David Tarantino's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
David Tarantino of Robert W. Baird & Co. asked about the company's unit growth philosophy. He noted that the 2025 guidance of 30 openings represents a growth rate below the historical 5% target and questioned if the focus has shifted from a percentage to an absolute number of openings.
Answer
CEO Jerry Morgan clarified that the company has never targeted a specific growth percentage, but rather focuses on executing the right number of high-quality openings to maintain operational excellence. He expressed comfort with the '30-ish' range to avoid overstretching resources. CFO David Monroe added that the 13 planned franchise acquisitions bring the total expected unit increase to 43.