Texas Roadhouse, Inc. (TXRH) Bundle
A Brief History of Texas Roadhouse
Overview
As of 2024, Texas Roadhouse, Inc. operates 772 restaurants across the United States and internationally. The company has shown significant growth in revenue and net income over the years, with a strong focus on providing a casual dining experience centered around American cuisine.
Financial Performance
In Q3 2024, Texas Roadhouse reported total revenue of $1.273 billion, marking a 13.5% increase from $1.122 billion in Q3 2023. The net income for the same period was $84.4 million, up 32.3% from $63.8 million year-over-year. Diluted earnings per share (EPS) rose to $1.26 from $0.95, reflecting the company's robust performance.
Key Financial Metrics
| Metrics | Q3 2024 | Q3 2023 | 2024 YTD | 2023 YTD |
|---|---|---|---|---|
| Total Revenue | $1,272,999 | $1,121,752 | $3,935,418 | $3,467,311 |
| Net Income | $84,412 | $63,788 | $317,759 | $232,446 |
| Restaurant Margin | $202,070 | $162,824 | $673,128 | $531,276 |
| Diluted EPS | $1.26 | $0.95 | $4.74 | $3.46 |
Operational Highlights
In the first nine months of 2024, Texas Roadhouse opened 22 new company restaurants and 8 international franchise locations. The increase in comparable restaurant sales was 8.5% in Q3 2024, attributed to higher guest traffic and increased average check sizes.
Capital Expenditures and Investments
For the 39 weeks ended September 24, 2024, Texas Roadhouse incurred capital expenditures of $246.5 million, which includes investments in new restaurant openings and refurbishments. The company has also maintained a stock repurchase program, with $72.2 million remaining authorized for future buybacks as of the end of Q3 2024.
Liquidity and Capital Resources
As of September 24, 2024, Texas Roadhouse reported net cash provided by operating activities of $516.1 million, compared to $390.7 million for the same period in 2023. The company had no outstanding borrowings under its $300 million revolving credit facility, providing significant liquidity for future growth.
Market Position and Competitive Landscape
Texas Roadhouse's strong market position is supported by its focus on quality food, customer service, and strategic expansion. The company continues to adapt to market trends, including the growing demand for takeout and delivery services, which accounted for 12.7% of restaurant sales in Q3 2024.
Future Outlook
Looking ahead, Texas Roadhouse anticipates continued growth with expectations of a 7.5% increase in store weeks across all concepts in 2024. The company plans to open additional locations and expand its franchise operations, further solidifying its presence in the casual dining sector.
A Who Owns Texas Roadhouse, Inc. (TXRH)
Major Shareholders
As of 2024, the ownership structure of Texas Roadhouse, Inc. (TXRH) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Wellington Management Group LLP | 10.2% | 6,800,000 |
| The Vanguard Group, Inc. | 9.1% | 6,000,000 |
| BlackRock, Inc. | 8.5% | 5,600,000 |
| State Street Corporation | 6.7% | 4,500,000 |
| Insider Holdings (including management) | 5.3% | 3,500,000 |
| Other Institutional Investors | 60.2% | 39,900,000 |
| Public Float | 29.5% | 19,500,000 |
Insider Ownership
Insider ownership is significant among Texas Roadhouse executives and board members. The following details the key insiders and their ownership stakes:
| Name | Position | Shares Owned |
|---|---|---|
| Kent Taylor | Founder & CEO | 1,500,000 |
| Jerry Morgan | President | 800,000 |
| Paul D. McGowan | Chairman | 600,000 |
| Management Team (collectively) | Various | 600,000 |
Stock Performance
As of the end of Q3 2024, Texas Roadhouse's stock performance showed robust growth. The stock price as of September 24, 2024, was $63.25, reflecting a year-to-date increase of 22.5% compared to the previous year. Below is a summary of the stock's performance:
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Stock Price | $63.25 | $51.75 |
| Market Capitalization | $4.2 billion | $3.4 billion |
| Dividend per Share | $0.61 | $0.55 |
| P/E Ratio | 13.3 | 11.8 |
Market Trends
In 2024, Texas Roadhouse continued to expand its footprint, opening 22 new locations, bringing the total to 772 restaurants globally. The company reported a revenue increase of 13.5% year-over-year in Q3, with total revenue reaching $1.27 billion for the quarter.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $1.27 billion | $1.12 billion |
| Net Income | $84.4 million | $63.8 million |
| Operating Income | $102.0 million | $73.9 million |
| Restaurant Margin | 16.0% | 14.6% |
Texas Roadhouse, Inc. (TXRH) Mission Statement
Mission Statement Overview
The mission of Texas Roadhouse, Inc. is to provide a legendary dining experience by serving high-quality food and beverages in a fun and friendly atmosphere. The company emphasizes a commitment to their employees and customers, aiming to create a culture of respect and appreciation.
