What does Texas Roadhouse do and what are its main business segments?

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What were the key takeaways from Texas Roadhouse’s earnings call?

Did Texas Roadhouse beat or miss consensus estimates last quarter?

What guidance did Texas Roadhouse's management provide for the next earnings period?

What is the revenue and EPS growth rate for Texas Roadhouse year over year?

What is the market's earnings forecast for Texas Roadhouse next quarter?

What factors drove the changes in Texas Roadhouse's revenue and profit?

- **Revenue Growth**: $5.9 billion in 2025, 4.9% same-store sales growth, 2.8% traffic growth.
- **Profitability**: 2025 cash flow of $730M funded capex, acquisitions, and $330M in shareholder returns.
- **2026 Outlook**: 7% commodity inflation (beef-driven), 3-4% wage inflation, $400M capex.
- **Strategic Moves**: 1.9% menu price increase, $5 all-day beverage, 5 California franchise acquisitions.
- **Technology**: Digital kitchen rollout complete; testing handheld tablets for tableside ordering.

**【CEO Summary Section】**
- Texas Roadhouse achieved record revenue of $5.9 billion in 2025, with all 3 brands (Texas Roadhouse, Bubba's 33, Jaggers) posting positive sales and traffic growth.
- Opened 48 new company-owned restaurants, including 20 franchise acquisitions, and completed the rollout of digital kitchen and guest management systems.
- Implemented a 1.9% menu price increase for Q2 2026 and introduced a $5 all-day beverage special to drive to-go sales.
- Franchise development remains strong, with plans for 6 international Texas Roadhouses and 4 domestic Jaggers in 2026.
- Raised $40 million for veterans and $1.1 million for tinnitus research through community fundraisers.

**【CFO Financial Commentary】**
- 2025 GAAP net income: $420 million; Non-GAAP EPS: $1.08 (exceeds expectations).
- 2025 cash flow from operations: $730 million, used to fund $388 million in capex, $108 million in franchise acquisitions, and $330 million in shareholder returns (dividends + buybacks).
- 2026 guidance: 7% commodity inflation (beef-driven), 3-4% wage inflation, and $400 million capex budget.
- 2026 tax rate updated to 14-15% (from 15% prior estimate).
- Q4 2025 restaurant margin dollars: $205 million (-15.6% YoY), driven by 6.1% commodity inflation and labor cost increases.

**【Q&A Highlights】**
- **Commodity Inflation**: Q1 2026 beef inflation near guidance, peaking in Q2 at high single digits before moderating. 65% of 2026 beef costs locked in at current prices.
- **Labor Efficiency**: Q4 2025 labor hours/traffic ratio spiked to 68% due to December weather, but improved to <40% in Q1 2026.
- **Technology**: Testing handheld tablets for tableside ordering; digital kitchen rollout reduced kitchen noise and improved to-go execution.
- **Share Repurchases**: $150 million in 2025; no new buyback authorization announced for 2026.
- **Franchise Acquisitions**: 5 California units acquired for $72 million (no real estate included); 2026 capex excludes acquisition costs.
- **Bubba's Growth**: 10 new units planned for 2026, targeting $6.4 million AUV; focus on cost reduction and operator support.
- **G&A Expenses**: 2026 guidance for low double-digit increase driven by equity grants and incentive compensation.

