Financial Results
Financial results for the 13 and 52 weeks ended
13 Weeks Ended | 52 Weeks Ended | |||||||||||||||||
( | 2023 | 2022 | % change | 2023 | 2022 | % change | ||||||||||||
Total revenue | $ | 1,164,361 | $ | 1,009,529 | 15.3 | % | $ | 4,631,672 | $ | 4,014,919 | 15.4 | % | ||||||
Income from operations | 83,773 | 68,853 | 21.7 | % | 353,989 | 320,197 | 10.6 | % | ||||||||||
Net income | 72,430 | 59,869 | 21.0 | % | 304,876 | 269,818 | 13.0 | % | ||||||||||
Diluted earnings per share | $ | 1.08 | $ | 0.89 | 21.3 | % | $ | 4.54 | $ | 3.97 | 14.3 | % |
Results for the 13 weeks ended
- Comparable restaurant sales increased 9.9% at company restaurants and increased 8.9% at domestic franchise restaurants;
- Average weekly sales at company restaurants were
$141,653 of which$17,793 were to-go sales as compared to average weekly sales of$130,176 of which$16,414 were to-go sales in the prior year; - Restaurant margin dollars increased 21.4% to
$176.7 million from$145.6 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased 75 basis points to 15.3% driven by higher sales partially offset by commodity inflation of 3.2%, wage and other labor inflation of 5.5% and higher general liability insurance expense; - Diluted earnings per share increased 21.3% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expenses;
- 12 company restaurants and seven franchise restaurants were opened; and
- The Company repurchased 40,707 shares of common stock for
$4.8 million .
Results for the 52 weeks ended
- Comparable restaurant sales increased 10.1% at company restaurants and increased 9.8% at domestic franchise restaurants;
- Average weekly sales at company restaurants were
$143,837 of which$18,088 were to-go sales as compared to average weekly sales of$131,802 of which$17,504 were to-go sales in the prior year; - Restaurant margin dollars increased 12.8% to
$708.0 million from$627.5 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 36 basis points to 15.4% primarily due to commodity inflation of 5.6%, wage and other labor inflation of 6.6% and higher general liability insurance expense partially offset by higher sales; - Diluted earnings per share increased 14.3% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expenses;
- 30 company restaurants and 15 franchise restaurants were opened; and
- The Company repurchased 455,026 shares of common stock for
$50.0 million .
Morgan continued, “As we move into 2024, our development pipeline is progressing as we anticipated with 19 new company restaurants under construction. We expect a more evenly distributed opening schedule will create efficiencies and positively impact store week growth. Our strong balance sheet and disciplined capital allocation strategy continues to provide us the necessary flexibility to fund new store growth and return capital to our shareholders.”
2024 Outlook
Comparable restaurant sales at company restaurants for the first 50 days of our first quarter of fiscal 2024 increased 6.8% compared to 2023. In addition, the Company plans to implement a menu price increase of approximately 2.2% in late March.
Management updated the following expectations for 2024:
- Commodity cost inflation of approximately 5%; and
- An effective income tax rate of approximately 14%.
Management reiterated the following expectations for 2024:
- Positive comparable restaurant sales growth including the benefit of 2023 menu pricing actions;
- Store week growth of approximately 8%, including a benefit of 2% from the 53rd week;
- Wage and other labor inflation of 4% to 5%; and
- Total capital expenditures of
$340 million to$350 million .
Cash Dividend Payment
On
Non-GAAP Measures
The Company prepares the consolidated financial statements in accordance with
Conference Call
Texas Roadhouse, Inc. is hosting a conference call today,
About the Company
Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 740 restaurants system-wide in 49 states and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.
