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Texas Roadhouse,Inc. Announces First Quarter 2025 Results

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Texas Roadhouse (TXRH) reported solid Q1 2025 financial results with total revenue increasing 9.6% to $1.45 billion. The company saw comparable restaurant sales growth of 3.5% at company restaurants, with average weekly sales reaching $163,071. Net income slightly increased by 0.4% to $113.7 million, while diluted EPS rose 1.0% to $1.70. Restaurant margin decreased 77 basis points to 16.6% due to commodity inflation (2.1%) and labor inflation (4.6%). The company opened 8 new restaurants and reached a milestone with its 50th Bubba's 33 location. The Board approved a quarterly dividend of $0.68 per share. Looking ahead, TXRH reported a 5.0% increase in comparable sales for the first five weeks of Q2 2025 and implemented a 1.4% menu price increase in early April.

Texas Roadhouse (TXRH) ha riportato solidi risultati finanziari nel primo trimestre del 2025 con un aumento del fatturato totale del 9,6% a 1,45 miliardi di dollari. L'azienda ha registrato una crescita delle vendite comparabili del 3,5% nei ristoranti di proprietà, con una media delle vendite settimanali che ha raggiunto i 163.071 dollari. L'utile netto è aumentato leggermente dello 0,4% a 113,7 milioni di dollari, mentre l'utile diluito per azione è cresciuto dell'1,0% a 1,70 dollari. Il margine dei ristoranti è diminuito di 77 punti base al 16,6% a causa dell'inflazione delle materie prime (2,1%) e dell'inflazione del lavoro (4,6%). L'azienda ha aperto 8 nuovi ristoranti e ha raggiunto il traguardo del 50° locale Bubba's 33. Il Consiglio di Amministrazione ha approvato un dividendo trimestrale di 0,68 dollari per azione. Guardando al futuro, TXRH ha riportato un aumento del 5,0% delle vendite comparabili nelle prime cinque settimane del secondo trimestre 2025 e ha implementato un aumento dei prezzi del menu dell'1,4% all'inizio di aprile.
Texas Roadhouse (TXRH) reportó sólidos resultados financieros en el primer trimestre de 2025 con un incremento del ingreso total del 9,6% hasta 1.450 millones de dólares. La compañía registró un crecimiento del 3,5% en las ventas comparables en los restaurantes propios, con ventas semanales promedio alcanzando los 163.071 dólares. La utilidad neta aumentó ligeramente un 0,4% hasta 113,7 millones de dólares, mientras que las ganancias diluidas por acción subieron un 1,0% a 1,70 dólares. El margen de los restaurantes disminuyó 77 puntos básicos hasta el 16,6% debido a la inflación de commodities (2,1%) y la inflación laboral (4,6%). La empresa abrió 8 nuevos restaurantes y alcanzó un hito con su 50ª ubicación de Bubba's 33. La Junta aprobó un dividendo trimestral de 0,68 dólares por acción. De cara al futuro, TXRH reportó un aumento del 5,0% en ventas comparables durante las primeras cinco semanas del segundo trimestre de 2025 y aplicó un aumento del 1,4% en los precios del menú a principios de abril.
