Kelly Merrill's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
Kelly Merrill, on behalf of Brian Harbour at Morgan Stanley, asked what was driving commodity inflation besides beef and if there were any offsets. She also inquired about potential labor efficiency initiatives to counteract the commodity cost pressures.
Answer
Michael Bailen, Senior Director & Head of IR, stated that beef is the primary driver of commodity inflation, with other proteins being only slightly inflationary and some minor offsets from produce. He explained that operators are always focused on efficiency but the company is not mandating any specific scheduling changes, as they staff for current and future sales levels.