LOUISVILLE, Ky. - Texas Roadhouse , Inc. (NASDAQ:TXRH) shares climbed 2% after the company reported first-quarter earnings that exceeded analyst expectations. The restaurant chain posted an adjusted earnings per share (EPS) of $1.69, surpassing the consensus estimate of $1.62. Revenue matched expectations, coming in at $1.32 billion for the quarter.
The company witnessed a robust 12.5% increase in total revenue compared to the same period last year, bolstered by a significant 31.4% jump in diluted earnings per share. Texas Roadhouse's income from operations also saw a notable rise of 31.9% YoY.
The positive earnings report reflects strong comparable restaurant sales growth, with an 8.4% increase at company restaurants and a 7.7% rise at domestic franchise restaurants. The average weekly sales at company restaurants grew to $159,378, of which $20,815 were to-go sales, an improvement from the previous year's figures.
CEO Jerry Morgan credited the company's success to its commitment to providing exceptional food and service, which has driven sales growth. "We are off to a tremendous start in 2024 with strong traffic trends continuing to drive our sales growth," Morgan stated. He also highlighted the company's development progress, with 10 new company restaurants opened in 2024 and 18 more under construction.
Looking ahead, Texas Roadhouse anticipates continued positive sales growth, including the benefits of recent menu price increases. The company expects commodity cost inflation of around 3%, store week growth of approximately 8%, and wage and other labor inflation between 4% to 5%. The effective income tax rate is projected to be around 14%, with total capital expenditures estimated to be between $340 million to $350 million for the year.
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