Texas Roadhouse (TXRH)� 2025� 1분기� � 매출� 9.6% 증가하여 14� 5천만 달러� 기록하는 견고� 재무 실적� 발표했습니다. 회사� 직영점에� 비교 가능한 매출� 3.5% 성장했으�, 주간 평균 매출은 163,071달러� 달했습니�. 순이익은 0.4% 소폭 증가� 1� 1,370� 달러였�, 희석 주당순이�(EPS)은 1.0% 상승� 1.70달러� 기록했습니다. 원자� 인플레이�(2.1%)� 인건� 인플레이�(4.6%)으로 인해 레스토랑 마진은 77 베이시스 포인� 하락� 16.6%� 기록했습니다. 회사� 8개의 신규 레스토랑� 오픈했으�, 50번째 Bubba's 33 지점을 달성하는 이정표를 세웠습니�. 이사회는 주당 분기 배당� 0.68달러� 승인했습니다. 앞으� TXRH� 2025� 2분기 � 5주간 비교 매출� 5.0% 증가했으�, 4� 초에 메뉴 가격을 1.4% 인상했다� 보고했습니다.
Texas Roadhouse (TXRH) a publié des résultats financiers solides pour le premier trimestre 2025 avec un chiffre d'affaires total en hausse de 9,6 % à 1,45 milliard de dollars. L'entreprise a enregistré une croissance des ventes comparables de 3,5 % dans ses restaurants détenus, avec des ventes hebdomadaires moyennes atteignant 163 071 dollars. Le bénéfice net a légèrement augmenté de 0,4 % pour atteindre 113,7 millions de dollars, tandis que le BPA dilué a progressé de 1,0 % pour s'établir à 1,70 dollar. La marge des restaurants a diminué de 77 points de base à 16,6 % en raison de l'inflation des matières premières (2,1 %) et de l'inflation salariale (4,6 %). L'entreprise a ouvert 8 nouveaux restaurants et a atteint une étape importante avec son 50e établissement Bubba's 33. Le conseil d'administration a approuvé un dividende trimestriel de 0,68 dollar par action. Pour l'avenir, TXRH a rapporté une augmentation de 5,0 % des ventes comparables au cours des cinq premières semaines du deuxième trimestre 2025 et a appliqué une hausse des prix du menu de 1,4 % début avril.
Texas Roadhouse (TXRH) meldete solide Finanzergebnisse für das erste Quartal 2025 mit einem Gesamtumsatzanstieg von 9,6 % auf 1,45 Milliarden US-Dollar. Das Unternehmen verzeichnete ein Wachstum der vergleichbaren Restaurantumsätze von 3,5 % in eigenen Restaurants, wobei der durchschnittliche Wochenumsatz 163.071 US-Dollar erreichte. Der Nettogewinn stieg leicht um 0,4 % auf 113,7 Millionen US-Dollar, während das verwässerte Ergebnis je Aktie um 1,0 % auf 1,70 US-Dollar zunahm. Die Restaurantmarge sank aufgrund von Rohstoffinflation (2,1 %) und Lohninflation (4,6 %) um 77 Basispunkte auf 16,6 %. Das Unternehmen eröffnete 8 neue Restaurants und erreichte mit der 50. Bubba's 33-Filiale einen Meilenstein. Der Vorstand genehmigte eine vierteljährliche Dividende von 0,68 US-Dollar pro Aktie. Für die Zukunft meldete TXRH einen Anstieg der vergleichbaren Umsätze um 5,0 % in den ersten fünf Wochen des zweiten Quartals 2025 und führte Anfang April eine Preiserhöhung von 1,4 % im Menü ein.
Positive
  • Comparable restaurant sales increased 3.5% with continued traffic growth across all brands
  • Total revenue grew 9.6% to $1.45 billion
  • Restaurant margin dollars increased 4.7% to $239.3 million
  • Strong Q2 2025 start with 5.0% comparable sales growth in first five weeks
  • Continued expansion with 8 new company restaurants and milestone 50th Bubba's 33 location
  • Robust capital allocation including $77.4M in capex, $78.3M in franchise acquisitions, $45.2M in dividends, and $50.2M in stock buybacks
Negative
  • Restaurant margin percentage decreased 77 basis points to 16.6%
  • Facing commodity inflation of 2.1% and wage/labor inflation of 4.6%
  • Net income growth was minimal at 0.4%
  • Expected higher commodity cost inflation of 4% for 2025
  • Continued wage and labor inflation expected at 4-5% for 2025

