Texas Roadhouse, Inc. Announces Fourth Quarter 2016 Results Increases Quarterly Dividend 10.5% to $0.21 per Share
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Texas Roadhouse, Inc. Announces Fourth Quarter 2016 Results Increases Quarterly Dividend 10.5% to $0.21 per Share

LOUISVILLE, Ky. - (BUSINESS WIRE) - Feb. 21, 2017 - Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 52 week periods ended December 27, 2016.

 

 

 

 

Fourth Quarter

 

 

Year to Date

($000's)

 

 

 

2016

 

 

2015

 

 

% Change

 

 

2016

 

 

2015

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

 

$

484,710

 

 

$

454,351

 

 

7

%

 

 

$

1,990,714

 

 

$

1,807,368

 

 

10

%

Income from operations

 

 

 

 

30,839

 

 

 

33,713

 

 

(9

%)

 

 

 

171,900

 

 

 

144,565

 

 

19

%

Net income

 

 

 

 

20,725

 

 

 

22,982

 

 

(10

%)

 

 

 

115,598

 

 

 

96,894

 

 

19

%

Diluted EPS

 

 

 

$

0.29

 

 

$

0.32

 

 

(10

%)

 

 

$

1.63

 

 

$

1.37

 

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results for the fourth quarter included the following highlights:

  • Comparable restaurant sales growth of 1.2% at company restaurants, including a negative impact of approximately 0.5% related to the calendar shift of the Christmas holiday, and 2.0% at domestic franchise restaurants;
  • Restaurant margin, as a percentage of restaurant sales, decreased 44 basis points to 17.1%. Wage rate inflation and higher costs associated with payroll taxes, insurance reserve adjustments and gift card fees more than offset the benefit of lower food costs;
  • Restaurant margin dollars increased 4.0% to $82.4 million from $79.2 million in the prior year;
  • Diluted earnings per share decreased 10.3% to $0.29 from $0.32 in the prior year primarily due to restaurant margin performance, higher general and administrative expenses and higher depreciation costs; and
  • Nine company-owned restaurants were opened, including four Bubba's 33 restaurants.

Results for the full year included the following highlights:

  • Comparable restaurant sales growth of 3.5% at company restaurants and 3.3% at domestic franchise restaurants;
  • Restaurant margin, as a percentage of restaurant sales, increased 134 basis points to 18.7%. The benefit of lower food costs more than offset the impact of higher wage rate inflation;
  • Restaurant margin dollars increased 18.7% to $368.9 million from $310.8 million in the prior year;
  • Diluted earnings per share increased 18.8% to $1.63 from $1.37 in the prior year. During fiscal 2016, we recorded a pre-tax charge of $7.3 million ($4.5 million after-tax) related to a legal settlement which had a $0.06 impact on diluted earnings per share and a 4.6% impact on diluted earnings per share growth;
  • 30 company-owned restaurants were opened, including nine Bubba's 33 restaurants; and
  • We repurchased 114,700 shares of our common stock for $4.1 million.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are pleased to deliver another strong year of results including a 19% increase in diluted earnings per share driven by double-digit revenue growth and restaurant margin expansion. We also delivered impressive comparable restaurant sales growth during 2016 with an increase of 3.5%, and we extended our streak of consecutive quarters of comparable restaurant sales growth to 28 with our fourth quarter increase. Lastly, our strong balance sheet and healthy cash flows allowed us to return $56.2 million of excess capital to shareholders through quarterly dividend payments and share repurchases during 2016."

Taylor continued, "In 2017, we expect to open approximately 30 company restaurants and seven franchise restaurants this year, which is over 7% growth system-wide. Going forward, the strength of our brand continues to be our people and our operational focus on delivering legendary food and legendary service."

Franchise Acquisition

Effective December 28, 2016, we acquired four franchise restaurants in Florida and Georgia for an aggregate purchase price of $16.8 million. The purchase price was paid in cash. Going forward, two of the restaurants will be wholly-owned, while two will be majority-owned. The acquisition did not have a net revenue or accretive impact in 2016 as it occurred on the first day of our 2017 fiscal year.

2017 Outlook

Comparable restaurant sales at company restaurants for the first 55 days of our first quarter of fiscal 2017 increased approximately 1.5% compared to the prior year period.

Management updated the following expectations for 2017:

  • Approximately 30 company restaurant openings, including approximately six Bubba's 33 restaurants;
  • Food cost deflation of approximately 1.0% to 2.0% compared to previous guidance of low-single digit food cost deflation; and
  • An income tax rate of 29.0% to 30.0% compared to previous guidance of 30.0% to 31.0%.

