News Details

LOUISVILLE, Ky., Nov 01, 2010 (BUSINESS WIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 week periods ended September 28, 2010.

Results for the quarter included:

• Comparable restaurant sales increased 4.3% at company restaurants and 4.4% at franchise restaurants;
• Three company restaurants opened;
• Restaurant margins increased 79 basis points to 17.9%;
• Diluted earnings per share increased 28% to $0.19 from $0.15 in the prior year period.

Results year-to-date included:

• Comparable restaurant sales increased 2.1% at company restaurants and 2.4% at franchise restaurants;
• Seven company restaurants and one franchise restaurant opened, while one company restaurant closed;
• Restaurant margins increased 114 basis points to 19.0%;
• Diluted earnings per share increased 22% to $0.66 from $0.54 in the prior year-to-date period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, "We are very encouraged by our third quarter results, which have helped position Texas Roadhouse to end 2010 at the high end of our previously expected diluted EPS range. Comparable restaurant sales growth was over 4% for the quarter, driven by traffic gains, which in turn led to continued margin expansion and net income growth. Importantly, our strong performance was achieved without compromising our commitment to legendary food and service, as our adherence to these core values continues to benefit our business in a tough economy." Hart continued, "Looking ahead, we are excited to increase our development plans for 2011. Along with continued execution at the store level, we believe this reacceleration of our expansion efforts will position Texas Roadhouse to continue driving long-term value for shareholders."

Outlook for 2010

The Company reported that comparable restaurant sales for the first four weeks of the fourth quarter of fiscal 2010 increased 3.5% compared to the prior year period.

The Company now estimates 2010 diluted earnings per share growth will be approximately 20% compared to 2009, which is at the high-end of the previous 16% to 20% range. This revised estimate is based, in part, on the following assumptions:

• Comparable restaurant sales growth of approximately 2.0%;
• 14 company restaurant openings;
• Food cost deflation of approximately 2.5%; and
• Total capital expenditures of approximately $50 million.

Outlook for 2011

While the Company is still finalizing its plans relating to 2011, the Company announced that if comparable restaurant sales growth is 2% to 3% for the year, 2011 diluted earnings per share growth would likely be 5% to 15% compared to 2010. This is based, in part, on the following assumptions:

• Approximately 20 company restaurant openings;
• Food cost inflation of 2.0% to 3.0%; and
• Total capital expenditures of approximately $60 to $65 million.

Conference Call

The Company is hosting a conference call today, November 1, 2010, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 879-6203 or (719) 325-4920 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 8033424 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 over 330 restaurants system-wide in 46 states. 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 restaurant development or operating costs, our ability to acquire franchise restaurants, our ability to integrate the franchise restaurants we acquire or other concepts we develop, strength of consumer spending, conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies, acts of war or terrorism and other factors disclosed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements.

SOURCE: Texas Roadhouse, Inc.

Texas Roadhouse, Inc.
Investor Relations
Price Cooper, 502-515-7300
or
Media
Travis Doster, 502-638-5457

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