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Texas Roadhouse, Inc. Announces Second Quarter 2025 Results

1. TXRH reports 12.7% revenue growth for the last quarter. 2. Comparable restaurant sales grew 5.8%, showcasing positive customer traffic. 3. Announced quarterly dividend increased to $0.68 per share. 4. Expect commodity and wage inflation to range around 5% and 4% respectively. 5. Plans to acquire eight franchise restaurants to expand growth.

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Why Bullish?

The strong revenue growth and increase in dividends indicate healthy performance. Historically, similar growth has positively influenced TXRH's stock price.

How important is it?

Positive financial performance and investor-friendly actions suggest a solid impact on TXRH's stock price. Furthermore, the consistent growth and future acquisitions indicate reliability and confidence in future earnings.

Why Long Term?

Enhancements in comparable sales, franchise acquisitions, and steady dividends reflect a robust long-term growth strategy, likely attracting long-term investors.

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Declares Quarterly Dividend of $0.68 per Share August 07, 2025 16:03 ET  | Source: Texas Roadhouse, Inc LOUISVILLE, Ky., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 weeks ended July 1, 2025. Financial Results Financial results for the 13 and 26 weeks ended July 1, 2025 and June 25, 2024 were as follows:                    13 Weeks Ended 26 Weeks Ended($000's, except per share amounts) July 1, 2025 June 25, 2024 % change July 1, 2025 June 25, 2024 % changeTotal revenue $1,512,054 $1,341,202 12.7% $2,959,702 $2,662,419 11.2%Income from operations  146,341  142,816 2.5%  281,074  275,944 1.9%Net income  124,085  120,141 3.3%  237,747  233,347 1.9%Diluted earnings per share $1.86 $1.79 4.0% $3.57 $3.48 2.5% Results for the 13 weeks ended July 1, 2025, as compared to the prior year as applicable, included the following: Comparable restaurant sales increased 5.8% at company restaurants;Average weekly sales at company restaurants were $167,350 of which $22,243 were to-go sales as compared to average weekly sales of $158,991 of which $19,975 were to-go sales in the prior year;Restaurant margin dollars increased 6.1% to $257.3 million from $242.6 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 108 basis points to 17.1% as commodity inflation of 5.2% and wage and other labor inflation of 3.8% were partially offset by higher sales;Diluted earnings per share increased 4.0% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses;Four company restaurants and one franchise restaurant were opened; andCapital allocation spend included capital expenditures of $92.5 million, franchise acquisitions of $15.5 million, dividends of $45.1 million, and repurchases of common stock of $9.8 million. Results for the 26 weeks ended July 1, 2025, as compared to the prior year as applicable, included the following: Comparable restaurant sales increased 4.7% at company restaurants;Average weekly sales at company restaurants were $165,228 of which $22,195 were to-go sales as compared to average weekly sales of $159,184 of which $20,392 were to-go sales in the prior year;Restaurant margin dollars increased 5.4% to $496.6 million from $471.1 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 92 basis points to 16.9% as commodity inflation of 3.7% and wage and other labor inflation of 4.2% were partially offset by higher sales;Diluted earnings per share increased 2.5% primarily driven by higher restaurant margin dollars and the impact of share repurchases partially offset by higher depreciation and amortization expenses and higher general and administrative expenses;12 company restaurants and one franchise restaurant were opened; andCapital allocation spend included capital expenditures of $169.9 million, franchise acquisitions of $93.9 million, dividends of $90.3 million, and repurchases of common stock of $60.0 million. Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands. While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands.” Morgan added, “On the development front, we were excited to recently open our 800th system-wide restaurant, a milestone that reflects our ongoing commitment to growth. With a disciplined capital allocation strategy, including a focus on new store development and strategic franchise acquisitions, we’re confident in our ability to drive long-term shareholder value.” Franchise Acquisitions The Company has a tentative agreement or plans in place to acquire eight domestic franchise restaurants as of the beginning of our Q4 2025 and Q1 2026 fiscal periods. These acquisitions are subject to the completion of customary due diligence. 