TEXAS ROADHOUSE Reports Fourth Quarter 2022 Earnings Results for Fiscal Year 2022

Earnings Overview

Texas Roadhouse ($NASDAQ:TXRH) released their earnings report for the fourth quarter of fiscal 2022 on February 16, 2023, which had ended on December 31, 2022. Their total revenue rose 12.8% compared to the same quarter of the previous year, hitting USD 59.9 million. Additionally, net income also spiked 12.7%, coming in at USD 1009.5 million.

Transcripts Simplified

For the fourth quarter of 2022, Texas Roadhouse reported a 12.7% increase in revenue, primarily driven by a 7.1% increase in average unit volume and store week growth of 5.5%. Net income increased 12.8% to $59.9 million, with diluted earnings per share increasing 17.4% to $0.89. Restaurant margin dollars grew 3.4% to $145.6 million and were 14.5% as a percentage of total sales. Food and beverage costs as a percentage of total sales were 35.1%, up 4 basis points from the prior year due to commodity inflation of 6.6%.

Labor as a percentage of total sales increased 75 basis points to 33.4%, while labor dollars per store week increased 9.3%. Other operating costs were 15.3% of sales, up 58 basis points from the prior year. For 2023, the company has commodity inflation guidance of 5% to 6%, and wage and other inflation guidance between 5% and 6%.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Texas Roadhouse. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Texas Roadhouse. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Texas Roadhouse. More…

Key Ratios Snapshot

Some of the financial key ratios for Texas Roadhouse are shown below. More…

Share Price

The stock opened at $102.8 and closed at $105.2, representing an increase of 0.8% from the previous closing price of 104.3. This increase in share price reflects the strong financial performance of the company for the quarter. Live Quote…

Analysis

GoodWhale has conducted an analysis of the financials of TEXAS ROADHOUSE. According to the Star Chart, the company is classified as a ‘cheetah’, meaning that it has achieved high revenue or earnings growth, yet is considered less stable with lower profitability. This type of company may be interesting to investors who are focused on dividend and growth. TEXAS ROADHOUSE is strong in dividend and growth, and medium in asset and profitability. In addition, TEXAS ROADHOUSE has a high health score of 8/10 with regard to its cashflows and debt, indicating that the company is capable of paying off debt and funding future operations. Therefore, we believe that this company may be an attractive investment option for investors who are looking for dividend and growth. More…

Peers

As the restaurant industry becomes increasingly competitive, companies are searching for ways to differentiate themselves from their competitors. One way to do this is by offering a unique experience that cannot be found at other restaurants. Texas Roadhouse Inc. has done this by creating an atmosphere that is fun and inviting, while also providing quality food at a reasonable price. This has made them a popular choice for both casual and family dining.

However, they are not the only company in this space and must compete with other businesses that offer a similar experience. Some of their main competitors include Young & Co’s Brewery PLC, Brighton Pier Group (The) PLC, and Sakae Holdings Ltd.

– Young & Co’s Brewery PLC ($LSE:YNGA)

Young & Co’s Brewery PLC is a leading brewery company in the United Kingdom. The company has a market capitalization of 499.71 million as of 2022 and a return on equity of 4.78%. Young & Co’s Brewery PLC is engaged in the production and distribution of beer and other alcoholic beverages. The company’s products include ales, lagers, stouts, and ciders. Young & Co’s Brewery PLC is headquartered in London, the United Kingdom.

– Brighton Pier Group (The) PLC ($LSE:PIER)

Brighton Pier Group PLC is a United Kingdom-based company, which owns and operates Brighton Palace Pier. The Company’s segments include Palace Pier, which is engaged in the operation of a seaside amusement pier; Marina, which is engaged in the operation of a leisure marina; Restaurants, which is engaged in the operation of restaurants, and Amusement Arcades, which is engaged in the operation of amusement arcades. The Company offers a range of rides and attractions, such as carousel, chair-o-planes, crazy golf, dodgems, ghost train, helicopter rides, roller coasters and water zorbs. It also provides food and beverage outlets, such as cafes, bars, fish and chips restaurant and an ice cream parlour. The Company’s subsidiary includes Brighton Marine Palace and Pier Company Limited.

– Sakae Holdings Ltd ($SGX:5DO)

Sakae Holdings Ltd is a Singapore-based company that engages in the provision of management services. It operates through the following segments: Food and Beverage, and Property. The Food and Beverage segment comprises of Sakae Sushi, Yakiniku Sakae, Pizza Express, SAKAECAFE, and Others. The Property segment includes hospitality, commercial, and industrial properties. The company was founded on November 12, 1981 and is headquartered in Singapore.

Summary

TEXAS ROADHOUSE reported strong financial results for the fourth quarter of 2022, with total revenue increasing 12.8% year over year and net income increasing 12.7% year over year. This indicates that the company is performing well and investors should consider it as a potential investment opportunity. With an increasing revenue and net income, TEXAS ROADHOUSE is an attractive option for investors looking to diversify their portfolios.