Texas Roadhouse, Inc. Announces Fourth Quarter 2015 Results

Increases Quarterly Dividend 12% to $0.19 per Share

LOUISVILLE, Ky. - (BUSINESS WIRE) - Feb. 22, 2016 - Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 52 week periods ended December 29, 2015.

 

 

 

 

Fourth Quarter

 

 

 

Year to Date

($000's)

 

 

 

2015

 

 

2014

 

 

% Change

 

 

 

2015

 

 

2014

 

 

% Change

 

 

Total revenue

 

 

 

$

454,351

 

 

$

404,425

 

 

12

 

 

 

 

$

1,807,368

 

 

$

1,582,148

 

 

14

 

Income from operations

 

 

 

 

33,713

 

 

 

27,043

 

 

25

 

 

 

 

 

144,565

 

 

 

130,449

 

 

11

 

Net income

 

 

 

 

22,982

 

 

 

18,595

 

 

24

 

 

 

 

 

96,894

 

 

 

87,022

 

 

11

 

Diluted EPS

 

 

 

$

0.32

 

 

$

0.26

 

 

23

 

 

 

 

$

1.37

 

 

$

1.23

 

 

11

 

 

 

 

Results for the fourth quarter included the following highlights:

  • Comparable restaurant sales growth of 4.5% at company restaurants and 4.0% at franchise restaurants;
  • Restaurant margin, as a percentage of restaurant sales, increased 112 basis points to 17.6%, primarily driven by lower other operating costs and lower food costs;
  • Diluted earnings per share increased 22.7% to $0.32 from $0.26 in the prior year;
  • Seven company-owned Texas Roadhouse restaurants were opened; and,
  • The Company repurchased 189,700 shares of its common stock for $6.7 million.

Results for the full year included the following highlights:

  • Comparable restaurant sales growth of 7.2% at company restaurants and 6.5% at franchise restaurants;
  • Restaurant margin, as a percentage of restaurant sales, decreased 30 basis points to 17.3%. Food cost inflation of approximately 4.9%, driven by beef, more than offset the impact of higher average unit volume;
  • Diluted earnings per share increased 11.1% to $1.37 from $1.23 in the prior year;
  • 29 company-owned restaurants were opened, including four Bubba's 33 restaurants; and,
  • The Company repurchased 321,789 shares of its common stock for $11.4 million.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We ended the year on a strong note, with double digit revenue and diluted earnings per share growth for both the fourth quarter and the full year. This represents our 24th consecutive quarter of positive comparable restaurant sales growth, which is a testament to our Managing Partners. In addition, our solid balance sheet and healthy cash flow allowed us to open 29 restaurants, while returning $58 million of excess capital to shareholders through quarterly dividend payments and share repurchases throughout the year."

Taylor continued, "We have assembled a substantial pipeline of new locations and are on track to open approximately 30 company restaurants this year. Our top-line momentum has continued into 2016 and we are pleased to have seen continued traffic growth during the first seven weeks of the year. Looking ahead, we will stay focused on solidifying our long-term brand position and capitalizing on our growth potential."

2016 Outlook

The Company reported that comparable restaurant sales growth of at company restaurants for the first seven weeks of its first quarter of fiscal 2016 was approximately 4.4% compared to the prior year period.

Management updated the following expectations for 2016:

  • Approximately 30 company restaurant openings, including approximately seven Bubba's 33 restaurants;
  • 1.0% to 2.0% food cost deflation;
  • An income tax rate of approximately 30.0%; and,
  • Total capital expenditures of $165.0 million to $175.0 million.

Management reiterated the expectation of positive comparable restaurant sales growth for 2016.

Cash Dividend Payment

On February 19, 2016, the Company's Board of Directors authorized the payment of a quarterly cash dividend of $0.19 per share of common stock. This payment, which will be distributed on April 1, 2016 to shareholders of record at the close of business on March 16, 2016, represents a 12% increase from the cash dividend of $0.17 per share of common stock declared during each quarter of 2015 and represents our fifth consecutive year of dividend payments.

