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Texas Roadhouse Q4 2024: Revenue Up 23.5% and EPS Rises 60.1%

Texas Roadhouse celebrates strong Q4 2024 results with notable revenue growth of 23.5% to $1.44 billion and a 60.1% EPS increase to $1.73. This financial performance signals robust operational efficiency and strategic expansion plans moving forward.

Date: 
AI Rating:   7
Financial Highlights
Texas Roadhouse has reported impressive growth metrics for Q4 2024. The company's revenue increased by 23.5%, reaching $1.44 billion, significantly boosted by an extra week in this reporting period. Despite the extra week, the underlying operational performance appears solid.

Earnings Per Share (EPS)
The earnings per share for the quarter climbed by 60.1%, from $1.08 to $1.73, indicating strong profitability and efficient cost management.

Net Income
Net income surged by 59.9%, reflecting successful efforts in controlling costs amid rising inflation. This rise to $115.8 million demonstrates overall financial health and effective management in a challenging environment.

Profit Margins
Restaurant margins improved significantly to 17.0% from 15.3% in the prior year. Improved labor productivity and higher guest spending contributed to this gain, alongside controlled commodity costs.

Comparable Restaurant Sales
Comparable restaurant sales increased by 7.7%, although this represents a slight decline from the previous year's 9.9% growth, yet still indicates positive performance in core locations.

Expansion and Future Strategy
The strategic expansion has continued with 31 new company-run and 14 franchise locations opened during 2024, demonstrating a commitment to growth. The management is optimistic about upcoming growth as they plan to acquire more franchise restaurants in 2025.

Based on the overall performance metrics and growth strategies, Texas Roadhouse exhibits a healthy outlook. Effective cost management under rising inflation scenarios and an emphasis on operational efficiency are clear indicators of solid management.

Rating Analysis
Each point based on the report's metrics has been rated as follows:
- EPS: 8 (Strongly positive growth)
- Net Income: 8 (Strongly positive growth)
- Profit Margins: 7 (Slightly positive improvement)
- Comparable Restaurant Sales: 6 (Neutral growth)
The overall rating for Texas Roadhouse based on this report is 7, reflecting strong performance amidst some areas needing attention.
Stocks:  TXRH