Management reiterated the following expectations for 2017:

  • Positive comparable restaurant sales growth;
  • Mid-single digit labor inflation; and
  • Total capital expenditures of approximately $170.0 million, excluding any cash used for franchise acquisitions.

Cash Dividend Payment

On February 16, 2017, our Board of Directors authorized the payment of a quarterly cash dividend of $0.21 per share of common stock. This payment, which will be distributed on March 31, 2017 to shareholders of record at the close of business on March 15, 2017, represents a 10.5% increase from the cash dividend of $0.19 per share of common stock declared during each quarter of 2016. Since the inception of our dividend program in 2011, our cash dividend per share of common stock has increased an average of 17.5% per year.

Conference Call

We will host a conference call today, February 21, 2017 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (800)949-2163 or (719)785-1748 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (844)512-2921 or (412)317-6671 for international calls, and use 6581484 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 520 restaurants system-wide in 49 states and six foreign countries. For more information, please visit our Web site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of our management. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurant openings; the sales at these and our other company and franchise restaurants; changes in restaurant development or operating costs, such as food and labor; our ability to acquire franchise restaurants; our ability to integrate other concepts we develop or the franchise restaurants we acquire; our ability to continue to generate the necessary cash flows to fund our new restaurant growth, continue our share repurchase program and pay a quarterly cash dividend; strength of consumer spending; pending or future legal claims; breaches of security; conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; food safety and food-borne illness concerns; acts of war or terrorism and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13 Weeks Ended

 

 

52 Weeks Ended

 

 

 

 

 

 

December 27,

2016

 

December 29,

2015

 

 

December 27,

2016

 

December 29,

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

 

 

$

480,730

 

 

$

450,529

 

 

$

1,974,261

 

 

$

1,791,446

 

Franchise royalties and fees

 

 

 

 

3,980

 

 

 

3,822

 

 

 

16,453

 

 

 

15,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

 

 

484,710

 

 

 

454,351

 

 

 

1,990,714

 

 

 

1,807,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (excluding depreciation and amortization shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

162,638

 

 

 

159,301

 

 

 

669,203

 

 

 

644,001

 

 

Labor

 

 

 

 

147,395

 

 

 

131,517

 

 

 

590,256

 

 

 

524,203

 

 

Rent

 

 

 

 

10,103

 

 

 

9,741

 

 

 

40,580

 

 

 

37,183

 

 

Other operating

 

 

 

 

78,208

 

 

 

70,773

 

 

 

305,290

 

 

 

275,296

 

Pre-opening

 

 

 

 

5,294

 

 

 

4,640

 

 

 

19,547

 

 

 

19,116

 

Depreciation and amortization

 

 

 

 

22,246

 

 

 

18,700

 

 

 

82,964

 

 

 

69,694

 

Impairment and closure

 

 

 

 

125

 

 

 

974

 

 

 

179

 

 

 

974

 

General and administrative

 

 

 

 

27,862

 

 

 

24,992

 

 

 

110,795

 

 

 

92,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

 

 

 

453,871

 

 

 

420,638

 

 

 

1,818,814

 

 

 

1,662,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

30,839

 

 

 

33,713

 

 

 

171,900

 

 

 

144,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

353

 

 

 

479

 

 

 

1,255

 

 

 

1,959

Equity income from investments in unconsolidated affiliates

 

 

 

 

280

 

 

 

353

 

 

 

1,111

 

 

 

1,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

30,766

 

 

 

33,587

 

 

 

171,756

 

 

 

144,247

Provision for income taxes

 

 

 

 

8,858

 

 

 

9,567

 

 

 

51,183

 

 

 

42,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

 

$

21,908

 

 

$

24,020

 

 

$

120,573

 

 

$

101,261

Less: Net income attributable to noncontrolling interests

 

 

 

 

1,183

 

 

 

1,038

 

 

 

4,975

 

 

 

4,367

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

 

 

 

$

20,725

 

 

$

22,982

 

 

$

115,598

 

 

$

96,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.29

 

 

$

0.33

 

 

$

1.64

 

 

$

1.38

 

Diluted

 

 

 

$

0.29

 

 

$

0.32

 

 

$

1.63

 

 

$

1.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

70,569

 

 

 

70,143

 

 

 

70,396

 

 

 

70,032

 

Diluted

 

 

 

 

71,215

 

 

 

70,865

 

 

 

71,052

 

 

 

70,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

 

 

$

0.19

 

 

$

0.17

 

 

$

0.76

 

 

$

0.68

 

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

December 27,

2016

 

December 29,

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

112,944

 

 

$

59,334

Other current assets

 

 

 

 

87,315

 

 

 

74,479

Property and equipment, net

 

 

 

 

830,054

 

 

 

751,288

Goodwill

 

 

 

 

116,571

 

 

 

116,571

Intangible assets, net

 