Conference Call

The Company is hosting a conference call today, February 22, 2016 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 874-1571 or (719) 325-4839 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (877) 870-5176 or (858) 384-5517 for international calls, and use 1297446 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About Texas Roadhouse

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 485 restaurants system-wide in 49 states and four foreign countries. For more information, please visit the Company's 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 the management of the Company. 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 restaurants opening; 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 the franchise restaurants we acquire or other concepts we develop; 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 29,

2015

 

 

December 30,

2014

 

 

December 29,

2015

 

 

December 30,

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

 

 

$

450,529

 

 

$

400,790

 

 

$

1,791,446

 

 

$

1,568,556

 

Franchise royalties and fees

 

 

 

 

3,822

 

 

 

3,635

 

 

 

15,922

 

 

 

13,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

 

 

454,351

 

 

 

404,425

 

 

 

1,807,368

 

 

 

1,582,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

159,301

 

 

 

143,592

 

 

 

644,001

 

 

 

553,144

 

 

Labor

 

 

 

 

131,517

 

 

 

116,744

 

 

 

524,203

 

 

 

459,119

 

 

Rent

 

 

 

 

9,741

 

 

 

8,624

 

 

 

37,183

 

 

 

33,174

 

 

Other operating

 

 

 

 

70,773

 

 

 

65,848

 

 

 

275,296

 

 

 

246,339

 

Pre-opening

 

 

 

 

4,640

 

 

 

5,775

 

 

 

19,116

 

 

 

18,452

 

Depreciation and amortization

 

 

 

 

18,700

 

 

 

15,497

 

 

 

69,694

 

 

 

59,179

 

Impairment and closure

 

 

 

 

974

 

 

 

626

 

 

 

974

 

 

 

636

 

General and administrative

 

 

 

 

24,992

 

 

 

20,676

 

 

 

92,336

 

 

 

81,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total costs and expenses

 

 

 

 

420,638

 

 

 

377,382

 

 

 

1,662,803

 

 

 

1,451,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

 

 

33,713

 

 

 

27,043

 

 

 

144,565

 

 

 

130,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

479

 

 

 

520

 

 

 

1,959

 

 

 

2,084

Equity income from investments in unconsolidated affiliates

 

 

 

 

353

 

 

 

627

 

 

 

1,641

 

 

 

1,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

 

33,587

 

 

 

27,150

 

 

 

144,247

 

 

 

129,967

Provision for income taxes

 

 

 

 

9,567

 

 

 

7,528

 

 

 

42,986

 

 

 

38,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

 

$

24,020

 

 

$

19,622

 

 

$

101,261

 

 

$

90,977

Less: Net income attributable to noncontrolling interests

 

 

 

 

1,038

 

 

 

1,027

 

 

 

4,367

 

 

 

3,955

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

 

 

 

$

22,982

 

 

$

18,595

 

 

$

96,894

 

 

$

87,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.33

 

 

$

0.27

 

 

$

1.38

 

 

$

1.25

 

Diluted

 

 

 

$

0.32

 

 

$

0.26

 

 

$

1.37

 

 

$

1.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

70,143

 

 

 

69,500

 

 

 

70,032

 

 

 

69,719

 

Diluted

 

 

 

 

70,865

 

 

 

70,359

 

 

 

70,747

 

 

 

70,608

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 29,

2015

 

 

December 30,

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

59,334

 

 

$

86,122

Other current assets

 

 

 

 

74,479

 

 

 

61,604

Property and equipment, net

 

 

 

 

751,288

 

 

 

649,637

Goodwill

 

 

 

 

116,571

 

 

 

116,571

Intangible assets, net

 

 

 

 

4,827

 

 

 

6,203

Other assets

 

 

 

 

26,207

 

 

 

23,005

 

 

 

 

 

 

 

 

Total assets

 

 

 

$

1,032,706

 

 

$

943,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

 

 

 

144

 

 

 

129

Other current liabilities

 

 

 

 

256,498

 

 

 

215,842

Long-term debt, excluding current maturities

 

 

 

 

25,550

 

 

 

50,693

Other liabilities

 

 

 

 

73,332

 

 

 

61,522

Texas Roadhouse, Inc. and subsidiaries stockholders' equity

 

 

 

 

669,662

 

 

 

607,892

Noncontrolling interests

 

 

 

 

7,520

 

 

 

