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]

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Company Overview - Texas Roadhouse (TXRH) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance expectations [4] Price Performance - TXRH shares have increased by 1.9% over the past week, while the Zacks Retail - Restaurants industry has decreased by 0.53% during the same period [6] - Over the last quarter, TXRH shares have risen by 12.79%, and they are up 91.77% over the past year, significantly outperforming the S&P 500, which has moved 7.91% and 40.48% respectively [7] Trading Volume - The average 20-day trading volume for TXRH is 662,892 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 7 earnings estimates for TXRH have been revised upwards, while 2 have been revised downwards, leading to an increase in the consensus estimate from $6.32 to $6.38 [10] - For the next fiscal year, 7 estimates have moved upwards and 1 has been revised downwards, indicating positive earnings momentum [10]

I'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining. We employ advanced analytical models and specialized valuation techniq ...

Texas Roadhouse TodayTXRHTexas Roadhouse$186.90 +6.00 (+3.32%) 52-Week Range$93.79▼$189.97Dividend Yield1.31%P/E Ratio33.92Price Target$178.60Add to WatchlistTexas Roadhouse NASDAQ: TXRH is a highly valued stock, but it is valued that way because it is the leading restaurant player and has ample growth potential to drive long-term shareholder value increases. The initial reaction to the Q3 results was tepid, but it was nothing more than a meh reaction to solid results and not an indication that the market w ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 13.5% for Q3 2024, reaching approximately $1.3 billion, driven by a 7.5% increase in average unit volume and 5.8% store week growth [15][5] - Diluted earnings per share increased by 32.5% to $1.26, with restaurant margin dollars increasing by 24.1% to $202 million [15][16] - Comparable sales grew by 8.5%, supported by a 3.8% traffic growth and a 4.7% increase in average check [15][16] Business Line Data and Key Metrics Changes - Weekly sales averaged $153,000 at Texas Roadhouse, $117,000 at Bubba's 33, and $72,000 at Jaggers, with all three brands showing positive traffic and sales growth [10] - The company opened seven Texas Roadhouse locations in Q3 and expects to open approximately 30 restaurants across all brands for the full year [6][7] Market Data and Key Metrics Changes - The company experienced strong comparable sales performance across all regions, with no significant regional disparities noted [63] - The company reported a 0.9% menu price increase, which is expected to maintain value proposition and traffic levels [11][10] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing guest experience, and maintaining a strong community presence [56][57] - A tentative agreement is in place to acquire 13 Texas Roadhouse restaurants at the beginning of 2025, indicating a strategy of growth through acquisition [13][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a target of over 250 digital kitchen conversions by the end of 2024, with plans to convert nearly all restaurants to digital kitchens by the end of 2025 [8] - The company updated its full-year commodity inflation guidance to less than 1%, reflecting lower-than-expected inflation in Q3 [11][12] Other Important Information - The company celebrated its 20th anniversary as a public company and was named the 2024 Brand Icon by Nation's Restaurant News [9][8] - The effective tax rate for Q3 was 16.7%, with an updated guidance for the full year 2024 income tax rate at approximately 15% [19] Q&A Session All Questions and Answers Question: Labor leverage in the quarter - Management indicated that adjustments related to insurance claims are unpredictable, but labor productivity is expected to continue improving [22][23] Question: Commodity inflation guidance - Management explained that the inflation guidance includes a combination of fixed-price contracts and assumptions, primarily driven by beef costs [24][27] Question: Pricing strategy for 2025 - Management stated that pricing decisions will be made based on operator feedback and market conditions after the first of the year [30][31] Question: Mix contribution in the quarter - Management reported a slight negative mix driven by alcohol sales, but overall positive results in other categories [38] Question: Technology initiatives and labor productivity - Management noted that while it's early to quantify the impact of technology on labor productivity, indicators are positive [40] Question: Labor hours dynamics heading into next year - Management expects to maintain labor hours growth below 50% relative to traffic growth, focusing on staffing appropriately [42][43] Question: Unit growth philosophy - Management emphasized a focus on the number of openings rather than a specific percentage growth target, aiming for balanced operations [45][46] Question: Impact of weather on sales - Management acknowledged some impact from weather but noted a bounce-back in sales following closures [48][50] Question: Pricing versus wages - Management is considering the balance between pricing and wage increases, aiming to invest in labor while maintaining value for consumers [74]

Texas Roadhouse (TXRH) came out with quarterly earnings of $1.26 per share, missing the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.26%. A quarter ago, it was expected that this restaurant chain would post earnings of $1.66 per share when it actually produced earnings of $1.79, delivering a surprise of 7.83%.Over the last four quarters, the ...

[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 ...