Texas Roadhouse

TXRH Q1 2025 Earnings

Reported May 8, 2025 at 4:06 PM ET · SEC Source

Q1 25 EPS

$1.70

MISS 3.27%

Est. $1.76

Q1 25 Revenue

$1.45B

BEAT +0.51%

Est. $1.44B

vs S&P Since Q1 25

-35.8%

TRAILING MARKET

TXRH -8.1% vs S&P +27.7%

Market Reaction

Did TXRH Beat Earnings? Q1 2025 Results

Texas Roadhouse delivered a mixed first quarter for 2025, posting solid top-line growth while falling short on the bottom line as cost pressures weighed on profitability. Revenue climbed 9.6% year-over-year to $1.45 billion, edging past the $1.44 bil… Read more Texas Roadhouse delivered a mixed first quarter for 2025, posting solid top-line growth while falling short on the bottom line as cost pressures weighed on profitability. Revenue climbed 9.6% year-over-year to $1.45 billion, edging past the $1.44 billion consensus estimate by 0.51%, driven by comparable restaurant sales growth of 3.5% and continued unit expansion. Earnings per share, however, came in at $1.70, missing the $1.76 consensus by 3.27%, as commodity inflation of 2.1% and wage and labor inflation of 4.6% compressed restaurant margins by 77 basis points to 16.6%. The cost squeeze tells much of the story: food, beverage, and labor costs collectively consumed a larger share of sales than a year ago, limiting the earnings benefit of stronger traffic across all three brands. Looking ahead, management raised its 2025 commodity inflation outlook to approximately 4%, now incorporating estimated tariff impacts, though early Q2 momentum offers some reassurance, with comparable sales accelerating to 5.0% over the first five weeks of the period.

Key Takeaways

  • Comparable restaurant sales increased 3.5% at company restaurants
  • Traffic growth delivered across all three brands
  • Average weekly sales at company restaurants rose to $163,071 from $159,378
  • Restaurant margin dollars increased 4.7% to $239.3 million
  • Eight new company restaurants opened in the quarter
  • To-go sales grew to $22,146 per week from $20,815
24/7 Wall St

TXRH YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

TXRH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“We are pleased to report that our operators successfully navigated us through a number of challenges this quarter and once again delivered traffic growth across all three of our brands. During this period of economic uncertainty, as always, we remain focused on the fundamentals of our business and on what we can control, which is creating an environment where our Roadies want to work and our guests want to dine.”

— Jerry Morgan, Q1 2025 Earnings Press Release