@plmccut wrote:
I love TR and, yes, you can buy their rolls separately and even get them unbaked so that you can make them fresh at home.
I'd love to do that some time. My parents love their rolls. They should open up separately a Texas ROLLhouse in like a mall food court or strip mall mini-bakery.
@ wrote:
BTW, I've been staying in but when I have had to venture out I've been stocking up on the BOGO offers or family packages and then making my own TV dinners. I really like Olive Garden when they do their buy one, take home one deals. I think I also read that TR was one of the few chains that was able to keep their earnings up.
My mom is a massive cheapo and she used to do Olive Garden buy one get ones, in addition to their lunch specials where you order a main pasta dish and can get unlimited salad and/or soup + breadsticks. She would sit for a long time drinking their soup (bowl after bowl after bowl) and eating their bread to fill up and take home an uneaten pasta order.
re: keeping earnings up - TXRH's revenues fell YOY in Q1, due to a very negative month of March. They had positive same store comparable sales Jan. and Feb., however. COVID hurt them in March enough that they saw revenue decline YOY for the first quarter, but they were still net income positive if that is what you were thinking of.
They earned $652 million in Q1 (compared with $690 million in 2019 Q1) and made roughly $16 million in net profit the first quarter (compared to $50 million in Q1 2019). It would have been more had they not spent a lot money on worker relief packages and increased health benefits for employees. This was a nice thing they did for their company and imho to be applauded.
Long-term, TXRH is a gem. Pre-COVID, their 2019 YOY revenue growth was 12.2% and same store comparable sales were up 4.7%. For people not familiar with retail/restaurant/brick and mortar companies, those are stunning numbers. In general, a company able to obtain 10%+ revenue growth per year in any industry is quite good. This may be more common in technology companies, but is not at all common in many other industries. Walmart, for example, 8-ish% Q1 growth and they are supposed to be one of those stores that has benefited from the virus. So, that tells you how special TXRH is in a "normal" year. As far as same store compare sales ("comps" ), the industry average for a brick and mortar type of store is 2-3%. TXRH doubles that.
Their margins have been criticized at times, so while their revenue growth and comps have often been above-average for their industry, their earnings off of them haven't always been the best. However, I think this is fine and for good reason. They never skimp on worker wages, staff training programs, and food quality costs. Wayne Kent Taylor had a chance back in 2015, I think it was, to improve margins with cheaper quality food products and refused to. I was listening to him talk about it and he felt it was important for the brand to maintain food quality despite higher costs. They often don't pass the cost along to customers either. Sometimes they do, but sometimes they don't and eat the cost as a company themselves. What they "lose" from paying workers better and maintaining food quality, they make up for in customer loyalty and higher volume sales/repeat business, I'm sure.
Everyday I think about this stuff, I just want to shoot myself for not buying their stock back in March.
Edited 1 time(s). Last edit at 06/16/2020 06:54AM by shoptastic.