Brian Bittner's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
Brian Bittner from Oppenheimer asked about the company's pricing strategy for 2025. He noted the current ~3.1% pricing run-rate and questioned how the 2025 inflation guidance for commodities (2-3%) and wages (4-5%) would inform future pricing decisions.
Answer
CEO Gerald Morgan explained that Texas Roadhouse will adhere to its established process of reviewing pricing with operators after the new year and will make a decision based on the business environment at that time. Executive Michael Bailen confirmed the analyst's math, stating the company will have 3.1% pricing in Q4 and Q1, after which 2.2% will roll off, necessitating a new pricing decision for Q2 2025.