Texas Roadhouse (TXRH) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $5.37 billion in 2024, with average unit volume surpassing $8 million for the first time.

• Double-digit increases in restaurant margin dollars, income from operations, and EPS for the second consecutive year.

• Opened 31 company-owned and 14 franchise restaurants in 2024; acquired 13 franchise locations for $78 million in early 2025.

• Celebrated major milestones, including the 750th system-wide restaurant and 20 years as a public company.

• Increased quarterly dividend by 11% to $0.68 per share and authorized a new $500 million stock repurchase program.

Financial highlights

• Fourth quarter revenue grew 23.5% to $1.44 billion, driven by a 6.6% increase in comparable average unit volume and 13.7% store week growth.

• Restaurant margin dollars rose 37.3% to $243 million in Q4; diluted EPS increased 60.1% to $1.73.

• Full-year restaurant margin dollars up 29.4% to $915.8 million; margin percentage at 17.1%.

• Cash flow from operations reached $753.6 million for 2024; ended the year with $245.2 million in cash.

• Total return for 2024 was 44%, including 42.5% EPS growth and a 1.5% dividend yield.

Outlook and guidance

• 2025 wage and labor inflation expected at 4%-5%, mainly from state-mandated increases and higher benefits.

• Commodity inflation guidance raised to 3%-4% for 2025, primarily due to tighter cattle supply in the second half.

• Capital expenditures for 2025 guided at ~$400 million, excluding $78 million for franchise acquisition.

• Menu price increase of 1.4% to be implemented in Q2 2025; pricing expected to be 2.3% starting Q2.

• Store week growth projected at ~5% in 2025, including 2% from franchise acquisition.