TOMS RIVER, NJ, August 19, 2025 /24-7PressRelease/ -- BlackBird Financial LP, a value-focused investment firm founded and led by Judah Spinner, CFA, today announced that it has established a substantial position in Texas Roadhouse, Inc. (NASDAQ: TXRH). Spinner, a seasoned investor known for his disciplined, fundamentals-driven approach, views Texas Roadhouse as a standout in the casual dining space, citing the company's exceptional unit-level economics, operational consistency, and long-term reinvestment potential.

"Texas Roadhouse delivers an outstanding product that keeps guests coming back, while competitors like LongHorn and Outback struggle with traffic, Roadhouse restaurants consistently post some of the highest sales per square foot in the industry," said Judah Spinner, Founder and Chief Investment Officer of BlackBird Financial LP. "That level of productivity provides a powerful foundation for continued expansion at attractive returns."

Texas Roadhouse has cemented its leadership in the casual dining category. In 2024, it overtook Olive Garden to become the largest casual-dining restaurant in the U.S., with $5.5 billion in system-wide sales, up 14.7% year over year. Olive Garden's sales grew less than 1%, to $5.2 billion. Meanwhile, LongHorn Steakhouse and Outback Steakhouse continue to face declining traffic and operate at lower average unit volumes.

Company-owned Texas Roadhouse locations now generate more than $7 million in annual sales per unit, significantly ahead of most peers. BlackBird Financial believes this kind of store-level performance is exactly what long-term investors should seek: a durable engine of earnings compounding, not reliant on financial engineering or unsustainable cost cuts.

Texas Roadhouse's expansion remains robust. In 2025, the company is projected to open more than 30 new units, bringing the U.S. footprint to nearly 710 and global total close to 800. As of Q2 2025, Texas Roadhouse operated 797 locations, up from 762 a year prior. Each new restaurant benefits from strong brand recognition, a refined playbook, and compelling returns on invested capital, key factors in BlackBird's investment thesis, according to Spinner.

"We look for businesses with structural advantages and the discipline to reinvest profitably," said Spinner. "Texas Roadhouse exemplifies this model. They know who they are and what works — and they stick to it."

Under Spinner's leadership, BlackBird Financial has built a reputation for deep diligence, long-term thinking, and an aversion to hype. Spinner, a Chartered Financial Analyst and former analyst at leading investment firms, launched BlackBird to apply a rigorous, value-based approach to public markets. His approach centers on identifying businesses with long-term pricing power, aligned management, and reinvestment opportunities, particularly when valuations are compelling.

Throughout its growth, Texas Roadhouse has remained focused on its core: hand-cut steaks, made-from-scratch sides, and a high-energy dining experience. Many competitors have tried to copy this model, but few have matched its operational excellence or cultural consistency. The company has preserved margins while scaling, using modest price increases and innovations like its Digital Kitchen System to improve throughput without eroding value perception. In FY 2024, operating margins were approximately 9.6%, with gross margins of 17.6%, despite ongoing cost pressures.
Spinner also praised the company's strong capital discipline and conservative balance sheet, noting that its minimal net debt and smart allocation of free cash flow support both growth and shareholder returns.

"This is a company that doesn't just grow, it compounds," Spinner said. "Its economics, execution, and culture give it a long runway. And we believe the market is undervaluing that potential today."

For BlackBird Financial LP, the investment reflects a core principle of Spinner's strategy: buying into structurally advantaged companies at prices that understate their long-term earnings power. BlackBird's 2025 H1 performance , a net return of 34.4%, versus 6.1% for the S&P 500 , speaks to the efficacy of this philosophy.

"We admire the management team for scaling responsibly and preserving what made Texas Roadhouse special, its quality, value, and culture," Spinner concluded. "We aim to invest in companies that can compound over time. Texas Roadhouse is one of them."

About Judah Spinner and BlackBird Financial LP

Judah Spinner, CFA, is the Founder and Chief Investment Officer of BlackBird Financial LP, a value-oriented investment firm based in Toms River, NJ. Spinner launched BlackBird to pursue high-conviction, long-term investments in businesses with structural advantages, superior unit economics, and aligned leadership. Under his guidance, BlackBird has built a track record of identifying undervalued opportunities in public markets and partnering with companies capable of compounding intrinsic value over time.

To learn more, visit: https://blackbirdfinancial.com

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