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TXRH (Texas Roadhouse) Operating Income : $525 Mil (TTM As of Mar. 2025)


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What is Texas Roadhouse Operating Income?

Texas Roadhouse's Operating Income for the three months ended in Mar. 2025 was $135 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was $525 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Texas Roadhouse's Operating Income for the three months ended in Mar. 2025 was $135 Mil. Texas Roadhouse's Revenue for the three months ended in Mar. 2025 was $1,448 Mil. Therefore, Texas Roadhouse's Operating Margin % for the quarter that ended in Mar. 2025 was 9.31%.

Good Sign:

Texas Roadhouse Inc operating margin is expanding. Margin expansion is usually a good sign.

Texas Roadhouse's 5-Year average Growth Rate for Operating Margin % was 21.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Texas Roadhouse's annualized ROC % for the quarter that ended in Mar. 2025 was 14.65%. Texas Roadhouse's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 was 22.19%.


Texas Roadhouse Operating Income Historical Data

The historical data trend for Texas Roadhouse's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Texas Roadhouse Operating Income Chart

Texas Roadhouse Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.11 297.93 321.80 354.26 517.75

Texas Roadhouse Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 133.33 149.11 102.87 138.64 134.76

Texas Roadhouse Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $525 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Texas Roadhouse  (NAS:TXRH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Texas Roadhouse's annualized ROC % for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=539.044 * ( 1 - 14.82% )/( (3103.581 + 3163.605)/ 2 )
=459.1576792/3133.593
=14.65 %

where

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3190.779 - 398.76 - ( 245.225 - max(0, 828.13 - 516.568+245.225))
=3103.581

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3191.133 - 426.177 - ( 221.085 - max(0, 751.966 - 353.317+221.085))
=3163.605

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Texas Roadhouse's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2024  Q: Mar. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=539.044/( ( (2377.723 + max(-528.615, 0)) + (2481.308 + max(-589.697, 0)) )/ 2 )
=539.044/( ( 2377.723 + 2481.308 )/ 2 )
=539.044/2429.5155
=22.19 %

where Working Capital is:

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(193.17 + 40.756 + 37.417) - (398.76 + 401.198 + 0)
=-528.615

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(50.853 + 43.943 + 37.436) - (426.177 + 295.752 + 0)
=-589.697

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Texas Roadhouse's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2025 )/Revenue (Q: Mar. 2025 )
=134.761/1447.648
=9.31 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Texas Roadhouse Operating Income Related Terms

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Texas Roadhouse Business Description

Traded in Other Exchanges
Address
6040 Dutchmans Lane, Louisville, KY, USA, 40205
Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment. The company manages its restaurant and franchising operations by concept and, as a result, has identified Texas Roadhouse, Bubba's 33, Jaggers, and retail initiatives as separate operating segments. In addition, it has identified Texas Roadhouse and Bubba's 33 as reportable segments. Maximum revenue for the company is generated from the Texas Roadhouse segment, which is a moderately priced, full-service, casual dining restaurant concept offering steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches.
Executives
Donna E Epps director 11465 JOHNS CREEK PARKWAY, SUITE400, JOHNS CREEK GA 30097
Gregory N Moore director 6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205
Regina A. Tobin officer: Chief Learning & Culture Offcr 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Curtis Warfield director 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Wayne L. Jones director 7755 CENTER AVENUE, SUITE 300, HUNTINGTON BEACH CA 92647
Christopher C. Colson officer: General Counsel 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Hernan E. Mujica officer: Chief Information Officer 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Gerald L. Morgan officer: President 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
David Christopher Monroe officer: Chief Financial Officer 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
S. Chris Jacobsen officer: Chief Marketing Officer 6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Kathy Widmer director C/O ELIZABETH ARDEN, INC., 2400 S.W. 145 AVENUE, MIRAMAR FL 33027
Keith Humpich officer: Interim Chief Financial Offcr. 6040 DUTCHMANS LANE, LOUISIVILLE KY 40205
James R Zarley director 4360 PARK TERRACE, SUITE 100, WESTLAKE VILLAGE CA 91361
Tonya Robinson officer: CFO 6040 DUTCHMANS LANE, SUITE 400, LOUISVILLE KY 40205
Wayne Kent Taylor director, 10 percent owner, officer: Chairman of Company & Board 6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205