Texas Roadhouse, Inc. (TXRH) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 2025 revenue up 12.8% YoY, driven by 6.1% same-store sales growth and 6.8% store week expansion.
- **Expansion Ambition**: 35 new company-owned locations planned for 2026, including 20 Texas Roadhouses, alongside 10 franchise openings.
- **Inflation Management**: 2025 commodity inflation updated to 6%, 2026 guidance at 7% (H1 higher, H2 lower). Wage inflation expected 3-4% in 2026.
- **Digital Transformation**: 95% of restaurants now use digital kitchen systems, improving order accuracy and to-go efficiency.
- **Beverage Innovation**: Regional drinks like dirty sodas and $5 all-day beverages offset negative alcohol mix, driving 13.6% to-go sales growth.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $1.4 billion, up 12.8% YoY, driven by 5.5% average weekly sales growth and 6.8% store week growth. Same-store sales increased 6.1%, with traffic up 4.3% and check size rising 1.8%.
- **Expansion**: Opened 7 company-owned locations (2 Bubba's 33, 1 Jaggers) and acquired 3 franchise restaurants. On track for ~30 new company-owned locations in 2025 and ~35 in 2026, including 20 Texas Roadhouses.
- **Operational Focus**: 95% of restaurants now use digital kitchen and guest management systems. To-go sales represented 13.6% of total sales, with operators improving order accuracy and speed.
- **Beverage Innovation**: Testing regional drinks like dirty sodas in Utah/Idaho. Mocktails and $5 all-day beverages continue to perform well, offsetting negative alcohol mix trends.
- **Retail Growth**: Texas Roadhouse products (e.g., buttery spreads, steak sauces) are now in over 120,000 retail outlets, enhancing brand visibility.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $420 million, Non-GAAP EPS of $1.25 (down 0.8% YoY). Restaurant margin dollars per store week decreased 5.3% to $22,500, driven by 7.9% commodity inflation.
- **Commodity Guidance**: Full-year 2025 commodity inflation updated to ~6% (beef inflation persisting into Q4). 2026 guidance set at ~7%, with higher inflation expected in H1.
- **Labor Management**: Wage inflation of 3.9% in Q3, with labor hours growing 1.3% vs. 4.3% traffic growth. Full-year 2025 wage inflation guidance remains at 4%, 2026 at 3-4%.
- **Capital Allocation**: $108 million cash balance, $144 million cash flow from operations. 2026 capital expenditure guidance of $400 million, excluding California franchise acquisitions.

**【Q&A Highlights】**
- **Beef Inflation**: 2026 commodity inflation expected at ~7%, with higher prices in H1 and potential moderation in H2. 40% of 2026 beef costs locked in at higher rates.
- **Menu Pricing**: 1.7% Q4 menu price increase has not impacted traffic; 5.4% Q4 comps (first 5 weeks) suggest resilience. Guests trading up to larger steaks offset mix shift away from alcohol.
- **Technology Impact**: Digital kitchen rollout complete by year-end; 54-minute guest experience balance of speed and hospitality.
- **Franchise Acquisitions**: 31 franchise locations remaining, with ongoing discussions for future acquisitions. 2026 plans include 10 franchise openings (6 Texas Roadhouse, 4 Jaggers).

Texas Roadhouse, Inc. (TXRH) Q3 2025 Earnings Call Transcript

- **Revenue Surge**: Q2 revenue hit $1.5 billion (+12.7% YoY), fueled by 5.8% same-store sales growth and record off-premise sales (13.3%).
- **Expansion Ambition**: 4 new restaurants opened, 17 franchise acquisitions, and plans for 30+ openings in 2025. Aiming for 200 Bubba's locations.
- **Inflation Resilience**: Beef inflation guidance at 5% for 2025, with Q3 at 7%. Labor efficiency improved, with 5.4% labor growth vs. 3.8% wage inflation.
- **Strategic Pricing**: 1.7% menu price increase in Q4 to offset costs, maintaining value perception through steak and mocktail offerings.
- **Operational Excellence**: Mobile app upgrades and digital kitchens driving 6.1% restaurant margin growth, with 800th system-wide restaurant milestone.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue reached $1.5 billion, a 12.7% year-over-year increase, driven by a 5.8% rise in same-store sales and 7.2% store week growth. Average weekly sales exceeded $167,000, with To-Go sales contributing 13.3%.
- **Brand Expansion**: Opened 4 company-owned restaurants (2 Bubba's 33 locations) and 1 franchise Jaggers location. On track for ~30 company-owned openings in 2025. Acquired 17 franchise restaurants this year, with plans to purchase 3 more in Q4 and all 5 California franchise locations in 2026.
- **Menu Strategy**: Implemented a 1.7% menu price increase in Q4 to offset inflation, maintaining value perception. Off-premise sales growth driven by mobile app improvements and efficient pickup processes.
- **Long-Term Vision**: Aiming for 200 Bubba's locations, with 53 currently open. Texas Roadhouse completed its 800th system-wide restaurant, highlighting operational excellence.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net.08 (vs. $0.95 income of $420 million, Non-GAAP EPS of $1 prior). Restaurant margin dollars increased 6.1% to $257 million, with a 4% EPS rise to $1.86.
- **Inflation Management**: Beef inflation guidance updated to ~5% for 2025, with Q3 at 7% and Q4 at 4-5%. Labor inflation controlled at 4%, with hours growing 1.6% vs. traffic.
- **Capital Allocation**: $177 million cash, $128 million operating cash flow. Maintaining $400 million capex guidance, including $23 million for support center purchase. Dividend growth and share buybacks to offset dilution.

