The 10-second takeaway
For the quarter ended March 26 (Q1), Texas Roadhouse met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share expanded significantly.
Gross margins grew, operating margins were steady, net margins grew.
Texas Roadhouse reported revenue of $359.7 million. The 20 analysts polled by S&P Capital IQ expected to see revenue of $358.2 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $324.9 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 $0.37. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.37 for Q1 were 37% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.1%, 60 basis points better than the prior-year quarter. Operating margin was 10.6%, much about the same as the prior-year quarter. Net margin was 7.3%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $351.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 293 members out of 331 rating the stock outperform, and 38 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Texas Roadhouse a green thumbs-up, and 11 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 $19.89.
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