7,064

 

 

 

 

 

 

 

 

Total liabilities and equity

 

 

 

$

1,032,706

 

 

$

943,142

 

 

 

 

 

 

 

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

 

52 Weeks Ended

 

 

 

 

December 29, 2015

 

 

December 30, 2014

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

 

$

101,261

 

 

 

$

90,977

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

69,694

 

 

 

 

59,179

 

 

Share-based compensation expense

 

 

 

 

22,825

 

 

 

 

14,883

 

 

Other noncash adjustments

 

 

 

 

5,697

 

 

 

 

4,078

 

Change in working capital

 

 

 

 

28,464

 

 

 

 

22,596

 

 

 

Net cash provided by operating activities

 

 

 

 

227,941

 

 

 

 

191,713

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures - property and equipment

 

 

 

 

(173,475

)

 

 

 

(125,445

)

Proceeds from sale of property and equipment, including insurance proceeds

 

 

 

 

272

 

 

 

 

1,205

 

 

 

Net cash used in investing activities

 

 

 

 

(173,203

)

 

 

 

(124,240

)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Repayments of revolving credit facility

 

 

 

 

(25,000

)

 

 

 

-

 

Repurchase shares of common stock

 

 

 

 

(11,397

)

 

 

 

(42,744

)

Dividends paid

 

 

 

 

(46,176

)

 

 

 

(31,333

)

Other financing activities

 

 

 

 

1,047

 

 

 

 

(2,148

)

 

 

Net cash used in financing activities

 

 

 

 

(81,526

)

 

 

 

(76,225

)

 

 

 

Net decrease in cash and cash equivalents

 

 

 

 

(26,788

)

 

 

 

(8,752

)

Cash and cash equivalents - beginning of period

 

 

 

 

86,122

 

 

 

 

94,874

 

Cash and cash equivalents - end of period

 

 

 

$

59,334

 

 

 

$

86,122

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

2015

 

 

2014

 

 

vs LY

 

 

2015

 

 

2014

 

 

vs LY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant openings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

 

7

 

 

 

 

7

 

 

 

0

 

 

 

 

24

 

 

 

 

22

 

 

 

2

 

 

Company - Bubba's 33

 

 

 

 

0

 

 

 

 

2

 

 

 

(2

)

 

 

 

4

 

 

 

 

2

 

 

 

2

 

 

Company - Other

 

 

 

 

0

 

 

 

 

1

 

 

 

(1

)

 

 

 

1

 

 

 

 

1

 

 

 

0

 

 

Franchise - Texas Roadhouse

 

 

 

 

1

 

 

 

 

5

 

 

 

(4

)

 

 

 

3

 

 

 

 

6

 

 

 

(3

)

 

Total

 

 

 

 

8

 

 

 

 

15

 

 

 

(7

)

 

 

 

32

 

 

 

 

31

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

 

0

 

 

 

 

1

 

 

 

(1

)

 

 

 

0

 

 

 

 

1

 

 

 

(1

)

 

Company - Bubba's 33

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

Company - Other

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

Franchise - Texas Roadhouse

 

 

 

 

0

 

 

 

 

(1

)

 

 

1

 

 

 

 

0

 

 

 

 

(1

)

 

 

1

 

 

Total

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

 

 

0

 

 

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants open at the end of the quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company - Texas Roadhouse

 

 

 

 

392

 

 

 

 

368

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

Company - Bubba's 33

 

 

 

 

7

 

 

 

 

3

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

Company - Other

 

 

 

 

2

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

Franchise - Texas Roadhouse

 

 

 

 

82

 

 

 

 

79

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

483

 

 

 

 

451

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant sales

 

 

 

$

450,529

 

 

 

$

400,790

 

 

 

12.4

%

 

 

$

1,791,446

 

 

 

$

1,568,556

 

 

 

14.2

%

 

Store weeks

 

 

 

 

5,186

 

 

 

 

4,766

 

 

 

8.8

%

 

 

 

20,020

 

 

 

 

18,565

 

 

 

7.8

%

 

Comparable restaurant sales growth (1)

 

 

 

 

4.5

%

 

 

 

7.0

%

 

 

 

 

 

 

 

7.2

%

 