**【Q&A Highlights】**
- **Inflation Dynamics**: Beef supply tightening due to producer margin pressures, with 80% of Q3 beef costs locked. Off-premise sales growth (13.3%) driven by app efficiency and pickup convenience.
- **Labor Efficiency**: 5.4% labor dollar growth vs. 3.8% wage inflation, aided by digital kitchen investments and lower turnover.
- **Mix Trends**: Negative mix from alcohol category, offset by positive entree and mocktail trading. Steak sales growth contributing to COGS pressure (~25 bps Q2).
- **Expansion Plans**: Bubba's targeting double-digit openings in 2026, with Jaggers and international franchise growth supporting 30+ total openings.


Texas Roadhouse, Inc. (TXRH) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: $1.4B Q1 revenue, 3.5% same-store sales driven by 1.1% traffic and 2.4% check increase.
- **Expansion Momentum**: 8 new restaurants opened, 30+ planned for 2025, including 7 Bubba's 33 locations.
- **Tech Investment**: 65% of restaurants with digital kitchens, 70% with new guest management systems.
- **Inflation Management**: 4% full-year commodity inflation guidance (30bps from tariffs), 4%-5% wage inflation.
- **Profitability**: Non-GAAP EPS of $1.70, with 35% labor hour growth vs. traffic.
- **Menu Innovation**: $5 all-day beverages and regionalized drink menus launched in Q2.


**【CEO Summary Section】**
- Q1 2025 revenue reached $1.4 billion, with same-store sales up 3.5% driven by 1.1% traffic growth and a 2.4% check increase.
- Opened 8 new company-owned restaurants, including 1 Bubba's 33, with plans to open 30+ locations in 2025.
- Tech upgrades: 65% of restaurants now use digital kitchens, and 70% have new guest management systems.
- Completed Bubba's 33 guest study, confirming brand appeal as a family-friendly sports-themed destination.

**【CFO Financial Commentary】**
- GAAP net income: $420 million; Non-GAAP EPS: $1.70 (up 1% YoY).
- Q1 commodity inflation: 2.1%, with updated full-year guidance of 4% (including 30bps from tariffs).
- Labor inflation: 4.6% YoY, with labor hours growing at 35% of traffic growth.
- 2025 capital expenditures: $400 million, including $78 million for 14 franchisee acquisitions.

**【Q&A Key Themes】**
- **Pricing Strategy**: 3.1% Q1 menu price increase, with 2.3% in Q2; priced below wage inflation (4%-5% guidance).
- **Mix Dynamics**: Steak trading up vs. chicken/seafood, pressuring COGS by 30bps in Q1.
- **Tariff Impact**: Potential 30bps of full-year commodity inflation from tariffs on seafood, disposables.
- **Labor Efficiency**: 6th straight quarter with <50% labor hours-to-traffic growth.
- **Bar Menu Update**: $5 all-day beer/margarita and regionalized beverage menus launched in Q2.


