Texas Roadouse reported an upper and lower line beat in its fourth trimester with strong comparable sales growth and margin improvement. Although the first seven weeks of the first trimester are at a noisy start due to immature weather, this short -term head creates a long -term option. Revenue in the finished quarter on December 31 increased 23.5% from year to year to $ 1.44 billion, exceeding the Wall Street consensus estimation complete with LSEG of $ 1.41 billion. Action Profits (EPS) increased 60% to $ 1.73, ahead of $ 1.64 expected. Why do we own him why we own it: Texas Roadouse is a random fast beard that offers quality food at an affordable price in a fun atmosphere, creating one of the most compelling proposals for consumers in the category of serving with service full. The stores of a significant wholesale company are shops owned by the company, with only a small portion as exclusivity location. Competitors: Darden Restaurant (Olive Garden, Longghorn Steakhouse), Brinker International (Chili’s and Maggiano’s), Bloomin Brands (Outback, Italian Grill Carrabbas, Bonefolill) Portfolio Weighing: /4 /2025 Bottom Line Texas Roundhouse completed 2024 in a high note with strong growth and profitability. A 7.7% increase in comparable store sales, or Compes, was better than what analysts estimated, and it was prompted by a healthy mix of 4.9% increase in traffic and a 2.8% stroke in average totals of control. Traffic indicates that more people are eating in company -owned restaurants, which also include random 33 dining chains and Bubba Jaggers. The average increase in control indicates how much they are spending. Texas Roadouse has understood how to create a big balance between maintaining its value with just rising rising prices, explaining why customers are so loyal to the chain. COMP growth was relatively stable throughout the quarter, with a monthly cadence of 8.3%, 6.9%and 7.9%for October, November and December, respectively. But the trends were raised in the new year. The company said on Thursday evening that its comparable restaurant sales for the first seven weeks increased 2.9% compared to 2024. This is a big step from Q4 but don’t be alarmed. The brand is not fighting because of something internal. There are many external factors that influence sales, which management did a good job by explaining in the call of the post -profit conference. The first four weeks of January were pretty good with Comps up to 5.5%, which included a 1 percent benefit from New Year’s Eve being included in 2025 Comps and not in 2024, but they were also adversely affected by a head of 2 percent of snow. delays or closures. Supporting these outside, Texas Roadouse was watching Comps among the single single digits. In the last three weeks, the environment has been difficult – with flat Comps from year to year – due to Valentine’s Day shifting to another day and, of course, the cold weather that swept across the country. In total, the company is “conservatively estimating” a negative impact of 1.5 percent in the seven-week period reported by calendar shifts and shop closures, excluding cold weather impact which undoubtedly damages sales. When the weather is cold with rain or snow, people prefer to eat at home instead of eating outside. Mean what all this means? Although the update of the Comp company may seem like a disappointment, a look at the stock chart tells you that the market knew it was coming. TXRH 1y Mountain Texas Roadouse 1 year Shares have been drawn approximately 5% since the beginning of February, following essentially slowing sales. But with the weather likely to improve from here and safe management in positive traffic growth for the rest of the year, we think that this latest weakness creates a long -term purchase opportunity as shown by 1 our rating. We are also repeating $ 205 for our stock price target, which is simply shy of high stock back in November. After a modest start Thursday evening, Texas Roadouse’s shares returned above 2% to the post -schedule of over $ 175. Texas Roadouse comment owns a significant majority of his stores against exclusivity countries. And, on the first day of the fiscal year 2025, it completed an agreement to get 13 household exclusivity. We like to see Texas Roadouse use its money in hand to get exclusivity because it gives the company more control over everything in its restaurants. No wonder its company ownership stores are exceeding them owned by exclusivity. In 2025, the company hosts approximately 30 opening of the company’s restaurants in its three brands, seven international exclusivity in Texas Roadhouse Hapnings and three internal openings of Jaggar. They also expect to relocate as many nine from their highest performance restaurants in Texas Roadouse in new larger places with more parking. We think the company has the ability to accelerate the new store openings if you want, but management prefers a 25 to 30 cadence to ensure its new stores make a great first impression. Their long -term US goal for Texas Roadouse restaurants is still 900, out of more than 650 countries currently. As for cash returns, the company announced an increase in the 11% quarter dividend to 68 cents per share. With a stock price of $ 170 per share, around where it was closed at the regular session of Thursday, the new yield increases to about 1.6%. The company board also approved a new stock repurchase program of up to $ 500 million. This new program replaces the previous program worth $ 300 million. Guidelines for 2025, management reaffirmed much of his view. They continue to expect the positive growth of comparable restaurant sales, including the benefit of last year’s menu price actions, a store week increase of approximately 5%, including a 2% benefit from exclusivity purchases, salaries and Other labor inflation from 4% to 5%, an effective tax rate of 15% to 16%, and total capital costs of $ 400 million. But there was a small tweak of the point of view. Management now expects the cost inflation of goods to be 3% to 4%, from its previous 2% perspective to 3%. The main leader of the change in the instruction was updated with the expectations of livestock supply, which is expected to be stronger in the back of 2025 than it was originally predicted. The company’s margins are very sensitive to beef prices as this is a steakhouse chain. This can put pressure on the borders in the front neighborhoods, but a compensation for these higher costs will be the declared increase in 1.4% of the menu prices that enter into force in early April. Despite rising prices, the company is convinced that the price level holds its daily value. (Jim Cramer’s charity is tall txrh. See here for a full stock list.) As a CNBC investment club subscriber with Jim Cramer, you will receive a trade alarm before making a trade. Jim waits 45 minutes after sending a commercial alarm before buying or selling an action on his charity portfolio. If Jim has spoken of a CNBC TV action, he waits 72 hours after issuing a trade alarm before executing trade. The above information of the Investment Club is subject to our conditions and conditions and the privacy policy, along with our denial. No obligation or task of trust exists, or is created, due to receiving your information provided with respect to the investment club. 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A woman enters a restaurant in Texas Roadouse in Arvada, Colorado, Friday, March 11, 2011.
Matthew Staver | Bloomberg | Getty Images
In Texas Roadouse reported an upper and lower beating in its fourth trimester with strong comparable sales growth and margin improvement. Although the first seven weeks of the first trimester are at a noisy start due to immature weather, this short -term head creates a long -term option.