David Palmer's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
David Palmer from Evercore ISI asked about the persistent negative mix, its drivers beyond alcohol, and its influence on strategy, while also questioning if strong traffic is the primary factor behind recent labor leverage.
Answer
Michael Bailen, Senior Director & Head of IR and Financial Analysis, clarified that all negative mix pressure stems from the alcohol category, as entree mix remains positive. On labor, he confirmed strong traffic is a key factor but also credited effective staffing by operators, lower employee turnover, and productivity gains from digital kitchen investments.