Q1 2025 Texas Roadhouse Inc Earnings Call Transcript
Key Points
- Texas Roadhouse Inc (TXRH) 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.
- 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.
Good evening, and welcome to the Texas Roadhouse first quarter earnings conference call. Today's call is being recorded. (Operator Instructions)
I would now like to introduce Michael Bailen, Head of Investor Relations for Texas Roadhouse. You may begin your conference.
Thank you, Kayla, and good evening. By now, you should have access to our earnings release for the first quarter ended April 1, 2025. It may also be found on our website at texasroadhouse.com in the Investors section. I would like to remind everyone that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them.
We refer all of you to our earnings release and our recent filings with the SEC. These documents provide a more detailed discussion of the relevant factors that could cause actual results to differ materially from those forward-looking statements. In addition, we may refer to
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