Texas Roadhouse (TXRH) Reports Q3: Everything You Need To Know Ahead Of Earnings

Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be announcing earnings results tomorrow after the bell. Here’s what to expect.

Texas Roadhouse met analysts’ revenue expectations last quarter, reporting revenues of $1.34 billion, up 14.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent 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 13.6% year on year to $1.27 billion, in line with the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.32 per share.

Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. Darden posted flat year-on-year revenue, missing analysts’ expectations by 1.5%, and Denny's reported a revenue decline of 2.1%, falling short of estimates by 3.2%. Darden traded up 7% following the results.

Read our full analysis of Darden’s results here and Denny’s results here.

There has been positive sentiment among investors in the restaurants segment, with share prices up 3.4% on average over the last month. Texas Roadhouse is up 2.8% during the same time and is heading into earnings with an average analyst price target of $187.57 (compared to the current share price of $180.45).

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