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Texas Roadhouse, Inc. Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

LOUISVILLE, KY. (November 2, 2015)

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 week periods ended September 29, 2015.

Third Quarter

Year to Date

($000s)

% Change

Total revenue

438,089

385,218

1,353,017

1,177,723

Income from operations

30,556

28,821

110,852

103,406

Net income

20,482

18,881

73,912

68,427

Diluted EPS

Results for the third quarter included the following highlights:

Comparable restaurant sal es increased 6.9% at company restaurants and 7.7% at franchise restaurants;

Restaurant margin, as a percentage of restaurant sales, decreased 22 basis points to 16.6%, primarily driven by higher labor costs. Wage rate inflation, along with higher healthcare costs, more than offset the impact of higher average unit volume;

Diluted earnings per share increased 8.0% to $0.29 from $0.27 in the prior year;

10 company-owned restaurants were opened, including one Bubbas 33 restaurant; and,

The Company repurchased 44,000 shares of its common stock for $1.6 million.

Results for year-to-date included the following highlights:

Comparable restaurant sales increased 8.1% at company restaurants and 7.4% at franchise restaurants;

Restaurant margin, as a percentage of restaurant sales, decreased 78 basis points to 17.3%. Food cost inflation of approximately 6.0% driven by beef, more than offset the impact of higher average unit volume;

Diluted earnings per share increased 8.0% to $1.05 from $0.97 in the prior year;

22 company-owned restaurants were opened, including four Bubbas 33 restaurants; and,

The Company repurchased 132,089 shares of its common stock for $4.7 million.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, We are pleased with our third quarter results, which included double digit revenue growth comprised of solid comparable restaurant sales growth of 6.9% and store week growth of 7.7% from new restaurant development. Our performance continues to be driven by our commitment to legendary food and legendary service.

Taylor continued, Our new restaurant pipeline is strong and we remain on track with our development plans for 2015 and 2016. The consistency of our business and our healthy cash flow generation allows us to fund our new restaurant growth through internal cash flow, while also returning excess capital to our shareholders through dividends and share repurchases, driving further shareholder value.

2015 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its fourth quarter of fiscal 2015 increased approximately 5.0% compared to the prior year period.

Management updated the following expectations for 2015:

Approximately 30 company restaurant openings, including four Bubbas 33 restaurants (from as many as five Bubbas 33 restaurants previously);

Food cost inflation of approximately 5.0% (from 4.0% to 4.5% previously);

An income tax rate of approximately 30.0% to 30.5%, depending on the reinstatement of certain federal tax credits (from 30.0% to 31.0% previously); and,

Total capital expenditures of approximately $160.0 million (from $145.0 million to $155.0 million previously).

Management reiterated the following expectation for 2015:

Mid-single digit comparable restaurant sales growth.

2016 Outlook

Management provided the following expectations for 2016:

Positive comparable restaurant sales growth;

25 to 30 company restaurant...


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