Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be announcing earnings results this Thursday after market close. Here’s what you need to know.
Texas Roadhouse missed analysts’ revenue expectations last quarter, reporting revenues of $1.48 billion, up 3.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS 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 13% year on year, improving from the 9.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and The Cheesecake Factory reported revenues up 5.6%, topping estimates by 1.5%. Kura Sushi traded down 17.8% following the results while The Cheesecake Factory’s stock price was unchanged.
Read our full analysis of Kura Sushi’s results here and The Cheesecake Factory’s results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. Texas Roadhouse is down 3.8% during the same time and is heading into earnings with an average analyst price target of $193.60 (compared to the current share price of $157.01).
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