Texas Roadhouse (TXRH) Reports Earnings Tomorrow: What To Expect

Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Texas Roadhouse met analysts' revenue expectations last quarter, reporting revenues of $1.32 billion, up 12.5% year on year. It was a good quarter for the company, with a solid beat of analysts' gross margin estimates and a narrow beat of analysts' earnings estimates .

Is Texas Roadhouse a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Texas Roadhouse's revenue to grow 14.3% year on year to $1.34 billion, in line with the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Roadhouse has missed Wall Street's revenue estimates three times over the last two years.

Looking at Texas Roadhouse's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.8%, meeting analysts' expectations, and Kura Sushi reported revenues up 28.1%, in line with consensus estimates. Darden's stock price was unchanged after the resultswhile Kura Sushi was down 15.9%.

Read our full analysis of Darden's results here and Kura Sushi's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. Texas Roadhouse's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $177.7 (compared to the current share price of $170.4).

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