Q2 2024 Texas Roadhouse Inc Earnings Call Transcript
Key Points
- Texas Roadhouse Inc (TXRH) reported a strong same-store sales growth of 9.3% for the second quarter.
- Revenue exceeded $1.3 billion, driven by new store openings and increased average unit volume.
- The company experienced a significant increase in diluted earnings per share, up 46.4% to $1.79.
- Texas Roadhouse Inc (TXRH) saw a positive trend in its digital kitchen conversion, with 50% of scheduled conversions completed.
- The company maintained strong cash flow from operations, ending the quarter with $197 million in cash.
- Despite strong performance, Texas Roadhouse Inc (TXRH) faces ongoing inflationary pressures, particularly in commodity costs.
- Labor costs remain a concern, with wage and other labor inflation expected to be 4% to 5% for the full year.
- The company noted a continued negative mix in alcohol sales, which could impact overall revenue.
- There is uncertainty regarding future beef costs, which could affect margins in the coming quarters.
- Texas Roadhouse Inc (TXRH) is increasing its capital expenditure guidance, which may impact short-term cash flow.
Good evening, and welcome to the Texas Roadhouse second quarter earnings conference call. Today's call is being recorded and all participants are now in a listen only mode. (Operator Instructions)
I would now like to introduce Michael Bailen, Head of Investor Relations for Texas Roadhouse. You may begin your conference.
Thank you, Breanna, and good evening. By now, you should have access to our earnings release for the second quarter ended June 25, 2024. It may also be found on our website at texasroadhouse.com in the Investors section. I would like to remind everyone that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them.
We refer all of you to our earnings release and our recent filings with the SEC. These documents provide a more detailed discussion of the relevant factors that could cause actual results to differ materially from those forward
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