Texas Roadhouse (NASDAQ: TXRH) reported Q3 EPS of $1.26, $0.06 worse than the analyst estimate of $1.32. Revenue for the quarter came in at $1.27 billion versus the consensus estimate of $1.27 billion.

2024 Outlook

Comparable restaurant sales at company restaurants for the first four weeks of our fourth quarter of fiscal 2024 increased 8.3% compared to 2023. In addition, the Company implemented a menu price increase of approximately 0.9% in late September.

Management updated the following expectations for 2024:

Commodity cost inflation of less than 1%;
Wage and other labor inflation of approximately 4.5%; and
An effective income tax rate of approximately 15%.

Management reiterated the following expectations for 2024:

Positive comparable restaurant sales growth including the benefit of menu pricing actions;
Store week growth of approximately 7.5%, including a benefit of 2% from the 53rd week; and
Total capital expenditures of $360 million to $370 million.

2025 Outlook

Management provided the following initial expectations for 2025:

Positive comparable restaurant sales growth including the benefit of 2024 menu pricing actions;
Store week growth of approximately 5%, including a benefit of 2% from the planned franchise acquisition;
Commodity cost inflation of 2% to 3%;
Wage and other labor inflation of 4% to 5%;
An effective income tax rate of 15% to 16%; and
Total capital expenditures of approximately $400 million.

For earnings history and earnings-related data on Texas Roadhouse (TXRH) click here.