Texas Roadhouse Starts 2016 on a Positive Note

Can Texas Roadhouse Maintain Its Strong 1Q16 Performance?

1Q16 performance

Texas Roadhouse (TXRH) reported its 1Q16 results on May 2, 2016. The company posted revenue of $515.6 million and adjusted EPS (earnings per share) of $0.55. Compared to 1Q16, the revenue increased by 12% and the EPS grew by 8.7%.

Market’s response

Texas Roadhouse’s 1Q16 revenue was in line with analysts’ estimates. However, the EPS was lower than analysts’ estimate of $0.54. The $5.5 million settlement charges on a wage-per-hour demand with the Delaware Department of Labor had a negative impact on its 1Q16 EPS by $0.05. The adjusted EPS stands at $0.55. This was greater than analysts’ estimates of $0.54. So, the stock price rose on the announcement of its 1Q16 results. The company ended May 2, 2016, with its share price up by 3.3%.

Texas Roadhouse’s share price has increased by 22.4% year-to-date. During the same period, the share price of its peers such as Buffalo Wild Wings (BWLD), Brinker International (EAT), and Bloomin’ Brands (BLMN) returned -15%, -2.4%, and 12.3%, respectively. The Guggenheim S&P 500 Pure Growth ETF’s (RPG) share price appreciated by 8.6%. RPG invests 44% of its holdings in restaurants and travel companies.

Series overview

In this series, we’ll discuss the 1Q16 earnings call and notes along with Texas Roadhouse’s performance on key metrics during the quarter. We’ll also cover management’s guidance and analysts’ estimates for the rest of 2016 and beyond.

Let’s start by discussing Texas Roadhouse’s 1Q16 revenue growth.

Continue to Next Part

Browse this series on Market Realist:

• Part 2 - Why Did Texas Roadhouse’s Revenue Grow in 1Q16?

• Part 3 - Higher Traffic Drove Texas Roadhouse’s Same-Store Sales Growth in 1Q16

• Part 4 - Company-Owned Restaurants Dominate Texas Roadhouse’s Expansion