Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
Texas Roadhouse met analysts’ revenue expectations last quarter, reporting revenues of $1.68 billion, up 11.1% year on year. It was a satisfactory quarter for the company, with same-store sales in line with analysts’ estimates.
Is Texas Roadhouse a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Texas Roadhouse’s revenue to grow 9.9% year on year, slowing from the 12.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Texas Roadhouse has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Texas Roadhouse’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 2.7%, and Brinker International reported revenues up 9.4%, topping estimates by 1.2%. The Cheesecake Factory traded down 2.5% following the results while Brinker International was up 11.8%.
Read our full analysis of The Cheesecake Factory’s results here and Brinker International’s results here.
There has been positive sentiment among investors in the sit-down dining segment, with share prices up 13.4% on average over the last month. Texas Roadhouse is up 17.6% during the same time and is heading into earnings with an average analyst price target of $208.29 (compared to the current share price of $186.98).
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