• Texas Roadhouse, Inc. Announces Third Quarter 2023 Results

    来源: Nasdaq GlobeNewswire / 26 10月 2023 16:03:40   America/New_York

    LOUISVILLE, Ky., Oct. 26, 2023 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 weeks ended September 26, 2023.

    Financial Results

    Financial results for the 13 and 39 weeks ended September 26, 2023 and September 27, 2022 were as follows:

     13 Weeks Ended 39 Weeks Ended 
    ($000's)September
    26, 2023
     September
    27, 2022
     % change    September
    26, 2023
     September
    27, 2022
     % change 
    Total revenue$1,121,752 $993,298 12.9 %  $3,467,311 $3,005,390 15.4%
    Income from operations 73,859  75,288 (1.9)%   270,216  251,344 7.5%
    Net income 63,788  62,328 2.3 %   232,446  209,949 10.7%
    Diluted earnings per share$0.95 $0.93 2.6 %  $3.46 $3.08 12.3%
                      

    Results for the 13 weeks ended September 26, 2023, as compared to the prior year as applicable, included the following:

    • Comparable restaurant sales increased 8.2% at company restaurants and increased 7.8% at domestic franchise restaurants;
    • Average weekly sales at company restaurants were $138,668 of which $17,058 were to-go sales as compared to average weekly sales of $129,278 of which $16,305 were to-go sales in the prior year;
    • Restaurant margin dollars increased 7.1% to $162.8 million from $152.0 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 80 basis points to 14.6% as commodity inflation of 4.2%, wage and other labor inflation of 5.6% and higher general liability insurance expenses were partially offset by higher sales;
    • Diluted earnings per share increased 2.6% primarily driven by higher restaurant margin dollars and lower income tax expense partially offset by higher depreciation and amortization and higher general and administrative expenses;
    • Nine company restaurants and four franchise restaurants were opened including the first Jaggers franchise restaurant; and,
    • The Company repurchased 107,593 shares of common stock for $12.1 million.

    Results for the 39 weeks ended September 26, 2023, as compared to the prior year as applicable, included the following:

    • Comparable restaurant sales increased 10.1% at both company restaurants and domestic franchise restaurants;
    • Average weekly sales at company restaurants were $144,583 of which $18,189 were to-go sales as compared to average weekly sales of $132,356 of which $17,874 were to-go sales in the prior year;
    • Restaurant margin dollars increased 10.2% to $531.3 million from $481.9 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 73 basis points to 15.4% as commodity inflation of 6.3% and wage and other labor inflation of 6.8% were partially offset by higher sales;
    • Diluted earnings per share increased 12.3% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expense;
    • 18 company restaurants and eight franchise restaurants were opened including the first Jaggers franchise restaurant; and,
    • The Company repurchased 414,319 shares of common stock for $45.2 million.

    Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “We are pleased to report another quarter of double-digit sales growth, highlighted by increased guest counts, which has continued through the October period.  Our operators are clearly providing a legendary experience that is resonating with our guests.”

    Morgan continued, “On the development front, we are on track to open a record number of systemwide locations this year across all of our brands.  In addition, we have been able to accelerate our 2024 development pipeline and as of the end of the quarter already had 11 of our planned new company locations under construction. Our significant investment in organic growth, along with continued sales momentum, has us well positioned to continue driving legendary value and returns for our roadies, guests and shareholders.”

    2023 Outlook

    Comparable restaurant sales at company restaurants for the first four weeks of our fourth quarter of fiscal 2023 increased 9.2% compared to 2022. In addition, the Company implemented a menu price increase of approximately 2.7% in early Q4 2023.

    Management reiterated the following expectations for 2023:

    • Positive comparable restaurant sales growth including the benefit of menu pricing actions;
    • Store week growth of approximately 6% including the impact of franchise locations acquired;
    • Commodity cost inflation of 5% to 6%; and,
    • Wage and other labor inflation of 6% to 7%.

    Management updated the following expectations for 2023:

    • As many as 27 Texas Roadhouse and Bubba’s 33 company restaurant openings;
    • An effective income tax rate of approximately 13%; and,
    • Total capital expenditures of approximately $340 million.

    2024 Outlook

    Management provided the following initial expectations for 2024:

    • Positive comparable restaurant sales growth including the benefit of 2023 menu pricing actions;
    • Store week growth of approximately 8%, including a benefit of 2% from the 53rd week;
    • Commodity cost inflation of 5% to 6%;
    • Wage and other labor inflation of 4% to 5%;
    • An effective income tax rate of 14% to 15%; and,
    • Total capital expenditures of $340 million to $350 million.

    Non-GAAP Measures

    The Company prepares the consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). Within the press release, the Company makes reference to restaurant margin (in dollars and as a percentage of restaurant and other sales). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent and other operating costs. Restaurant margin also includes sales and operating costs related to the Company’s non-royalty based retail initiatives. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, including general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. The Company excludes pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results. The Company excludes depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expense as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables.

