Jon Tower's questions to Texas Roadhouse Inc (TXRH) leadership • Q3 2024
Question
Jon Tower from Citigroup asked for details on the drivers of the 4-5% labor inflation outlook for 2025, beyond the mandated increases. He also inquired about the higher CapEx guidance and the performance of the Bun and Butter retail rollout.
Answer
Executive Michael Bailen attributed the additional labor inflation to underlying wage pressure, performance-based rewards, and the impact of acquiring stores in California. CFO David Monroe explained the higher CapEx is for store maintenance and value-adding investments like kitchen expansions. CEO Gerald Morgan noted the retail rollout is exceeding early expectations and driving brand awareness.