On July 25, 2024, Texas Roadhouse Inc (TXRH, Financial) released its 8-K filing announcing financial results for the 13 and 26 weeks ended June 25, 2024. Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment, with its primary revenue generated from the Texas Roadhouse segment.
Performance Overview
Texas Roadhouse Inc (TXRH, Financial) reported a total revenue of $1.34 billion for the second quarter of 2024, a 14.5% increase from $1.17 billion in the same period last year. This figure matched the analyst estimate of $1.34 billion. The company also reported a net income of $120.1 million, a significant 46.0% increase from $82.3 million in the prior year. The diluted earnings per share (EPS) stood at $1.79, exceeding the analyst estimate of $1.63.
Key Financial Achievements
For the 26 weeks ended June 25, 2024, Texas Roadhouse Inc (TXRH, Financial) reported a total revenue of $2.66 billion, up 13.5% from $2.35 billion in the same period last year. The net income for this period was $233.3 million, a 38.4% increase from $168.7 million in the prior year. The diluted EPS for the 26 weeks was $3.48, compared to $2.51 in the previous year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,341,202 | $1,171,203 | 14.5% |
| Income from Operations | $142,816 | $95,412 | 49.7% |
| Net Income | $120,141 | $82,271 | 46.0% |
| Diluted EPS | $1.79 | $1.22 | 46.4% |
Balance Sheet and Cash Flow Highlights
As of June 25, 2024, Texas Roadhouse Inc (TXRH, Financial) reported cash and cash equivalents of $197.5 million, up from $104.2 million at the end of 2023. The company's total assets stood at $2.86 billion, compared to $2.79 billion at the end of 2023. The total liabilities were $1.58 billion, while the stockholders' equity was $1.26 billion.
Operational Efficiency
Texas Roadhouse Inc (TXRH, Financial) achieved a restaurant margin of $242.6 million for the 13 weeks ended June 25, 2024, compared to $182.8 million in the prior year. The restaurant margin as a percentage of restaurant and other sales was 18.2%, up from 15.7% in the previous year.
Management Commentary
"We continued our momentum in the current quarter as strong traffic trends and some relief on commodity inflation led to increased profitability across all of our brands. With our operators delivering solid operating results, and a balanced development pipeline, we are well positioned for the second half of the year," said Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc.
Analysis and Outlook
The strong financial performance of Texas Roadhouse Inc (TXRH, Financial) in Q2 2024 reflects the company's ability to navigate market challenges and capitalize on favorable conditions. The significant increase in revenue and net income, along with the improvement in restaurant margins, underscores the company's operational efficiency and strategic growth initiatives. As the company continues to expand its brand globally and focus on providing legendary food and service, it is well-positioned to enhance long-term shareholder value.
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Explore the complete 8-K earnings release (here) from Texas Roadhouse Inc for further details.
