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Texas Roadhouse, Inc. (the "Company," "we," "our," and/or "us") was incorporated under the laws of the state of Delaware in 2004. Introduction The Company is a growing restaurant company operating predominantly in the casual dining segment.
Operating margin is thin at 8.08%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 9.4%, steady but not accelerating. Free cash flow declined 14% despite revenue growth, conversion is weakening.
Free cash flow declined 14% versus the prior year, cash generation momentum has weakened. ROIC dropped from 21.13% to 17.55%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$6.06B
▲ +9.4% YoY
Net Income (TTM)
$415M
▼ -6.5% YoY
Op. Margin
8.02%
▼ -1.5pp YoY
ROIC
17.15%
▼ -3.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$361M
▼ -14.3% YoY
Op. Cash Flow (TTM)
$751M
▼ -3.1% YoY
Net Debt
$840M
Cash & Equiv.
$215M
5Y CAGR: +19.6%
5Y CAGR: +35.1%
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