Financial Data and Key Metrics Changes - The company reported a revenue growth of 12.7%, driven by a 5.3% increase in average weekly sales and a 7.2% store week growth [20] - Diluted earnings per share increased by 4% to $1.86 [20] - Restaurant margin dollars increased by 6.1% to $257 million, while restaurant margin as a percentage of total sales decreased by 108 basis points year over year to 17.1% [21][22] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged approximately $172,000 in weekly sales, while Bubba's 33 averaged over $128,000 in weekly sales [9] - Jaggers delivered average weekly sales of nearly $76,000 in the second quarter [10] - The company plans to open as many as eight company and franchise locations next year for Jaggers and Bubba's 33 [10][12] Market Data and Key Metrics Changes - Comparable sales increased by 5.8% in the second quarter, driven by 4% traffic growth and a 1.8% increase in average check [20] - Comparable sales for the first five weeks of the third quarter were up 5.3% [21] Company Strategy and Development Direction - The company is focused on a growth strategy that includes opening approximately 30 company-owned restaurants this year and acquiring additional franchise locations [12][18] - The company plans to take a menu price increase of approximately 1.7% at the beginning of the fourth quarter to offset inflationary pressures [11] - The company remains committed to its community and plans to purchase its support center buildings, reflecting a long-term commitment to Louisville, Kentucky [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operations and the commitment of the team, despite challenges in the operating environment [14] - The company has increased its guidance for full-year inflation to approximately 5%, primarily due to higher beef inflation [16] - Management remains optimistic about the growth potential of Bubba's 33 and Jaggers, with plans for double-digit openings next year [10][43] Other Important Information - The company ended the second quarter with $177 million in cash, with cash flow from operations at $128 million [17] - The company is maintaining its full-year capital expenditure guidance at approximately $400 million [18] Q&A Session Summary Question: Insights on inflation dynamics - Management noted that strong retail demand for beef and tighter supply have driven inflation, with expectations of 7% commodity inflation in Q3 [26][29] Question: Mix effect and consumer behavior - Negative mix pressure is primarily from the alcohol category, while positive trends are seen in entrees and mocktails [33][36] Question: Inflation outlook for Q3 and Q4 - Management expects inflation to be highest in Q3, around 7%, and to decrease to 4-5% in Q4 [41][42] Question: Growth opportunities in Bubba's - Management indicated a solid pipeline for Bubba's growth, with potential for more than 30 openings in the coming years [43][44] Question: Off-premise sales growth - The increase in off-premise sales is attributed to improved operational efficiency and the mobile app's convenience [119][122] Question: Delivery considerations - Management has resisted expanding delivery services, focusing instead on enhancing the off-premise pickup experience [130][132] Question: Construction costs and tariffs - No significant impact from tariffs on construction costs has been observed yet, with inventory levels remaining stable [81][82]

