Texas Roadhouse Q1 2024 Earnings Report
Key Takeaways
Texas Roadhouse, Inc. announced financial results for the first quarter of 2024, which ended on March 26, 2024. The company reported a 12.5% increase in total revenue compared to the same period in the prior year. Comparable restaurant sales increased by 8.4% at company restaurants and 7.7% at domestic franchise restaurants. Diluted earnings per share increased by 31.4%.
Comparable restaurant sales increased 8.4% at company restaurants and 7.7% at domestic franchise restaurants.
Average weekly sales at company restaurants were $159,378, including $20,815 in to-go sales.
Restaurant margin dollars increased 23.0% to $228.4 million.
Nine company restaurants and three franchise restaurants were opened.
Texas Roadhouse
Texas Roadhouse
Forward Guidance
Texas Roadhouse provided updated expectations for 2024.
Positive Outlook
- Positive comparable restaurant sales growth including the benefit of menu pricing actions.
- Store week growth of approximately 8%, including a benefit of 2% from the 53rd week.
- Comparable restaurant sales at company restaurants for the first five weeks of our second quarter of fiscal 2024 increased 9.3% compared to 2023.
- The Company implemented a menu price increase of approximately 2.2% in late March.
- An effective income tax rate of approximately 14%.
Challenges Ahead
- Commodity cost inflation of approximately 3%.
- Wage and other labor inflation of 4% to 5%.
- Total capital expenditures of $340 million to $350 million.
- Conditions beyond management’s control such as weather, natural disasters, disease outbreaks, epidemics, or pandemics impacting customers or food supplies.
- Labor or supply chain shortages or limited availability of staff or product needed to meet its business standards.