Texas Roadhouse executives feel good about the health of the consumer

October 28, 2022
Texas Roadhouse experienced same-store sales growth in Q3, including traffic growth, despite higher menu prices.

Texas Roadhouse reported third quarter earnings Thursday, including an 8.2% increase in comp store sales at company-owned restaurants and a 6.7% increase at domestic franchise restaurants.

Average weekly sales at company restaurants were up nearly $10,000 versus last year – $129,278 versus $120,094 – and off-premises business made up nearly 13% of those sales in Q3. Though the company has taken some pricing, including 2.9% on the quarter, traffic trends remain positive, providing plenty of optimism for executives. In fact, traffic for the company is up by more than 10% over 2019 numbers.

Texas Roadhouse reported third quarter earnings Thursday, including an 8.2% increase in comp store sales at company-owned restaurants and a 6.7% increase at domestic franchise restaurants.

Average weekly sales at company restaurants were up nearly $10,000 versus last year – $129,278 versus $120,094 – and off-premises business made up nearly 13% of those sales in Q3. Though the company has taken some pricing, including 2.9% on the quarter, traffic trends remain positive, providing plenty of optimism for executives. In fact, traffic for the company is up by more than 10% over 2019 numbers.

“I think the health of the consumer feels good. Demand continues to be strong for our brands. We’re seeing good traffic growth across all dayparts and days of the week, so from that standpoint, all good from our perspective,” CFO Tonya Robinson said during the earnings call.

Texas Roadhouse has had 10 years of traffic growth, but now it may also be benefitting from drive-thru fatigue. New data from Gravy Analytics finds that the quick-service category experienced less foot traffic in Q3 versus some fast casual and casual dining brands.

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