Financial Data and Key Metrics Changes - Revenue for the second quarter grew to over $1,500,000,000 for the first time in company history, representing a 12.7% increase year-over-year [5][17] - Same store sales increased by 5.8%, driven by a 4% traffic growth and a 1.8% increase in average check [5][17] - Diluted earnings per share increased by 4% to $1.86 [17] - Restaurant margin dollars increased by 6.1% to $257,000,000, while restaurant margin as a percentage of total sales decreased by 108 basis points year-over-year to 17.1% [17][18] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged approximately $172,000 in weekly sales, while Bubba's 33 averaged over $128,000 in weekly sales [6][7] - Jaggers delivered average weekly sales of nearly $76,000 in the second quarter [7] - The company plans to open approximately 30 company-owned restaurants this year, with a potential for double-digit openings for Bubba's next year [8][10] Market Data and Key Metrics Changes - Inflation for commodities was in line with expectations, with a full-year inflation guidance increased to approximately 5% due to higher beef inflation [14] - Labor inflation was also in line with expectations, with a full-year guidance lowered to approximately 4% [14] Company Strategy and Development Direction - The company is focused on a "people first" approach, emphasizing legendary food and service [11] - Plans to acquire additional franchise locations and continue expanding the Bubba's brand, aiming for 200 locations [7][10] - The company is committed to maintaining its capital allocation philosophy, prioritizing new restaurant development and existing restaurant care [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operations and the commitment of the team, despite facing challenges [11] - The company is monitoring inflationary trends closely and adjusting strategies accordingly [14][28] - Management remains optimistic about the growth potential of Bubba's and Jaggers, with plans for increased openings in the coming years [42][126] Other Important Information - The company completed the acquisition of three franchised restaurants, bringing the total to 17 for the year, and plans to acquire three more in the fourth quarter [10] - The company is purchasing its support center buildings, which will save approximately $2,500,000 in rent annually [103] Q&A Session Summary Question: Insights on inflation dynamics - Management noted that strong retail demand for beef and tighter supply have driven inflation higher, with expectations of peak inflation in the third quarter [25][28] Question: Mix effect and consumer behavior - Negative mix pressure is primarily from the alcohol category, while positive trends are seen in entrees and mocktails [32][36] Question: Expectations for inflation in Q3 and Q4 - Anticipated commodity inflation could reach 7% in Q3, decreasing to 4-5% in Q4 [41] Question: Growth opportunities in California - The company is excited about acquiring remaining franchise units in California and plans to explore growth opportunities in the state [96][99] Question: Off-premise sales growth - Off-premise sales growth is attributed to improved operational efficiency, the mobile app, and better execution by staff [120][123] Question: Delivery considerations - Currently, the company is not pursuing delivery options broadly but is open to discussions based on individual unit needs [130][132]

