Texas Roadhouse (TXRH) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 15.4% to $4.632B and diluted EPS increased 14.3% to $4.54; comparable sales grew double digits at company restaurants.

• Leadership cited record system-wide openings across three brands; 19 new company restaurants were under construction as the business entered 2024.

Financial highlights

• Q4 revenue was $1.164B, up 15.3% YoY; income from operations was $83.8M, up 21.7%, and net income was $72.4M, up 21.0%.

• Q4 diluted EPS rose 21.3% to $1.08; FY diluted EPS increased 14.3% to $4.54 from $3.97.

• FY revenue reached $4.632B, up 15.4%; operating income was $354.0M, up 10.6%, and net income was $304.9M, up 13.0%.

Outlook and guidance

• Comparable sales at company restaurants increased 6.8% for the first 50 days of fiscal Q1 2024; a menu price increase of ~2.2% was planned for late March.

• FY 2024 expectations: positive company comparable sales growth, including 2023 menu pricing; store-week growth ~8%, including a 2% benefit from the 53rd week.

• FY 2024 commodity inflation was updated to ~5% and effective tax rate to ~14%; wage and other labor inflation guidance remained 4%–5%.

• FY 2024 capital expenditure guidance was $340M–$350M.