LOUISVILLE, Ky.--(BUSINESS WIRE)--
Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial
results for the 13 week period ended March 29, 2016.
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First Quarter
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($000's)
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2016
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2015
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% Change
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Total revenue
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$
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515,559
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$
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460,230
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12
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Income from operations
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52,811
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48,600
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9
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Net income
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35,593
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32,292
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10
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Diluted EPS
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$
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0.50
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$
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0.46
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10
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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 restaurant development or operating
costs, such as food and labor; our ability to acquire franchise
restaurants; our ability to integrate the franchise restaurants we
acquire or other concepts we develop; our ability to continue to
generate the necessary cash flows to fund our new restaurant growth,
continue our share repurchase program and pay a quarterly cash dividend;
strength of consumer spending; pending or future legal claims; breaches
of security; conditions beyond our control such as weather, natural
disasters, disease outbreaks, epidemics or pandemics impacting our
customers or food supplies; food safety and food borne illness concerns;
acts of war or terrorism and other factors disclosed from time to time
in our filings with the U.S. Securities and Exchange Commission.
Investors should take such risks into account when making investment
decisions. Shareholders 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. We undertake no obligation to update
any forward-looking statements.
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Texas Roadhouse, Inc. and Subsidiaries
|
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Condensed Consolidated Statements of Income
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(in thousands, except per share data)
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(unaudited)
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13 Weeks Ended
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March 29, 2016 |
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March 31, 2015 |
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Revenue:
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Restaurant sales
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$
|
511,284
|
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|
$
|
456,293
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|
Franchise royalties and fees
|
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|
4,275
|
|
|
|
3,937
|
|
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|
|
|
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|
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Total revenue
|
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515,559
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|
460,230
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Costs and expenses:
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Restaurant operating costs (excluding depreciation and amortization
shown separately below):
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Cost of sales
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173,128
|
|
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|
159,980
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Labor
|
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147,546
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131,404
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Rent
|
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10,027
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|
8,979
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Other operating
|
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77,612
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69,317
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Pre-opening
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4,825
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|
3,818
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Depreciation and amortization
|
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|
19,539
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|
|
16,335
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Impairment and closure
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11
|
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-
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General and administrative
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30,060
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|
21,797
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Total costs and expenses
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462,748
|
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|
|
411,630
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|
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Income from operations
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52,811
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48,600
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Interest expense, net
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|
305
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|
|
515
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Equity income from investments in unconsolidated affiliates
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352
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372
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Income before taxes
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52,858
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48,457
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Provision for income taxes
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15,857
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14,876
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Net income including noncontrolling interests
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$
|
37,001
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$
|
33,581
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Less: Net income attributable to noncontrolling interests
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1,408
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|
1,289
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Net income attributable to Texas Roadhouse, Inc. and subsidiaries
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$
|
35,593
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$
|
32,292
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Net income per common share attributable to Texas Roadhouse, Inc.