Financial and Operational Highlights [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) The company reported a 12.7% revenue increase to $1.51 billion, though restaurant margins declined due to inflation Q2 2025 Financial Summary | ($000's, except per share amounts) | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended June 25, 2024 | % change | | :--- | :--- | :--- | :--- | | **Total revenue** | $1,512,054 | $1,341,202 | 12.7% | | **Income from operations** | $146,341 | $142,816 | 2.5% | | **Net income** | $124,085 | $120,141 | 3.3% | | **Diluted earnings per share** | $1.86 | $1.79 | 4.0% | - Comparable restaurant sales at company restaurants increased by **5.8%**[2](index=2&type=chunk) - Restaurant margin percentage decreased by **108 basis points to 17.1%**, primarily due to 5.2% commodity inflation and 3.8% wage and labor inflation[2](index=2&type=chunk) - During the quarter, the company opened **four company-owned restaurants** and one franchise restaurant[2](index=2&type=chunk) [Year-to-Date 2025 Performance](index=1&type=section&id=Year-to-Date%202025%20Performance) Year-to-date revenue grew 11.2% to $2.96 billion, while restaurant margin contracted by 92 basis points to 16.9% YTD 2025 Financial Summary | ($000's, except per share amounts) | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended June 25, 2024 | % change | | :--- | :--- | :--- | :--- | | **Total revenue** | $2,959,702 | $2,662,419 | 11.2% | | **Income from operations** | $281,074 | $275,944 | 1.9% | | **Net income** | $237,747 | $233,347 | 1.9% | | **Diluted earnings per share** | $3.57 | $3.48 | 2.5% | - Comparable restaurant sales at company restaurants increased by **4.7%** year-to-date[6](index=6&type=chunk) - Year-to-date restaurant margin percentage decreased by **92 basis points to 16.9%**, impacted by 3.7% commodity inflation and 4.2% wage and labor inflation[6](index=6&type=chunk) - The company opened **12 company restaurants** and one franchise restaurant in the first half of the year[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management highlighted strong sales growth from customer traffic and reaffirmed its focus on value and disciplined capital allocation - Management attributes strong comparable sales growth to **positive customer traffic** across all three of its brands[3](index=3&type=chunk) - The company expects **commodity inflation to continue impacting profitability** for the rest of the year but remains focused on preserving its value proposition and operational excellence[3](index=3&type=chunk) - The company recently opened its **800th system-wide restaurant**, underscoring its commitment to growth[3](index=3&type=chunk) - The capital allocation strategy prioritizes **new store development and strategic franchise acquisitions** to drive long-term shareholder value[3](index=3&type=chunk) Business Outlook and Strategy [2025 Outlook](index=2&type=section&id=2025%20Outlook) The company updated its full-year inflation outlook and reiterated guidance for positive sales growth and capital expenditures of around $400 million - Comparable restaurant sales at company restaurants for the first five weeks of Q3 2025 increased by **5.3%** compared to 2024[5](index=5&type=chunk) Full-Year 2025 Guidance | 2025 Outlook | Expectation | | :--- | :--- | | **Updated Expectations** | | | Commodity cost inflation | ~5% | | Wage and other labor inflation | ~4% | | Effective income tax rate | ~15% | | **Reiterated Expectations** | | | Comparable restaurant sales | Positive growth | | Store week growth | ~5% | | Total capital expenditures | ~$400 million | [Franchise Acquisitions](index=2&type=section&id=Franchise%20Acquisitions) The company plans to acquire eight domestic franchise restaurants in late 2025 and early 2026 - The company plans to acquire **eight domestic franchise restaurants** in Q4 2025 and Q1 2026, subject to due diligence[4](index=4&type=chunk) Shareholder Returns [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.68 per share, payable in September 2025 Quarterly Dividend Details | Dividend Details | | | :--- | :--- | | **Dividend per Share** | $0.68 | | **Record Date** | September 2, 2025 | | **Payment Date** | September 30, 2025 | [Capital Allocation](index=1&type=section&id=Capital%20Allocation) The company deployed $324.1 million in capital year-to-date for expenditures, acquisitions, dividends, and share repurchases Capital Allocation Summary | Capital Allocation Spend ($ millions) | Q2 2025 | 26 Weeks YTD 2025 | | :--- | :--- | :--- | | Capital expenditures | $92.5 | $169.9 | | Franchise acquisitions | $15.5 | $93.9 | | Dividends | $45.1 | $90.3 | | Repurchases of common stock | $9.8 | $60.0 | Financial Statements [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement shows year-over-year revenue growth, with rising operating costs moderating net income and EPS gains Consolidated Statements of Income | (in thousands, except per share data) | 13 Weeks Ended July 1, 2025 | 13 Weeks Ended June 25, 2024 | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended June 25, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $1,512,054 | $1,341,202 | $2,959,702 | $2,662,419 | | Food and beverage costs | $511,324 | $436,001 | $1,002,315 | $881,092 | | Labor costs | $495,049 | $438,212 | $975,024 | $865,759 | | **Income from operations** | $146,341 | $142,816 | $281,074 | $275,944 | | **Net income attributable to Texas Roadhouse** | $124,085 | $120,141 | $237,747 | $233,347 | | **Diluted EPS** | $1.86 | $1.79 | $3.57 | $3.48 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $3.26 billion, driven by property, equipment, and goodwill from acquisitions, while cash decreased Consolidated Balance Sheets | (in thousands) | July 1, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$3,255,276** | **$3,190,779** | | Cash and cash equivalents | $176,801 | $245,225 | | Property and equipment, net | $1,714,551 | $1,617,673 | | Goodwill | $229,944 | $169,684 | | **Total liabilities and equity** | **$3,255,276** | **$3,190,779** | | Current liabilities | $713,509 | $828,130 | | Total stockholders' equity | $1,450,794 | $1,358,347 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided $366.0 million in cash, which was used for investing and financing, resulting in a net cash decrease Consolidated Statements of Cash Flows | (in thousands) | 26 Weeks Ended July 1, 2025 | 26 Weeks Ended June 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$365,980** | **$377,347** | | **Net cash used in investing activities** | **($259,527)** | **($146,155)** | | Capital expenditures | ($169,912) | ($155,478) | | Acquisitions of franchise restaurants | ($93,878) | — | | **Net cash used in financing activities** | **($174,877)** | **($137,984)** | | Repurchase of common stock | ($60,414) | ($35,139) | | Dividends paid | ($90,292) | ($81,509) | | **Net (decrease) increase in cash** | **($68,424)** | **$93,208** | | Cash and cash equivalents - end of period | $176,801 | $197,454 | Supplemental Information [Non-GAAP Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Measures%20Reconciliation) The company provides a reconciliation of Restaurant Margin to Income from Operations, showing a margin decline to 17.1% in Q2 2025 - The company uses the non-GAAP measure **Restaurant Margin** to evaluate core restaurant-level operating efficiency[9](index=9&type=chunk) Reconciliation of Income from Operations to Restaurant Margin | Reconciliation ($ in thousands) | 13 Weeks Ended July 1, 2025 | 26 Weeks Ended July 1, 2025 | | :--- | :--- | :--- | | **Income from operations** | **$146,341** | **$281,074** | | Less: Royalties and franchise fees | (8,080) | (15,386) | | Add: Pre-opening | 5,464 | 12,276 | | Add: Depreciation and amortization | 50,744 | 99,544 | | Add: General and administrative | 62,763 | 118,980 | | **Restaurant margin** | **$257,343** | **$496,627** | | Restaurant margin % | 17.1% | 16.9% | [Supplemental Financial and Operating Data](index=9&type=section&id=Supplemental%20Financial%20and%20Operating%20Data) Comparable restaurant sales grew 5.8% in Q2 2025, while rising food and beverage costs contributed to a lower restaurant margin Q2 2025 Key Operating Metrics (Company Restaurants) | Q2 2025 Operating Metrics (Company Restaurants) | July 1, 2025 | June 25, 2024 | | :--- | :--- | :--- | | Comparable restaurant sales | 5.8% | 9.3% | | Food and beverage costs (% of sales) | 34.0% | 32.7% | | Labor costs (% of sales) | 32.9% | 32.8% | | Restaurant margin % | 17.1% | 18.2% | Q2 2025 Comparable Sales Growth by Brand | Q2 2025 Comparable Sales by Brand | % Change | | :--- | :--- | | Texas Roadhouse (Company) | 5.9% | | Bubba's 33 (Company) | 4.3% | | Texas Roadhouse (Franchise) | 7.0% | [Restaurant Unit Activity](index=10&type=section&id=Restaurant%20Unit%20Activity) The total restaurant count increased to 797, driven by new openings and franchise acquisitions Restaurant Count by Type | Restaurant Count | As of July 1, 2025 | As of June 25, 2024 | Change | | :--- | :--- | :--- | :--- | | Total company restaurants | 695 | 650 | 45 | | Total franchise restaurants | 102 | 112 | (10) | | **Total restaurants** | **797** | **762** | **35** | - In the first 26 weeks of 2025, the company opened **12 new restaurants** and acquired **17 franchise locations**[24](index=24&type=chunk)

