Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be reporting earnings this Thursday after market close. Here’s what you need to know.
Texas Roadhouse beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $1.44 billion, up 23.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Is Texas Roadhouse a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Texas Roadhouse’s revenue to grow 8.9% year on year to $1.44 billion, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Roadhouse has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Texas Roadhouse’s peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BJ's delivered year-on-year revenue growth of 3.2%, meeting analysts’ expectations, and Brinker International reported revenues up 27.2%, topping estimates by 2.6%. BJ's traded up 13.4% following the results while Brinker International was down 16.4%.
Read our full analysis of BJ’s results here and Brinker International’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 6.9% on average over the last month. Texas Roadhouse is up 10.3% during the same time and is heading into earnings with an average analyst price target of $181.23 (compared to the current share price of $170.82).
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