Texas Roadhouse Sees Sales Sizzle
The strong employment picture in the U.S. has had an impact on companies that rely on relatively low-cost labor, and restaurant chain Texas Roadhouse (NASDAQ: TXRH) has seen the impact of higher labor costs on its bottom line. Yet obviously, a strong economy also has a benefit of leaving would-be diners with more disposable income to use when visiting Texas Roadhouse.
Coming into Monday's second-quarter financial report, Texas Roadhouse investors were prepared to see the continuing drag of high labor costs on earnings, but they still wanted to see at least minimal bottom-line gains as well as strong sales performance. The steakhouse chain's results were generally in line with those expectations, and sharp revenue growth points to the ongoing popularity of Texas Roadhouse compared to some of its weaker-performing peers in the restaurant business.
Image source: Texas Roadhouse.
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