Core Insights - Texas Roadhouse (TXRH) is projected to announce quarterly earnings of $1.95 per share, reflecting an 8.9% year-over-year increase, with revenues expected to reach $1.5 billion, a 12.1% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.3%, indicating analysts' reassessment of their initial forecasts [2]. - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenue - Restaurant and other sales' will reach $1.50 billion, marking a 12.3% year-over-year increase [5]. - The estimate for 'Revenue - Franchise royalties and fees' is set at $8.10 million, indicating a 7.2% year-over-year increase [5]. Comparable Sales Growth - 'Comparable restaurant sales growth - Company restaurants' is forecasted to be 5.5%, down from 9.3% in the previous year [5]. - 'Franchise-owned restaurants - Comparable restaurant sales growth' is expected to be 5.1%, compared to 6.6% in the same quarter last year [6]. Restaurant Metrics - The total number of 'Restaurants at the end - Total' is projected to be 800, up from 762 year-over-year [6]. - 'Restaurants at the end - Company - Total' is estimated to reach 697, compared to 650 last year [7]. - 'Restaurants at the end - Company - Texas Roadhouse' is expected to be 636, up from 594 year-over-year [7]. Additional Metrics - The consensus for 'Restaurants at the end - Company - Bubba's 33' is 52, compared to 48 last year [8]. - 'Store weeks - Franchise restaurants' is projected to be 1,358, down from 1,389 year-over-year [8]. - 'Store weeks - Company restaurants' is expected to reach 8,964, an increase from 8,408 in the same quarter last year [9]. - The estimate for 'Restaurants at the end - Franchise - Total' stands at 105, down from 112 year-over-year [9]. Stock Performance - Over the past month, Texas Roadhouse shares have recorded a return of -0.7%, while the Zacks S&P 500 composite has changed by +1% [9].