and subsidiaries:
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Basic
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$
|
0.51
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$
|
0.46
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Diluted
|
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$
|
0.50
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$
|
0.46
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Weighted average shares outstanding:
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Basic
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70,169
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69,841
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Diluted
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70,764
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70,528
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Texas Roadhouse, Inc. and Subsidiaries
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Condensed Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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March 29, 2016 |
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December 29, 2015 |
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Cash and cash equivalents
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$
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95,992
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$
|
59,334
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Other current assets
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51,218
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|
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|
74,479
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Property and equipment, net
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766,331
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|
|
|
751,288
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|
Goodwill |
|
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|
116,571
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|
116,571
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Intangible assets, net
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4,488
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|
4,827
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Other assets
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27,014
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26,207
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Total assets
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|
$
|
1,061,614
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$
|
1,032,706
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Current maturities of long-term debt
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|
147
|
|
|
|
144
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Other current liabilities
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|
|
|
233,097
|
|
|
|
256,498
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Long-term debt, excluding current maturities
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50,512
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|
|
|
25,550
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Other liabilities
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|
|
|
78,566
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|
|
|
73,332
|
|
Texas Roadhouse, Inc. and subsidiaries stockholders' equity
|
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|
|
|
691,537
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|
669,662
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Noncontrolling interests
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|
|
|
7,755
|
|
|
|
7,520
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|
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Total liabilities and equity
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$
|
1,061,614
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|
$
|
1,032,706
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|
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|
|
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|
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Texas Roadhouse, Inc. and Subsidiaries
|
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
|
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(unaudited)
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|
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|
|
|
|
|
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|
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13 Weeks Ended
|
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|
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|
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March 29, 2016 |
|
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March 31, 2015 |
|
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|
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|
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Cash flows from operating activities:
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|
|
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Net income including noncontrolling interests
|
|
|
|
$
|
37,001
|
|
|
|
$
|
33,581
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
19,539
|
|
|
|
|
16,335
|
|
|
|
Share-based compensation expense
|
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|
|
|
5,788
|
|
|
|
|
4,904
|
|
|
|
Other noncash adjustments
|
|
|
|
|
802
|
|
|
|
|
(41
|
)
|
|
Change in working capital
|
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|
|
|
1,758
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|
|
|
|
2,913
|
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|
|
|
Net cash provided by operating activities
|
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|
|
|
64,888
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|
|
|
|
57,692
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|
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|
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|
|
Cash flows from investing activities:
