Texas Roadhouse(US:TXRH)2025-05-09 13:00Financial 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].