Texas Roadhouse’s (NASDAQ:TXRH) Q3 Sales Beat Estimates

Restaurant institution Texas Roadhouse (NASDAQ:TXRH) reported Q3 CY2025 results beating Wall Street’s gross expectations , with income up 12.8% twelvemonth connected twelvemonth to $1.44 billion. Its GAAP nett of $1.25 per stock was 3% beneath analysts’ statement estimates.

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• Revenue: $1.44 cardinal vs expert estimates of $1.43 cardinal (12.8% year-on-year growth, 0.7% beat)

• EPS (GAAP): $1.25 vs expert expectations of $1.29 (3% miss)

• Adjusted EBITDA: $149.6 cardinal vs expert estimates of $152.9 cardinal (10.4% margin, 2.2% miss)

• Operating Margin: 6.7%, down from 8% successful the aforesaid 4th past year

• Free Cash Flow Margin: 1%, down from 3.7% successful the aforesaid 4th past year

• Locations: 806 astatine 4th end, up from 772 successful the aforesaid 4th past year

• Same-Store Sales roseate 6.3% twelvemonth connected twelvemonth (8.2% successful the aforesaid 4th past year)

• Market Capitalization: $11.01 billion

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “Our operators continued to thrust beardown postulation this quarter, which helped offset the interaction of continued commodity inflation. While the duration of these inflationary pressures remains uncertain, we are committed to moving our concern with a semipermanent absorption and maintaining our worth proposition.”

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American edifice concatenation specializing successful Southern-style cuisine and steaks.

Examining a company’s semipermanent show tin supply clues astir its quality. Any concern tin enactment up a bully 4th oregon two, but galore enduring ones turn for years.

With $5.83 cardinal successful gross implicit the past 12 months, Texas Roadhouse is 1 of the larger edifice chains successful the manufacture and benefits from a well-known marque that influences user purchasing decisions.

As you tin spot below, Texas Roadhouse’s 14.2% annualized gross maturation implicit the past six years (we comparison to 2019 to normalize for COVID-19 impacts) was awesome arsenic it opened caller restaurants and accrued income astatine existing, established eating locations.

This quarter, Texas Roadhouse reported year-on-year gross maturation of 12.8%, and its $1.44 cardinal of gross exceeded Wall Street’s estimates by 0.7%.

Looking ahead, sell-side analysts expect gross to turn 8.4% implicit the adjacent 12 months, a deceleration versus the past six years. Despite the slowdown, this projection is supra mean for the assemblage and indicates the marketplace is baking successful immoderate occurrence for its newer paper offerings.