Texas Roadhouse's Bubba's 33 chain may experience significant growth due to its unique sports-bar atmosphere, scratch-made food, and other differentiating factors. The chain was created by Kent Taylor, the founder of Texas Roadhouse, in 2013.
Texas Roadhouse's (NASDAQ: TXRH) Bubba's 33 casual dining chain is poised for significant expansion, driven by its unique sports-bar atmosphere, scratch-made food, and family-friendly service. The chain, founded by Kent Taylor in 2013, has over 50 locations as of 2025, with a strong presence in Texas, the South, and Midwest. According to BTIG analyst Peter Saleh, the firm expects Bubba's to add around 5 new locations in 2025 and 2026, representing a 10% unit growth [1].
Bubba's 33's menu focuses on hearty American favorites such as burgers, pizza, chicken wings, sandwiches, and a robust selection of appetizers. The chain's energetic sports-bar atmosphere, complete with loud music and multiple TVs showcasing various sports, sets it apart from its sister brand, Texas Roadhouse. This differentiation has contributed to Bubba's 33's strong performance, with sales increasing by 20.4% year-over-year in 2024 to $297.6 million, despite operating in a challenging casual dining segment [2].
The chain's success can be attributed to its founder's competitive nature and innovative approach. Kent Taylor created Bubba's 33 to compete directly with sports-bar franchises like Buffalo Wild Wings, incorporating elements from his flagship Texas Roadhouse while adding a unique twist. The chain's average unit volumes of $6.5 million further underscore its potential for growth, with plans to expand to around 500 locations in the future.
Investors should monitor Texas Roadhouse's earnings report, scheduled for the first week of August, to gauge the company's financial health and expansion plans. While shares of Texas Roadhouse have been down 5.6% over the last six weeks, the potential for Bubba's 33 to drive growth offers a promising outlook for the company's future.
References:
[1] https://seekingalpha.com/news/4468964-texas-roadhouse-might-have-a-secret-weapon-with-its-bubbas-33-chain
[2] https://www.nrn.com/regional-chains/bubba-s-33-pulls-a-page-from-its-sister-brand-texas-roadhouse-to-grow
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