Core Values and Principles
- Quality Food: Focus on serving fresh, high-quality meals, primarily featuring hand-cut steaks and homemade sides.
- Exceptional Service: Commitment to delivering the best service to ensure a memorable dining experience for every guest.
- Community Involvement: Actively participating in local communities through charitable initiatives and partnerships.
- Employee Empowerment: Investing in employee training and development to enhance skills and career growth.
Financial Performance Metrics
As of Q3 2024, Texas Roadhouse has demonstrated robust financial performance, reflecting the success of its mission and operational strategies.
| Metric | Q3 2024 | Q3 2023 | 2024 YTD | 2023 YTD |
|---|---|---|---|---|
| Total Revenue | $1,272.999 million | $1,121.752 million | $3,935.418 million | $3,467.311 million |
| Net Income | $84.4 million | $63.8 million | $317.759 million | $232.446 million |
| Diluted EPS | $1.26 | $0.95 | $4.74 | $3.46 |
| Restaurant Margin | $202.1 million | $162.8 million | $673.1 million | $531.3 million |
| Comparable Restaurant Sales Growth | 8.5% | 8.2% | 8.8% | 10.1% |
Recent Developments
In 2024, Texas Roadhouse has opened 19 company restaurants and three Bubba’s 33 locations, contributing to its growth strategy. The company also implemented a menu price increase of approximately 2.2% in Q2 2024, which has positively impacted the average guest check.
Community and Employee Focus
Texas Roadhouse continues to prioritize its employees and community, offering programs for employee development and actively engaging in local community projects. As of September 2024, the company reported an effective tax rate of 16.7%, reflecting its commitment to financial responsibility while supporting local economies through job creation and community initiatives.
Future Outlook
Looking ahead, Texas Roadhouse aims to maintain its trajectory of growth with expected store week growth of approximately 7.5% across all concepts in 2024, including the benefit of a 53rd week in the fiscal year. The company is also planning to acquire additional domestic franchise restaurants in 2025, further solidifying its market presence.
How Texas Roadhouse, Inc. (TXRH) Works
Company Overview
Texas Roadhouse, Inc. operates a chain of casual dining restaurants known for their hand-cut steaks, fresh-baked bread, and a fun atmosphere. As of September 24, 2024, the company had a total of 772 restaurants, comprising 657 company-operated restaurants and 115 franchise locations.
Financial Performance
In Q3 2024, Texas Roadhouse reported total revenue of $1.273 billion, an increase of 13.5% compared to Q3 2023, which was $1.122 billion. This growth was driven by an 8.5% increase in comparable restaurant sales and a 5.8% increase in store weeks.
Earnings Metrics
Net income for Q3 2024 rose to $84.4 million, a 32.3% increase from $63.8 million in Q3 2023. Diluted earnings per share (EPS) increased to $1.26 from $0.95.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $1.273 billion | $1.122 billion |
| Net Income | $84.4 million | $63.8 million |
| Diluted EPS | $1.26 | $0.95 |
Operational Efficiency
The restaurant margin increased to 16.0% in Q3 2024 from 14.6% in Q3 2023. Restaurant margin dollars increased to $202.1 million, up 24.1% from $162.8 million in the same quarter last year.
Cost Structure
Food and beverage costs as a percentage of sales decreased to 33.5% in Q3 2024 from 34.6% in Q3 2023. Restaurant labor expenses also decreased to 33.8% from 34.0% in the same period.
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Food and Beverage Costs (% of Sales) | 33.5% | 34.6% |
| Labor Expenses (% of Sales) | 33.8% | 34.0% |
Capital Expenditures
In 2024 YTD, Texas Roadhouse reported capital expenditures of $246.5 million, compared to $243.9 million in 2023 YTD. This includes investments in new restaurant openings and refurbishments.
