Texas Roadhouse Earnings: Here’s Why the Stock is Rising Now

Texas Roadhouse Inc. (NASDAQ:TXRH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.88%.

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Texas Roadhouse Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 19.35% to $0.37 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 10.72% to $359.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Texas Roadhouse Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.35. It beat the average revenue estimate of $357.9 million.

Quoting Management: Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, “Our operating momentum continued during the first quarter with double-digit revenue and diluted earnings per share growth. Additionally, we are encouraged by positive comparable restaurant sales and traffic growth in the first quarter, which continued through the first four weeks of our second quarter. Our success is a direct result of our team’s ongoing commitment to providing legendary food and service to our guests. Texas Roadhouse remains well-positioned through the combination of our continued focus on operations, new restaurant growth and our commitment to returning capital to shareholders, which we believe will drive shareholder value over the long-term.”

Key Stats (on next page)…

Revenue increased 16.21% from $309.53 million in the previous quarter. EPS increased 94.74% from $0.19 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.28 and has not changed. For the current year, the average estimate has moved up from a profit of $1.11 to a profit of $1.12 over the last ninety days.

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