Texas Roadhouse Inc (TXRH)

Net 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
Net income (ttm)	US$ in thousands	304,876	292,315	290,855	281,003	269,818	263,007	253,285	256,346	245,294	211,785	188,409	79,376	31,255	54,392	61,693	140,091	174,452	162,098	154,692	154,074
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
Net profit margin		6.58%	6.53%	6.69%	6.69%	6.73%	6.75%	6.71%	7.03%	7.08%	6.61%	6.35%	3.12%	1.30%	2.19%	2.46%	5.16%	6.33%	6.15%	6.00%	6.12%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $304,876K ÷ $4,630,470K
= 6.58%

The net profit margin of Texas Roadhouse Inc has shown variability over the past few quarters. From the data provided, we observe that the net profit margin was relatively stable around the range of 6.5% to 7.0% in most quarters from December 2019 to June 2022. However, there was a significant drop in the net profit margin in the first quarter of 2021, falling to 3.12%. This could be indicative of a challenging operating environment or cost pressures during that period.

Subsequently, there was a notable improvement in the net profit margin in the following quarters, particularly in the first quarter of 2022 (7.03%). This rebound suggests that the company may have implemented strategies to enhance profitability and operational efficiency.

Overall, the net profit margin has generally been above 6% in the majority of the quarters, indicating that Texas Roadhouse Inc has been able to maintain a decent level of profitability relative to its revenue. However, the company should continue to monitor and manage its cost structures effectively to sustain and potentially improve its net profit margin over time.