Insights

Texas Roadhouse shows modest earnings growth amid inflationary pressures, maintaining expansion while managing rising costs effectively.

Texas Roadhouse delivered a mixed yet largely positive Q1 2025 performance that demonstrates resilience in a challenging environment. Revenue growth of 9.6% outpaced earnings growth of just 1.0%, highlighting the margin compression from inflation. The 3.5% comparable sales growth and continued traffic increases across all brands are particularly encouraging signs in today's uncertain economic climate.

The restaurant margin decline of 77 basis points to 16.6% reflects the ongoing battle with inflation - 2.1% in commodities and 4.6% in labor costs. However, management's ability to maintain traffic growth while implementing modest price increases (1.4% in April) demonstrates their operational discipline and brand strength. This pricing strategy allows them to partially offset cost pressures without significantly impacting customer frequency.

The acceleration in comparable sales to 5.0% in the first five weeks of Q2 suggests momentum is building. Meanwhile, the company's balanced capital allocation strategy continues with significant investments in growth ($77.4 million in capex, $78.3 million in franchise acquisitions) balanced against shareholder returns ($45.2 million in dividends, $50.2 million in share repurchases).

The 5% store week growth target aligns with historical patterns, showing management's confidence in their expansion model despite economic uncertainty. However, investors should note the updated commodity inflation guidance of 4% (which now includes tariff impacts), as this will likely continue to pressure margins in coming quarters.

Overall, Texas Roadhouse is executing effectively on fundamentals while navigating cost pressures - focusing on traffic growth, controlled expansion, and maintaining a strong balance between reinvestment and shareholder returns. The stable $0.68 quarterly dividend further underscores their financial health and commitment to shareholders.

Declares Quarterly Dividend of $0.68 per Share

LOUISVILLE, KY., May 08, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse,Inc. (NasdaqGS: TXRH), today announced financial results for the 13 weeks ended April1, 2025.

Financial Results

Financial results for the 13 weeks ended April1, 2025 and March26, 2024 were as follows:

13 Weeks Ended
($000's, except per share amounts)April 1, 2025March 26, 2024%change
Total revenue$1,447,648$1,321,2179.6%
Income from operations134,733133,1281.2%
Net income113,662113,2060.4%
Diluted earnings per share$1.70$1.691.0%

Results for the 13 weeks ended April 1, 2025, as compared to the prioryear as applicable, included the following:

  • Comparable restaurant sales increased 3.5% at company restaurants;
  • Average weekly sales at company restaurants were $163,071 of which $22,146 were to-go sales as compared to average weekly sales of $159,378 of which $20,815 were to-go sales in the prioryear;
  • Restaurant margin dollars increased 4.7% to $239.3 million from $228.4 million in the prioryear primarily due to higher sales. Restaurant margin, as apercentage of restaurant and other sales, decreased 77 basis points to 16.6% as commodity inflation of 2.1% and wage and other labor inflation of 4.6% were partially offset by higher sales;
  • Diluted earnings per share increased 1.0% primarily driven by the impact of share repurchases and higher restaurant margin dollars partially offset by higher depreciation and amortization expenses and higher general and administrative expenses;
  • Eight company restaurants were opened; and
  • Capital allocation spend included capital expenditures of $77.4 million, franchise acquisitions of $78.3 million, dividends of $45.2 million, and repurchases of common stock of $50.2 million.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse,Inc., commented, “We are pleased to report that our operators successfully navigated us through a number of challenges this quarter and once again delivered traffic growth across all three of our brands.During this period of economic uncertainty, as always, we remain focused on the fundamentals of our business and on what we can control, which is creating an environment where our Roadies want to work and our guests want to dine.�

Morgan added, “We continue to consistently grow our business through new store development, which included the opening of our 50th Bubba’s 33 restaurant this quarter.Additionally, we are committed to our proven capital allocation strategy of utilizing operating cashflow to fund our development pipeline, maintain our existing restaurants, and pursue franchise acquisitions while also returning capital to our shareholders through the payment of quarterly dividends and share repurchases.�

2025 Outlook

Comparable restaurant sales at company restaurants for the first five weeks of our second quarter of fiscal 2025 increased5.0% compared to 2024. In addition, the Company implemented a menu price increase of approximately 1.4% in early April.

Management updated the following expectation for 2025:

  • Commodity cost inflation of approximately 4%, including the estimated impact of tariffs.

Management reiterated the following expectations for 2025:

  • Positive comparable restaurant sales growth, including the benefit of menu pricing actions;
  • Store week growth of approximately 5%;
  • 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.

Cash Dividend Payment

On May7, 2025, the Company’s Board of Directors approved the payment of a quarterly cash dividend of $0.68 per share of common stock. This payment will be distributed on July1, 2025, to shareholders of record at the close of business on June3, 2025.

Non-GAAP Measures

The Company prepares the condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP�). Within the press release, the Company makes reference to restaurant margin (in dollars, as apercentage of restaurant and other sales, and per store week). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, but do not have a direct impact on restaurant-level operational efficiency and performance, including general and administrative expenses. The Company excludes pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results. The Company excludes depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expenses as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables.

Conference Call

Texas Roadhouse,Inc. is hosting a conference call today, May 8, 2025, at 5:00p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company’s website at www.texasroadhouse.com. Listeners may also access the call by dialing (888) 440-5667 or (646) 960-0476 for international calls and referencing the Texas Roadhouse,Inc. First Quarter 2025 Earnings. A replay of the call will be available until May15, 2025, by dialing (800) 770-2030 or (609) 800-9909 for international calls and using conference ID 7714420.

