Texas Roadhouse(TXRH) The Motley Fool·2025-02-20 22:50Core Insights - Texas Roadhouse reported a strong quarterly performance with a revenue increase of 23.5% to 1.73, driven by strategic expansions and effective management despite inflationary pressures [2][6]. Financial Performance - Total revenue for Q4 2024 was 1.16 billion in Q4 2023, reflecting a year-over-year increase of 23.5% [3][6]. - Net income rose by 59.9% to 72.4 million in the previous year [3][6]. - Comparable restaurant sales increased by 7.7%, although this was a decline from the previous year's 9.9% [3][7]. - Restaurant margins improved to 17.0% from 15.3% the previous year, attributed to higher sales volumes and improved labor productivity [7]. Strategic Developments - The company opened 31 company-run and 14 franchise locations in 2024, with plans to acquire 13 franchise restaurants in early 2025 [4][8]. - A strategic menu price increase of 1.4% is planned for early April 2025 to manage costs while maintaining competitiveness [9]. - Capital expenditures are projected at approximately 138.6 million, indicating effective management and operational efficiencies [6]. - The company has implemented a competitive pricing strategy to combat rising inflation while maintaining quality standards [5]. Future Outlook - Management is optimistic about 2025, expecting comparable sales growth and a store week growth of approximately 5% [10]. - Inflationary pressures are anticipated, with commodity cost inflation forecasted between 3% and 4% and labor inflation between 4% and 5% [11].