Texas Roadhouse (TXRH) Q2 2024 earnings summary

Executive summary

• Total revenue for Q2 2024 rose 14.5% year-over-year to $1.34 billion, driven by 9.3% comparable sales growth and strong traffic across all brands.

• Net income increased 46.0% to $120.1 million, with diluted EPS up 46.4% to $1.79, reflecting higher restaurant margin and sales.

• Restaurant margin improved to 18.2% of sales from 15.7% in Q2 2023, aided by higher average guest check and labor productivity.

• Opened six company-owned and three franchise restaurants in Q2; over 50 international franchise locations now in operation.

• Bubba's 33 and Jaggers brands continued positive trends, with Bubba's averaging $123,000 and Jaggers $73,000 in weekly sales.

Financial highlights

• Restaurant and other sales grew 14.5% to $1.33 billion; franchise royalties and fees up 10.9% to $7.6 million in Q2 2024.

• Restaurant margin dollars increased 32.7% to $243 million; diluted EPS rose 46.4% to $1.79.

• Food and beverage costs improved to 32.7% of sales; labor costs as a percentage of sales decreased to 32.8%.

• Cash and cash equivalents at June 25, 2024, were $197.5 million; operating cash flow for the first half was $377.3 million.

• Paid $40.7 million in dividends and repurchased $26.2 million in stock in Q2 2024.

Outlook and guidance

• 2024 store week growth expected at ~7.5%, including a 2% benefit from the 53rd week.

• Commodity cost inflation forecast at ~2%; wage and labor inflation expected at 4–5%.

• Total capital expenditures for 2024 expected between $360 million and $370 million.

• Effective tax rate for 2024 projected at ~14.5%.

• 2024 is a 53-week year; the extra week expected to benefit full-year EPS growth by about 4%.