 

 

 

3,622

 

 

 

4,827

Other assets

 

 

 

 

29,465

 

 

 

26,207

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

1,179,971

 

 

$

1,032,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt and obligation under capital lease

 

 

 

 

167

 

 

 

144

Other current liabilities

 

 

 

 

279,360

 

 

 

256,498

Long-term debt and obligation under capital lease, excluding current maturities

 

 

 

 

52,381

 

 

 

25,550

Other liabilities

 

 

 

 

89,821

 

 

 

73,332

Texas Roadhouse, Inc. and subsidiaries stockholders' equity

 

 

 

 

750,226

 

 

 

669,662

Noncontrolling interests

 

 

 

 

8,016

 

 

 

7,520

 

 

 

 

 

 

 

 

Total liabilities and equity

 

 

 

$

1,179,971

 

 

$

1,032,706

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

52 Weeks Ended

 

 

 

 

December 27,

2016

 

 

December 29,

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net income including noncontrolling interests

 

$

120,573

 

 

 

$

101,261

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

82,964

 

 

 

 

69,694

 

 

Share-based compensation expense

 

 

26,067

 

 

 

 

22,825

 

 

Other noncash adjustments

 

 

12,075

 

 

 

 

5,697

 

Change in working capital

 

 

15,386

 

 

 

 

28,464

 

 

 

Net cash provided by operating activities

 

 

257,065

 

 

 

 

227,941

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Capital expenditures - property and equipment

 

 

(164,738

)

 

 

 

(173,475

)

Proceeds from sale of property and equipment, including insurance proceeds

 

 

-

 

 

 

 

272

 

 

 

Net cash used in investing activities

 

 

(164,738

)

 

 

 

(173,203

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from (payments on) revolving credit facility, net

 

 

25,000

 

 

 

 

(25,000

)

Repurchase shares of common stock

 

 

(4,110

)

 

 

 

(11,397

)

Dividends paid

 

 

(52,054

)

 

 

 

(46,176

)

Other financing activities

 

 

(7,553

)

 

 

 

1,047

 

 

 

Net cash used in financing activities

 

 

(38,717

)

 

 

 

(81,526

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

53,610

 

 

 

 

(26,788

)

Cash and cash equivalents - beginning of period

 

 

59,334

 

 

 

 

86,122

 

Cash and cash equivalents - end of period

 

$

112,944

 

 

 

$

59,334

 

 

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Supplemental Financial and Operating Information

($ amounts in thousands, except weekly sales by group)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Change

 

 

Year to Date

 

Change

 

 

 

 

 

2016

 

2015

 

vs LY

 

 

2016

 

2015

 

vs LY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant openings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

5

 

 

 

7

 

 

(2

)

 

 

 

21

 

 

 

24

 

 

(3

)

 

Company - Bubba's 33

 

 

 

4

 

 

 

0

 

 

4

 

 

 

 

9

 

 

 

4

 

 

5

 

 

Company - Other

 

 

 

0

 

 

 

0

 

 

0

 

 

 

 

0

 

 

 

1

 

 

(1

)

 

Franchise - Texas Roadhouse - U.S.

 

 

 

0

 

 

 

0

 

 

0

 

 

 

 

1

 

 

 

2

 

 

(1

)

 

Franchise - Texas Roadhouse - International

 

 

 

1

 

 

 

1

 

 

0

 

 

 

 

3

 

 

 

1

 

 

2

 

 

Total

 

 

 

10

 

 

 

8

 

 

2

 

 

 

 

34

 

 

 

32

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants open at the end of the quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

413

 

 

 

392

 

 

21

 

 

 

 

 

 

 

 

 

Company - Bubba's 33

 

 

 

16

 

 

 

7

 

 

9

 

 

 

 

 

 

 

 

 

Company - Other

 

 

 

2

 

 

 

2

 

 

0

 

 

 

 

 

 

 

 

 

Franchise - Texas Roadhouse - U.S.

 

 

 

73

 

 

 

72

 

 

1

 

 

 

 

 

 

 

 

 

Franchise - Texas Roadhouse - International

 

 

 

13

 

 

 

10

 

 

3

 

 

 

 

 

 

 

 

 

Total

 

 

 

517

 

 

 

483

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

 

$

480,730

 

 

$

450,529

 

 

6.7

%

 

 

$

1,974,261

 

 

$

1,791,446

 

 

10.2

%

 

Store weeks

 

 

 

5,544

 

 

 

5,186

 

 

6.9

%

 

 

 

21,583

 

 

 

20,020

 

 

7.8

%

 

Comparable restaurant sales growth (1)

 

 

 

1.2

%

 

 

4.5

%

 

 

 

 

 

3.5

%

 

 

7.2

%

 

