Texas Roadhouse Reports Strong Earnings for Q2 2023
July 29, 2023
☀️Earnings Overview
On June 30 2023, TEXAS ROADHOUSE ($NASDAQ:TXRH) reported its financial results for the second quarter of fiscal year 2023. The company realized total revenue of USD 1171.2 million, a 14.3% growth from the same period of the prior year. Additionally, net income increased 13.6% to USD 82.3 million compared to the same quarter of the previous year.
Price History
Thursday saw Texas Roadhouse report strong earnings for the second quarter of 2023. Despite this, the stock opened at $113.4 and closed at $112.2, representing a 0.6% decrease from the prior closing price of 112.9. The company’s success was attributed to an increase in sales of alcohol and appetizers, as well as the introduction of new menu items such as sandwiches and salads.
The company’s success is largely attributed to its focus on menu innovation and leveraging digital channels to drive sales. With revenue increasing and same-store sales growing, it appears that Texas Roadhouse is well positioned for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Texas Roadhouse. More…
| Total Revenues | Net Income | Net Margin |
| 4.35k | 290.86 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Texas Roadhouse. More…
| Operations | Investing | Financing |
| 501.25 | -310.61 | -263.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Texas Roadhouse. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.51k | 1.42k | 16.16 |
Key Ratios Snapshot
Some of the financial key ratios for Texas Roadhouse are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 73.4% | 7.8% |
| FCF Margin | ROE | ROA |
| 4.8% | 19.9% | 8.5% |
Analysis
As GoodWhale analysts, we have conducted a thorough study of Texas Roadhouse’s financial and business fundamentals. Our Risk Rating indicates that this is a low risk investment. We have also identified one risk warning in the company’s balance sheet; however, this information is only available to our registered users. Therefore, we encourage potential investors to become a registered user to gain access to all the details of our analysis. 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 is a restaurant chain with strong performance in Q2 2023. Total revenue increased 14.3% to USD 1171.2 million and net income rose 13.6% to USD 82.3 million compared to the same period in the prior year. This is a positive sign for investors as it shows the company is well-positioned to take advantage of favorable market conditions.
The company has created a solid foundation to build upon and should benefit from continuing industry tailwinds. Investors should consider adding a position in Texas Roadhouse, as its consistent performance should continue to provide strong returns in the future.
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