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Sep 26, 2023
Texas Roadhouse Q3 2023 Earnings Report
Announced third quarter 2023 results, demonstrating double-digit sales growth and strategic expansion.
Key Takeaways
Texas Roadhouse, Inc. reported a strong third quarter with double-digit sales growth driven by increased guest counts. The company is on track to open a record number of systemwide locations this year and has accelerated its 2024 development pipeline.
Comparable restaurant sales increased 8.2% at company restaurants and 7.8% at domestic franchise restaurants.
Average weekly sales at company restaurants were $138,668, including $17,058 in to-go sales.
Restaurant margin dollars increased 7.1% to $162.8 million.
Diluted earnings per share increased 2.6%.
Texas Roadhouse
Texas Roadhouse
Forward Guidance
Texas Roadhouse provided expectations for 2023, including positive comparable restaurant sales growth, store week growth of approximately 6%, commodity cost inflation of 5% to 6%, and wage and other labor inflation of 6% to 7%.
Positive Outlook
- Positive comparable restaurant sales growth including the benefit of menu pricing actions
- Store week growth of approximately 6% including the impact of franchise locations acquired
- As many as 27 Texas Roadhouse and Bubba’s 33 company restaurant openings
- Effective income tax rate of approximately 13%
- Comparable restaurant sales at company restaurants for the first four weeks of our fourth quarter of fiscal 2023 increased 9.2% compared to 2022.
Challenges Ahead
- Commodity cost inflation of 5% to 6%
- Wage and other labor inflation of 6% to 7%
- Total capital expenditures of approximately $340 million.
- Restaurant margin, as a percentage of restaurant and other sales, decreased 80 basis points to 14.6% as commodity inflation of 4.2%, wage and other labor inflation of 5.6% and higher general liability insurance expenses were partially offset by higher sales
- Higher depreciation and amortization and higher general and administrative expenses