Texas Roadhouse Reports Strong Q4 Earnings; Growth Continues
Texas Roadhouse Inc. Announces Fourth Quarter 2024 Results
Texas Roadhouse, Inc. (NASDAQ: TXRH) has shared its financial performance for the fourth quarter and fiscal year ending December 31, 2024. Celebrated for its bustling atmosphere and exceptional customer service, Texas Roadhouse continues to thrive in a competitive casual dining environment.
Financial Highlights
For the fourth quarter of 2024, Texas Roadhouse achieved total revenue of $1,437,914, a notable increase from $1,164,361 in the previous year, marking a remarkable growth of 23.5%. Meanwhile, the fiscal year revenue reached $5,373,332 compared to $4,631,672, reflecting a 16% increase year-over-year.
Key Performance Indicators
The company's comparable restaurant sales saw a commendable rise of 7.7% at company stores, while domestic franchise restaurants experienced an increase of 6.3%. Average weekly sales at company restaurants surged to $153,867, with to-go sales contributing $20,067, in comparison to $141,653 and $17,793 in the prior year.
Restaurant margin dollars increased significantly by 37.3%, climbing to $242.6 million from $176.7 million. The restaurant margin percentage also improved to 17.0%, up from 15.3% year-over-year, primarily due to higher sales volume.
Earnings Growth
Texas Roadhouse reported a diluted earnings per share of $1.73 for the fourth quarter, representing a 60.1% boost over the previous year. This increase is largely attributed to the higher restaurant margin dollars, offset slightly by rising depreciation and amortization costs, along with increased general and administrative expenses.
Expansion and Capital Allocation
During this quarter, Texas Roadhouse opened nine new company restaurants and five franchise locations. The company's capital allocation included $107.8 million in capital expenditures, dividends totaling $40.7 million, and $35.1 million directed towards share repurchasing.
Looking ahead, Texas Roadhouse aims to sustain its growth momentum into 2025. The completion of a significant acquisition involving 13 franchise restaurants for approximately $78 million was achieved at the beginning of the fiscal year.
2025 Expectations and Future Plans
For the first seven weeks of 2025, the company has recorded a 2.9% increase in comparable restaurant sales compared to 2024. To further boost revenues, Texas Roadhouse plans to introduce a menu price increase of approximately 1.4% in early April.
Management anticipates challenges from commodity cost inflation between 3% and 4%. However, they remain optimistic about the potential for positive comparable restaurant sales growth, aided by previous menu pricing strategies.
Dividends and Stock Buyback Initiatives
On February 19, 2025, Texas Roadhouse's Board of Directors announced a quarterly cash dividend of $0.68 per share, representing an 11% increase from the prior year. This cash dividend is scheduled for distribution on April 1, 2025, to shareholders recorded by March 18, 2025. Furthermore, the company has initiated a new stock buyback program authorizing the repurchase of up to $500 million of its common stock.
Conclusion
Texas Roadhouse continues to demonstrate robust performance trends as seen in its fourth quarter and fiscal results. With a clear path for development and strategic focus on enhancing shareholder value, the company is set for a prosperous 2025.
Frequently Asked Questions
What are the key financial results for Texas Roadhouse in Q4 2024?
Texas Roadhouse reported total revenue of $1,437,914 in Q4 2024, marking a growth of 23.5% compared to 2023.
How did the company's comparable restaurant sales perform?
The company's comparable restaurant sales grew by 7.7% at company restaurants and 6.3% at domestic franchises, indicating solid customer demand.
What are the future plans for Texas Roadhouse?
Texas Roadhouse plans to increase menu prices by approximately 1.4% and anticipates opening new franchise locations to support growth in 2025.
Which significant acquisition did Texas Roadhouse complete recently?
The company acquired 13 franchise restaurants for about $78 million at the start of its 2025 fiscal year.
What is the latest dividend announced by the company?
Texas Roadhouse's Board approved a quarterly dividend of $0.68 per share, set to be distributed on April 1, 2025.
About The Author
Contact Henry Turner privately here. Or send an email with ATTN: Henry Turner as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.