Texas Roadhouse (TXRH) Surpasses Q4 Earnings and Revenue Estimates

Core Insights - Texas Roadhouse reported quarterly earnings of $1.73 per share, exceeding the Zacks Consensus Estimate of $1.66 per share, and showing a significant increase from $1.08 per share a year ago, representing an earnings surprise of 4.22% [1] - The company achieved revenues of $1.44 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.60% and up from $1.16 billion year-over-year [2] Earnings Performance - Over the last four quarters, Texas Roadhouse has surpassed consensus EPS estimates three times, indicating a strong performance trend [2] - The company had a previous quarter expectation of $1.33 per share but reported $1.26, resulting in a surprise of -5.26% [1][2] Stock Performance and Outlook - Texas Roadhouse shares have declined approximately 3.6% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] - The company's earnings outlook is favorable, with current consensus EPS estimates of $2.01 for the coming quarter and $7.23 for the current fiscal year [7] Industry Context - The Retail - Restaurants industry, to which Texas Roadhouse belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a positive industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]