Q3 2025 Texas Roadhouse Inc Earnings Call Transcript
Key Points
- Texas Roadhouse Inc (TXRH) reported strong revenue growth of 12.8% in the third quarter, driven by a 5.5% increase in average weekly sales and 6.8% store week growth.
- The company opened 7 new company-owned locations in the third quarter and plans to open approximately 30 restaurants across its three brands in 2025.
- TXRH's to-go business continues to show solid momentum, with improvements in speed and order accuracy enhancing the overall guest experience.
- The retail segment is expanding, with Texas Roadhouse products now available in over 120,000 retail outlets, helping to increase brand awareness.
- Approximately 95% of TXRH restaurants are using a digital kitchen and upgraded guest management system, with full rollout expected by year-end, enhancing operational efficiency.
- Commodity inflation, particularly beef prices, was higher than expected in the third quarter, leading to an updated full-year 2025 commodity inflation guidance of approximately 6%.
- Restaurant margin as a percentage of total sales decreased by 168 basis points year over year to 14.3%, impacted by higher food and beverage costs.
- Diluted earnings per share decreased by 0.8% to $1.25, despite revenue growth.
- The company is facing ongoing challenges with beef inflation, which is expected to continue into 2026 with an initial guidance of approximately 7%.
- Negative alcohol mix continues to impact sales, although this is partially offset by positive mix from mocktails and soft beverages.
Good evening and welcome to the Texas Roadhouse 3rd quarter earnings conference call.
Today's call is being recorded. All participants are now in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session.
At that time, if you would like to ask a question, please press star from the number one on your telephone keypad.
Should anyone need assistance at any time during the conference, please press 0, and an operator will assist you.
I would now like to introduce Michael Balin, head of investor relations for Texas Roadhouse. We may begin your conference.
Thank you, Julianne, and good evening. By now, you should have access to our earnings release for the 3rd quarter ending September 30th, 2025. It may also be found on our website at texas Roadhouse.com in the investor 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