2025 Outlook Comparable restaurant sales at company restaurants for the first five weeks of our third quarter of fiscal 2025 increased 5.3% compared to 2024. Management updated the following expectations for 2025: Commodity cost inflation of approximately 5%, including the estimated impact of tariffs;Wage and other labor inflation of approximately 4%; andAn effective income tax rate of approximately 15%. 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%; andTotal capital expenditures of approximately $400 million. Cash Dividend Payment On August 6, 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 September 30, 2025, to shareholders of record at the close of business on September 2, 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 a percentage 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, August 7, 2025, at 5:00 p.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. Second Quarter 2025 Earnings. A replay of the call will be available until August 14, 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 800 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 www.texasroadhouse.com. Forward-looking Statements Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E 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 the Company’s 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 the Company’s 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 “Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 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 RelationsMediaMichael BailenMegan Pence(502) 515-7298(502) 461-1878  Texas Roadhouse, Inc. and SubsidiariesCondensed Consolidated Statements of Income(in thousands, except per share data)(unaudited)   13 Weeks Ended    26 Weeks Ended  July 1, 2025 June 25, 2024 July 1, 2025 June 25, 2024Revenue:            Restaurant and other sales $1,503,974 $1,333,642 $2,944,316 $2,647,794Royalties and franchise fees  8,080  7,560  15,386  14,625Total revenue  1,512,054  1,341,202  2,959,702  2,662,419Costs and expenses:            Restaurant operating costs (excluding depreciation and amortization shown separately below):            Food and beverage  511,324  436,001  1,002,315  881,092Labor  495,049  438,212  975,024  865,759Rent  23,028  19,956  45,505  39,381Other operating  217,230  196,862  424,845  390,504Pre-opening  5,464  6,202  12,276  14,297Depreciation and amortization  50,744  42,915  99,544  84,408Impairment and closure, net  111  90  139  291General and administrative  62,763  58,148  118,980  110,743Total costs and expenses  1,365,713  1,198,386  2,678,628  2,386,475Income from operations  146,341  142,816  281,074  275,944Interest income, net  1,044  1,683  2,345  3,091Equity income from investments in unconsolidated affiliates  1,426  286  1,651  543Income before taxes  148,811  144,785  285,070  279,578Income tax expense  22,118  21,710  42,318  40,513Net income including noncontrolling interests  126,693  123,075  242,752  239,065Less: Net income attributable to noncontrolling interests  2,608  2,934  5,005  5,718Net income attributable to Texas Roadhouse, Inc. and subsidiaries $124,085 $120,141 $237,747 $233,347             Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:            Basic $1.87 $1.80 $3.58 $3.49Diluted $1.86 $1.79 $3.57 $3.48Weighted average shares outstanding:            Basic  66,373  66,785  66,429  66,814Diluted  66,598  67,044  66,656  67,077Cash dividends declared per share $0.68 $0.61 $1.36 $1.22  Texas Roadhouse, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands)(unaudited)   July 1, 2025    December 31, 2024Cash and cash equivalents $176,801 $245,225Other current assets, net  147,627  271,343Property and equipment, net  1,714,551  1,617,673Operating lease right-of-use assets, net  831,725  769,865Goodwill  229,944  169,684Intangible assets, net  14,676  1,265Other assets  139,952  115,724Total assets $3,255,276 $3,190,779       Current liabilities  713,509  828,130Operating lease liabilities, net of current portion  892,361  826,300Other liabilities  183,184  162,626Texas Roadhouse, Inc. and subsidiaries stockholders’ equity  1,450,794  1,358,347Noncontrolling interests  15,428  15,376Total liabilities and equity $3,255,276 $3,190,779  Texas Roadhouse, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited)   26 Weeks Ended  July 1, 2025 June 25, 2024Cash flows from operating activities:      Net income including noncontrolling interests $242,752  $239,065 Adjustments to reconcile net income to net cash provided by operating activities      Depreciation and amortization  99,544   84,408 Share-based compensation expense  23,249   18,378 Deferred income taxes  (6,467)  (4,254)Other noncash adjustments, net  2,472   1,662 Change in working capital, net of acquisitions  4,430   38,088 Net cash provided by operating activities  365,980   377,347 Cash flows from investing activities:      Capital expenditures - property and equipment  (169,912)  (155,478)Acquisitions of franchise restaurants, net of cash acquired  (93,878)  — Proceeds from sale of investments in unconsolidated affiliates  1,321   — Proceeds from sale of property and equipment  135   197 Proceeds from sale leaseback transactions  2,807   9,126 Net cash used in investing activities  (259,527)  (146,155)Cash flows from financing activities:      Repurchase of shares of common stock, including excise taxes as applicable  (60,414)  (35,139)Dividends paid to shareholders  (90,292)  (81,509)Other financing activities, net  (24,171)  (21,336)Net cash used in financing activities  (174,877)  (137,984)Net (decrease) increase in cash and cash equivalents  (68,424)  93,208 Cash and cash equivalents - beginning of period  245,225   104,246 Cash and cash equivalents - end of period $176,801  $197,454   Texas Roadhouse, Inc. and SubsidiariesReconciliation of Income from Operations to Restaurant Margin($ in thousands)(unaudited)   13 Weeks Ended 26 Weeks Ended   July 1, 2025    June 25, 2024 July 1, 2025    June 25, 2024 Income from operations $146,341  $142,816  $281,074 $275,944               Less:             Royalties and franchise fees  8,080   7,560   15,386  14,625               Add:             Pre-opening  5,464   6,202   12,276  14,297 Depreciation and amortization  50,744   42,915   99,544  84,408 Impairment and closure, net  111   90   139  291 General and administrative  62,763   58,148   118,980  110,743               Restaurant margin $257,343  $242,611  $496,627 $471,058               Restaurant margin (as a percentage of restaurant and other sales)  17.1%  18.2%  16.9% 17.8%  Texas Roadhouse, Inc. and SubsidiariesSupplemental Financial and Operating Information($ amounts in thousands, except restaurant margin $ per store week and weekly sales by group)(unaudited)   13 Weeks Ended   July 1, 2025    June 25, 2024    Change Company restaurants (all concepts)         Restaurant and other sales $1,503,974 $1,333,642 12.8 %Store weeks  9,010  8,408 7.2 %Comparable restaurant sales (1)  5.8% 9.3%            Restaurant operating costs (as a % of restaurant and other sales)         Food and beverage costs  34.0% 32.7%(131)bpsLabor  32.9% 32.8%(6)bpsRent  1.5% 1.5%(3)bpsOther operating  14.5% 14.8%32 bpsTotal  82.9% 81.8%            Restaurant margin %  17.1% 18.2%(108)bpsRestaurant margin $ $257,343 $242,611 6.1 %Restaurant margin $/Store week $28,562 $28,855 (1.0)%          Texas Roadhouse restaurants only:         Store weeks  8,226  7,708 6.7 %Comparable restaurant sales (1)  5.9% 9.4%  Average unit volume (2) $2,236 $2,128 5.1 %Weekly sales by group:         Comparable restaurants (590 and 553 units) $173,349 $163,797 5.8 %Average unit volume restaurants (29 and 20 units) $144,554 $150,736 (4.1)%Restaurants less than 6 months old (15 and 21 units) $164,986 $151,647 8.8 %          Bubba’s 33 restaurants only:         Store weeks  668  596 12.1 %Comparable restaurant sales (1)  4.3% 5.5%  Average unit volume (2) $1,645 $1,581 4.0 %Weekly sales by group:         Comparable restaurants (43 and 38 units) $126,812 $122,868 3.2 %Average unit volume restaurants (5 and 5 units) $124,187 $111,244 11.6 %Restaurants less than 6 months old (4 and 5 units) $149,788 $142,429 5.2 %          Texas Roadhouse franchise restaurants only:         Store weeks  1,256  1,389 (9.6)%Comparable restaurant sales  7.0% 6.6%   _______________(1)Comparable restaurant sales reflect the change in sales 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 six months before the beginning of the period, excluding sales from restaurants permanently closed during the period, if applicable.  Texas Roadhouse, Inc. and SubsidiariesRestaurant Unit Activity(unaudited)   13 Weeks Ended 26 Weeks Ended  July 1, 2025June 25, 2024Change July 1, 2025June 25, 2024ChangeRestaurant openings        Company - Texas Roadhouse 2 3(1) 9 12(3)Company - Bubba’s 33 2 3(1) 3 3— Company - Jaggers — ——  — —— Total company restaurants 4 6(2) 12 15(3)         Franchise - Texas Roadhouse - Domestic — ——  — 1(1)Franchise - Jaggers - Domestic 1 —1  1 1— Franchise - Texas Roadhouse - Int'l (1) — 3(3) — 4(4)Franchise - Jaggers - Int'l — ——  — —— Total franchise restaurants 1 3(2) 1 6(5)         Total restaurants 5 9(4) 13 21(8)         Restaurant acquisitions/dispositions        Company - Texas Roadhouse 3 —3  17 —17 Franchise - Texas Roadhouse - Domestic (3)—(3) (17)—(17)         Restaurants open at the end of the quarter        Company - Texas Roadhouse 634 59440     Company - Bubba’s 33 52 484     Company - Jaggers 9 81     Total company restaurants 695 65045              Franchise - Texas Roadhouse - Domestic 39 56(17)    Franchise - Jaggers - Domestic 5 32     Franchise - Texas Roadhouse - Int'l (1) 57 534     Franchise - Jaggers - Int'l 1 —1     Total franchise restaurants 102 112(10)             Total restaurants 797 76235      _______________(1)Includes a U.S. territory.

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