Texas Roadhouse is charting an aggressive growth path, raising its U.S. restaurant target to 900 units from a previous 700-800.
This expansion, driven by successful penetration into smaller markets and industry-leading average unit volumes exceeding $6 million, positions the steakhouse chain to potentially surpass casual dining rivals like Olive Garden and Applebee's in sales. Since 2016, Texas Roadhouse has seen a 23% increase in unit count and a 63% surge in domestic sales, significantly outperforming competitors.
The company reported robust Q3 results, with 8.2% same-store sales growth and a 0.5% traffic increase, even as prices rose 7%. Concurrently, Cracker Barrel is demonstrating early signs of a turnaround after a significant traffic decline stemming from a logo backlash.
While Q3 traffic was down 10.1% and same-store sales fell 7.1%, customer satisfaction metrics for food, service, and value improved 4-5%, and the rate of traffic decline lessened towards the end of the quarter and into February. The company is implementing cost-cutting measures, including corporate layoffs and reduced advertising, and narrowed its full-year earnings outlook, which led to a 7% stock spike.
Texas Roadhouse Surges, Cracker Barrel Shows Recovery(current)
