=chunk) - A menu price increase of approximately **0.9%** was implemented in late September 2024[5](index=5&type=chunk) [2024 Outlook](index=2&type=section&id=2024%20Outlook) Management updated its 2024 outlook, now expecting commodity cost inflation of less than 1% and an effective income tax rate of approximately 15%, while reiterating expectations for positive comparable sales growth, store week growth of about 7.5%, and total capital expenditures between $360 million and $370 million 2024 Outlook | 2024 Outlook Metric | Expectation | | :--- | :--- | | Commodity cost inflation | < 1% (Updated) | | Wage and other labor inflation | ~4.5% (Updated) | | Effective income tax rate | ~15% (Updated) | | Store week growth | ~7.5% (Reiterated) | | Total capital expenditures ($) | $360M - $370M (Reiterated) | [2025 Outlook](index=3&type=section&id=2025%20Outlook) The initial 2025 outlook projects positive comparable restaurant sales growth and store week growth of approximately 5%, which includes a 2% benefit from the planned franchise acquisition, with anticipated higher inflation, commodity costs rising 2-3%, and wages increasing 4-5%, and total capital expenditures expected to be approximately $400 million 2025 Initial Outlook | 2025 Initial Outlook Metric | Expectation | | :--- | :--- | | Store week growth | ~5% | | Commodity cost inflation | 2% to 3% | | Wage and other labor inflation | 4% to 5% | | Effective income tax rate | 15% to 16% | | Total capital expenditures ($) | ~$400 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the Statements of Income, Balance Sheets, and Statements of Cash Flows, providing a detailed view of the company's financial position and performance for the periods ended September 24, 2024 [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement shows a 13.5% increase in total revenue for both the 13-week and 39-week periods ending September 24, 2024, with net income attributable to the company growing 32.3% to $84.4 million for the quarter and 36.7% to $317.8 million for the 39-week period, reflecting strong operational leverage Condensed Consolidated Statements of Income (in thousands) | Metric (in thousands) | 13 Weeks Ended Sep 24, 2024 | 13 Weeks Ended Sep 26, 2023 | 39 Weeks Ended Sep 24, 2024 | 39 Weeks Ended Sep 26, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | 1,272,999 | 1,121,752 | 3,935,418 | 3,467,311 | | Income from operations | 102,023 | 73,859 | 377,967 | 270,216 | | Net income attributable to TXRH | 84,412 | 63,788 | 317,759 | 232,446 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 24, 2024, the company's balance sheet shows total assets of $2.91 billion, an increase from $2.79 billion at the end of 2023, with cash and cash equivalents growing significantly to $189.2 million from $104.2 million, while total stockholders' equity increased to $1.31 billion Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | September 24, 2024 | December 26, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | 189,205 | 104,246 | | Total assets | 2,913,815 | 2,793,376 | | Total liabilities | 1,590,571 | 1,635,865 | | Total stockholders' equity | 1,308,290 | 1,141,662 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the 39 weeks ended September 24, 2024, net cash provided by operating activities was $516.1 million, a significant increase from $390.7 million in the prior year, with cash primarily used for capital expenditures of $246.5 million, dividends of $122.2 million, and share repurchases of $44.7 million, resulting in a net increase in cash of $85.0 million Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | 39 Weeks Ended Sep 24, 2024 | 39 Weeks Ended Sep 26, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 516,089 | 390,739 | | Net cash used in investing activities | (237,216) | (273,519) | | Net cash used in financing activities | (193,914) | (221,757) | | Net increase (decrease) in cash | 84,959 | (104,537) | [Supplemental and Non-GAAP Information](index=3&type=section&id=Supplemental%20and%20Non-GAAP%20Information) This section provides supplemental data to enhance the understanding of the company's performance, including a reconciliation of the non-GAAP measure 'Restaurant Margin', detailed operational metrics by brand, and a summary of restaurant unit activity [Reconciliation of Non-GAAP Measures](index=3&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company uses restaurant margin, a non-GAAP measure, to evaluate core restaurant-level operating efficiency, which for Q3 2024 increased 24.1% to $202.1 million, or 16.0% of sales, up from 14.6% in the prior year, and for the 39-week period, it increased 26.7% to $673.1 million, or 17.2% of sales - Restaurant margin is a non-GAAP measure representing restaurant sales less restaurant-level operating costs (food, labor, rent, other operating), used to evaluate core restaurant-level operating efficiency[7](index=7&type=chunk) Reconciliation of Non-GAAP Measures (in thousands) | Metric (in thousands) | 13 Weeks Ended Sep 24, 2024 | 13 Weeks Ended Sep 26, 2023 | 39 Weeks Ended Sep 24, 2024 | 39 Weeks Ended Sep 26, 2023 | | :--- | :--- | :--- | :--- | :--- | | Income from operations | 102,023 | 73,859 | 377,967 | 270,216 | | Restaurant margin | 202,070 | 162,824 | 673,128 | 531,276 | | Restaurant margin % | 16.0% | 14.6% | 17.2% | 15.4% | [Supplemental Financial and Operating Information](index=9&type=section&id=Supplemental%20Financial%20and%20Operating%20Information) Supplemental data for Q3 2024 shows improved cost efficiency, with food and beverage costs decreasing to 33.5% of sales from 34.6% and labor costs decreasing to 33.8% from 34.0%, while Texas Roadhouse branded restaurants saw comparable sales growth of 8.7%, and Bubba's 33 restaurants saw 5.3% growth Restaurant Operating Costs (% of sales) | Restaurant Operating Costs (% of sales) | Q3 2024 | Q3 2023 | Change (bps) | | :--- | :--- | :--- | :--- | | Food and beverage costs | 33.5% | 34.6% | 107 bps | | Labor | 33.8% | 34.0% | 18 bps | | Total | 84.0% | 85.4% | 137 bps | Q3 2024 Comparable Sales Growth | Q3 2024 Comparable Sales Growth | % Change | | :--- | :--- | | All Company Restaurants | 8.5% | | Texas Roadhouse Restaurants | 8.7% | | Bubba's 33 Restaurants | 5.3% | [Restaurant Unit Activity](index=11&type=section&id=Restaurant%20Unit%20Activity) As of September 24, 2024, the company had a total of 772 restaurants, a net increase of 50 units from the prior year, including 657 company-owned restaurants (a net increase of 34) and 115 franchise restaurants (a net increase of 16), with 10 new restaurants opened system-wide in Q3 Restaurant Count | Restaurant Count | As of Sep 24, 2024 | As of Sep 26, 2023 | Change | | :--- | :--- | :--- | :--- | | Total company restaurants | 657 | 623 | 34 | | Total franchise restaurants | 115 | 99 | 16 | | **Total restaurants** | **772** | **722** | **50** | - In Q3 2024, the company opened **7** company restaurants and **3** franchise restaurants, and year-to-date, **22** company and **9** franchise restaurants have been opened[19](index=19&type=chunk)