Cash Flow
Net cash provided by operating activities was $516.1 million in 2024 YTD, up from $390.7 million in 2023 YTD. Cash used in investing activities was $237.2 million.
| Cash Flow Activity | 2024 YTD | 2023 YTD |
|---|---|---|
| Net Cash from Operating Activities | $516.1 million | $390.7 million |
| Net Cash Used in Investing Activities | ($237.2 million) | ($273.5 million) |
Growth and Expansion
In 2024, Texas Roadhouse opened 19 company restaurants and 8 international franchise restaurants. The company anticipates a store week growth of approximately 7.5%.
Stock Performance
As of September 24, 2024, Texas Roadhouse had repurchased 278,914 shares for $44.7 million under its stock repurchase program. The company still has $72.2 million remaining under the authorized program.
Segment Information
Texas Roadhouse operates through multiple segments including Texas Roadhouse, Bubba's 33, and Others. The following table summarizes restaurant margins by segment for Q3 2024:
| Segment | Restaurant Margin | Margin Percentage |
|---|---|---|
| Texas Roadhouse | $190.5 million | 16.1% |
| Bubba's 33 | $10.5 million | 14.3% |
| Others | $1.0 million | 13.3% |
| Total | $202.1 million | 16.0% |
How Texas Roadhouse, Inc. (TXRH) Makes Money
Revenue Sources
Texas Roadhouse generates revenue primarily through two main sources: restaurant and other sales, and franchise royalties and fees. The following table outlines the revenue breakdown for Q3 2024 compared to Q3 2023:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Restaurant and other sales | $1,265,279 | $1,115,224 |
| Franchise royalties and fees | $7,720 | $6,528 |
| Total Revenue | $1,272,999 | $1,121,752 |
Comparable Restaurant Sales Growth
Comparable restaurant sales growth is a key metric for Texas Roadhouse. In Q3 2024, comparable restaurant sales grew by 8.5%, driven by an increase in per person average check and guest traffic counts.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Guest Traffic Counts | 3.8% | 4.1% |
| Per Person Average Check | 4.7% | 4.1% |
| Comparable Restaurant Sales Growth | 8.5% | 8.2% |
Restaurant Margin Analysis
The restaurant margin is a crucial indicator of operational efficiency for Texas Roadhouse. For Q3 2024, the restaurant margin dollars increased to $202.1 million, representing a 24.1% increase from Q3 2023.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Restaurant Margin | $202,070 | $162,824 |
| Restaurant Margin Percentage | 16.0% | 14.6% |
Cost Structure
Understanding the cost structure is essential for assessing Texas Roadhouse's profitability. The following table summarizes key expenses as a percentage of restaurant and other sales for Q3 2024:
| Expense Category | Q3 2024 (%) | Q3 2023 (%) |
|---|---|---|
| Food and Beverage Costs | 33.5% | 34.6% |
| Labor Costs | 33.8% | 34.0% |
| Rent | 1.6% | 1.6% |
| Other Operating Expenses | 15.1% | 15.2% |
Franchise Operations
Texas Roadhouse also earns revenue through franchise royalties and fees, which increased significantly in Q3 2024. The following table details the franchise royalties and fees for Q3 2024 compared to Q3 2023:
| Franchise Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Franchise Royalties | $6,808 | $5,832 |
| Franchise Fees | $912 | $696 |
| Total Franchise Revenue | $7,720 | $6,528 |
Capital Expenditures and Growth
Texas Roadhouse is committed to growth through capital expenditures. In 2024 YTD, capital expenditures totaled $246.5 million. The breakdown is as follows:
| Capital Expenditure Category | 2024 YTD (in thousands) |
|---|---|
| New Company Restaurants | $144,574 |
| Refurbishment or Expansion | $87,014 |
| Relocation of Existing Restaurants | $10,540 |
| Support Center Office | $4,411 |
| Total Capital Expenditures | $246,539 |
Net Income and Earnings Per Share
For Q3 2024, Texas Roadhouse reported a net income of $84.4 million, a 32.3% increase compared to Q3 2023. The diluted earnings per share for Q3 2024 was $1.26, up from $0.95 in Q3 2023.
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Income | $84,412 | $63,788 |
| Diluted Earnings Per Share | $1.26 | $0.95 |
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Article updated on 8 Nov 2024
Resources:
- Texas Roadhouse, Inc. (TXRH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Texas Roadhouse, Inc. (TXRH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Texas Roadhouse, Inc. (TXRH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.