Eric Gonzalez's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
Eric Gonzalez of KeyBanc Capital Markets asked for a summary of the store-level margin implications for 2025, given what appears to be a conservative pricing strategy alongside a relatively benign food cost outlook.
Answer
CFO David Monroe responded that the primary focus is on growing restaurant margin dollars, not hitting a specific percentage, although the 17-18% long-term goal remains. He stressed that the margin outcome is highly sensitive to traffic, pricing, and inflation, and with a pricing decision still pending for Q2 2025, it is too early to provide a precise margin forecast.