Q1 Earnings Highlights: Texas Roadhouse (NASDAQ:TXRH) Vs The Rest Of The Sit-Down Dining Stocks

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the sit-down dining stocks, including Texas Roadhouse (NASDAQ:TXRH) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 11 sit-down dining stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 2.3% below.

Luckily, sit-down dining stocks have performed well with share prices up 14.6% on average since the latest earnings results.

Texas Roadhouse (NASDAQ:TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.45 billion, up 9.6% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with same-store sales in line with analysts’ estimates but a miss of analysts’ EBITDA estimates.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are pleased to report that our operators successfully navigated us through a number of challenges this quarter and once again delivered traffic growth across all three of our brands. During this period of economic uncertainty, as always, we remain focused on the fundamentals of our business and on what we can control, which is creating an environment where our Roadies want to work and our guests want to dine.”

The stock is up 15.4% since reporting and currently trades at $199.36.

Is now the time to buy Texas Roadhouse? Access our full analysis of the earnings results here, it’s free.

Best Q1: Brinker International (NYSE:EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE:EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.43 billion, up 27.2% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.

Brinker International delivered the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 3% since reporting. It currently trades at $165.40.

Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $282.2 million, up 16.4% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

As expected, the stock is down 12.9% since the results and currently trades at $16.20.

Read our full analysis of First Watch’s results here.

Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.05 billion, down 12.2% year on year. This number beat analysts’ expectations by 1.2%. Aside from that, it was a slower quarter as it produced EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EBITDA estimates.

Bloomin' Brands had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $7.99.

Read our full, actionable report on Bloomin' Brands here, it’s free.

Darden (NYSE:DRI)

Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Darden reported revenues of $3.16 billion, up 6.2% year on year. This print came in 1.7% below analysts' expectations. It was a slower quarter as it also logged a slight miss of analysts’ same-store sales estimates.

Darden had the weakest performance against analyst estimates among its peers. The stock is up 14.2% since reporting and currently trades at $214.92.

Read our full, actionable report on Darden here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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