About the Company

Texas Roadhouse,Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 790 restaurants system-wide in 49 states, one U.S. territory, and ten foreign countries. For more information, please visit the Company’s Web site at .

Forward-looking Statements

Certain statements in this release are forward-looking statements within the meaning of Section27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of Texas Roadhouse, Inc. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, 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; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and the impact of tariffs; food safety, and food-borne illness concerns; and other factors disclosed from time to time in its filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “PartI—Item1A. Risk Factors� of the Annual Report on Form10-K for the fiscalyear ended December31, 2024. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contacts:

Investor RelationsMedia
Michael BailenTravis Doster
(502) 515-7298(502) 638-5457



Texas Roadhouse,Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
13 Weeks Ended
April 1, 2025March 26, 2024
Revenue:
Restaurant and other sales$1,440,342$1,314,152
Royalties and franchise fees7,3067,065
Total revenue1,447,6481,321,217
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Food and beverage490,991445,091
Labor479,975427,547
Rent22,47719,425
Other operating207,615193,642
Pre-opening6,8128,095
Depreciation and amortization48,80041,493
Impairment and closure, net28201
General and administrative56,21752,595
Total costs and expenses1,312,9151,188,089
Income from operations134,733133,128
Interest income, net1,3011,408
Equity income from investments in unconsolidated affiliates225257
Income before taxes136,259134,793
Income tax expense20,20018,803
Net income including noncontrolling interests116,059115,990
Less: Net income attributable to noncontrolling interests2,3972,784
Net income attributable to Texas Roadhouse, Inc. and subsidiaries$113,662$113,206
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic$1.71$1.69
Diluted$1.70$1.69
Weighted average shares outstanding:
Basic66,48566,843
Diluted66,71467,105
Cash dividends declared per share$0.68$0.61



Texas Roadhouse,Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
April 1, 2025December 31, 2024
Cash and cash equivalents$221,085$245,225
Other current assets, net132,232271,343
Property and equipment, net1,662,8251,617,673
Operating lease right-of-use assets, net818,483769,865
Goodwill218,921169,684
Intangible assets, net16,3501,265
Other assets121,237115,724
Total assets$3,191,133$3,190,779
Current liabilities751,966828,130
Operating lease liabilities, net of current portion877,590826,300
Other liabilities166,028162,626
Texas Roadhouse,Inc. and subsidiaries stockholders� equity1,380,1211,358,347
Noncontrolling interests15,42815,376
Total liabilities and equity$3,191,133$3,190,779





Texas Roadhouse,Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
13 Weeks Ended
April 1, 2025March 26, 2024
Cash flows from operating activities:
Net income including noncontrolling interests$116,059$115,990
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization48,80041,493
Share-based compensation expense12,5509,523
Deferred income taxes(4,347)202
Other noncash adjustments, net1,544351
Change in working capital, net of acquisitions63,13475,880
Net cash provided by operating activities237,740243,439
Cash flows from investing activities:
Capital expenditures - property and equipment(77,389)(77,672)
Acquisitions of franchise restaurants, net of cash acquired(78,297)
Proceeds from sale of property and equipment129202
Proceeds from sale leaseback transactions2,778
Net cash used in investing activities(155,557)(74,692)
Cash flows from financing activities:
Repurchase of shares of common stock, including excise taxes as applicable(50,151)(8,941)
Dividends paid to shareholders(45,171)(40,791)
Other financing activities, net(11,001)(9,833)
Net cash used in financing activities(106,323)(59,565)
Net (decrease) increase in cash and cash equivalents(24,140)109,182
Cash and cash equivalents - beginning of period245,225104,246
Cash and cash equivalents - end of period$221,085$213,428


Texas Roadhouse, Inc. and Subsidiaries
Reconciliation of Income from Operations to Restaurant Margin
($ in thousands)
(unaudited)
13 Weeks Ended
April 1, 2025March 26, 2024
Income from operations$134,733$133,128
Less:
Royalties and franchise fees7,3067,065
Add:
Pre-opening6,8128,095
Depreciation and amortization48,80041,493
Impairment and closure, net28201
General and administrative56,21752,595
Restaurant margin$239,284$228,447
Restaurant margin (as a percentage of restaurant and other sales)16.6%17.4%





