Texas Roadhouse(US:TXRH)2024-05-03 01:14Financial Data and Key Metrics Changes - In Q1 2024, the company reported revenue of over $1.3 billion, reflecting a 12.5% growth year-over-year [12][106] - Same-store sales growth was 8.4%, driven by a 4.3% increase in traffic and a 4.1% increase in average check [12][106] - Diluted earnings per share increased by 31.4% to $1.69 [106] - Restaurant margin as a percentage of total sales increased by 148 basis points year-over-year to 17.4% [96] Business Line Data and Key Metrics Changes - Texas Roadhouse brand generated average weekly sales of over $163,000, while Bubba's 33 averaged over $120,000 in weekly sales [5][12] - Jaggers, the quick service brand, delivered nearly $68,000 in average weekly sales [14] - The company opened nine company-owned Texas Roadhouse locations in Q1 and expects to open an additional six in Q2, aiming for approximately 30 openings across all brands for the full year [17][12] Market Data and Key Metrics Changes - Comparable sales for the first five weeks of Q2 2024 were up 9.3%, with restaurants averaging sales of approximately $158,000 per week [106] - The company noted strong performance across the country, particularly in the South and Southeast regions [26] Company Strategy and Development Direction - The company is focused on enhancing the guest experience and maintaining quality and consistency in food and service [12][106] - There is a commitment to technology improvements, including the transition to Digital Kitchens, with 30% of the planned conversions completed [6][12] - The company is also preparing to launch a new employee management system called Roadie-First Technology [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate commodity inflation, expecting full-year commodity inflation to be approximately 3% [94][106] - The company anticipates continued margin expansion, with a target of maintaining restaurant margins between 17% and 18% [37][106] - Management highlighted the importance of staffing stability and improved productivity as key factors driving operational success [31][104] Other Important Information - The company generated over $240 million in operating cash flow during Q1, funding over $125 million in capital expenditures, dividends, and share repurchases [105] - The company celebrated its Managing Partner of the Year awards during the conference call, recognizing outstanding contributions from its team [99] Q&A Session Summary Question: Can you share expected quarterly commodity inflation over the next couple of quarters? - Management acknowledged the uncertainty but indicated that they expect commodity inflation to increase in the second half of the year [20] Question: Was the growth in off-premise sales due to weather or other factors? - Management attributed the growth to improved execution in dining rooms and enhanced to-go processes [23][24] Question: What is the outlook for labor productivity gains? - Management noted that improved staffing and lower turnover have contributed to better labor productivity [31][32] Question: How does the company plan to balance capital priorities across brands? - Management indicated a focus on growth for all brands, with specific attention to franchise development for Jaggers [46] Question: What is the expected impact of the extra operating week on EPS? - Management estimated a 4% benefit to EPS from the additional operating week in 2024 [114] Question: How is the company addressing the mix and pricing dynamics? - Management reported a 4.9% price increase in Q1 and noted a slight negative mix impact, which has improved in early Q2 [152]