Forward-looking Statements
Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of
Contacts: | |
Investor Relations | Media |
(502) 515-7298 | (502) 638-5457 |
Texas Roadhouse, Inc. and Subsidiaries Consolidated Statements of Income (in thousands, except per share data) (unaudited) | ||||||||||||||
13 Weeks Ended | 52 Weeks Ended | |||||||||||||
Revenue: | ||||||||||||||
Restaurant and other sales | $ | 1,157,362 | $ | 1,002,763 | $ | 4,604,554 | $ | 3,988,791 | ||||||
Franchise royalties and fees | 6,999 | 6,766 | 27,118 | 26,128 | ||||||||||
Total revenue | 1,164,361 | 1,009,529 | 4,631,672 | 4,014,919 | ||||||||||
Costs and expenses: | ||||||||||||||
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||||||||||||
Food and beverage | 395,753 | 351,723 | 1,593,852 | 1,378,192 | ||||||||||
Labor | 383,154 | 334,827 | 1,539,124 | 1,319,959 | ||||||||||
Rent | 18,765 | 17,049 | 72,766 | 66,834 | ||||||||||
Other operating | 183,002 | 153,591 | 690,848 | 596,305 | ||||||||||
Pre-opening | 9,523 | 6,568 | 29,234 | 21,883 | ||||||||||
Depreciation and amortization | 40,438 | 35,462 | 153,202 | 137,237 | ||||||||||
Impairment and closure, net | 144 | 1,063 | 275 | 1,600 | ||||||||||
General and administrative | 49,809 | 40,393 | 198,382 | 172,712 | ||||||||||
Total costs and expenses | 1,080,588 | 940,676 | 4,277,683 | 3,694,722 | ||||||||||
Income from operations | 83,773 | 68,853 | 353,989 | 320,197 | ||||||||||
Interest income (expense), net | 254 | 753 | 2,984 | (124 | ) | |||||||||
Equity income from investments in unconsolidated affiliates | 170 | 170 | 1,351 | 1,239 | ||||||||||
Income before taxes | 84,197 | 69,776 | 358,324 | 321,312 | ||||||||||
Income tax expense | 9,175 | 8,007 | 44,649 | 43,715 | ||||||||||
Net income including noncontrolling interests | 75,022 | 61,769 | 313,675 | 277,597 | ||||||||||
Less: Net income attributable to noncontrolling interests | 2,592 | 1,900 | 8,799 | 7,779 | ||||||||||
Net income attributable to | $ | 72,430 | $ | 59,869 | $ | 304,876 | $ | 269,818 | ||||||
Net income per common share attributable to | ||||||||||||||
Basic | $ | 1.08 | $ | 0.89 | $ | 4.56 | $ | 3.99 | ||||||
Diluted | $ | 1.08 | $ | 0.89 | $ | 4.54 | $ | 3.97 | ||||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 66,803 | 66,946 | 66,893 | 67,643 | ||||||||||
Diluted | 67,078 | 67,270 | 67,149 | 67,920 | ||||||||||
Cash dividends declared per share | $ | 0.55 | $ | 0.46 | $ | 2.20 | $ | 1.84 |
Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||||
Cash and cash equivalents | $ | 104,246 | $ | 173,861 | |||
Other current assets, net | 252,228 | 222,980 | |||||
Property and equipment, net | 1,474,722 | 1,270,349 | |||||
Operating lease right-of-use assets, net | 694,014 | 630,258 | |||||
169,684 | 148,732 | ||||||
Intangible assets, net | 3,483 | 5,607 | |||||
Other assets | 94,999 | 73,878 | |||||
Total assets | $ | 2,793,376 | $ | 2,525,665 | |||
Other current liabilities | 745,434 | 652,010 | |||||
Operating lease liabilities, net of current portion | 743,476 | 677,874 | |||||
Long-term debt | — | 50,000 | |||||
Other liabilities | 146,955 | 118,119 | |||||
Texas Roadhouse, Inc. and subsidiaries stockholders’ equity | 1,141,662 | 1,012,638 | |||||
Noncontrolling interests | 15,849 | 15,024 | |||||
Total liabilities and equity | $ | 2,793,376 | $ | 2,525,665 |
Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||||
Fiscal Year Ended | |||||||||
Cash flows from operating activities: | |||||||||
Net income including noncontrolling interests | $ | 313,675 | $ | 277,597 | |||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||
Depreciation and amortization | 153,202 | 137,237 | |||||||
Share-based compensation expense | 34,230 | 36,663 | |||||||
Deferred income taxes | 3,115 | 9,456 | |||||||
Other noncash adjustments, net | 3,307 | 6,792 | |||||||
Change in working capital, net of acquisitions | 57,455 | 43,980 | |||||||
Net cash provided by operating activities | 564,984 | 511,725 | |||||||
Cash flows from investing activities: | |||||||||
Capital expenditures - property and equipment | (347,034 | ) | (246,121 | ) | |||||
Acquisition of franchise restaurants, net of cash acquired | (39,153 | ) | (33,069 | ) | |||||
Proceeds from sale of investments in unconsolidated affiliates | 627 | 316 | |||||||
Proceeds from sale of property and equipment | 2,110 | 2,269 | |||||||
Proceeds from sale leaseback transactions | 16,283 | 12,871 | |||||||
Net cash used in investing activities | (367,167 | ) | (263,734 | ) | |||||
Cash flows from financing activities: | |||||||||
Payments on revolving credit facility | (50,000 | ) | (50,000 | ) | |||||
Repurchase of shares of common stock | (49,993 | ) | (212,859 | ) | |||||
Dividends paid to shareholders | (147,182 | ) | (124,137 | ) | |||||
Other financing activities, net | (20,257 | ) | (22,779 | ) | |||||
Net cash used in financing activities | (267,432 | ) | (409,775 | ) | |||||
Net decrease in cash and cash equivalents | (69,615 | ) | (161,784 | ) | |||||
Cash and cash equivalents - beginning of period | 173,861 | 335,645 | |||||||
Cash and cash equivalents - end of period | $ | 104,246 | $ | 173,861 |
Reconciliation of Income from Operations to Restaurant Margin ($ in thousands) (unaudited) | ||||||||||||||
13 Weeks Ended | 52 Weeks Ended | |||||||||||||
Income from operations | $ | 83,773 | $ | 68,853 | $ | 353,989 | $ | 320,197 | ||||||
Less: | ||||||||||||||
Franchise royalties and fees | 6,999 | 6,766 | 27,118 | 26,128 | ||||||||||
Add: | ||||||||||||||
Pre-opening | 9,523 | 6,568 | 29,234 | 21,883 | ||||||||||
Depreciation and amortization | 40,438 | 35,462 | 153,202 | 137,237 | ||||||||||
Impairment and closure, net | 144 | 1,063 | 275 | 1,600 | ||||||||||
General and administrative | 49,809 | 40,393 | 198,382 | 172,712 | ||||||||||
Restaurant margin | $ | 176,688 | $ | 145,573 | $ | 707,964 | $ | 627,501 | ||||||
Restaurant margin(as a percentage of restaurant and other sales) | 15.3 | % | 14.5 | % | 15.4 | % | 15.7 | % |
Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except weekly sales by group) (unaudited) | |||||||||||
13 Weeks Ended | |||||||||||
Change | |||||||||||
Company restaurants (all concepts) | |||||||||||
Restaurant and other sales | $ | 1,157,362 | $ | 1,002,763 | 15.4 | % | |||||
Store weeks | 8,158 | 7,691 | 6.1 | % | |||||||
Comparable restaurant sales (1) | 9.9 | % | 7.3 | % | |||||||
Restaurant operating costs (as a % of restaurant and other sales) | |||||||||||
Food and beverage costs | 34.2 | % | 35.1 | % | 88 | bps | |||||
Labor | 33.1 | % | 33.4 | % | 28 | bps | |||||
Rent | 1.6 | % | 1.7 | % | 8 | bps | |||||
Other operating | 15.8 | % | 15.3 | % | (49 | ) | bps | ||||
Total | 84.7 | % | 85.5 | % | |||||||
