Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Texas Roadhouse (NASDAQ: TXRH) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 5.4% below.

While some sit-down dining stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results.

Texas Roadhouse (NASDAQ: TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.51 billion, up 12.7% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc., commented, “Our operators delivered another quarter of strong comparable restaurant sales growth driven by positive traffic across all three of our brands. While we expect commodity inflation to further impact our profitability for the rest of the year, we remain focused on what we can control— preserving our value proposition and maintaining a relentless focus on operational excellence across all our brands.”

Unsurprisingly, the stock is down 6.4% since reporting and currently trades at $173.24.

Is now the time to buy Texas Roadhouse? Access our full analysis of the earnings results here, it’s free.

Best Q2: Kura Sushi (NASDAQ: KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $73.97 million, up 17.3% year on year, outperforming analysts’ expectations by 2.5%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Kura Sushi scored the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11% since reporting. It currently trades at $77.23.

Is now the time to buy Kura Sushi? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Bloomin' Brands (NASDAQ: BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.00 billion, down 10.4% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

Bloomin' Brands delivered the slowest revenue growth in the group. As expected, the stock is down 21.5% since the results and currently trades at $7.05.

Read our full analysis of Bloomin' Brands’s results here.

Brinker International (NYSE: EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.46 billion, up 21% year on year. This print beat analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ same-store sales estimates and full-year EPS guidance beating analysts’ expectations.

Brinker International delivered the fastest revenue growth among its peers. The stock is up 1.5% since reporting and currently trades at $157.49.

Read our full, actionable report on Brinker International here, it’s free.

Dine Brands (NYSE: DIN)

Operating a franchise model, Dine Brands (NYSE: DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.

Dine Brands reported revenues of $230.8 million, up 11.9% year on year. This number topped analysts’ expectations by 3.3%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ same-store sales estimates but a significant miss of analysts’ EBITDA estimates.

Dine Brands achieved the biggest analyst estimates beat among its peers. The stock is down 1.9% since reporting and currently trades at $21.38.

Read our full, actionable report on Dine Brands here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.