 

 

Texas Roadhouse restaurants only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable restaurant sales growth (1)

 

 

 

1.3

%

 

 

4.5

%

 

 

 

 

 

3.6

%

 

 

7.2

%

 

 

 

 

Average unit volume (2)

 

 

$

1,133

 

 

$

1,130

 

 

0.3

%

 

 

$

4,802

 

 

$

4,664

 

 

3.0

%

 

 

Weekly sales by group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable restaurants (370 units)

 

 

$

88,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average unit volume restaurants (27 units) (3)

 

 

$

75,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants less than 6 months old (16 units)

 

 

$

88,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (as a % of restaurant sales)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

33.8

%

 

 

35.4

%

 

(153) bps

 

 

 

33.9

%

 

 

35.9

%

 

(205) bps

Labor

 

 

 

30.7

%

 

 

29.2

%

 

147 bps

 

 

 

29.9

%

 

 

29.3

%

 

64 bps

Rent

 

 

 

2.1

%

 

 

2.2

%

 

(6) bps

 

 

 

2.1

%

 

 

2.1

%

 

(2) bps

Other operating

 

 

 

16.3

%

 

 

15.7

%

 

56 bps

 

 

 

15.5

%

 

 

15.4

%

 

10 bps

Total

 

 

 

82.9

%

 

 

82.4

%

 

44 bps

 

 

 

81.3

%

 

 

82.7

%

 

(134) bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin (4)

 

 

 

17.1

%

 

 

17.6

%

 

(44) bps

 

 

 

18.7

%

 

 

17.3

%

 

134 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin $ ($ in thousands) (4)

 

 

$

82,387

 

 

$

79,196

 

 

4.0

%

 

 

$

368,933

 

 

$

310,762

 

 

18.7

%

 

Restaurant margin $ (4)/Store week

 

 

$

14,862

 

 

$

15,272

 

 

(2.7

)%

 

 

$

17,094

 

 

$

15,523

 

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise royalties and fees

 

 

$

3,980

 

 

$

3,822

 

 

4.1

%

 

 

$

16,453

 

 

$

15,922

 

 

3.3

%

 

Store weeks

 

 

 

1,108

 

 

 

1,062

 

 

4.3

%

 

 

 

4,360

 

 

 

4,174

 

 

4.5

%

 

Comparable restaurant sales growth (1)

 

 

 

0.8

%

 

 

4.0

%

 

 

 

 

 

2.0

%

 

 

6.5

%

 

 

 

U.S. franchise restaurants only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable restaurant sales growth (1)

 

 

 

2.0

%

 

 

4.4

%

 

 

 

 

 

3.3

%

 

 

7.1

%

 

 

 

 

Average unit volume (2)

 

 

$

1,181

 

 

$

1,164

 

 

1.4

%

 

 

$

4,929

 

 

$

4,799

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-opening expense

 

 

$

5,294

 

 

$

4,640

 

 

14.1

%

 

 

$

19,547

 

 

$

19,116

 

 

2.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

$

22,246

 

 

$

18,700

 

 

19.0

%

 

 

$

82,964

 

 

$

69,694

 

 

19.0

%

 

As a % of revenue

 

 

 

4.6

%

 

 

4.1

%

 

47 bps

 

 

 

4.2

%

 

 

3.9

%

 

31 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

$

27,862

 

 

$

24,992

 

 

11.5

%

 

 

$

110,795

 

 

$

92,336

 

 

20.0

%

 

As a % of revenue

 

 

 

5.7

%

 

 

5.5

%

 

25 bps

 

 

 

5.6

%

 

 

5.1

%

 

46 bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Comparable restaurant sales growth reflects the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period measured, excluding sales from restaurants closed during the period.

(2) Average unit volume includes sales from Texas Roadhouse restaurants open for a full six months before the beginning of the period measured, excluding any sales at restaurants closed during the period.

(3) Average unit volume restaurants include restaurants open a full six to 18 months before the beginning of the period measured.

(4) Restaurant margin (in dollars and as a percentage of restaurant sales) represents restaurant sales less restaurant operating costs, including cost of sales, labor, rent and other operating costs. Depreciation and amortization expense, substantially all of which relates to restaurant-level assets, is excluded from restaurant operating costs. Restaurant margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance. Restaurant margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative, to income from operations or other similarly titled measures of other companies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts may not foot due to rounding.

 

View source version on businesswire.com: http://www.businesswire.com/news/home/20170221006461/en/

Source: Texas Roadhouse, Inc.

Contacts:

Tonya Robinson
Texas Roadhouse, Inc.
Investor Relations
502-515-7269

Travis Doster
Texas Roadhouse, Inc.
Media Relations
502-638-5457

###

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