Q2 2025 Texas Roadhouse Inc Earnings Call Transcript
Key Points
- Texas Roadhouse Inc (TXRH) reported a 5.8% increase in same-store sales, driven by strong traffic growth.
- Revenue for the quarter surpassed $1.5 billion for the first time in the company's history.
- All three brands, including Bubba's 33 and Jaggers, contributed to the sales growth, with plans for further expansion.
- The company plans to open approximately 30 company-owned restaurants this year, indicating strong growth potential.
- TXRH has a solid cash position with $177 million in cash and continues to prioritize new restaurant development and shareholder returns through dividends and share repurchases.
- TXRH is facing higher than expected beef inflation, which is impacting cost of sales.
- Restaurant margin as a percentage of total sales decreased by 108 basis points year over year to 17.1%.
- Labor costs increased, with labor dollars per store week rising by 5.4% due to wage inflation and increased hours.
- The company anticipates continued inflationary pressures, particularly in the third quarter, which could affect margins.
- Despite strong sales, the mix effect has been slightly negative for over two years, primarily due to a decline in alcohol sales.
Good evening, and welcome to the Texas Roadhouse second 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, Samita, and good evening. By now, you should have access to our earnings release for the second quarter ended July 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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