Texas Roadhouse (TXRH)-8 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $5.4B revenue, 8.5% same-store sales growth, and 31 new restaurants opened. 
- **2025 Growth Plan**: 30 new stores, 1.4% menu price increase in Q2, and $500M share buyback program. 
- **Financial Strength**: $750M cash flow, 44% total return (42.5% EPS growth + 1.5% dividend yield). 
- **Key Risks**: 3% to 4% beef inflation, 1.5% Q1 sales headwind from calendar shifts. 
- **Community Focus**: Raised $925K for American Tinnitus Association and honored 1M+ veterans with free meals. 


**【CEO Summary Section】**
- **2024 Year in Review**: Revenue reached $5.4 billion, with a 8.5% same-store sales increase driven by 4.4% traffic growth. Average unit volume exceeded $8 million for the first time. 31 company-owned restaurants were opened, and the 750th systemwide location was reached. 
- **2025 Outlook**: 30 company restaurant openings planned, including 13 acquired franchise locations. A 1.4% menu price increase will be implemented in Q2 to maintain everyday value. Technology initiatives include completing digital kitchen conversions and upgrading guest management systems. 
- **Community Impact**: Raised $925,000 for the American Tinnitus Association and honored over 1 million veterans with free meals. 

**【CFO Financial Commentary】**
- **2024 Financial Highlights**: GAAP net income of $420 million, Non-GAAP EPS of $1.08 (exceeded expectations). Cash flow from operations was $750 million, supporting $354 million in capex, $163 million in dividends, and $80 million in share buybacks. 
- **2025 Guidance**: 
  - **Wage Inflation**: 4% to 5% (driven by state wage mandates and benefits). 
  - **Commodity Inflation**: Updated to 3% to 4% (tighter beef supply in H2). 
  - **Capex**: $400 million (includes 13 franchise acquisitions). 
  - **Dividends & Buybacks**: 11% dividend increase and $500 million share repurchase program announced. 
- **Tax Rate**: 15% to 16% for the full year. 

**【Q&A Key Takeaways】**
- **Q1 2025 Sales**: 2.9% comp growth in first 7 weeks, but 1.5% headwind from calendar shifts. Valentine's Day week sales averaged $183,000, 13% higher than weekly average. 
- **Inflation Impact**: Beef inflation expected to peak in H2; 40% of 2025 commodity basket locked. 
- **Labor Hours**: 2% growth in Q4, with 4% to 5% wage inflation expected in 2025. 
- **New Units**: $8.5 million average investment cost for new stores, targeting mid-teens IRR. 
- **Off-Premise Growth**: To-go sales at 13% of total, with focus on accurate wait times and bagging efficiency. 
- **Technology**: Digital kitchen conversions and AGM 2.0 upgrades to improve seating utilization and guest experience. 


Actual											0.23	-0.48	0.42	0.28	0.91	1.08	0.75	0.76	1.08	1.07	0.93	0.89	1.28	1.22	0.95	1.08	1.69	1.79	1.26	1.73	1.7	1.86	1.25	1.28
Forecast											0.5384	-0.6243	0.1889	0.4923	0.5909	1.0319	0.8084	0.6846	0.9102	1.0135	0.8895	1.0302	1.3602	1.2047	1.0583	1.0649	1.6272	1.6424	1.3218	1.6396	1.7569	1.9049	1.2787	1.4976
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-57.28%	+23.11%	+122.34%	-43.12%	+54.00%	+4.66%	-7.22%	+11.01%	+18.66%	+5.57%	+4.55%	-13.61%	-5.90%	+1.27%	-10.23%	+1.42%	+3.86%	+8.99%	-4.68%	+5.51%	-3.24%	-2.36%	-2.24%	-14.53%

TXRH

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TXRH Q4 2025 Earnings

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TXRH

TXRH fundamentals

TXRH Q4 2025 Earnings

Earnings Call

TXRH Earnings Call Summary for Q4/20255:00 PM on Feb 19, 2026

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TXRH Earnings Call Summary for Q2/20255:00 PM on Aug 7, 2025

TXRH Earnings Call Summary for Q1/20255:00 PM on May 8, 2025

TXRH Earnings Call Summary for Q4/20245:00 PM on Feb 20, 2025

You can ask Aime