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Capital expenditures - property and equipment
|
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|
|
|
(34,179
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)
|
|
|
|
(33,437
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)
|
|
Proceeds from sale of property and equipment, including insurance
proceeds
|
|
|
|
|
-
|
|
|
|
|
9
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
(34,179
|
)
|
|
|
|
(33,428
|
)
|
|
|
|
|
|
|
|
|
|
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|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from revolving credit facility
|
|
|
|
|
25,000
|
|
|
|
|
-
|
|
|
Repurchase shares of common stock
|
|
|
|
|
(4,110
|
)
|
|
|
|
-
|
|
|
Dividends paid
|
|
|
|
|
(11,919
|
)
|
|
|
|
(10,443
|
)
|
|
Other financing activities
|
|
|
|
|
(3,022
|
)
|
|
|
|
(1,431
|
)
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
5,949
|
|
|
|
|
(11,874
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
36,658
|
|
|
|
|
12,390
|
|
|
Cash and cash equivalents - beginning of period
|
|
|
|
|
59,334
|
|
|
|
|
86,122
|
|
|
Cash and cash equivalents - end of period
|
|
|
|
$
|
95,992
|
|
|
|
$
|
98,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries
|
|
Supplemental Financial and Operating Information
|
|
($ amounts in thousands, except weekly sales by group)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
|
Change
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
vs LY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant openings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas Roadhouse |
|
|
|
|
5
|
|
|
|
|
2
|
|
|
|
3
|
|
|
|
|
Company - Bubba's 33
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
Company - Other
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
Franchise - Texas Roadhouse |
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
1
|
|
|
|
|
Total
|
|
|
|
|
8
|
|
|
|
|
3
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants open at the end of the quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas Roadhouse |
|
|
|
|
397
|
|
|
|
|
370
|
|
|
|
27
|
|
|
|
|
Company - Bubba's 33
|
|
|
|
|
9
|
|
|
|
|
4
|
|
|
|
5
|
|
|
|
|
Company - Other
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
Franchise - Texas Roadhouse |
|
|
|
|
83
|
|
|
|
|
79
|
|
|
|
4
|
|
|
|
|
Total
|
|
|
|
|
491
|
|
|
|
|
454
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales
|
|
|
|
$
|
511,284
|
|
|
|
$
|
456,293
|
|
|
|
12.1
|
%
|
|
|
|
Store weeks
|
|
|
|
|
5,262
|
|
|
|
|
4,857
|
|
|
|
8.3
|
%
|
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
|
4.6
|
%
|
|
|
|
8.9
|
%
|
|
|
|
|
|
|
Texas Roadhouse restaurants only:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
|
4.6
|
%
|
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
Average unit volume (2)
|
|
|
|
$
|
1,270
|
|
|
|
$
|
1,220
|
|
|
|
4.1
|
%
|
|
|
|
|
Weekly sales by group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurants (358 units)
|
|
|
|
$
|
98,156
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit volume restaurants (18 units) (3)
|
|
|
|
$
|
88,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants less than 6 months old (21 units)
|
|
|
|
$
|
98,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating costs (as a % of restaurant sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
33.9
|
%
|
|
|
|
35.1
|
%
|
|
|
(120
|
)
|
bps
|
|
Labor
|
|
|
|
|
28.9
|
%
|
|
|
|
28.8
|
%
|
|
|
6
|
|
bps
|
|
Rent
|
|
|
|
|
2.0
|
%
|
|
|
|
2.0
|
%
|
|
|
(1
|
)
|
bps
|
|
Other operating
|
|
|
|
|
15.2
|
%
|
|
|
|
15.2
|
%
|
|
|
(1
|
)
|
bps
|
|
Total
|
|
|
|
|
79.9
|
%
|
|
|
|
81.0
|
%
|
|
|
(116
|
)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin (4)
|
|
|
|
|
20.1
|
%
|
|
|
|
19.0
|
%
|
|
|
116
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin ($ in thousands)
|
|
|
|
$
|
102,970
|
|
|
|
$
|
86,613
|
|
|
|
18.9
|
%
|
|
|
|
Restaurant margin $/Store week
|
|
|
|
$
|
19,569
|
|
|
|
$
|
17,833
|
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise-owned restaurants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise royalties and fees
|
|
|
|
$
|
4,275
|
|
|
|
$
|
3,937
|
|
|
|
8.6
|
%
|
|
|
|
Store weeks
|
|
|
|
|
1,070
|
|
|
|
|
1,027
|
|
|
|
4.2
|
%
|
|
|
|
Comparable restaurant sales growth (1)
|
|
|
|
|
3.1
|
%
|
|
|
|
8.0
|
%
|
|
|
|
|
|
|
Average unit volume (2)
|
|
|
|
$
|
1,317
|
|
|
|
$
|
1,306
|
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-opening expense
|
|
|
|
$
|
4,825
|
|
|
|
$
|
3,818
|
|
|
|
26.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
$
|
19,539
|
|
|
|
$
|
16,335
|
|
|
|
19.6
|
%
|
|
|
|
As a % of revenue
|
|
|
|
|
3.8
|
%
|
|
|
|
3.5
|
%
|
|
|
24
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
|
$
|
30,060
|
|
|
|
$
|
21,797
|
|
|
|
37.9
|
%
|
|
|
|
As a % of revenue
|
|
|
|
|
5.8
|
%
|
|
|
|
4.7
|
%
|
|
|
109
|
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable restaurant sales growth reflects the change in
year-over-year sales for restaurants open a full 18 months before
the beginning of the period measured, excluding sales from
restaurants closed during the period.
|
|
(2) Average unit volume includes sales from Texas Roadhouse
restaurants open for a full six months before the beginning of the
period measured, excluding any sales at restaurants closed during
the period.
|
|
(3) Average unit volume restaurants include restaurants open a full
six to 18 months before the beginning of the period measured.
|
|
(4) Restaurant margin represents restaurant sales less cost of
sales, labor, rent and other operating costs (as a percentage of
restaurant sales). Restaurant margin is widely regarded in the
restaurant industry as a useful metric by which to evaluate
restaurant-level operating efficiency and performance. Restaurant
margin is not a measurement determined in accordance with GAAP and
should not be considered in isolation, or as an alternative, to
income from operations or other similarly titled measures of other
companies.
|
|
|
|
|
|
Amounts may not foot due to rounding.
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160502006143/en/
Texas Roadhouse, Inc.
Investor Relations:
Tonya Robinson,
502-515-7269
or
Media:
Travis Doster, 502-638-5457
Source: Texas Roadhouse, Inc.
News Provided by Acquire Media