Jim Sanderson's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
Jim Sanderson from Northcoast Research asked how corporate store margins might evolve with increased development of the Bubba's 33 brand and about the planned mix of company versus franchise units for that concept.
Answer
Michael Bailen, Senior Director & Head of IR and Financial Analysis, clarified that the growth plan for Bubba's 33 is entirely company-owned development. He stated that over time, Bubba's is expected to achieve margins similar to the Texas Roadhouse brand, though Roadhouse's higher current AUVs provide a margin advantage.