Texas Roadhouse Attracts Investment from Judah Spinner's BlackBird Financial for Its Robust Store-Level Economics and Expansion Outlook

Core Insights - BlackBird Financial LP has acquired a significant stake in Texas Roadhouse, Inc., led by Judah Spinner, who is a proponent of value investing [1][2] - Spinner views Texas Roadhouse as a leader in the casual dining sector due to its strong operational performance and potential for long-term capital reinvestment [2][6] Market Leadership and Financial Strength - Texas Roadhouse has become the largest casual dining brand in the U.S. in 2024, achieving $5.5 billion in system-wide sales, a 14.7% year-over-year increase, while Olive Garden's sales grew by less than 1% to $5.2 billion [3] - The chain's company-owned locations generate over $7 million in annual sales per restaurant, significantly outperforming most competitors [5] Growth Outlook and Investment Thesis - Projections for 2025 indicate the opening of over 30 new locations, bringing the U.S. total close to 710 and the global footprint nearing 800 restaurants [6] - Texas Roadhouse's operational strategy, brand recognition, and returns on invested capital align with BlackBird's investment philosophy [6][8] Operational Excellence and Future Value - Texas Roadhouse maintains strong operating margins of approximately 9.6% and gross margins of 17.6% for the 2024 fiscal year, despite cost pressures [7] - The company has a disciplined capital allocation strategy and a conservative balance sheet, supporting growth and shareholder returns [8] Management and Corporate Culture - Spinner commends Texas Roadhouse's management for responsibly scaling the business while preserving quality, value, and culture [9]