Shares of Texas Roadhouse (TXRH) rose in premarket trading Friday, a day after the steakhouse chain’s comparable sales results and outlook came in above analysts’ estimates.
Texas Roadhouse reported first-quarter comparable sales at company restaurants rose by 3.5%, while analysts polled by Visible Alpha had expected 3.0% growth. The restaurant operator added they are up 5% for the first five weeks of the current quarter after it increased prices by roughly 1.4% in April, while analysts are looking for 4.1% growth for Q2.
The Louisville, Ky.-based chain reported earnings per share of $1.70 on revenue that rose 10% year-over-year to $1.45 billion. Analysts had expected $1.76 and $1.44 billion, respectively.
The company now sees 2025 “commodity cost inflation of approximately 4%, including the estimated impact of tariffs.” Last quarter, the company said it expected commodity cost inflation of 3% to 4% this year.
“We are pleased to report that our operators successfully navigated us through a number of challenges this quarter and once again delivered traffic growth across all three of our brands,” CEO Jerry Morgan said. “During this period of economic uncertainty, as always, we remain focused on the fundamentals of our business and on what we can control, which is creating an environment where our Roadies want to work and our guests want to dine.”
Shares advanced less than 2% before the opening bell. They entered Friday down about 4% since the start of the year.