Restaurant margin | 15.3 | % | 14.5 | % | 75 | bps | |||||
Restaurant margin ($ in thousands) | $ | 176,688 | $ | 145,573 | 21.4 | % | |||||
Restaurant margin $/Store week | $ | 21,658 | $ | 18,927 | 14.4 | % | |||||
Store weeks | 7,487 | 7,123 | 5.1 | % | |||||||
Comparable restaurant sales (1) | 10.2 | % | 7.3 | % | |||||||
Average unit volume (2) | $ | 1,888 | $ | 1,715 | 10.1 | % | |||||
Weekly sales by group: | |||||||||||
Comparable restaurants (545 and 513 units) | $ | 145,361 | $ | 132,430 | 9.8 | % | |||||
Average unit volume restaurants (19 and 24 units) | $ | 140,765 | $ | 129,117 | 9.0 | % | |||||
Restaurants less than 6 months old (18 and 15 units) | $ | 137,123 | $ | 141,991 | (3.4 | ) | % | ||||
Bubba’s 33 restaurants only: | |||||||||||
Store weeks | 574 | 504 | 13.9 | % | |||||||
Comparable restaurant sales (1) | 3.3 | % | 6.6 | % | |||||||
Average unit volume (2) | $ | 1,411 | $ | 1,391 | 1.4 | % | |||||
Weekly sales by group: | |||||||||||
Comparable restaurants (36 and 32 units) | $ | 110,490 | $ | 104,880 | 5.3 | % | |||||
Average unit volume restaurants (4 and 4 units) | $ | 90,822 | $ | 124,063 | (26.8 | ) | % | ||||
Restaurants less than 6 months old (5 and 4 units) | $ | 124,389 | $ | 104,110 | 19.5 | % | |||||
Franchise royalties and fees | $ | 6,959 | $ | 6,766 | 2.9 | % | |||||
Store weeks | 1,310 | 1,287 | 1.8 | % | |||||||
Comparable restaurant sales | 7.9 | % | 6.1 | % | |||||||
Comparable restaurant sales (1) | 8.9 | % | 7.2 | % | |||||||
Average unit volume (2) | $ | 2,067 | $ | 1,898 | 8.9 | % |
(1) Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period.
(2) Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period.
Amounts may not foot due to rounding.
Texas Roadhouse, Inc. and Subsidiaries Restaurant Unit Activity (unaudited) | |||||||||||||
13 Weeks Ended | 52 Weeks Ended | ||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||
Restaurant openings | |||||||||||||
Company - | 9 | 7 | 2 | 22 | 18 | 4 | |||||||
Company - Bubba’s 33 | 2 | 2 | — | 5 | 4 | 1 | |||||||
Company - Jaggers | 1 | 1 | — | 3 | 1 | 2 | |||||||
Total company restaurants | 12 | 10 | 2 | 30 | 23 | 7 | |||||||
Franchise - Texas Roadhouse - Domestic | 2 | — | 2 | 3 | — | 3 | |||||||
Franchise - Jaggers - Domestic | 1 | — | 1 | 2 | — | 2 | |||||||
Franchise - Texas Roadhouse - Int'l | 4 | 2 | 2 | 10 | 7 | 3 | |||||||
Total franchise restaurants | 7 | 2 | 5 | 15 | 7 | 8 | |||||||
Total restaurants | 19 | 12 | 7 | 45 | 30 | 15 | |||||||
Restaurant acquisitions/dispositions | |||||||||||||
Company - | — | — | — | 8 | 8 | — | |||||||
Franchise - Texas Roadhouse - Domestic | — | — | — | (8 | ) | (8 | ) | — | |||||
Restaurant closures | |||||||||||||
Franchise - Texas Roadhouse - Domestic | — | — | — | (1 | ) | — | (1 | ) | |||||
Restaurants open at the end of the quarter | |||||||||||||
Company - | 582 | 552 | 30 | ||||||||||
Company - Bubba’s 33 | 45 | 40 | 5 | ||||||||||
Company - Jaggers | 8 | 5 | 3 | ||||||||||
Total company restaurants | 635 | 597 | 38 | ||||||||||
Franchise - Texas Roadhouse - Domestic | 56 | 62 | (6 | ) | |||||||||
Franchise - Jaggers - Domestic | 2 | — | 2 | ||||||||||
Franchise - Texas Roadhouse - Int'l | 48 | 38 | 10 | ||||||||||
Total franchise restaurants | 106 | 100 | 6 | ||||||||||
Total restaurants | 741 | 697 | 44 |
Source:
2024 GlobeNewswire, Inc., source