Texas Roadhouse Inc (TXRH) recently released its financial results for the third quarter of 2024, showcasing significant growth in key performance indicators. The report highlights a strong revenue increase, expansion in restaurant openings, and a strategic capital allocation plan. With ongoing investments in new restaurant locations and a proposed franchise acquisition, the company remains optimistic about its future.
Before we dive in, we have a special offer! For a limited time, you can get 70% off Stock Target Advisor’s premium features. Claim your discount here!
Key Insights from Texas Roadhouse Inc’s Earnings Report:
In the third quarter of 2024, Texas Roadhouse achieved total revenue of $1.27 billion, a 13.5% increase compared to the same quarter in 2023. Income from operations jumped by 38.1% to $102.0 million, driven primarily by an increase in restaurant margin dollars, which rose by 24.1% to $202.1 million. The company’s comparable restaurant sales grew by 8.5% at company-owned locations and 7.2% at domestic franchise outlets, indicating continued customer demand and strong operational performance.
Is now the time to buy Texas Roadhouse? Access our full analysis report here, it’s free.
The company reported a net income of $84.4 million, up 32.3% from the previous year, and an impressive increase of 32.5% in diluted earnings per share to $1.26. This growth was primarily attributed to higher restaurant margins and efficient cost management, despite challenges like labor and commodity inflation.
Management Discussion and Analysis:
CEO Jerry Morgan expressed pride in the company’s consistent performance in a highly competitive environment, highlighting the dedication of its operators. He noted that increased average guest checks and improved labor productivity played a pivotal role in offsetting inflationary pressures. Furthermore, Texas Roadhouse opened seven new company restaurants and three new franchise locations during the quarter, reflecting the company’s expansion strategy.
Looking ahead, Morgan emphasized a robust pipeline for new restaurant openings and a planned franchise acquisition of 13 domestic restaurants. This move is expected to drive growth and enhance shareholder value in the coming fiscal year.
Stock Target Advisor’s Analysis on Texas Roadhouse Inc:
According to Stock Target Advisor’s latest assessment, Texas Roadhouse Inc’s stock forecast from 18 analysts indicates an average target price of USD 179.49 over the next 12 months, with an average rating of “Buy.” Stock Target Advisor’s independent analysis shows a slightly bullish stance on the stock, based on eight positive signals and six negative signals.
Ready to take your investments to the next level? For a limited time, get 70% off on Stock Target Advisor. Get started here!
Conclusion:
Texas Roadhouse Inc’s third-quarter 2024 earnings report underscores solid financial performance amid inflationary headwinds, demonstrating strong revenue growth, increased earnings, and strategic expansion. Analysts’ projections and Stock Target Advisor’s slight bullish stance indicate a cautiously optimistic sentiment for Texas Roadhouse Inc’s stock performance in the coming year.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
