Kelly Merrill's questions to Texas Roadhouse Inc (TXRH) leadership • Q2 2025
Question
Kelly Merrill, on behalf of Brian Harbour at Morgan Stanley, asked about the drivers of commodity inflation beyond beef, potential offsets, and whether the company is exploring new labor efficiencies to counter cost pressures.
Answer
Michael Bailen, Senior Director & Head of IR and Financial Analysis, confirmed that beef is the primary driver of inflation with no other commodities large enough to provide a significant offset. Regarding labor, he stated that while operators always seek efficiency, the company is not mandating any new initiatives that would dramatically change its current approach to staffing.