
- Texas Roadhouse has increased its forecast for 2025 commodity cost inflation to between 3% and 4%, up from a previous forecast of 2% to 3%.
- Capital expenditure for the year is still projected to be approximately $400 million, closely aligning with the estimate of $398.9 million.
- Fourth quarter earnings per share (EPS) were reported at $1.73, a significant rise from $1.08 year over year, and surpassing the estimate of $1.64.
- Total revenue in the fourth quarter was $1.44 billion, marking a 23% increase year over year, beating the expected $1.41 billion.
- Restaurant and other sales reached $1.43 billion, also a 23% increase year over year, surpassing the estimate of $1.4 billion.
- Franchise royalties and fees came in at $9.13 million, up 31% year over year, and higher than the estimate of $8.88 million.
- The restaurant margin improved to 17% from 15.3% year over year, slightly above the estimate of 16.9%.
- Texas Roadhouse‘s total location count increased to 784, a 1.6% growth quarter over quarter, on par with the estimate of 784.06.
- Restaurant comparable sales grew by 7.7%, though this was below the previous yearβs growth of 9.9%, but slightly above the estimate of 7.65%.
- US Franchise Restaurants comparable sales rose by 6.3%, compared to 8.9% the previous year, but exceeded the estimate of 6.01%.
- The company plans to implement a menu price increase of approximately 1.4% in early April.
- A quarterly cash dividend of $0.68 per share was approved along with a $500 million stock repurchase program.
- Analyst recommendations include 12 buys, 16 holds, and no sell ratings on the stock.
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Texas Roadhouse on Smartkarma
Analysts at Baptista Research have published a bullish report on Texas Roadhouse on Smartkarma, highlighting the company’s strong financial performance in the third quarter of 2024. The report, titled “Texas Roadhouse Inc.: Leveraging Acquisition Strategies And Expanding Their Restaurant Base! – Major Drivers,” emphasizes the significant revenue growth and positive same-store sales demonstrated by the company. With revenues of approximately $1.3 billion and an impressive same-store sales growth of 8.5%, Texas Roadhouse‘s operational management and popularity are evident in the numbers.
A look at Texas Roadhouse Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Texas Roadhouse, Inc., a full-service casual dining restaurant chain known for its assortment of seasoned and aged steaks cooked on open gas-fired grills, has a mixed outlook based on Smartkarma Smart Scores. With a Value score of 2, the company is considered moderately priced compared to its industry peers. Its Dividend score of 3 indicates an average dividend performance, suggesting stable but not high returns for investors. Texas Roadhouse shows promise in Growth, earning a score of 4, pointing towards potential expansion and increasing market share. The company also demonstrates Resilience with a score of 3, indicating a moderate ability to withstand economic downturns. In terms of Momentum, scoring a 3, Texas Roadhouse exhibits steady performance trends.
Founded in 1993 by W. Kent Taylor and based in Louisville, KY, Texas Roadhouse operates under its eponymous brand and Aspen Creek. Aside from its renowned steaks, the company offers a variety of menu items from ribs, seafood, chicken, to burgers and salads. Additionally, Texas Roadhouse provides supervisory and administrative services for licensed and franchised restaurants. The Smartkarma Smart Scores suggest a cautious optimism for the long-term outlook of Texas Roadhouse, with signs of growth potential and resilience in the face of market challenges.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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