Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be reporting earnings this Thursday after market hours. Here’s what investors should know.
Texas Roadhouse met analysts’ revenue expectations last quarter, reporting revenues of $1.63 billion, up 12.8% year on year. It was a mixed quarter for the company, with a beat 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 10.7% year on year, slowing from the 12.7% 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 Q2 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 2.9%, and BJ's reported revenues up 6.4%, topping estimates by 3.2%. The Cheesecake Factory traded up 13.6% following the results while BJ's was down 9%.
Read our full analysis of The Cheesecake Factory’s results here and BJ’s results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Texas Roadhouse is up 11.6% during the same time and is heading into earnings with an average analyst price target of $203.17 (compared to the current share price of $207.50).
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