    Conference Call

    Texas Roadhouse, Inc. is hosting a conference call today, October 26, 2023, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company’s website at www.texasroadhouse.com. Listeners may also access the call by dialing (888) 440-5667 or (646) 960-0476 for international calls and referencing the Texas Roadhouse, Inc. Third Quarter 2023 Earnings. A replay of the call will be available until November 2, 2023, by dialing (800) 770-2030 or (647) 362-9199 for international calls.

    About the Company

    Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 720 restaurants system-wide in 49 states and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.

    Forward-looking Statements

    Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of Texas Roadhouse. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond its control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet our business standards; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures; food safety and food-borne illness concerns; and other factors disclosed from time to time in its filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 27, 2022. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the 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. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

    Contacts:

      
    Investor RelationsMedia
    Michael BailenTravis Doster
    (502) 515-7298(502) 638-5457
      


    Texas Roadhouse, Inc. and Subsidiaries
    Consolidated Statements of Income
    (in thousands, except per share data)
    (unaudited)
     
     13 Weeks Ended    39 Weeks Ended
     September
    26, 2023
        September
    27, 2022
     September
    26, 2023
        September
    27, 2022
    Revenue:               
    Restaurant and other sales$1,115,224  $986,999  $3,447,192 $2,986,028 
    Franchise royalties and fees 6,528   6,299   20,119  19,362 
                
    Total revenue 1,121,752   993,298   3,467,311  3,005,390 
    Costs and expenses:               
    Restaurant operating costs (excluding depreciation and amortization shown separately below):               
    Food and beverage 386,184   342,032   1,198,099  1,026,469 
    Labor 378,814   330,219   1,155,970  985,132 
    Rent 18,177   16,703   54,001  49,785 
    Other operating 169,225   146,036   507,846  442,714 
    Pre-opening 8,663   5,701   19,711  15,315 
    Depreciation and amortization 39,124   33,735   112,764  101,775 
    Impairment and closure, net (2)  772   131  537 
    General and administrative 47,708   42,812   148,573  132,319 
    Total costs and expenses 1,047,893   918,010   3,197,095  2,754,046 
    Income from operations 73,859   75,288   270,216  251,344 
    Interest income (expense), net 496   (85)  2,730  (877)
    Equity income from investments in unconsolidated affiliates 139   190   1,181  1,069 
    Income before taxes 74,494   75,393   274,127  251,536 
    Income tax expense 8,870   11,430   35,474  35,708 
    Net income including noncontrolling interests 65,624   63,963   238,653  215,828 
    Less: Net income attributable to noncontrolling interests 1,836   1,635   6,207  5,879 
    Net income attributable to Texas Roadhouse, Inc. and subsidiaries$63,788  $62,328  $232,446 $209,949 
    Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:               
    Basic$0.96  $0.93  $3.47 $3.09 
    Diluted$0.95  $0.93  $3.46 $3.08 
    Weighted average shares outstanding:               
    Basic 66,779   66,886   66,923  67,875 
    Diluted 67,014   67,159   67,179  68,140 
    Cash dividends declared per share$0.55  $0.46  $1.65 $1.38 
     


    Texas Roadhouse, Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
     
     September
    26, 2023
        December
    27, 2022
    Cash and cash equivalents$69,324 $173,861
    Other current assets, net 112,162  222,980
    Property and equipment, net 1,425,169  1,270,349
    Operating lease right-of-use assets, net 679,065  630,258
    Goodwill 169,684  148,732
    Intangible assets, net 4,195  5,607
    Other assets 86,738  73,878
    Total assets$2,546,337 $2,525,665
          
    Other current liabilities 561,426  652,010
    Operating lease liabilities, net of current portion 730,163  677,874
    Long-term debt   50,000
    Other liabilities 135,582  118,119
    Texas Roadhouse, Inc. and subsidiaries stockholders’ equity 1,103,956  1,012,638
    Noncontrolling interests 15,210  15,024
    Total liabilities and equity$2,546,337 $2,525,665
     


    Texas Roadhouse, Inc. and Subsidiaries
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
     
     39 Weeks Ended
     September
    26, 2023
        September
    27, 2022
    Cash flows from operating activities:       
    Net income including noncontrolling interests$238,653  $215,828 
    Adjustments to reconcile net income to net cash provided by operating activities       
    Depreciation and amortization 112,764   101,775 
    Share-based compensation expense 25,266   28,192 
    Deferred income taxes 2,707   5,246 
    Other noncash adjustments, net 3,672   4,191 
    Change in working capital, net of acquisitions 7,677   39,825 
    Net cash provided by operating activities 390,739   395,057 
    Cash flows from investing activities:       
    Capital expenditures - property and equipment (243,895)  (174,194)
    Acquisition of franchise restaurants, net of cash acquired (39,153)  (33,069)
    Proceeds from sale of investments in unconsolidated affiliates 632   316 
    Proceeds from the sale of property and equipment 1,800   2,262 
    Proceeds from sale leaseback transactions 7,097   9,078 
    Net cash used in investing activities (273,519)  (195,607)
    Cash flows from financing activities:       
    Payments on revolving credit facility (50,000)  (25,000)
    Repurchase of shares of common stock (45,193)  (212,859)
    Dividends paid (110,429)  (93,328)
    Other financing activities, net (16,135)  (18,593)
    Net cash used in financing activities (221,757)  (349,780)
    Net decrease in cash and cash equivalents (104,537)  (150,330)
    Cash and cash equivalents - beginning of period 173,861   335,645 
    Cash and cash equivalents - end of period$69,324  $185,315 
     


