Effective tax rate for the quarter was 14.9%, with full year 2025 guidance updated to approximately 15%.
Food and beverage costs increased by 131 basis points to 34% of sales due to 5.2% commodity inflation and entree mix shifts.
G&A expenses grew 7.9% year-over-year, representing 4.2% of revenue.
Labor costs as a percentage of sales increased slightly by 6 basis points to 32.9%, with labor dollars per store week up 5.4%.
Other operating costs improved by 32 basis points to 14.5% of sales, driven by leverage on operator bonuses and insurance reserve changes.
Restaurant margin dollars per store week decreased 1% to over $28,500, with restaurant margin as a percentage of sales declining 108 basis points to 17.1%.
Same-store sales increased by 5.8%, supported by 4% traffic growth and a 1.8% increase in average check.
Texas Roadhouse reported a 12.7% revenue growth in Q2 2025, driven by a 5.3% increase in average weekly sales and 7.2% store week growth.
The inflationary pressures are partly driven by retail retail beef prices remaining high, with retail demand remaining strong despite higher prices.
Management noted that retail beef prices are not being used as loss leaders, and consumer willingness to pay high prices is contributing to sustained demand.
The company expects beef inflation to be a primary driver of overall commodity inflation, affecting margins and pricing strategies in the near term.
105 net new stores opened in the first half of 2025 across 34 U.S. states, Puerto Rico, and Mexico.
Adjusted debt-to-EBITDAR ratio increased slightly to 2.06x from 1.99x at end of 2024 but remains below the 2.5x leverage target.
Earnings per share increased 11% to $0.78 in Q2, driven by strong sales growth and effective pricing management.
Free cash flow for the first half of 2025 was $904 million, down from $1.2 billion in the prior year, mainly due to timing of renewable energy tax credit payments.
Gross margin for Q2 was 51.4%, up 67 basis points from Q2 2024, exceeding expectations due to supply chain management and tariff timing benefits.
O'Reilly Automotive reported a 4.1% increase in comparable store sales for Q2 2025, with professional business comp sales exceeding 7%.
SG&A per store grew 4.5% in Q2, above expectations due to inflationary pressures and investments in customer service.
Adjusted operating margins declined to 3.5% from 6.0% last year, impacted by inflation in COGS (3.3%), labor (3.4%), health insurance, and higher operating expenses.
GAAP diluted earnings per share were $0.29, up from $0.28 last year; adjusted diluted EPS was $0.32, above guidance range of $0.22 to $0.27 but down from $0.45 last year.
Net debt was $867 million with leverage at 2.7x net debt to adjusted EBITDA and 4.1x lease adjusted net leverage; company aims to reduce lease-adjusted leverage below 3.0x.
Quarterly dividend declared at $0.15 per share; share repurchases are not planned currently.
Total revenues for Q2 2025 were $1 billion, slightly up from $999 million last year, driven by restaurant openings and closures.
U.S. comparable restaurant sales declined by 10 basis points, with traffic down 200 basis points, but results exceeded company expectations.
Dafinchi