- Texas Roadhouse reported second-quarter earnings per share (EPS) of $1.86, missing the estimate of $1.91 but improving from $1.79 year-over-year (y/y).
- Revenue increased by 13% to $1.51 billion, slightly exceeding the estimate of $1.5 billion.
- Restaurant and other sales also rose by 13% to reach $1.50 billion, matching estimates.
- Franchise royalties and fees climbed 6.9% to $8.08 million, surpassing the estimate of $7.73 million.
- Franchise restaurant comparable sales growth was 7%, compared to 6.6% y/y.
- The restaurant margin decreased to 17.1% from 18.2% y/y, missing the estimate of 17.6%.
- Restaurant comparable sales increased by 5.8%, though this was below the previous year’s growth of 9.3% but above the estimate of 5.35%.
- US franchise restaurant comparable sales grew by 5.8%, compared to 8.3% y/y, beating the estimate of 4.45%.
- CEO Jerry Morgan noted strong comparable restaurant sales growth driven by positive traffic across all three brands.
- Analyst recommendations include 11 buy ratings, 17 hold ratings, and 0 sell ratings.
Texas Roadhouse on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely covering Texas Roadhouse and providing valuable insights on the company’s performance. In their report titled “Texas Roadhouse: A Tale Of Smart Menu Pricing & Inflation Defense Tactics!” the analysts highlight the company’s first-quarter financial results. Texas Roadhouse demonstrated strengths with a revenue surpassing $1.4 billion and a 3.5% increase in same-store sales. March stood out with record-high weekly sales across all of Texas Roadhouse‘s brands, showcasing the company’s resilience.
Furthermore, Baptista Research‘s report “Texas Roadhouse: Operational Enhancements, Off-Premise Growth & Other Major Drivers” showcases the company’s success in fiscal year 2024. Texas Roadhouse achieved significant milestones, including approaching $5.4 billion in revenue and surpassing $8 million in average unit volume for the first time. The analysts commend the company’s positive traffic growth, double-digit increases in restaurant margin dollars, income from operations, and earnings per share, making it another successful year for Texas Roadhouse.
A look at Texas Roadhouse Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Analysts utilizing the Smartkarma Smart Scores have assessed Texas Roadhouse, Inc.’s long-term outlook based on key factors. With a Growth score of 4 and a Momentum score of 4, the company is positioned for potential expansion and positive market performance. Texas Roadhouse‘s emphasis on steady growth and strong market momentum bodes well for its future prospects.
While the Value score is 2 and the Dividend score is 3, the company’s Resilience score of 3 indicates a moderate ability to weather market fluctuations. This suggests that Texas Roadhouse has solid foundations that may help it endure economic challenges. Overall, with a mix of promising Growth and Momentum scores, Texas Roadhouse appears to have a favorable long-term outlook within the casual dining restaurant industry.
#### Summary: Texas Roadhouse, Inc. is a full-service, casual dining restaurant chain known for its hand-cut steaks cooked over open grills. Founded in 1993 by W. Kent Taylor, the company also offers a variety of menu options including ribs, seafood, and burgers. Based in Louisville, KY, Texas Roadhouse operates under the Texas Roadhouse and Aspen Creek brands, providing supervisory services for other licensed restaurants. ###
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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