TXRH Earnings Prediction
The chart below shows how TXRH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TXRH sees a -1.48% change in stock price 10 days leading up to the earnings, and a +3.65% change 10 days following the report. On the earnings day itself, the stock moves by +0.09%. This data can give you a slight idea of what to expect for the next quarter's release.
TXRH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.27B
13.48%
-5.09%
Gross Margin
63.15%
1.71%
-1.77%
Operating Margin
8.08%
22.80%
-24.20%
Net Margin
6.82%
16.58%
-25.71%
EPS
1.26
32.63%
-29.61%
No Data Available
TXRH Earnings Analysis
Texas Roadhouse, Inc. Corporation (TXRH.O) Earnings Conference Call
Positive
Third Quarter Sales Growth: Strong third quarter results highlighted by 8.5% same-store sales growth and approximately $1.3 billion of revenue.
Revenue Growth Analysis: Reported revenue growth of 13.5%, driven by a 7.5% increase in average unit volume and 5.8% store week growth.
Margin and Earnings Growth: Restaurant margin dollar increase of 24.1% to $202 million and diluted earnings per share increase of 32.5% to $1.26.
Third Quarter Sales Performance: Average weekly sales in the third quarter were $149,000, with comparable sales increasing 8.5% driven by 3.8% traffic growth and a 4.7% increase in average check.
Expansion of Restaurant Locations: Opened seven Texas Roadhouse company-owned locations in the third quarter, with expectations to open approximately 30 restaurants across all brands for the full year.
Negative
Revenue Growth Analysis: Revenue growth of 13.5% was reported, but this was driven by a 7.5% increase in average unit volume and 5.8% store week growth, indicating reliance on existing stores rather than new customer acquisition.
Restaurant Margin Analysis: Restaurant margin dollar increased by 24.1% to $202 million, but this was offset by a decline in year-over-year restaurant margin percentage, which negatively impacted overall profitability.
Weekly Sales Analysis: Average weekly sales in the third quarter were $149,000, with a significant portion of sales coming from to-go representing $19,000 or 12.7% of total weekly sales, indicating a potential weakness in dine-in traffic.
Sales Growth Analysis: Comparable sales increased by 8.5% in the third quarter, but this was primarily driven by traffic growth of only 3.8% and a 4.7% increase in average check, suggesting a lack of sustainable growth in customer visits.
Labor Cost Management Challenges: Labor as a percentage of total sales decreased by 18 basis points to 33.8% compared to the third quarter of 2023, indicating potential challenges in managing labor costs effectively.
TXRH FAQs
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TXRH Earning Call Sentiment
Texas Roadhouse, Inc. (TXRH) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TXRH.O
-1.42%Positive
The earnings call summary indicates strong financial performance with revenue exceeding $1.3 billion and a 9.3% same-store sales growth. Margins improved, and there is optimistic guidance with new store openings and technology initiatives. Although there are some concerns about labor costs and commodity inflation, the overall sentiment is positive, especially with the focus on operational excellence and market share. The Q&A section did not reveal major negative trends, and management's strategic responses were generally well-received. Therefore, a positive stock price movement of 2% to 8% is expected.
