Texas Roadhouse Q2 2024 Earnings Report
Key Takeaways
Texas Roadhouse, Inc. announced financial results for the second quarter of 2024, showing a 14.5% increase in total revenue to $1,341.2 million and a 46.0% increase in net income to $120.1 million compared to the same period last year. Diluted earnings per share increased by 46.4% to $1.79. The company benefited from strong comparable restaurant sales growth and improved restaurant margin.
Comparable restaurant sales increased 9.3% at company restaurants and 8.3% at domestic franchise restaurants.
Average weekly sales at company restaurants were $158,991, including $19,975 in to-go sales.
Restaurant margin dollars increased 32.7% to $242.6 million, with restaurant margin as a percentage of restaurant and other sales increasing to 18.2%.
Diluted earnings per share increased 46.4%, driven by higher restaurant margin dollars.
Texas Roadhouse
Texas Roadhouse
Forward Guidance
Texas Roadhouse provided updated expectations for 2024, including store week growth of approximately 7.5% and commodity cost inflation of approximately 2%.
Positive Outlook
- Positive comparable restaurant sales growth including the benefit of menu pricing actions
- Store week growth of approximately 7.5%, including a benefit of 2% from the 53rd week
- Growing brand globally with over 50 international franchise locations
- Strong traffic trends
- Some relief on commodity inflation
Challenges Ahead
- Commodity cost inflation of approximately 2%
- Wage and other labor inflation of 4% to 5%
- Total capital expenditures of $360 million to $370 million
- Higher general and administrative expenses
- Higher depreciation and amortization expenses