Loop Capital is organizing a virtual meeting on May 20 to discuss Texas Roadhouse (TXRH, Financial). This event aims to provide insights into the company's performance and strategic outlook. Investors can gain detailed information and analysis on TXRH, enhancing their decision-making process regarding investments in the restaurant chain.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Texas Roadhouse Inc (TXRH, Financial) is $184.46 with a high estimate of $215.00 and a low estimate of $139.20. The average target implies an downside of 4.20% from the current price of $192.55. More detailed estimate data can be found on the Texas Roadhouse Inc (TXRH) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Texas Roadhouse Inc's (TXRH, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Texas Roadhouse Inc (TXRH, Financial) in one year is $165.78, suggesting a downside of 13.9% from the current price of $192.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Texas Roadhouse Inc (TXRH) Summary page.
TXRH Key Business Developments
Release Date: May 08, 2025
- Revenue: Over $1.4 billion for the first quarter.
- Same-Store Sales: Increased by 3.5%, including positive traffic growth.
- Average Weekly Sales: $167,000 at Texas Roadhouse, $123,000 at Bubba's 33, and $71,000 at Jaggers.
- Comparable Sales Growth: 5% in the first five weeks of the second quarter.
- Menu Price Increase: 1.4% implemented at the beginning of the second quarter.
- Commodity Inflation Guidance: Increased to approximately 4% for the full year.
- Cash Flow from Operations: $238 million.
- Capital Expenditures: $173 million in the first quarter; full-year guidance remains at approximately $400 million.
- Restaurant Margin: Increased by 4.7% to $239 million; margin as a percentage of total sales decreased by 77 basis points to 16.6%.
- Diluted Earnings Per Share: Increased by 1% to $1.70.
- Labor Costs: Increased by 79 basis points to 33.3% of total sales.
- G&A Expenses: Grew 6.9% year-over-year, representing 3.9% of revenue.
- Effective Tax Rate: 14.8% for the first quarter.
- Store Openings: 8 company-owned restaurants opened in the first quarter, with plans to open approximately 30 company-owned restaurants this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Texas Roadhouse Inc (TXRH, Financial) reported a revenue growth of 9.6% for the first quarter, driven by a 2.4% increase in average unit volume and 7.1% store week growth.
- Same-store sales increased by 3.5%, with positive traffic growth contributing to this rise.
- The company opened 8 company-owned restaurants in the first quarter and is on track to open approximately 30 company-owned restaurants this year.
- Technology initiatives are progressing well, with 65% of restaurants using a digital kitchen and 70% having upgraded guest management systems.
- The company ended the first quarter with $221 million in cash, demonstrating strong cash flow management.
Negative Points
- Restaurant margin as a percentage of total sales decreased by 77 basis points year-over-year to 16.6%.
- Labor as a percentage of total sales increased by 79 basis points to 33.3%, indicating rising labor costs.
- Commodity inflation guidance was increased to approximately 4% for the full year, driven by higher beef costs and tariffs.
- The company experienced a slight decline in restaurant margin dollars per store week, which is unusual for Texas Roadhouse Inc (TXRH).
- The rent line increased due to higher rents from recent acquisitions, particularly in California, which may continue to impact margins.
