Dennis Geiger's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
Dennis Geiger from UBS asked for an outlook on labor hour growth into 2025, following another quarter of strong hour management and productivity gains.
Answer
Executive Michael Bailen suggested that the favorable ratio of labor hours to traffic growth (below 50%) could persist through 2024. For 2025, he cautioned that they will be lapping a period of being well-staffed, which could cause the ratio to normalize. He stressed that operators will continue to staff appropriately to drive growth and that they will be 'learning together' what the 2025 ratio will ultimately be.