Texas Roadhouse Surprises with Q4 Sales, 23.5% YoY Growth



Highlights:

* Revenue: $1.44 billion, beats estimates by 2% (23.5% YoY growth)
* EPS (GAAP): $1.73, exceeds expectations by 5.4%
* Operating Margin: 9.6%, up from 7.2% last year
* Free Cash Flow Margin: 9%, up from 6.1% last year
* Locations: 784, an increase from 741 in the previous year
* Same-Store Sales: 7.7% YoY growth (9.6% in Q4 2023)

Company Overview:

Texas Roadhouse (NASDAQ: TXRH) is a popular American restaurant chain specializing in Southern-style cuisine and steaks. Known for its Western-inspired decor, it operates numerous locations across the country.

Financial Performance:

Texas Roadhouse has consistently demonstrated impressive financial performance, with $5.37 billion in revenue over the past 12 months. Its long-term sales growth rate stands at an impressive 14.3%. The recent Q4 results showcased strong year-on-year revenue growth of 23.5%.

Restaurant Operations:

* Number of Restaurants: 784, with steady growth over the last two years
* Same-Store Sales: Exceptionally strong growth of 9.1% YoY on average, indicating high demand at existing locations
* Q4 Same-Store Sales: 7.7% YoY growth, slightly decelerated from historical levels

Key Takeaways:

* Texas Roadhouse exceeded revenue expectations and met same-store sales estimates in Q4.
* The company's strong financial performance and restaurant operations suggest continued growth potential.

Investment Considerations:

While the Q4 results are encouraging, it is important to consider long-term fundamentals and valuation when making investment decisions. For a more comprehensive analysis, refer to our full research report available here.