Labor costs hurt Texas Roadhouse margins in 3Q

Labor costs hurt Texas Roadhouse margins in 3Q

Wage rate inflation and higher healthcare costs offset higher unit volumes

Texas Roadhouse Inc. sales continued to surge in the third quarter ended Sept. 29, but restaurant margins fell during the period as higher wage rate inflation took its toll on profits, the company said Monday.

Restaurant margins fell 22 basis points in the quarter, to 16.6 percent of sales, as higher labor and health insurance costs “more than offset” higher average unit volumes.

Same-store sales increased 6.9 percent at company-owned restaurants and rose 7.7 percent a

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