Hernan E. Mujica, the Chief Technology Officer of Texas Roadhouse , Inc. (NASDAQ:TXRH), recently sold 1,500 shares of the company's common stock. The transaction, which took place on November 14, 2024, was executed at a price of $202.26 per share, resulting in a total value of $303,390. Following this sale, Mujica holds 16,342 shares of Texas Roadhouse common stock.
Additionally, Mujica retains 4,200 restricted stock units, which are set to vest on January 8, 2025, contingent upon continued service with the company. These units represent a right to receive one share of the company's common stock per unit upon vesting.
In other recent news, Texas Roadhouse Inc. has reported significant developments. The company approved a cash dividend of $0.61 per share for shareholders, scheduled for disbursement on December 31, 2024. This decision follows a strong third-quarter performance, where Texas Roadhouse recorded an 8.5% increase in same-store sales and a revenue of approximately $1.3 billion.
In addition to these financial highlights, the company also announced the successful opening of seven company-owned and three international franchise locations in the third quarter. Looking ahead, Texas Roadhouse projects a 13.5% revenue growth and a 32.5% increase in diluted earnings per share 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.
As part of its expansion plans, Texas Roadhouse aims to open approximately 30 new restaurants in 2025 and acquire 13 franchised locations. These are the key recent developments for Texas Roadhouse Inc.
InvestingPro Insights
Texas Roadhouse's recent stock performance and financial metrics provide additional context to the insider sale by CTO Hernan E. Mujica. According to InvestingPro data, the company's stock is trading near its 52-week high, with a robust year-to-date price total return of 63.84% as of the most recent data. This strong performance is reflected in the company's market capitalization of $13.19 billion.
The restaurant chain's financial health appears solid, with revenue growth of 13.91% over the last twelve months and an EBITDA growth of 29.46% during the same period. These figures suggest that Texas Roadhouse is experiencing significant expansion and improving operational efficiency.
InvestingPro Tips highlight that Texas Roadhouse has raised its dividend for 4 consecutive years, indicating a commitment to shareholder returns. The company's current dividend yield stands at 1.23%, with a dividend growth rate of 10.91% over the last twelve months. This consistent dividend policy may be attractive to income-focused investors.
However, investors should note that the stock is trading at a relatively high P/E ratio of 33.9, which could suggest that the market has high growth expectations for the company. This valuation metric aligns with the InvestingPro Tip indicating that Texas Roadhouse is trading at a high earnings multiple.
For readers interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Texas Roadhouse, providing a deeper dive into the company's financial position and market performance.
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