Gregory Francfort's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
Gregory Francfort of Guggenheim questioned the viability of the long-term 17-18% restaurant margin target, suggesting a lower range might be more realistic given current inflation and that AUVs have outpaced development costs.
Answer
CEO Gerry Morgan reaffirmed the 17-18% margin target, acknowledging that achieving it depends on external factors like the beef cycle. He stated that while it is a challenge, the company is not changing its long-term goal at this time and remains focused on a balanced approach to driving top-line growth while managing costs.