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Sep 24, 2024
Texas Roadhouse Q3 2024 Earnings Report
Texas Roadhouse reported strong Q3 2024 results, driven by comparable sales growth and effective cost management.
Key Takeaways
Texas Roadhouse, Inc. announced financial results for the third quarter of 2024, with total revenue increasing by 13.5% to $1,272.999 million and diluted earnings per share rising by 32.5% to $1.26. The company experienced comparable restaurant sales growth at both company and franchise restaurants, contributing to a higher restaurant margin. Looking ahead to 2025, the company plans to acquire 13 domestic franchise restaurants.
Comparable restaurant sales increased 8.5% at company restaurants and 7.2% at domestic franchise restaurants.
Average weekly sales at company restaurants were $149,176, with $18,914 from to-go sales.
Restaurant margin dollars increased 24.1% to $202.1 million, driven by higher sales and improved labor productivity.
Seven company restaurants and three franchise restaurants were opened during the quarter.
Revenue by Segment
Forward Guidance
Management provided initial expectations for 2025, including positive comparable restaurant sales growth, store week growth of approximately 5%, commodity cost inflation of 2% to 3%, wage and other labor inflation of 4% to 5%, an effective income tax rate of 15% to 16%, and total capital expenditures of approximately $400 million.
Positive Outlook
- Positive comparable restaurant sales growth including the benefit of 2024 menu pricing actions.
- Store week growth of approximately 5%, including a benefit of 2% from the planned franchise acquisition.
- Commodity cost inflation of 2% to 3%.
- Wage and other labor inflation of 4% to 5%.
- An effective income tax rate of 15% to 16%.
Challenges Ahead
- Total capital expenditures of approximately $400 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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