Earnings Preview: Texas Roadhouse

Texas Roadhouse TXRH is preparing to release its quarterly earnings on Thursday, 2025-08-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Texas Roadhouse to report an earnings per share (EPS) of $1.92.

The announcement from Texas Roadhouse is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

The company's EPS missed by $0.06 in the last quarter, leading to a 4.79% increase in the share price on the following day.

Here's a look at Texas Roadhouse's past performance and the resulting price change:

Quarter Q1 2025 Q4 2024 Q3 2024 Q2 2024
EPS Estimate 1.76 1.64 1.31 1.64
EPS Actual 1.70 1.73 1.26 1.79
Price Change % 5.0% -1.0% 4.0% 2.0%

Performance of Texas Roadhouse Shares

Shares of Texas Roadhouse were trading at $182.23 as of August 05. Over the last 52-week period, shares are up 9.48%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Texas Roadhouse

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Texas Roadhouse.

Texas Roadhouse has received a total of 11 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $199.09, the consensus suggests a potential 9.25% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Aramark, Cava Group and Dutch Bros, three key industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Outperform trajectory for Aramark, with an average 1-year price target of $46.0, suggesting a potential 74.76% downside.
  • Analysts currently favor an Neutral trajectory for Cava Group, with an average 1-year price target of $108.82, suggesting a potential 40.28% downside.
  • Analysts currently favor an Outperform trajectory for Dutch Bros, with an average 1-year price target of $77.67, suggesting a potential 57.38% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Aramark, Cava Group and Dutch Bros are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Texas Roadhouse Neutral 9.57% $246.59M 8.30%
Aramark Outperform 1.89% $359.64M 2.03%
Cava Group Neutral 28.12% $84.06M 3.62%
Dutch Bros Outperform 29.10% $89.99M 2.70%

Key Takeaway:

Texas Roadhouse ranks in the middle for Consensus. It is at the bottom for Revenue Growth. It is at the top for Gross Profit. It is at the bottom for Return on Equity.

Delving into Texas Roadhouse's Background

Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment. The company manages its restaurant and franchising operations by concept and, as a result, has identified Texas Roadhouse, Bubba's 33, Jaggers, and retail initiatives as separate operating segments. In addition, it has identified Texas Roadhouse and Bubba's 33 as reportable segments. Maximum revenue for the company is generated from the Texas Roadhouse segment, which is a moderately priced, full-service, casual dining restaurant concept offering steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches.

Financial Insights: Texas Roadhouse

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Texas Roadhouse's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 9.57%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Texas Roadhouse's net margin is impressive, surpassing industry averages. With a net margin of 7.85%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.3%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.56%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.66, Texas Roadhouse adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Texas Roadhouse visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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