Texas Roadhouse, Inc. Earnings Report

LOUISVILLE – Texas Roadhouse, Inc. (NASDAQ:TXRH) reported third-quarter earnings that fell short of analyst expectations, despite robust sales growth, sending shares down 3% in after-hours trading.

The casual dining restaurant chain posted adjusted earnings per share of $1.26 for the quarter ended September 24, missing the analyst consensus of $1.32. Revenue came in at $1.27 billion, in line with estimates and up 8.5% YoY.

Comparable restaurant sales increased 8.5% at company-owned locations and 7.2% at domestic franchises. Average weekly sales at company restaurants rose to $149,176, including $18,914 in to-go sales, compared to $138,668 with $17,058 in to-go sales last year.

> "We are extremely pleased in such a competitive environment to report another quarter of continued traffic growth at each of our brands," said Jerry Morgan, CEO of Texas Roadhouse. "This is a credit to the hard work of our operators who create an environment where Roadies want to work and guests want to dine."

Despite the revenue growth, higher costs impacted profitability. The company faced wage and other labor inflation of 4.7% and commodity inflation of 1.3% during the quarter.

Looking ahead, Texas Roadhouse updated its 2024 outlook, now expecting commodity cost inflation of less than 1% and wage inflation of approximately 4.5%. The company also provided initial guidance for 2025, projecting 5% store week growth and commodity inflation of 2% to 3%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.