Companies /Consumer Cyclical

Texas Roadhouse Inc

NASDAQ: TXRH Restaurants
$189.56
▲ $0.50 (+0.26%) today
Markets closed · 1:08am ET

Q1 2025 Earnings

Reported May 8, 2025, 4:06pm ET · SEC source
$1.70
Miss −3.27%
EPS · est. $1.76
$1.4B
Beat +0.51%
Revenue · est. $1.4B
−2.7%
Trailing market
TXRH vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+2%+4%+6%May 8May 9report 4:06pm ETearnings−0.2%+4.6%
0+2%+4%+6%May 8May 9earnings−0.2%+4.6%
TXRH +4.6%S&P 500 −0.2%
0+2%+4%+6%May 8May 9report 4:06pm ETearnings−0.1%+4.6%
0+2%+4%+6%May 8May 9earnings−0.1%+4.6%
TXRH +4.6%NASDAQ −0.1%
0+4%+8%May 7May 16report 4:06pm ETearnings+5.2%+10.2%
0+4%+8%May 7May 16earnings+5.2%+10.2%
TXRH +10.2%S&P 500 +5.2%
0+4%+8%May 7May 16report 4:06pm ETearnings+6.8%+10.2%
0+4%+8%May 7May 16earnings+6.8%+10.2%
TXRH +10.2%NASDAQ +6.8%
+4.79%
Day of report
+5.06%
Next session
+6.70%
One week
+3.89%
30 days

S&P 500 over the same 30 days: +6.56%.

Did TXRH Beat Earnings? Q1 2025 Results

Texas Roadhouse delivered a mixed first quarter for 2025, posting solid top-line growth while falling short on the bottom line as cost pressures weighed on profitability. Revenue climbed 9.6% year-over-year to $1.45 billion, edging past the $1.44 billion consensus estimate by 0.51%, driven by comparable restaurant sales growth of 3.5% and continued unit expansion. Earnings per share, however, came in at $1.70, missing the $1.76 consensus by 3.27%, as commodity inflation of 2.1% and wage and labor inflation of 4.6% compressed restaurant margins by 77 basis points to 16.6%. The cost squeeze tells much of the story: food, beverage, and labor costs collectively consumed a larger share of sales than a year ago, limiting the earnings benefit of stronger traffic across all three brands. Looking ahead, management raised its 2025 commodity inflation outlook to approximately 4%, now incorporating estimated tariff impacts, though early Q2 momentum offers some reassurance, with comparable sales accelerating to 5.0% over the first five weeks of the period.

Key Takeaways
  • Comparable restaurant sales increased 3.5% at company restaurants
  • Traffic growth delivered across all three brands
  • Average weekly sales at company restaurants rose to $163,071 from $159,378
  • Restaurant margin dollars increased 4.7% to $239.3 million
  • Eight new company restaurants opened in the quarter
  • To-go sales grew to $22,146 per week from $20,815

“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.”

Texas Roadhouse CEO, on the earnings call

Forward Guidance & Outlook

Comparable restaurant sales at company restaurants for the first five weeks of Q2 2025 increased 5.0% vs. 2024. A menu price increase of approximately 1.4% was implemented in early April. Management updated its 2025 commodity cost inflation expectation to approximately 4%, including estimated tariff impacts. Other 2025 expectations reiterated: positive comparable restaurant sales growth including menu pricing benefit; store week growth of approximately 5%; wage and other labor inflation of 4-5%; effective income tax rate of 15-16%; and total capital expenditures of approximately $400 million.

TXRH YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$400.0M$800.0M$1.2B$1.3B$1.4BRevenue$133.1M$134.7MOperating Income$113.2M$113.7MNet Income
$0$400.0M$800.0M$1.2BRevenueOperating IncomeNet Income

TXRH Revenue by Segment

Restaurant and Other Sales$1.4B+9.6%
Royalties and Franchise Fees$7.3M

Figures from SEC filings and company reports. Not investment advice.