Stock Story -
Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported results in line with analysts' expectations in Q1 CY2024, with revenue up 12.5% year on year to $1.32 billion. It made a GAAP profit of $1.69 per share, improving from its profit of $1.28 per share in the same quarter last year.
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Texas Roadhouse (TXRH) Q1 CY2024 Highlights:
- Revenue: $1.32 billion vs analyst estimates of $1.32 billion (small miss)
- EPS: $1.69 vs analyst estimates of $1.61 (4.8% beat)
- The company reiterated full year guidance for sales and other items
- Gross Margin (GAAP): 17.8%, up from 16.4% in the same quarter last year
- Free Cash Flow of $165.8 million, up 133% from the previous quarter
- Same-Store Sales were up 8.4% year on year
- Store Locations: 753 at quarter end, increasing by 49 over the last 12 months
- Market Capitalization: $10.5 billion
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Sit-Down DiningSit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
Sales GrowthTexas Roadhouse is one of the larger restaurant chains in the industry and benefits from a strong brand, giving it customer mindshare and influence over purchasing decisions.
As you can see below, the company's annualized revenue growth rate of 13.6% over the last five years was impressive as it added more dining locations and increased sales at existing, established restaurants.
This quarter, Texas Roadhouse's revenue grew 12.5% year on year to $1.32 billion, falling short of Wall Street's estimates. Looking ahead, Wall Street expects sales to grow 12.9% over the next 12 months, an acceleration from this quarter.
Same-Store Sales Texas Roadhouse's demand has outpaced the broader restaurant sector over the last eight quarters. On average, the company has grown its same-store sales by a robust 8.9% year on year. With positive same-store sales growth amid an increasing number of restaurants, Texas Roadhouse is reaching more diners and growing sales.
In the latest quarter, Texas Roadhouse's same-store sales rose 8.4% year on year. This growth was a deceleration from the 12.9% year-on-year increase it posted 12 months ago, showing the business is still performing well but lost a bit of steam.
Key Takeaways from Texas Roadhouse's Q1 Results We enjoyed seeing Texas Roadhouse exceed analysts' same store sales estimates this quarter, although revenue still missed slightly. Guidance for the full year was maintained, showing the company is staying on track. Overall, this quarter's results seemed fairly positive and shareholders should feel optimistic. The stock is up 3.2% after reporting and currently trades at $162.99 per share.