Texas Roadhouse,Inc. and Subsidiaries
Supplemental Financial and Operating Information
($ amounts in thousands, except restaurant margin $ per
store week and weekly sales by group)
(unaudited)
13 Weeks Ended
April 1, 2025March 26, 2024Change
Company restaurants (all concepts)
Restaurant and other sales$1,440,342$1,314,1529.6%
Store weeks8,8708,2847.1%
Comparable restaurant sales (1)3.5%8.4%
Restaurant operating costs (as a % of restaurant and other sales)
Food and beverage costs34.1%33.9%(22)bps
Labor33.3%32.5%(79)bps
Rent1.6%1.5%(8)bps
Other operating14.4%14.7%32bps
Total83.4%82.6%
Restaurant margin %16.6%17.4%(77)bps
Restaurant margin $$239,284$228,4474.7%
Restaurant margin $/Store week$26,977$27,577(2.2)%
Texas Roadhouse restaurants only:
Store weeks8,1117,5956.8%
Comparable restaurant sales (1)3.5%8.7%
Average unit volume (2)$2,182$2,1262.6%
Weekly sales by group:
Comparable restaurants (580 and 549 units)$169,279$164,3323.0%
Average unit volume restaurants (28 and 17 units)$138,192$156,114(11.5)%
Restaurants less than 6months old (21 and 25 units)$157,237$149,4005.2%
Bubba’s 33 restaurants only:
Store weeks6425859.7%
Comparable restaurant sales (1)3.9%3.5%
Average unit volume (2)$1,592$1,5413.3%
Weekly sales by group:
Comparable restaurants (41 and 37 units)$123,117$121,0861.7%
Average unit volume restaurants (7 and 4 units)$118,709$100,07918.6%
Restaurants less than 6months old (2 and 4 units)$145,011$135,9776.6%
Texas Roadhouse franchise restaurants only:
Store weeks1,2951,370(5.5)%
Comparable restaurant sales4.7%6.0%

__________________

(1) Comparable restaurant sales reflect the change insales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable.
(2) Average unit volume includes sales from restaurants open for a full sixmonths before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable.


Texas Roadhouse,Inc. and Subsidiaries
Restaurant Unit Activity
(unaudited)
13 Weeks Ended
April 1, 2025March 26, 2024Change
Restaurant openings
Company- Texas Roadhouse79(2)
Company- Bubba’s 3311
Company- Jaggers
Total company restaurants89(1)
Franchise- Texas Roadhouse- Domestic
Franchise- Jaggers - Domestic1(1)
Franchise- Texas Roadhouse- Int'l2(2)
Franchise- Jaggers - Int'l
Total franchise restaurants3(3)
Total restaurants812(4)
Restaurant acquisitions/dispositions
Company- Texas Roadhouse1414
Franchise- Texas Roadhouse- Domestic(14)(14)
Restaurants open at the end of the quarter
Company- Texas Roadhouse62959138
Company- Bubba’s 3350455
Company- Jaggers981
Total company restaurants68864444
Franchise- Texas Roadhouse- Domestic4256(14)
Franchise- Jaggers- Domestic431
Franchise- Texas Roadhouse- Int'l (1)57507
Franchise - Jaggers - Int'l11
Total franchise restaurants104109(5)
Total restaurants79275339

_________________

(1) Includes a U.S. territory.


FAQ

What were Texas Roadhouse's (TXRH) Q1 2025 earnings per share?

Texas Roadhouse reported diluted earnings per share of $1.70 for Q1 2025, a 1.0% increase from $1.69 in Q1 2024.

How much is Texas Roadhouse's quarterly dividend in 2025?

Texas Roadhouse declared a quarterly cash dividend of $0.68 per share, payable on July 1, 2025, to shareholders of record as of June 3, 2025.

What was TXRH's comparable restaurant sales growth in Q1 2025?

Texas Roadhouse reported comparable restaurant sales growth of 3.5% at company restaurants during Q1 2025.

How many new restaurants did Texas Roadhouse open in Q1 2025?

Texas Roadhouse opened 8 new company restaurants during Q1 2025, including their 50th Bubba's 33 location.

What is Texas Roadhouse's outlook for commodity and labor costs in 2025?

The company expects commodity cost inflation of approximately 4% and wage and labor inflation of 4-5% for 2025.
Texas Roadhouse Inc

NASDAQ:TXRH

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12.68B
65.94M
0.64%
94.19%
4.99%
Restaurants
Retail-eating Places
United States
LOUISVILLE