Core Insights - Texas Roadhouse reported Q3 CY2025 results with revenue of $1.44 billion, exceeding analyst expectations by 0.7% and showing a year-on-year growth of 12.8% [1][6] - The GAAP earnings per share (EPS) of $1.25 fell short of analyst estimates by 2.9% [1][6] - The market reacted negatively to the earnings report despite strong revenue growth due to the EPS miss [3] Revenue and Earnings Performance - Revenue reached $1.44 billion, surpassing analyst estimates of $1.43 billion [6] - GAAP EPS was $1.25, compared to expectations of $1.29, marking a 2.9% miss [6] - Adjusted EBITDA was $149.6 million, below the expected $152.9 million, with a margin of 10.4% [6] - Operating margin decreased to 6.7% from 8% in the same quarter last year [6] - Same-store sales increased by 6.3% year-on-year, down from 8.2% in the same quarter last year [6] Market and Operational Insights - Management attributed strong sales growth to increased guest traffic and favorable consumer response to menu items, particularly steaks and larger entrees [3][5] - Rising beef costs and ongoing commodity inflation have pressured margins, with management noting inflation was higher than expected due to beef prices [3][4] - The company plans to maintain a cautious approach to menu pricing, implementing a 1.7% price increase at the start of Q4 [7] Future Outlook - Texas Roadhouse anticipates continued commodity inflation, projecting around 7% inflation for 2026 [4] - The company aims to drive top-line growth through guest traffic and restaurant expansion while balancing value for customers and profitability [4] - Management highlighted ongoing investments in technology and expansion across all three brands, with a focus on operational efficiencies [4][8] Expansion and Technology - The company expanded its restaurant locations to 806, up from 772 in the same quarter last year [6] - Texas Roadhouse is nearing full adoption of digital kitchen and guest management systems, with 95% of locations using the new systems [7] - The company is also expanding its retail presence, with products available in over 120,000 retail outlets [8]

Climate Change Impact - Climate change is impacting the price of beef [1] Industry Focus - The article discusses why burgers and steaks cost so much right now [1]