Texas Roadhouse Inc (TXRH)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 516,519 353,989 320,197 297,192 23,844
Revenue US$ in thousands 5,373,330 4,631,670 4,014,920 3,463,950 2,398,120
Operating profit margin 9.61% 7.64% 7.98% 8.58% 0.99%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $516,519K ÷ $5,373,330K
= 9.61%

The operating profit margin of Texas Roadhouse Inc has shown a significant improvement over the years, increasing steadily from 0.99% on December 31, 2020, to 9.61% on December 31, 2024. This indicates that the company has been successful in managing its operating expenses relative to its revenue, leading to a more efficient operation and higher profitability. Despite some fluctuations in the interim years, the overall trend shows a positive trajectory, reflecting better cost management and operational efficiency within the organization. This steady improvement in the operating profit margin suggests that Texas Roadhouse Inc has been able to enhance its profitability and financial performance over the analyzed period.