Texas Roadhouse rival shuts down several restaurant locations

Core Insights - The casual restaurant sector is experiencing significant challenges, leading to an increase in abrupt closures of popular chains [1][2] - Texas Roadhouse has emerged as the leading casual dining chain in 2024, surpassing Olive Garden in sales [2][3] Industry Challenges - Key reasons for restaurant closures include intense competition, rising labor and food costs, and high lease rates [2] - Many chains are resorting to out-of-court restructurings, location closures, and bankruptcy filings due to financial distress [2][5] Company Performance - Texas Roadhouse reported a sales increase of 14.7% in 2024, reaching $5.5 billion, while Olive Garden's sales rose by only 0.8% to $5.2 billion [3][9] - Joe's Crab Shack has seen a drastic reduction in locations, from about 150 to only 15, following recent closures [4] - On The Border Mexican Grill & Cantina closed approximately one-third of its locations and filed for Chapter 11 bankruptcy in early 2025 [5][6] - Bravo Brio Restaurants LLC filed for Chapter 11 protection for the second time in August 2025 after closing seven locations earlier that year [7]