Texas Roadhouse (NasdaqGS:TXRH) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Speaker1Good evening and welcome to the Texas Roadhouse third quarter earnings conference call. Today's call is being recorded. All participants are now in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. At that time, if you would like to ask a question, please press star then the number one on your telephone keypad. Should anyone need assistance at any time during the conference ...

Core Insights - Dave & Buster's reported lower-than-expected Q2 fiscal 2025 results, with both earnings and revenues missing estimates, leading to a decline in share price by approximately 6.8% since the last earnings report [1][3][6] Financial Performance - Adjusted EPS for Q2 was 40 cents, missing the Zacks Consensus Estimate of 88 cents, and down from $1.12 in the same quarter last year [6] - Quarterly revenues totaled $557.4 million, slightly up by 0.5% year-over-year but below the consensus mark of $562 million [6] - Food and Beverage revenues increased by 6.3% year-over-year to $192.9 million, while Entertainment revenues fell by 3% to $364.5 million [7] - Comparable store sales declined by 3% year-over-year, with similar trends expected to continue into the third quarter [8] Operational Highlights - Operating income for Q2 was $53 million, down from $84.5 million in the prior year, with adjusted EBITDA at $129.8 million compared to $151.6 million last year [9] - EBITDA margin decreased to 23.3% from 27.2% in the previous year [9] Balance Sheet and Liquidity - As of August 5, 2025, cash and cash equivalents were $12 million, an increase from $6.9 million in February 2025 [10] - Net long-term debt rose to approximately $1.55 billion from $1.48 billion at the end of fiscal 2024, with available liquidity of $443.3 million [11] Growth Initiatives - The company opened three new domestic stores during Q2 and continued its international expansion with a second franchise store in India, planning to open at least five more international franchise stores in the next six months [12][13] Market Sentiment and Estimates - Estimates for the company have trended downward, with a significant revision of -38.37% in consensus estimates [14] - The company currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [16]

Core Insights - Dave & Buster's Entertainment, Inc. reported lower-than-expected second-quarter fiscal 2025 results, with earnings and revenues missing the Zacks Consensus Estimate, leading to a 16.6% drop in shares during after-hours trading [1][4][9] Financial Performance - Adjusted earnings per share (EPS) for the fiscal second quarter were 40 cents, missing the consensus estimate of 88 cents and down from $1.12 in the prior year [4][9] - Quarterly revenues totaled $557.4 million, slightly up 0.5% year-over-year but below the consensus mark of $562 million [4][9] - Operating income was $53 million, down from $84.5 million in the year-ago quarter, with adjusted EBITDA at $129.8 million compared to $151.6 million previously [7][9] Revenue Breakdown - Food and Beverage revenues, accounting for 34.6% of total revenues, increased 6.3% year-over-year to $192.9 million, exceeding estimates [5] - Entertainment revenues, making up 65.4% of total revenues, fell 3% year-over-year to $364.5 million, missing estimates [5] Comparable Store Sales - Comparable store sales, including Main Event-branded locations, declined 3% year-over-year, with sales trends in the third quarter following the same direction as the second quarter [6] Management Outlook - Management expressed confidence in the company's long-term potential despite the fiscal second-quarter results, highlighting profitable business models and expected high returns from new store openings [2][3] - Targeted initiatives such as menu innovation, new arcade titles, and remodel programs are showing early progress, with management cautiously optimistic about stabilizing performance and driving long-term shareholder value [3] Store Development - During the fiscal second quarter, the company opened three new domestic stores and one additional store post-quarter, along with two Main Event stores [10] - The company launched its second franchise store in India and plans to open at least five more international franchise stores within the next six months [11] Balance Sheet - As of August 5, 2025, cash and cash equivalents were $12 million, up from $6.9 million in February 2025, while net long-term debt increased to approximately $1.55 billion [8]