Restaurant company Texas Roadhouse (NASDAQ: TXRH) will be reporting results this Thursday after market close. Here’s what to expect.
Texas Roadhouse beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.51 billion, up 12.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.
Is Texas Roadhouse a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Texas Roadhouse’s revenue to grow 12% year on year to $1.43 billion, slowing from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Roadhouse has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Texas Roadhouse’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. First Watch delivered year-on-year revenue growth of 25.6%, beating analysts’ expectations by 1.9%, and Brinker International reported revenues up 18.5%, topping estimates by 1.3%. Brinker International traded down 12.9% following the results.
Read our full analysis of First Watch’s results here and Brinker International’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the sit-down dining stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Texas Roadhouse is down 3.4% during the same time and is heading into earnings with an average analyst price target of $196.16 (compared to the current share price of $161.40).
P.S. In tech investing, "Gorillas" are the rare companies that dominate their markets—like Microsoft and Apple did decades ago. Today, the next Gorilla is emerging in AI-powered enterprise software. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
