Texas Roadhouse Reports $1.45 Billion Revenue, 9.6% Increase, and Acquires 14 Franchise Restaurants

Texas Roadhouse, Inc. reported a total revenue of $1.45 billion for the 13 weeks ended April 1, 2025, marking a 9.6% increase from $1.32 billion in the same period last year. This growth was primarily driven by a 7.1% increase in store weeks and a 3.5% rise in comparable restaurant sales. The company attributed the increase in comparable sales to a higher average check per guest and increased customer traffic. Net income for the quarter rose slightly to $113.7 million, up from $113.2 million in the prior year, resulting in diluted earnings per share of $1.70, a 1.0% increase from $1.69.

In terms of operational changes, Texas Roadhouse acquired 14 domestic franchise restaurants during the quarter for a total of $78.3 million, which contributed to the increase in store weeks. The company now operates 688 restaurants and franchises an additional 104 locations across 49 states and ten countries. The acquisition aligns with Texas Roadhouse's strategy to enhance its market presence and drive future growth. The company also opened eight new restaurants during the quarter, including seven Texas Roadhouse locations and one Bubba’s 33 restaurant.

The company experienced a rise in restaurant operating costs, with food and beverage costs increasing to 34.1% of restaurant and other sales, up from 33.9% in the previous year. Labor costs also rose to 33.3% of sales, driven by wage inflation and increased staffing expenses. Despite these rising costs, the restaurant margin increased by $10.8 million to $239.3 million, although the margin percentage decreased to 16.6% from 17.4% due to inflationary pressures. General and administrative expenses slightly decreased as a percentage of total revenue, reflecting improved operational efficiency.

Looking ahead, Texas Roadhouse anticipates continued growth in 2025, projecting a store week growth of approximately 5%, bolstered by the recent acquisitions and new openings. The company expects commodity inflation to remain a challenge, estimating a 4% increase in costs, particularly for beef. Additionally, Texas Roadhouse plans to maintain its capital expenditures at around $400 million for the year, focusing on new restaurant development and refurbishments. The company also announced a quarterly dividend of $0.68 per share, up from $0.61, reflecting its commitment to returning value to shareholders while pursuing growth opportunities.