Texas Roadhouse Announces First Quarter 2011 Results

Texas Roadhouse has announced financial results for the 13 week period ended March 29, 2011.

                 
        First Quarter
    ($000’s)   2011   2010   % Change
                 
    Total revenue   283,785   259,624   9
    Income from operations        30,209     30,106  
    Net income     19,793     19,241   3
    Diluted EPS       $0.27       $0.27   1
                 

Texas Roadhouse Announces First Quarter 2011 ResultsResults for the first quarter included:

  • Comparable restaurant sales increased 4.6% at company restaurants and 3.8% at franchise restaurants;
  • 2 company restaurants opened;
  • Restaurant margins, as a percentage of restaurant sales, decreased 88 basis points to 19.2%;
  • The Company repurchased 1,500,000 shares of its common stock for a total purchase price of $25.3 million;
  • Diluted earnings per share increased 1% compared to the prior year period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, “We were very pleased with yet another quarter of strong, top-line momentum, driven by rising guest counts and new restaurant performance. We credit our on-going commitment to Legendary Food and Legendary Service at an affordable price, our fundamental business proposition. That said, commodity inflation continues to present challenges in the marketplace and, although we have modestly raised prices to address the issue, it has not been enough to fully offset the rising costs. If appropriate, we believe we are well positioned to take further modest price increases to help offset inflation.

Hart continued, “We continue to have a lot of confidence in our unit economics and are excited to continue to ramp our development. Accordingly, we plan to open more restaurants in 2011 than in 2010, and we are building a pipeline to open even more units in 2012. This caused pre-opening costs to increase in the first quarter, something we expect to persist throughout the year. While negative to earnings per share short term, we strongly believe the longer term dynamics of new unit and operating week growth is good for our teams and our shareholders. Finally, while we continue to invest in our core business, we are pleased to be returning excess capital to shareholders through dividends and share repurchases. We remain committed to driving total shareholder return through our operational performance, our growth and returning capital to shareholders.”

The Company reported that comparable restaurant sales for the first four weeks of the second quarter of fiscal 2011 increased approximately 5.4% compared to the prior year period.

The Company’s current expectation for 2011 diluted earnings per share growth is 5% to 10% compared to 2010. This estimate is based, in part, on the following assumptions:

  • Comparable restaurant sales growth of 3.5% to 5%;
  • Approximately 20 company restaurant openings;
  • Food cost inflation of approximately 4.0%; and
  • Total capital expenditures of $65 to $70 million.

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 345 restaurants system-wide in 46 states

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