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 ...

Group 1 - The earnings season has been influenced more by geopolitical news than by the actual financial reports of companies [1] - The focus is on long-term growth and dividend growth investing, with an emphasis on finding undervalued stocks and high-quality dividend-growing companies [1] - Profitability is highlighted as a safer driver of gains compared to low valuation, with a focus on margins, free cash flow stability and growth, and returns on invested capital [1]

Group 1 - Texas Roadhouse is being compared to Costco in the restaurant industry due to its elevated trading multiples and consistent growth, showing resilience despite quarterly results [1] - The company is recognized for its strong qualitative attributes, which makes it an attractive investment opportunity [2] Group 2 - The focus is on investing in companies with solid fundamentals and holding them long-term, indicating a strategy aimed at maximizing exposure to high-performing stocks [2]

Core Viewpoint - Texas Roadhouse (NASDAQ: TXRH) is a restaurant chain that has consistently demonstrated long-term growth and dividend growth potential, despite being overshadowed by the hype surrounding AI companies [1]. Group 1: Company Performance - The company focuses on profitability as a key driver of gains, emphasizing the importance of margins, free cash flow stability and growth, and returns on invested capital [1]. - Texas Roadhouse is recognized for its ability to provide cash for reinvestment, indicating a strong financial position [1]. Group 2: Investment Strategy - The investment strategy involves seeking undervalued stocks and high-quality dividend-growing companies, which aligns with Texas Roadhouse's profile as a solid investment opportunity [1].

Financial Performance - Total revenue increased by $126.4 million or 9.6% to $1,447.6 million in Q1 2025 compared to Q1 2024, driven by a 7.1% increase in store weeks and a 3.5% increase in comparable restaurant sales [77]. - Net income rose by $0.5 million or 0.4% to $113.7 million in Q1 2025, with diluted earnings per share increasing by 1.0% to $1.70 [78]. - Restaurant margin dollars increased by $10.8 million or 4.7% to $239.3 million in Q1 2025, although the restaurant margin percentage decreased to 16.6% due to commodity inflation of 2.1% and wage inflation of 4.6% [79]. - Total revenue for Q1 2025 was $1,447.6 million, a 9.6% increase from $1,321.2 million in Q1 2024 [84]. - Comparable restaurant sales growth was 3.5% in Q1 2025, compared to 8.4% in Q1 2024 [94]. - Net income attributable to Texas Roadhouse, Inc. was $113.7 million in Q1 2025, slightly up from $113.2 million in Q1 2024 [84]. Operational Metrics - The increase in comparable restaurant sales was attributed to a rise in the per person average check and an increase in guest traffic [77]. - Restaurant and other sales increased by 9.6% in Q1 2025, driven by a 7.1% increase in store weeks and a 2.4% increase in average unit volume [90][91]. - The company emphasizes restaurant margin as a key measure for evaluating operational efficiency, excluding certain non-restaurant-level costs [71]. - Texas Roadhouse segment reported a restaurant margin of $225.3 million, a 4.7% increase from Q1 2024, but the margin percentage decreased to 16.7% from 17.4% due to commodity and labor inflation [116]. - Bubba's 33 segment saw a restaurant margin increase of $0.6 million or 5.0%, with the margin percentage decreasing to 16.1% from 17.2% due to increased expenses [117]. Capital Expenditures and Investments - Capital allocation for the 13 weeks ended April 1, 2025, included capital expenditures of $77.4 million, franchise acquisitions of $78.3 million, dividends of $45.2 million, and common stock repurchases of $50.2 million [80]. - Capital expenditures totaled $77.4 million in Q1 2025, with $36.9 million for new company restaurants and $24.5 million for refurbishment or expansion [123]. - The company expects capital expenditures of approximately $400 million in 2025 [125]. - Net cash used in investing activities increased to $155.6 million in Q1 2025, primarily due to the acquisition of 14 franchise restaurants [121]. Shareholder Returns - The quarterly cash dividend was increased to $0.68 per share in Q1 2025, totaling $45.2 million compared to $40.8 million in Q1 2024 [126]. - The company repurchased 281,091 shares for $50.2 million in Q1 2025, with $479.8 million remaining under the stock repurchase program [128]. Debt and Liquidity - The new revolving credit facility allows borrowing up to $450 million, with a maturity date of April 24, 2030 [134]. - As of April 1, 2025, the company had no outstanding borrowings under its credit facility and $296.8 million available [131]. Cost Structure - Food and beverage costs as a percentage of restaurant and other sales increased to 34.1% in Q1 2025 from 33.9% in Q1 2024, primarily due to commodity inflation of 2.1% [99]. - Restaurant labor expenses increased to 33.3% of restaurant and other sales in Q1 2025, up from 32.5% in Q1 2024, driven by wage inflation of 4.6% [101]. - General and administrative expenses decreased to 3.9% of total revenue in Q1 2025 from 4.0% in Q1 2024 [108]. Company Growth - The company operated 688 company restaurants, including 629 Texas Roadhouse, 50 Bubba's 33, and 9 Jaggers restaurants as of April 1, 2025 [68]. - The company opened seven Texas Roadhouse and one Bubba's 33 restaurants in Q1 2025, contributing to a total of 792 restaurants by April 1, 2025 [89][96]. - The company has contractual arrangements to acquire equity interests in 17 of the 19 majority-owned company restaurants and 41 of the 46 systemwide domestic franchise restaurants [66]. Taxation - The effective tax rate increased to 14.8% in Q1 2025 from 13.9% in Q1 2024, primarily due to a decrease in the impact of the FICA tip tax credit [111]. Economic Outlook - The company expects commodity inflation of approximately 4% in 2025, with labor costs pressured by wage inflation of 4% to 5% [100][102]. Fiscal Year Structure - The fiscal year 2025 consists of 52 weeks, with each quarter being 13 weeks long, compared to fiscal year 2024, which was 53 weeks long [70].

Group 1 - Texas Roadhouse reported $1.45 billion in revenue for the quarter ended March 2025, a year-over-year increase of 9.6% [1] - The EPS for the same period was $1.70, slightly up from $1.69 a year ago, but below the consensus estimate of $1.75, resulting in an EPS surprise of -2.86% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.44 billion, indicating a surprise of +0.53% [1] Group 2 - Comparable restaurant sales growth for company restaurants was 3.5%, surpassing the nine-analyst average estimate of 3.2% [4] - The total number of company restaurants at the end of the period was 688, slightly above the six-analyst average estimate of 684 [4] - Franchise royalties and fees revenue was reported at $7.31 million, below the average estimate of $8.42 million, but represented a year-over-year change of +3.4% [4] Group 3 - Texas Roadhouse shares returned +3.2% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Texas Roadhouse reported quarterly earnings of $1.70 per share, missing the Zacks Consensus Estimate of $1.75 per share, representing an earnings surprise of -2.86% [1] - The company posted revenues of $1.45 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.53%, compared to year-ago revenues of $1.32 billion [2] - Over the last four quarters, Texas Roadhouse has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Movement and Outlook - Texas Roadhouse shares have lost about 5.1% since the beginning of the year, while the S&P 500 has declined by -4.3% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $1.95 for the coming quarter and $6.93 for the current fiscal year [4][7] - The current Zacks Rank for Texas Roadhouse is 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Retail - Restaurants industry, to which Texas Roadhouse belongs, is currently in the bottom 22% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]