Restaurant company Texas Roadhouse (NASDAQ:TXRH) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Texas Roadhouse met analysts' revenue expectations last quarter, reporting revenues of $1.16 billion, up 15.3% year on year. It was a good quarter for the company, with a decent beat of analysts' revenue and EPS estimates.

Is Texas Roadhouse a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Texas Roadhouse's revenue to grow 12.6% year on year to $1.32 billion, slowing from the 18.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Roadhouse has missed Wall Street's revenue estimates twice over the last two years.

Looking at Texas Roadhouse's peers in the sit-down dining segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Brinker International delivered year-on-year revenue growth of 3.4%, meeting analysts' expectations, and Denny's reported a revenue decline of 6.4%, falling short of estimates by 4.5%.

Read our full analysis of Brinker International's results here and Denny's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the sit-down dining stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Texas Roadhouse is up 6.1% during the same time and is heading into earnings with an average analyst price target of $155.5 (compared to the current share price of $161.5).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.