The following is a summary of the Texas Roadhouse, Inc. (TXRH) Q1 2024 Earnings Call Transcript:
Financial Performance:
Texas Roadhouse kicked off 2024 with Q1 revenue exceeding $1.3 billion and same-store sales growth of 8.4%.
The company marked 12.5% revenue growth in the first quarter, driven by a 7.7% increase in average unit volume and 4.9% store week growth.
Q1 restaurant margin dollar increased 23% to $228 million and the diluted earnings per share rose 31.4% to $1.69.
Restaurant margin as a percentage of total sales went up to 17.4% for the first quarter.
The company expects Q2 to experience a higher rate of commodity inflation than Q1, though still forecasting below the full-year average.
Texas Roadhouse anticipates the average investment for a new Roadhouse to reach around $8 million, marking an over 40% increase from 2019.
Business Progress:
Texas Roadhouse opened nine company-owned branches in Q1 and plans to open six more in Q2, following continued confidence in the brand's growth.
Building on growth strategies, the company aims to launch four new Bubba's 33 locations and the first international franchise of Jaggers in South Korea this year.
Their transition to Digital Kitchens progresses steadily with 30% of the planned 200 conversions completed.
Roadie-First Technology, a new employee management system, is set for Q2 roll-out.
Expansion seems promising based on reliable performance across new stores.
They will maintain focus on quality service and food, key contributors to their robust growth.
Bubba's branch recorded substantial improvements in Q1, with margins expected to hit approximately 17%-18%.
Jaggers shows positive growth with more franchise deals in the pipeline expected to boost future expansion.
The company is gearing up investments into Roadhouse Technology.
The expected 53-week year will likely result in strong performance.
More details: Texas Roadhouse IR
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