Texas Roadhouse, Inc. Q4 FY2025 earnings call

2025 was successful with 60th consecutive quarter of comparable restaurant sales growth (excluding 2020). Opened 800th system-wide restaurant, acquired 20 franchise locations, over 70% of restaurants set sales records. Rolled out digital kitchen and upgraded guest management systems. Purchased support center buildings. Raised over $40 million via Dine to Donate and provided 1.2 million meals to veterans. 2026 expects ~35 company restaurant openings, 6 international Texas Roadhouses, 4 domestic Jaggers. To implement 1.9% menu price increase in Q2, focus on beverages, and expand handheld tablet testing.

2025 revenue grew to nearly $5.9 billion. Same-store sales increased 4.9% for the full year with 2.8% traffic growth. Consolidated average unit volume exceeded $8.4 million. Texas Roadhouse had average weekly sales over $166,000, Bubba's 33 over $122,000, and Jaggers nearly $73,000. For the fourth quarter of 2025, revenue grew 3.1%, comparable sales increased 4.2%, restaurant margin dollars decreased 15.6% to $205 million, and diluted earnings per share decreased 26.1% to $1.28.

Commodity inflation guidance ~7% unchanged, wage/labor inflation 3%-4% unchanged. Capital expenditure guidance ~$400 million unchanged. Quarterly dividend increased 10% to $0.75 per quarter. Forecasted low double-digit G&A increase for 2026. Income tax rate forecasted between 14%-15%.

Commodity inflation, labor cost pressures, weather impacts on sales, cattle cycle dynamics affecting beef costs, potential demand destruction for beef, build cost inflation, utility cost increases.

Includes questions from analysts about fourth quarter performance, labor hours, beef inflation, digital kitchen, pricing, tax refunds, mix of sales, Bubba's growth, G&A guidance, beverage innovation, build costs, labor inflation, and pricing positioning