Overview

• Casual dining chain's Q4 revenue missed analyst expectations

• Diluted EPS for Q4 decreased 26.1%, impacted by lower restaurant margins

• Company opened nine new restaurants and completed franchise acquisitions

Outlook

• Company plans menu price increase of 1.9% in early April

• Company anticipates wage and labor inflation of 3% to 4%

Result Drivers

• COMPARABLE SALES GROWTH - Comparable restaurant sales increased 4.2% at company restaurants, despite missing revenue expectations

• MARGIN PRESSURE - Restaurant margin dollars decreased 15.6% due to higher food and beverage costs and the absence of an extra week from the prior year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 18 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Texas Roadhouse Inc is $192.50, about 3% above its February 18 closing price of $186.87

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nGNX7PGXKh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)