Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for the third quarter, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [16] - Diluted earnings per share decreased by 0.8% to $1.25, while restaurant margin dollars increased by 1.1% to $204 million [16][17] - Average weekly sales were over $157,000, with to-go sales representing approximately 13.6% of total weekly sales [16] Business Line Data and Key Metrics Changes - All three brands (Texas Roadhouse, Bubba's 33, and Jaggers) delivered same-store sales growth, with Texas Roadhouse averaging nearly $162,000 in weekly sales [12] - Bubba's 33 averaged $119,000 in weekly sales, while Jaggers exceeded $75,000 [12] - Comparable sales increased by 6.1% in the third quarter, driven by 4.3% traffic growth and a 1.8% increase in average check [16] Market Data and Key Metrics Changes - The company opened seven company-owned locations in the third quarter and plans to open approximately 30 restaurants across three brands in 2025 [7] - Franchise partners opened two international Texas Roadhouse restaurants during the third quarter, with plans for one more in the fourth quarter [7] - The company expects to open approximately 35 company-owned restaurants in 2026, including 20 Texas Roadhouse, 10 Bubba's 33, and up to five Jaggers [7] Company Strategy and Development Direction - The company maintains a people-first focus, value proposition, and operational excellence as key components of its long-term success [6] - The company is committed to expanding its restaurant base while driving top-line growth through guest traffic [10] - The company is also focusing on enhancing its retail presence, with products available in over 120,000 retail outlets [9] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior remains strong, with no noticeable change following a 1.7% menu price increase [8] - The company is setting initial 2026 commodity inflation guidance at approximately 7%, with expectations of volatility in beef prices [13] - Management expressed confidence in the long-term health of the business, emphasizing a commitment to its mission and values [11] Other Important Information - The company ended the third quarter with a cash balance of $108 million and cash flow from operations of $144 million [14] - Capital expenditures for 2026 are expected to be approximately $400 million, excluding the cost of acquiring California franchise restaurants [15] Q&A Session Summary Question: Clarification on beef inflation outlook - Management indicated that beef inflation might be in the mid-teens if the overall commodity basket is up in high single digits, with expectations based on current trends [23][26] Question: Confidence in transitory vs. structural beef pricing - Management believes the current beef pricing situation is cyclical and transitory, based on industry insights [34][35] Question: Consumer behavior by income and age cohort - Management noted no significant differences in consumer behavior by income or age cohort, emphasizing the value offered across the menu [38][40] Question: Pricing philosophy and managing partner compensation - Management stated that compensation is tied to sales and profits, and they will continue to monitor and adjust as necessary [46][48] Question: Restaurant profit dollars and inflation impact - Management acknowledged the decline in restaurant profit dollars per location and indicated a conservative approach to pricing to protect margins [55][58] Question: New customer acquisition and competition - Management believes they are attracting customers from various segments, including higher-end steakhouses and QSRs, due to their reputation and dining experience [62][64] Question: Franchise acquisitions and CapEx balance - Management confirmed ongoing conversations for franchise acquisitions and explained that CapEx for 2026 is comparable to 2025 due to efficiency in openings [76][78]

Financial Data and Key Metrics Changes - The company reported revenue growth of 12.8% for the third quarter, reaching over $1.4 billion, driven by a 5.5% increase in average weekly sales and 6.8% store week growth [16][6] - Diluted earnings per share decreased by 0.8% to $1.25, while restaurant margin dollars increased by 1.1% to $204 million [16][12] - Comparable sales increased by 6.1%, supported by a 4.3% traffic growth and a 1.8% increase in average check [16][12] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged nearly $162,000 in weekly sales, Bubba's 33 averaged $119,000, and Jaggers averaged over $75,000 [12] - The company opened seven company-owned locations in the third quarter, including two Bubba's 33 and one Jaggers, and plans to open approximately 30 restaurants across three brands in 2025 [7][8] Market Data and Key Metrics Changes - The company has seen a positive consumer response to its beverage offerings, including mocktails and regional beverage menu items [8][9] - The to-go business continues to show solid momentum, with operators focusing on speed and order accuracy [9] Company Strategy and Development Direction - The company aims to maintain its focus on driving top-line growth through guest traffic and restaurant expansion, while also investing in employee development to remain an employer of choice [10][11] - The company plans to acquire its remaining California franchise locations at the beginning of 2026 and expects franchise partners to open 10 new restaurants [8][15] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation in the third quarter was higher than expected due to beef prices, updating the full-year 2025 commodity inflation guidance to approximately 6% [12][13] - The company remains optimistic about its long-term success, emphasizing its people-first focus and operational excellence [6][11] Other Important Information - The company ended the third quarter with a cash balance of $108 million and cash flow from operations of $144 million, offset by $214 million in capital expenditures, dividend payments, and share repurchases [14][15] - The company is establishing its initial 2026 capital expenditure guidance at approximately $400 million, excluding the cost of acquiring California franchise restaurants [15] Q&A Session Summary Question: Clarification on beef inflation outlook - Management indicated that they expect mid-teens beef inflation if the commodity basket is up high single digits, with a focus on managing pricing strategies [23][25] Question: Confidence in beef pricing being transitory - Management believes the current beef pricing situation is cyclical and transitory, based on industry insights and cattle cycles [33][34] Question: Consumer behavior by income cohort - Management noted no significant differences in consumer behavior by income or age cohort, emphasizing the value offered across the menu [37][39] Question: Pricing philosophy and managing partner compensation - Management discussed their conservative pricing approach to protect top-line growth and ensure fair compensation for managing partners [44][46] Question: Unit growth and market expansion for Bubba's - Management confirmed that most growth for Bubba's will occur in existing markets, with a focus on maintaining strong partnerships [86][88] Question: Cash uses and franchise acquisitions - Management stated that approximately 30 franchises remain for potential acquisition after completing the California acquisition [75][76] Question: Labor and operating expenses outlook - Management expects continued leverage on labor and operating expenses if top-line trends remain strong [81][82] Question: Impact of grocery store beef prices on customer behavior - Management acknowledged that high grocery store beef prices are likely driving customers to dine out more, recognizing the value of their steak offerings [84][85]

