Texas Roadhouse (TXRH) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Good evening, and welcome to the Texas Roadhouse First Quarter Earnings Conference Call. Today's call is being recorded. All participants are now in a listen only mode. After the speakers' remarks, there will be a question and answer session. I would now like to introduce Michael Balen, Head of Investor Relations for Texas Roadhouse. You may begin your conference. Speaker1 Thank you, Kayla, and good evening. By now, you should ha ...

Exhibit 99.1 | | | | 13 Weeks Ended | | | --- | --- | --- | --- | --- | | ($000's, except per share amounts) | April 1, 2025 | | March 26, 2024 | % change | | Total revenue | $ | 1,447,648 $ | 1,321,217 | 9.6% | | Income from operations | | 134,733 | 133,128 | 1.2% | | Net income | | 113,662 | 113,206 | 0.4% | | Diluted earnings per share | $ | 1.70 $ | 1.69 | 1.0% | Results for the 13 weeks ended April 1, 2025, as compared to the prior year as applicable, included the following: ● Comparable restaurant sal ...

Declares Quarterly Dividend of $0.68 per ShareLOUISVILLE, KY., May 08, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 weeks ended April 1, 2025. Financial Results Financial results for the 13 weeks ended April 1, 2025 and March 26, 2024 were as follows: 13 Weeks Ended($000's, except per share amounts) April 1, 2025 March 26, 2024 % changeTotal revenue $1,447,648 $1,321,217 9.6%Income from operations <td st ...

In its upcoming report, Texas Roadhouse (TXRH) is predicted by Wall Street analysts to post quarterly earnings of $1.75 per share, reflecting an increase of 3.6% compared to the same period last year. Revenues are forecasted to be $1.44 billion, representing a year-over-year increase of 9%.Over the last 30 days, there has been a downward revision of 1.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their init ...

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].

Core Insights - Texas Roadhouse reported strong performance in Q4 2024, achieving nearly $5.4 billion in revenue and record average unit volumes, driven by positive traffic growth across its brands [2][4] - The company’s value-focused strategy has led to traffic growth that outpaces the industry, demonstrating its competitive advantage [3][5] Traffic Growth - Texas Roadhouse achieved an 8.5% increase in same-store sales for 2024, with 4.4% attributed to traffic growth; Q4 saw a 7.7% comparable sales increase, including 4.9% traffic growth [4] - The company’s ability to attract guests without relying solely on price increases highlights the effectiveness of its value proposition [3] Value Positioning - The company prioritizes value perception over short-term margin gains, implementing a modest 1.4% menu price increase to maintain its competitive edge [5][6] - Texas Roadhouse's pricing strategy remains conservative compared to peers, with planned pricing increases below inflation rates [6] Margin Improvement - Despite inflationary pressures, Texas Roadhouse improved restaurant-level margins, with margin dollars per store week increasing 20.8% year-over-year to approximately $26,000 [7] - Restaurant margin as a percentage of total sales rose by 172 basis points to 17%, contributing to a 42.5% growth in earnings per share [7] Development Strategy - The company maintains a disciplined approach to new restaurant openings, planning approximately 30 new locations in 2025 while focusing on quality [8] - Texas Roadhouse is also pursuing growth through relocating high-performing restaurants and reaffirming its target of 900 domestic locations [8] Financial Position - Texas Roadhouse ended the year with over $245 million in cash and generated over $750 million in cash flow from operations, allowing it to self-fund growth initiatives [10] - The company plans approximately $400 million in capital expenditures for 2025 and has approved an 11% increase in quarterly dividends [10] Future Outlook - Management expresses cautious optimism for 2025, emphasizing operational excellence and value as key competitive advantages [11] - Key areas to monitor include consumer response to price increases and commodity cost trends in the latter half of 2025 [12]

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 ...