Texas Roadhouse, Inc. (NASDAQ: TXRH) Financial Performance Analysis

• Earnings Per Share (EPS) of $1.26 missed the estimated $1.33 but showed growth from the previous year's $0.95.
• Revenue reached approximately $1.27 billion, a 13.5% increase year-over-year, yet slightly below the Zacks Consensus Estimate.
• Comparable restaurant sales saw significant growth, contributing to a 24.1% increase in restaurant margin dollars.

Texas Roadhouse, Inc. (NASDAQ:TXRH) is a well-known American restaurant chain specializing in steaks and promoting a Western theme. The company operates and franchises restaurants across the United States and internationally. In the competitive restaurant industry, Texas Roadhouse stands out with its focus on quality food and a lively dining experience.

On October 24, 2024, Texas Roadhouse reported earnings per share (EPS) of $1.26, which was below the estimated $1.33. Despite this, the EPS showed growth from the previous year's $0.95, indicating an improvement in profitability. This highlights the importance of comparing current performance with both past results and analyst expectations to gauge financial health.

The company's revenue for the quarter was approximately $1.27 billion, marking a 13.5% increase from the same period last year. However, it slightly missed the Zacks Consensus Estimate of $1.28 billion, resulting in a revenue surprise of -0.56%. This underscores the challenge of meeting market expectations despite strong year-over-year growth.

Texas Roadhouse also reported a significant rise in comparable restaurant sales, with an 8.5% increase at company-owned locations and a 7.2% increase at domestic franchises. This growth contributed to a 24.1% increase in restaurant margin dollars, reaching $202.1 million. The restaurant margin as a percentage of sales improved to 16.0% from 14.6% the previous year, driven by higher sales.

The company's financial ratios provide further insight into its market valuation and liquidity. With a price-to-earnings (P/E) ratio of 30.93 and a price-to-sales ratio of 2.37, the market values Texas Roadhouse's revenue and earnings positively. However, the current ratio of 0.30 indicates a need to improve short-term liquidity.