LOUISVILLE - Texas Roadhouse , Inc. (NASDAQ: NASDAQ:TXRH), a well-known casual dining restaurant chain, has announced that its Board of Directors has approved a cash dividend for its shareholders. The dividend, set at $0.61 per share of common stock, will be paid out on December 31, 2024, to shareholders who are on record as of December 10, 2024.
The company, which first opened its doors in 1993, has expanded significantly over the years and currently operates 780 restaurants across 49 states, one U.S. territory, and ten foreign countries. This growth illustrates Texas Roadhouse's consistent presence in the casual dining sector and its commitment to extending its footprint.
While the announcement of the dividend is a positive development for shareholders, the company's statement also included a cautionary note regarding forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could influence these outcomes range from uncontrollable conditions like weather and natural disasters to labor or supply chain disruptions, changes in consumer spending due to macroeconomic conditions, food safety concerns, and other risks detailed in the company's SEC filings.
Investors are advised to consider these risks when making investment decisions, as they are reminded that forward-looking statements are only applicable as of their date of issuance and should not be overly relied upon.
The dividend payment is likely to be well-received by investors looking for steady returns, especially in a market that values consistent and reliable financial performance. Texas Roadhouse's ability to maintain its dividend payout amidst the various challenges outlined in their risk factors may be seen as a testament to the company's financial health and management's confidence in its business model.
This financial update is based on a press release statement from Texas Roadhouse, Inc.
In other recent news, Texas Roadhouse Inc. reported a robust financial performance in its third-quarter earnings call, boasting an 8.5% increase in same-store sales and a revenue of approximately $1.3 billion. The company highlighted the successful opening of seven company-owned and three international franchise locations in Q3. The steakhouse chain also implemented a minor menu price increase of less than 1% and completed over 200 digital kitchen conversions.
Looking ahead, Texas Roadhouse projects a revenue growth of 13.5% and a diluted earnings per share increase of 32.5% to $1.26. The company updated its commodity inflation guidance to less than 1% for 2024, with a 2% to 3% forecast for 2025. Labor inflation is also projected at 4% to 5% for 2025.
In terms of expansion, Texas Roadhouse plans to open approximately 30 new restaurants in 2025 and acquire 13 franchised locations. The company also celebrated its 20-year anniversary as a public entity and a 20-year partnership with Homes For Our Troops. These are the key recent developments for the company.
InvestingPro Insights
Texas Roadhouse's recent dividend announcement aligns with its strong financial performance and commitment to shareholder returns. According to InvestingPro data, the company boasts a market capitalization of $13.12 billion and has demonstrated impressive revenue growth of 13.91% over the last twelve months as of Q3 2024. This growth trajectory supports the company's ability to maintain its dividend payments.
InvestingPro Tips reveal that Texas Roadhouse has raised its dividend for 3 consecutive years and has maintained dividend payments for 14 consecutive years. This consistent dividend policy underscores the company's financial stability and dedication to rewarding shareholders, which is particularly noteworthy given the challenges faced by the restaurant industry in recent years.
The company's strong performance is further evidenced by its substantial 1-year price total return of 93.21%, significantly outperforming the broader market. This impressive return, coupled with the fact that Texas Roadhouse is trading near its 52-week high, suggests investor confidence in the company's business model and growth prospects.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips that could provide valuable context for Texas Roadhouse's financial outlook and market position.
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