Texas Roadhouse (Texas Roadhouse) Gross Margin % : 15.78% (As of Dec. 2023)

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What is Texas Roadhouse Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Texas Roadhouse's Gross Profit for the three months ended in Dec. 2023 was $184 Mil. Texas Roadhouse's Revenue for the three months ended in Dec. 2023 was $1,164 Mil. Therefore, Texas Roadhouse's Gross Margin % for the quarter that ended in Dec. 2023 was 15.78%.

Warning Sign:

Texas Roadhouse Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.

The historical rank and industry rank for Texas Roadhouse's Gross Margin % or its related term are showing as below:

TXRH' s Gross Margin % Range Over the Past 10 Years
Min: 11.83 Med: 18.04 Max: 19.36
Current: 15.87

During the past 13 years, the highest Gross Margin % of Texas Roadhouse was 19.36%. The lowest was 11.83%. And the median was 18.04%.

TXRH's Gross Margin % is ranked worse than
90.38% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs TXRH: 15.87

Texas Roadhouse had a gross margin of 15.78% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Texas Roadhouse was -1.60% per year.

Texas Roadhouse Gross Margin % Historical Data

The historical data trend for Texas Roadhouse's Gross Margin % 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 Gross Margin % Chart

Texas Roadhouse Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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18.00

11.83

17.51

16.28

15.87

Texas Roadhouse Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															15.09	16.39	16.19	15.10	15.78

Competitive Comparison of Texas Roadhouse's Gross Margin %

For the Restaurants subindustry, Texas Roadhouse's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Texas Roadhouse's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Texas Roadhouse's Gross Margin % falls into.

Texas Roadhouse Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Texas Roadhouse's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	735.1	/	4631.672
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4631.672 - 3896.59)	/	4631.672
	=	15.87 %

Texas Roadhouse's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	183.7	/	1164.361
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1164.361 - 980.674)	/	1164.361
	=	15.78 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Texas Roadhouse (NAS:TXRH) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Texas Roadhouse had a gross margin of 15.78% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Texas Roadhouse Gross Margin % Related Terms

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Texas Roadhouse (Texas Roadhouse) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Texas Roadhouse Inc (NAS:TXRH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ROW:Germany ROW:Germany

Address

6040 Dutchmans Lane, Louisville, KY, USA, 40205

Website

http://www.texasroadhouse.com

Texas Roadhouse Inc is a restaurant company operating predominately in the casual dining segment. The company's operating segment includes Texas Roadhouse; Bubba's 33 and others. It generates maximum revenue from the Texas Roadhouse segment.

Executives

Christopher C. Colson	officer: General Counsel	6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Gerald L. Morgan	officer: President	6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Gregory N Moore	director	6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205
Wayne L. Jones	director	7755 CENTER AVENUE, SUITE 300, HUNTINGTON BEACH CA 92647
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
Regina A. Tobin	officer: Chief Learning & Culture Offcr	6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Hernan E. Mujica	officer: Chief Information Officer	6040 DUTCHMANS LANE, LOUISVILLE KY 40205
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
Curtis Warfield	director	6040 DUTCHMANS LANE, LOUISVILLE KY 40205
Donna E Epps	director	11465 JOHNS CREEK PARKWAY, SUITE400, JOHNS CREEK GA 30097
Wayne Kent Taylor	director, 10 percent owner, officer: Chairman of Company & Board	6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205