Jim Cramer, the host of 'Mad Money,' examines stocks from restaurant chains to see if they should be included in your investment portfolio.
Texas Roadhouse (TXRH 1.73%) announced its earnings for the fourth quarter of 2024 on February 20, 2025, which CEO Jerry Morgan called a "memorable year" for the business. The casual dining chain showed impressive results across its various brands, with an increase in customer visits resulting in record average sales per location.
Texas Roadhouse has strong fundamentals, but its stock price seems too high and its technical indicators are not very strong.
Texas Roadhouse is performing well with strong sales at existing locations, good financial results, and solid unit economics, making it a great stock to buy and hold. Even with market ups and downs and worries about inflation, the company's fundamentals are strong, showing double-digit sales growth and better profit margins, which lead to record earnings. The company also plans to open 43 new restaurants in 2025, which will further boost its cash flow and market presence.
Texas Roadhouse has experienced significant growth and profits, but its stock is currently rated as 'Hold' because of limited future growth and peak profit margins. The fourth quarter results were strong, showing record margins, but the 14-week quarter makes it harder to compare future results. For 2025, earnings per share are expected to grow by 8%, but margins are likely to remain flat due to increasing costs of goods and wages.
Texas Roadhouse's fourth-quarter results reveal strong growth, with a 23.5% increase in revenue compared to last year and a 65.5% rise in operational income. Important indicators such as comparable sales, average weekly sales, and restaurant margin dollars are all improving, largely due to the takeout service. Although there has been a slight slowdown in sales recently, Texas Roadhouse's long-term growth potential and smart pricing strategies make it an attractive investment right now.
Texas Roadhouse, Inc. (NASDAQ:TXRH) will hold its Q4 2024 Earnings Conference Call on February 20, 2025, at 5:00 PM ET. The call will feature company representatives including Michael Bailen, Jerry Morgan, and Chris Monroe, along with various participants from different financial institutions. The operator welcomes everyone to the call, which is being recorded.
While the revenue and earnings per share (EPS) for Texas Roadhouse (TXRH) provide insight into its performance for the quarter ending December 2024, it could be helpful to look at how these important figures stack up against Wall Street predictions and last year's results.
Texas Roadhouse (TXRH) reported quarterly earnings of $1.73 per share, which is higher than the Zacks Consensus Estimate of $1.66 per share. This is an increase compared to earnings of $1.08 per share from the same time last year.
Texas Roadhouse (TXRH -1.41%), a popular steakhouse chain famous for its hand-cut steaks and homemade sides, shared its financial results for the fourth quarter of 2024 on February 20, 2025. A major point from the earnings report was a revenue growth of 23.5%, reaching $1.44 billion, up from $1.16 billion the previous year.