Texas Roadhouse Inc (TXRH)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	474,651	456,088	452,128	439,641	426,299	-849,882	-424,558	22,548	400,726	2,240,565	2,088,567	1,769,461	1,640,014	1,727,263	1,737,039	1,908,566	1,962,705	1,843,379	1,808,639	1,978,878
Revenue (ttm)	US$ in thousands	4,630,470	4,473,440	4,344,988	4,198,398	4,011,603	3,898,774	3,774,419	3,648,597	3,462,567	3,206,025	2,968,267	2,545,904	2,396,677	2,483,926	2,503,230	2,716,633	2,754,780	2,635,454	2,579,392	2,518,801
Gross profit margin		10.25%	10.20%	10.41%	10.47%	10.63%	-21.80%	-11.25%	0.62%	11.57%	69.89%	70.36%	69.50%	68.43%	69.54%	69.39%	70.25%	71.25%	69.95%	70.12%	78.56%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $474,651K ÷ $4,630,470K
= 10.25%

The gross profit margin of Texas Roadhouse Inc has exhibited some fluctuations over the past few quarters. Generally, a higher gross profit margin indicates better efficiency in managing production costs relative to revenues.

It is observed that the gross profit margin was relatively stable around the 10% mark from December 2019 to March 2023, with slight fluctuations within this range. However, in September 2022, there was a significant dip in the gross profit margin to -21.80%, followed by a recovery to -11.25% in June 2022. This negative margin suggests that the company's cost of goods sold exceeded its revenue during that quarter.

Subsequently, there was a notable improvement in the gross profit margin, with positive margins ranging from 0.62% to 11.57% from March 2022 to December 2023. This recovery and upward trend indicate that the company was able to better control its production costs and generate a higher margin on its sales.

Overall, while there were some challenges in the past, Texas Roadhouse Inc managed to improve its gross profit margin in recent quarters, showcasing better control over its cost of goods sold and enhancing its overall profitability. It will be essential for the company to continue monitoring and managing its production costs effectively to maintain or further improve its gross profit margin in the future.