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Jul 01
Texas Roadhouse Q2 2025 Earnings Report
Texas Roadhouse, Inc. announced its financial results for the second quarter of 2025, reporting increased revenue, net income, and diluted earnings per share.
Key Takeaways
Texas Roadhouse delivered a strong second quarter in 2025, with total revenue increasing by 12.7% and diluted EPS up by 4.0%. The company saw comparable restaurant sales growth and an increase in restaurant margin dollars, despite inflationary pressures on commodities and labor.
Total revenue for the quarter reached $1,512,054,000, a 12.7% increase year-over-year.
Diluted earnings per share rose to $1.86, up 4.0% from the prior year.
Comparable restaurant sales at company restaurants increased by 5.8%.
Restaurant margin dollars grew by 6.1% to $257.3 million, though the percentage decreased due to commodity and wage inflation.
Texas Roadhouse
Texas Roadhouse
Texas Roadhouse Revenue by Segment
Revenue by Segment
Restaurant and Other Sales Revenue
CapyFin.comRoyalties and Franchise Fees Revenue
CapyFin.com Forward Guidance
Management updated expectations for 2025, anticipating continued positive comparable restaurant sales growth and significant capital expenditures, while also providing updated inflation estimates.
Positive Outlook
- Comparable restaurant sales at company restaurants for the first five weeks of Q3 2025 increased 5.3% compared to 2024.
- Expectation of positive comparable restaurant sales growth for 2025, including the benefit of menu pricing actions.
- Anticipated store week growth of approximately 5% for 2025.
- The company recently opened its 800th system-wide restaurant, reflecting ongoing commitment to growth.
- Disciplined capital allocation strategy, including new store development and strategic franchise acquisitions, is expected to drive long-term shareholder value.
Challenges Ahead
- Commodity cost inflation is expected to be approximately 5% for 2025, including the estimated impact of tariffs.
- Wage and other labor inflation is expected to be approximately 4% for 2025.
- Commodity inflation is expected to further impact profitability for the rest of the year.
- Total capital expenditures are projected to be approximately $400 million for 2025, indicating significant investment.
- The company has tentative agreements or plans to acquire eight domestic franchise restaurants in Q4 2025 and Q1 2026, which are subject to due diligence.