Texas Roadhouse Inc. (TXRH), a casual dining restaurant chain, recently reported third quarter results that topped the Zacks Consensus Estimate on the heels of lower commodity and pre-opening costs besides a jump in the top-line.
Earnings of 15 cents a share surpassed the Zacks Consensus Estimate of 12 cents and climbed 27% year on year. On [...]
Texas Roadhouse Inc. (TXRH), a casual dining restaurant chain, recently reported third quarter results that topped the Zacks Consensus Estimate on the heels of lower commodity and pre-opening costs besides a jump in the top-line.
Earnings of 15 cents a share surpassed the Zacks Consensus Estimate of 12 cents and climbed 27% year on year. On account of better than expected results, Texas Roadhouse raised its full-year guidance and now expects earnings to rise 20% as against the 5%−10% previously anticipated.
For the fiscal 2010, management expects EPS growth to be flat to 10%, if comparable restaurant sales lie within the range of (2%) to flat.
The growth in the top-line decelerated. After climbing 12% in the second quarter, total revenues showed a sluggish growth of 4% to $226.5 million in the reported quarter. Restaurant sales jumped 4% to $224.4 million, whereas franchise royalties and fees ascended 2.7% to $2.1 million.
Like other casual dining restaurant operators – Cosi Inc. (COSI), Red Robin Gourmet Burgers Inc. (RRGB), and California Pizza Kitchen Inc. (CPKI) – Texas Roadhouse too has been experiencing sagging comparable restaurant sales and falling traffic as cash-strapped consumers are trading down to quick service restaurant operators like McDonald’s Corp. (MCD), Yum! Brands Inc. (YUM) and Chipotle Mexican Grill (CMG) due to cheaper dining options, or else they prefer to eat at home.
Comparable restaurant sales fell 4.6% at company-owned restaurants and 3.6% at franchised restaurants. Comps fell 2.3% in the first four weeks of the fourth quarter.
Analysts were expecting Texas Roadhouse Inc. (TXRH) [Chart - News - Analysis] to report earnings of $0.12 for last quarter, but TXRH beat expectations with actual earnings of $0.15---3 cents above the consensus estimate.
If you compare last quarter's earnings to the $0.12 the company made per share during the same quarter a year ago, you can see that TXRH’s earnings are up this year.
{loadposition link_newslink1}
{loadposition livevideopromo}
{loadposition homeaccordion2}
{loadposition contentad}
Also, if you compare TXRH's 16.91% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 10.88% for the Restaurants industry as a whole during that same time frame, you can see that analysts expect TXRH to outperform the industry in the future---which is a good sign for the stock.
Drilling down a little deeper into the Restaurants industry, you can see how analysts believe TXRH will stack up against some of the other stocks in the industry, like Brinker International Inc. (EAT) [Chart - News - Analysis] and Wendy's/Arby's Group, Inc. (WEN) [Chart - News - Analysis], in the future. Analysts believe EAT's earnings are going to grow at a rate of 10.13% while WEN's earnings are going to grow at a rate of 13.06%.
Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.
A late-day charge landed all major averages in positive territory. The DJIA advances 0.7%. The S&P 500 is up 0.6%. The Nasdaq Composite is up 0.2%.[More...]
On Friday evening, I posted a number of charts for potential long trades. Index chart are currently trading in a 10 day range, and dip buyers have been active. On the other hand, we saw some distribution Friday morning, and some other factors indicate a top may be forming. Corey Rosenbloom points out that the S&P is forming a "rounded arc" pattern, along with a negative breadth divergence. Now, the oscillator is making new momentum lows, and the peaks in the oscillator are forming lower highs as price formed higher highs - that’s the sign of a classic non-confirmation which can be a bearish signal. The fact that price is forming a clean ‘arc’ pattern also has bearish implications, given that arcs represent[More...]