The market expects Texas Roadhouse (TXRH) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. Price, Consensus and EPS Surprise The stock might move higher if these key numbers top expectations in the upcoming earnings rep ...

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2] Group 1 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the next 72 hours [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - The analysts contributing to the article may not be licensed or certified by any regulatory body [2]

Core Viewpoint - Texas Roadhouse is strategically adapting to changing consumer preferences by embracing fast-casual dining trends and implementing innovative measures to enhance customer experience and profitability [2][3][4]. Group 1: Consumer Trends and Company Strategy - Restaurant-goers are increasingly seeking high-quality food and prompt service at reasonable prices, leading to a shift towards fast-casual dining options [1][2]. - Texas Roadhouse is positioning itself to capitalize on this trend by underpricing certain food items to attract budget-conscious consumers while maintaining a diverse menu that includes both affordable and premium options [3][4]. - The company is also focusing on beverage innovation, introducing non-alcoholic drinks that appeal to younger demographics [3]. Group 2: Operational Improvements - Texas Roadhouse is implementing a Digital Kitchen System in over 200 locations to streamline operations and reduce labor requirements, with more than 60% of conversions already completed [4]. - The company has reported reduced cook times in restaurants utilizing the new system, contributing to a more efficient service environment [4]. Group 3: Market Expansion and Performance - Texas Roadhouse is expanding its market presence with new concepts like Bubba's 33 and Jaggers, targeting the fast-casual segment and competing with established brands [5]. - As of April 2025, the company has opened 50 Bubba's 33 and 14 Jaggers locations, with Bubba's 33 experiencing over 20% revenue growth last year [5]. - The company's Q1 2025 revenue reached $1.45 billion, reflecting nearly 12% year-over-year growth, despite a cautious consumer environment [8]. Group 4: Financial Outlook - Texas Roadhouse's EPS is expected to rebound as inflation moderates, despite missing Q1 2025 earnings expectations with an EPS of $1.70 compared to projections of $1.75 [7][8]. - Analysts have raised their price targets for the stock, with estimates of $212 and $210 from Truist Financial and Guggenheim, indicating potential upside of over 11% from current levels [9]. - The company is projected to achieve earnings growth of 14.52% as it navigates current market challenges [7].

Company Announcement - Texas Roadhouse, Inc. will release its second quarter 2025 financial results on August 7, 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 or (646) 960-0476 for international calls [2] - A replay of the call will be available until August 14, 2025, using the provided numbers and conference ID 7714420 [2] Company Overview - Texas Roadhouse is a growing restaurant company in the casual dining segment, established in 1993 [3] - The company operates over 790 restaurants across 49 states, one U.S. territory, and ten foreign countries [3]

Core Viewpoint - The article expresses a bullish sentiment on full-service restaurants following a market selloff, indicating potential investment opportunities in this sector [1]. Group 1 - The article references a previous publication that highlighted two full-service restaurants as attractive investment options after the S&P 500 experienced a decline on August 5th of the previous year [1].

LOUISVILLE, Ky., June 10, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), announced today that Chief Financial Officer Chris Monroe is no longer with the Company. Mr. Monroe was hired by the Company on June 28, 2023. “We appreciate Chris’ nearly two years of service and wish he and his family the best as they transition back to Texas,” said Chief Executive Officer Jerry Morgan. The Company’s Board of Directors has appointed Keith Humpich, Vice President of Finance, as interim CFO until a pe ...