Texas Roadhouse Earnings: Here’s Why Investors Don’t Like These Results

Texas Roadhouse Inc. (NASDAQ:TXRH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.54%.

Texas Roadhouse Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.28 in the quarter as EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 9.94% to $352.11 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Texas Roadhouse Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company missed the mean analyst estimate of $0.29. It missed the average revenue estimate of $354.48 million.

Quoting Management: Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are pleased with our top-line momentum, which resulted in another quarter of solid revenue growth led by positive comparable restaurant sales. Our new restaurants continue to generate solid returns, and we are still generating sufficient cash flows to not only fund our restaurant growth, but also enhance our existing assets and return capital to shareholders. We are confident that our relentless focus on legendary food and service is the best way to continue driving market share gains in this economic environment.”

Key Stats (on next page)…

Revenue decreased 2.1% from $359.68 million in the previous quarter. EPS decreased 24.32% from $0.37 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.25 to a profit $0.26. For the current year, the average estimate has moved up from a profit of $1.12 to a profit of $1.16 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)