The 10-second takeaway
For the quarter ended March 27 (Q1), Texas Roadhouse met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share was unchanged.
Gross margins increased, operating margins shrank, net margins dropped.
Texas Roadhouse logged revenue of $324.9 million. The 14 analysts polled by S&P Capital IQ foresaw revenue of $324.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $283.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.27 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 70 basis points better than the prior-year quarter. Operating margin was 9.1%, 160 basis points worse than the prior-year quarter. Net margin was 5.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $318.9 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $0.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 287 members out of 328 rating the stock outperform, and 41 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Texas Roadhouse a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Roadhouse is hold, with an average price target of $18.17.
Over the decades, small-cap stocks, like Texas Roadhouse have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Texas Roadhouse to My Watchlist.