Dennis Geiger's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
Dennis Geiger of UBS asked for an outlook on the Other Operating Expense and labor lines for the second half of the year to better understand the potential trajectory for restaurant-level margins.
Answer
Michael Bailen, Senior Director & Head of IR and Financial Analysis, suggested that assuming modest traffic growth continues, the Other OpEx line could see a similar level of leverage as in the first half. He projected the labor line would likely be flat to slightly leveraged in the back half of the year under the same traffic assumptions.