TEXAS ROADHOUSE Reports Fourth Quarter FY2022 Earnings Results for Period Ending February 16 2023

Earnings Overview

TEXAS ROADHOUSE ($NASDAQ:TXRH) reported their earnings results for the fourth quarter of FY2022 ending February 16 2023 on December 31 2022. The company showed an increase of 12.8% in total revenue to USD 59.9 million and a year-over-year growth of 12.7% in net income to USD 1009.5 million.

Transcripts Simplified

For the fourth quarter of 2022, Texas Roadhouse reported revenue growth of 12.7%, driven by a 7.1% increase in average unit volume and store week growth of 5.5%. Net income was up 12.8% to $59.9 million, with diluted earnings per share increasing 17.4% to $0.89. Comparable restaurant sales increased 7.3% in the fourth quarter, driving by 6.2% average check growth and a 1.1% increase in guest traffic. Food and beverage costs were 35.1% of total sales, up 4 basis points compared to 2021 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, which was 58 basis points up from the fourth quarter of 2021. For 2023, commodity inflation guidance is at 5%-6%, and wage and other inflation guidance is at 5%-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…

Stock Price

The company’s stock opened at $102.8 in the morning and closed up 0.8% from the previous closing price of $104.3, closing at $105.2. TEXAS ROADHOUSE CEO, Tony Harper, said “We are pleased to report another solid quarter and year of financial results including healthy dividend payment growth. The strategic initiatives we launched throughout the year have enabled us to continue our positive momentum in spite of the economic challenges we faced during the past year.” Overall, TEXAS ROADHOUSE’s financial performance in the fourth quarter and full year of FY2022 give shareholders and investors reason to be optimistic about the company’s future prospects. Live Quote…

Analysis

GoodWhale has conducted an analysis of TEXAS ROADHOUSE‘s financials and based on the Star Chart assessment, we can see that the company is strong in dividend and growth and medium in asset and profitability. TEXAS ROADHOUSE falls into the category of what we call a ‘cheetah’, a type of company that achieves high revenue or earnings growth but is considered less stable due to lower profitability. Therefore, what type of investors may be interested in such a company? Well, despite its lower profitability, TEXAS ROADHOUSE still has a high health score of 8/10 with regard to its cashflows and debt, indicating that the company is well-positioned to pay off its debt and fund any future operations. Furthermore, with its strong dividend and growth potential, investors seeking potential gains may find this company attractive. Ultimately, investing in TEXAS ROADHOUSE would be suitable for those investors who have a higher risk tolerance, as there is no guarantee that the company will achieve its desired success in the long run. 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

Investors in Texas Roadhouse have reason to be optimistic with the fourth quarter of FY2022 results ending February 16 2023 being reported. Total revenue was up by 12.8% to USD 59.9 million and net income was up 12.7% to USD 1009.5 million year over year. These figures suggest that the company is suffering no ill effects from the pandemic and that their strategies have been successful. Furthermore, it appears that investors will likely continue to benefit from the steady growth of Texas Roadhouse in the future.