Financial Data and Key Metrics Changes - For the first quarter, the company generated over $1.4 billion in revenue, with a same-store sales increase of 3.5% and positive traffic growth [7][21] - Revenue growth was reported at 9.6%, driven by a 2.4% increase in average unit volume and 7.1% store week growth [21] - Diluted earnings per share increased by 1% to $1.7, while restaurant margin dollars increased by 4.7% to $239 million [21][22] Business Line Data and Key Metrics Changes - Weekly sales averaged $167,000 at Texas Roadhouse, $123,000 at Bubba's 33, and $71,000 at Jaggers, all showing positive same-store sales and traffic growth [15] - Average weekly sales for the first quarter were over $163,000, with To Go sales representing approximately 13.6% of total weekly sales [21] Market Data and Key Metrics Changes - The company opened eight company-owned restaurants in the first quarter, with plans to open approximately 30 company-owned restaurants this year [9][10] - Franchise openings are expected to include five international Texas Roadhouses and two domestic Jaggers [10] Company Strategy and Development Direction - The company aims to focus on delivering legendary food and service while navigating external economic factors [8] - Technology initiatives are progressing, with 65% of restaurants using a digital kitchen and 70% having upgraded guest management systems [11][12] - The company is committed to maintaining its pricing strategy, which is below inflation levels for both commodities and labor [32][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current operating environment, citing strong demand for the brand and positive sales trends [8][15] - The company anticipates a full-year commodity inflation of approximately 4%, influenced by updated expectations for beef costs and tariffs [19][95] Other Important Information - The company celebrated the success of its operators at the annual Managing Partner Conference, emphasizing the importance of community engagement [26] - The company is focusing on improving the guest experience through new beverage menus tailored to regional preferences [12] Q&A Session Summary Question: Pricing strategy in relation to inflation - The company confirmed a 3.1% price increase in the first quarter, which is expected to drop to 2.3% in the following quarters, indicating pricing below inflation [32][34] Question: Labor leverage and hours - Labor hours grew at approximately 35% of comparable traffic growth, maintaining productivity despite challenges [40][41] Question: Restaurant margin performance - Management acknowledged a slight decline in restaurant profit dollars per week and emphasized the importance of monitoring this metric throughout the year [45][47] Question: To Go sales performance - The company noted improvements in To Go sales due to operational enhancements and better packaging, with margins being neutral to slightly positive [101][103] Question: Commodity inflation outlook - The company expects commodity inflation to remain under pressure, with specific guidance of approximately 4% for the full year [19][95] Question: Franchise acquisitions - The company maintains an active dialogue with franchisees regarding potential acquisitions but has no imminent plans beyond those already disclosed [140][142]

Financial Data and Key Metrics Changes - For the first quarter, the company reported revenue of over $1.4 billion, representing a 9.6% increase year-over-year, driven by a 2.4% increase in average unit volume and 7.1% store week growth [19][5] - The diluted earnings per share increased by 1% to $1.7, while restaurant margin dollars increased by 4.7% to $239 million [19][20] - Cash flow from operations was $238 million, with $221 million in cash at the end of the quarter [18] Business Line Data and Key Metrics Changes - Average weekly sales were $167,000 at Texas Roadhouse, $123,000 at Bubba's 33, and $71,000 at Jaggers, all showing positive same-store sales and traffic growth [13] - Same-store sales increased by 3.5% in the first quarter, with traffic growth of 1.1% and a 2.4% increase in average check [19] Market Data and Key Metrics Changes - The company opened eight company-owned restaurants in the first quarter, with plans to open approximately 30 company-owned restaurants this year [6][7] - Franchise openings are expected to include five international Texas Roadhouses and two domestic Jaggers [7] Company Strategy and Development Direction - The company aims to focus on delivering legendary food and service while navigating external economic factors [5] - The management emphasized the importance of maintaining operational excellence and community engagement as part of their long-term growth strategy [23] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the current demand for their brands, despite external challenges such as tariffs and inflation [5][14] - The company anticipates a full-year commodity inflation of approximately 4%, influenced by updated expectations for beef costs and tariffs [16][89] Other Important Information - The company is implementing technology upgrades, with 65% of restaurants using a digital kitchen and 70% having a new guest management system [9][10] - The company celebrated the achievements of its top operators during the annual Managing Partner Conference, reinforcing its commitment to operational excellence [2][11] Q&A Session Summary Question: Pricing strategy in relation to inflation - Management confirmed a 3.1% price increase in Q1, which is expected to drop to 2.3% in the following quarters, indicating they are pricing below inflation [29][30] Question: Labor leverage and hours - Management clarified that labor hours grew at 35% of traffic growth, maintaining productivity despite challenges [37][38] Question: Restaurant margin performance - Management acknowledged a slight decline in restaurant profit dollars per week and emphasized the importance of monitoring this metric throughout the year [42][44] Question: Consumer behavior and sales trends - Management attributed sales fluctuations to weather conditions and noted a strong rebound in March, April, and May [68][69] Question: Franchise acquisitions and future plans - Management stated there are no immediate plans for further franchise roll-ups but maintains active dialogue with existing franchisees [135][137] Question: Bar menu relaunch and profitability - Management indicated that the bar menu changes were driven by consumer demand and are expected to enhance profitability [141][144]