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Texas Roadhouse, Inc. Announces First Quarter 2016 Results

LOUISVILLE, Ky., May 02, 2016 (BUSINESS WIRE) -- Texas Roadhouse, Inc. (nasdaqgs:TXRH), today announced financial results for the 13 week period ended March 29, 2016.

First Quarter
($000's)

2016

2015

% Change

Total revenue $ 515,559 $ 460,230 12
Income from operations 52,811 48,600 9
Net income 35,593 32,292 10
Diluted EPS $ 0.50 $ 0.46 10

Results for the first quarter included the following highlights:

  • Comparable restaurant sales growth of 4.6% at company restaurants and 3.1% at franchise restaurants;
  • Restaurant margin, as a percentage of restaurant sales, increased 116 basis points to 20.1%, primarily driven by lower food costs;
  • Diluted earnings per share increased 9.8% to $0.50 from $0.46 in the prior year;
  • The Company recorded a pre-tax charge of $5.5 million ($3.4 million after-tax) related to a pending legal settlement which had a $0.05 impact on diluted earnings per share and a 10.0% impact on diluted earnings per share growth;
  • Seven company-owned restaurants were opened, including two Bubba’s 33 restaurants; and,
  • The Company repurchased 114,700 shares of its common stock for $4.1 million.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are pleased that our top-line momentum continued in the first quarter, driven by solid traffic growth. Strong comp sales, along with commodity deflation driven by lower beef costs helped us deliver near double digit earnings growth this quarter. As of today, we have opened ten company restaurants, as well as two international franchise openings, including our first in the Philippines. Beyond restaurant development, our balance sheet and cash flow remain healthy and we believe we are well-positioned for long-term growth."

2016 Outlook

The Company reported that comparable restaurant sales growth at company restaurants for the first four weeks of its second quarter of fiscal 2016 was approximately 5.1% compared to the prior year period.

Management reiterated the following expectations for 2016:

  • Positive comparable restaurant sales growth;
  • 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.

Conference Call

The Company is hosting a conference call today, May 2, 2016 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 675-4756 or (719) 325-4940 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 4379719 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 495 restaurants system-wide in 49 states and five 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...


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