    Texas Roadhouse, Inc. and Subsidiaries
    Reconciliation of Income from Operations to Restaurant Margin
    (in thousands)
    (unaudited)
     
     13 Weeks Ended 39 Weeks Ended 
     September
    26, 2023
        September
    27, 2022
        September
    26, 2023
        September
    27, 2022
     
    Income from operations$73,859  $75,288 $270,216 $251,344 
                 
    Less:                
    Franchise royalties and fees 6,528   6,299  20,119  19,362 
                 
    Add:                
    Pre-opening 8,663   5,701  19,711  15,315 
    Depreciation and amortization 39,124   33,735  112,764  101,775 
    Impairment and closure, net (2)  772  131  537 
    General and administrative 47,708   42,812  148,573  132,319 
                 
    Restaurant margin$162,824  $152,009 $531,276 $481,928 
                 
    Restaurant margin (as a percentage of restaurant and other sales) 14.6%   15.4%   15.4%   16.1%
                  


    Texas Roadhouse, Inc. and Subsidiaries
    Supplemental Financial and Operating Information
    ($ amounts in thousands, except weekly sales by group)
    (unaudited)
     
     13 Weeks Ended 
     September
    26, 2023
     September
    27, 2022
     Change 
    Company restaurants (all concepts)        
    Restaurant and other sales$1,115,224 $986,999 13.0 %
    Store weeks 8,032  7,600 5.7 %
    Comparable restaurant sales (1) 8.2% 8.2%  
             
    Restaurant operating costs (as a % of restaurant and other sales)        
    Food and beverage costs 34.6% 34.7%(3)bps  
    Labor 34.0% 33.5%51bps  
    Rent 1.6% 1.7%(6)bps  
    Other operating 15.2% 14.8%38bps  
    Total 85.4% 84.6%   
              
    Restaurant margin 14.6% 15.4%(80)bps  
    Restaurant margin ($ in thousands)$162,824 $152,009 7.1 %
    Restaurant margin $/Store week$20,272 $20,001 1.4 %
             
    Texas Roadhouse restaurants only:        
    Store weeks 7,394  7,062 4.7 %
    Comparable restaurant sales (1) 8.4% 8.2%  
    Average unit volume (2)$1,840 $1,700 8.3 %
    Weekly sales by group:        
    Comparable restaurants (542 and 511 units)$141,675 $131,378 7.8 %
    Average unit volume restaurants (18 and 23 units)$138,439 $125,421 10.4 %
    Restaurants less than 6 months old (13 and 11 units)$141,409 $143,801 (1.7)%
             
    Bubba’s 33 restaurants only:        
    Store weeks 547  486 12.6 %
    Comparable restaurant sales (1) 4.8% 6.2%  
    Average unit volume (2)$1,437 $1,395 3.0 %
    Weekly sales by group:        
    Comparable restaurants (36 and 31 units)$112,447 $104,669 7.4 %
    Average unit volume restaurants (4 and 5 units)$93,012 $123,760 (24.8)%
    Restaurants less than 6 months old (3 and 2 units)$129,941 $95,312 36.3 %
             
    Franchise restaurants        
    Franchise royalties and fees$6,528 $6,299 3.6 %
    Store weeks 1,268  1,256 1.0 %
    Comparable restaurant sales 7.1% 7.6%  
    U.S. franchise restaurants only:        
    Comparable restaurant sales 7.8% 6.7%  
    Average unit volume$2,009 $1,863 7.8 %
              

    (1) Comparable restaurant sales reflect the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period.
    (2) Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period.

    Amounts may not foot due to rounding.

    Texas Roadhouse, Inc. and Subsidiaries
    Restaurant Unit Activity
    (unaudited)
     
     13 Weeks Ended  39 Weeks Ended 
     September
    26, 2023
    September
    27, 2022
    Change September
    26, 2023
    September
    27, 2022
    Change
    Restaurant openings       
    Company - Texas Roadhouse743  13 11 2 
    Company - Bubba’s 33211  3 2 1 
    Company - Jaggers  2  2 
    Franchise - Texas Roadhouse - Domestic  1  1 
    Franchise - Jaggers - Domestic11  1  1 
    Franchise - Texas Roadhouse - Int'l321  6 5 1 
    Total1376  26 18 8 
            
    Restaurant acquisitions/dispositions       
    Company - Texas Roadhouse  8 8  
    Franchise - Texas Roadhouse - Domestic  (8)(8) 
            
    Restaurant closures       
    Franchise - Texas Roadhouse - Domestic  (1) (1)
            
    Restaurants open at the end of the quarter       
    Company - Texas Roadhouse57354528     
    Company - Bubba’s 3343385     
    Company - Jaggers743     
    Franchise - Texas Roadhouse - Domestic5462(8)    
    Franchise - Jaggers - Domestic11     
    Franchise - Texas Roadhouse - Int'l44368     
    Total72268537     

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