Andrew Strelzik's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
Andrew Strelzik of BMO Capital Markets asked how the volumes and margins of the acquired franchise stores compare to the company average. He also inquired if the company's thinking on third-party delivery has evolved.
Answer
Executive Michael Bailen stated the acquired stores will be accretive to average weekly sales, adding about 0.5% to AUVs, and are roughly neutral to margin percentage. CEO Gerald Morgan said their stance on third-party delivery for the core Texas Roadhouse brand is unchanged, preferring to grow sales through their dining rooms and proprietary to-go business, though they do use it for Jaggers and most Bubba's locations.