 

 

4.7

%

 

 

 

 

 

Texas Roadhouse restaurants only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable restaurant sales growth (1)

 

 

 

 

4.5

%

 

 

 

7.0

%

 

 

 

 

 

 

 

7.2

%

 

 

 

4.7

%

 

 

 

 

 

 

Average unit volume (2)

 

 

 

$

1,130

 

 

 

$

1,083

 

 

 

4.3

%

 

 

$

4,664

 

 

 

$

4,351

 

 

 

7.2

%

 

 

Weekly sales by group:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comparable restaurants (352 units)

 

 

 

$

87,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average unit volume restaurants (18 units) (3)

 

 

 

$

84,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurants less than 6 months old (22 units)

 

 

 

$

94,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant operating costs (as a % of restaurant sales)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

35.4

%

 

 

 

35.8

%

 

 

(47)bps

 

 

 

 

35.9

%

 

 

 

35.3

%

 

 

68bps

 

Labor

 

 

 

 

29.2

%

 

 

 

29.1

%

 

 

6bps

 

 

 

 

29.3

%

 

 

 

29.3

%

 

 

(1)bps

 

Rent

 

 

 

 

2.2

%

 

 

 

2.2

%

 

 

1bps

 

 

 

 

2.1

%

 

 

 

2.1

%

 

 

(4)bps

 

Other operating

 

 

 

 

15.7

%

 

 

 

16.4

%

 

 

(72)bps

 

 

 

 

15.4

%

 

 

 

15.7

%

 

 

(34)bps

 

Total

 

 

 

 

82.4

%

 

 

 

83.5

%

 

 

(112)bps

 

 

 

 

82.7

%

 

 

 

82.4

%

 

 

30bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin (4)

 

 

 

 

17.6

%

 

 

 

16.5

%

 

 

112bps

 

 

 

 

17.3

%

 

 

 

17.6

%

 

 

(30)bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restaurant margin ($ in thousands)

 

 

 

$

79,196

 

 

 

$

65,982

 

 

 

20.0

%

 

 

$

310,762

 

 

 

$

276,782

 

 

 

12.3

%

 

Restaurant margin $/Store week

 

 

 

$

15,272

 

 

 

$

13,844

 

 

 

10.3

%

 

 

$

15,523

 

 

 

$

14,909

 

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-owned restaurants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise royalties and fees

 

 

 

$

3,822

 

 

 

$

3,635

 

 

 

5.1

%

 

 

$

15,922

 

 

 

$

13,592

 

 

 

17.1

%

 

Store weeks

 

 

 

 

1,062

 

 

 

 

998

 

 

 

6.4

%

 

 

 

4,174

 

 

 

 

3,910

 

 

 

6.8

%

 

Comparable restaurant sales growth (1)

 

 

 

 

4.0

%

 

 

 

5.7

%

 

 

 

 

 

 

 

6.5

%

 

 

 

4.9

%

 

 

 

 

 

Average unit volume (2)

 

 

 

$

1,202

 

 

 

$

1,175

 

 

 

2.3

%

 

 

$

5,029

 

 

 

$

4,639

 

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-opening expense

 

 

 

$

4,640

 

 

 

$

5,775

 

 

 

(19.7

)%

 

 

$

19,116

 

 

 

$

18,452

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

$

18,700

 

 

 

$

15,497

 

 

 

20.7

%

 

 

$

69,694

 

 

 

$

59,179

 

 

 

17.8

%

 

As a % of revenue

 

 

 

 

4.1

%

 

 

 

3.8

%

 

 

28bps

 

 

 

 

3.9

%

 

 

 

3.7

%

 

 

12bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

 

$

24,992

 

 

 

$

20,676

 

 

 

20.9

%

 

 

$

92,336

 

 

 

$

81,656

 

 

 

13.1

%

 

As a % of revenue

 

 

 

 

5.5

%

 

 

 

5.1

%

 

 

39bps

 

 

 

 

5.1

%

 

 

 

5.2

%

 

 

(5)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 sales from restaurants closed during the period.

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

(4) Restaurant margin represents restaurant sales less cost of sales, labor, rent and other operating costs (as a percentage of restaurant sales). 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.

 

###

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