Texas Roadhouse, Inc. (TXRH) is scheduled to report third-quarter 2024 results on Oct. 24, after market close. In the last reported quarter, the company delivered an earnings surprise of 7.8%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Q3 ExpectationsThe Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.33, indicating a 40% increase from the year-ago quarter's 95 cents.For revenues, the consensus mark is pegged at $1.28 billion. The metric suggests gr ...

In its upcoming report, Texas Roadhouse (TXRH) is predicted by Wall Street analysts to post quarterly earnings of $1.33 per share, reflecting an increase of 40% compared to the same period last year. Revenues are forecasted to be $1.28 billion, representing a year-over-year increase of 14.3%.Over the last 30 days, there has been an upward revision of 1.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

LOUISVILLE, Ky., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH) announced today that it will release third quarter 2024 financial results on Thursday, October 24, 2024 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 Roadhous ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Texas Roadhouse (TXRH) , which belongs to the Zacks Retail - Restaurants industry. This restaurant chain has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 5.13%. For the last reported quarter, Texas Roadhouse came out with earnings of $1.79 per share ve ...

I'm an equity analyst specializing in restaurant stocks, with a solid background in Business Administration and Accounting. I also have an MBA in Forensic Accounting and Controllership.As the founder of Goulart's Restaurant Stocks, I lead a company that excels at analyzing restaurant stocks in the US market. Our approach covers a wide range of segments, including QSR, fast casual, casual dining, fine dining and family dining. We use advanced analytical models and specialized valuation techniques to provide ...

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The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Texas Roadhouse (TXRH) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question. Texas Roadhouse is one of 211 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. The Zacks S ...

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