Texas Roadhouse is a full service, casual dining restaurant chain. We offer an assortment of specially seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills. In addition to steaks, we also offer our guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads and sandwiches. The majority of our entrees include two made-from-scratch side items, and we offer all our guests a free unlimited supply of in-shell peanuts and made-from-scratch yeast rolls. Today, the Company operates over 370 restaurants system-wide in 46 states.

1993 by W. Kent Taylor, Chairman

Over the past five years, the total number of Texas Roadhouse company and franchise restaurants increased from 193 restaurants as of the end of 2004 to over 345 restaurants as of the end of 2010.

The operating strategy that underlies the growth of our concept is built on the following key components:

• Offering performance based manager compensation - We believe we attract and retain talented, experienced and highly motivated restaurant operators by offering performance based compensation programs to our restaurant managers and area managers, who are called "managing partners" and "market partners," respectively.
• Offering high quality, freshly prepared food - A significant majority of our menu offerings consist of made-from-scratch entree and side items that are based on proprietary recipes and prepared daily at each restaurant. In addition, we heavily invest in the training of and adherence to our recipe and quality standards.
• Focusing on dinner - In a high percentage of our restaurants, we limit our operating hours to dinner only during the weekdays. We believe focusing on dinner allows our restaurant teams to offer high quality, more consistent food and service to our guests, and provides a better "quality of life" for our management teams, which allows us to attract and retain qualified management personnel.
• Offering attractive price points - We offer our food and beverages at moderate price points which we believe are as low or lower than those offered by our competitors. Our per guest check average for the restaurants we owned and operated in 2010 was approximately $14.63.
• Creating a fun and comfortable atmosphere - Our restaurants feature a rustic southwestern lodge decor accentuated with hand-painted murals, neon signs, southwestern prints, rugs and artifacts, and jukeboxes which continuously play upbeat country hits.

Our long-term strategies with respect to increasing net income and earnings per share include the following:

• Expanding Our Restaurant Base - We will continue to evaluate opportunities to develop Texas Roadhouse restaurants in existing and new domestic or international markets and believe that our concept can support several hundred additional restaurants throughout the United States.
• Maintaining and/or Improving Restaurant Level Profitability - We plan to maintain, or possibly increase, restaurant level profitability through a combination of increased comparable restaurant sales and operating cost management.
• Leveraging Our Scalable Infrastructure - To support our growth, we have made significant investments in our infrastructure, including information systems, real estate, human resources, legal, marketing and operations. Historically, our general and administrative costs have increased at a slower growth rate than our revenue.  Whether we are able to continue leveraging our infrastructure will depend, in part, on our new restaurant and comparable restaurant sale growth rates going forward.
• Returning Capital to Shareholders- We continue to look at opportunities to return capital to our shareholders, including through the repurchases of common stock and the payment of dividends.