Texas Roadhouse, Inc. (NasdaqGS: TXRH) today announced financial results for the 13 weeks ended March 26, 2024.
Financial Results
Financial results for the 13 weeks ended March 26, 2024 and March 28, 2023 were as follows:
| 13 Weeks Ended | |||||||||
| ($000’s, except per share amounts) | March 26, 2024 | March 28, 2023 | % change | ||||||
| Total revenue | $ | 1,321,217 | $ | 1,174,356 | 12.5 | % | |||
| Income from operations | 133,128 | 100,945 | 31.9 | % | |||||
| Net income | 113,206 | 86,387 | 31.0 | % | |||||
| Diluted earnings per share | $ | 1.69 | $ | 1.28 | 31.4 | % | |||
Results for the 13 weeks ended March 26, 2024, as compared to the prior year as applicable, included the following:
Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “We are off to a tremendous start in 2024 with strong traffic trends continuing to drive our sales growth. These results demonstrate the success of our operators’ commitment to providing legendary food and service to each guest on every shift.”
Morgan continued, “On the development front, as of today, we have opened 10 company restaurants in 2024 with another 18 currently under construction. We remain confident that our commitment to growth, along with a disciplined capital allocation strategy, will continue to generate long-term shareholder value.”
2024 Outlook
Comparable restaurant sales at company restaurants for the first five weeks of our second quarter of fiscal 2024 increased 9.3% compared to 2023. In addition, the Company implemented a menu price increase of approximately 2.2% in late March.
Management updated the following expectations for 2024:
Management reiterated the following expectations for 2024:
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited) | ||||||
| 13 Weeks Ended | ||||||
| March 26, 2024 | March 28, 2023 | |||||
| Revenue: | ||||||
| Restaurant and other sales | $ | 1,314,152 | $ | 1,167,583 | ||
| Franchise royalties and fees | 7,065 | 6,773 | ||||
| Total revenue | 1,321,217 | 1,174,356 | ||||
| Costs and expenses: | ||||||
| Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||||
| Food and beverage | 445,091 | 410,711 | ||||
| Labor | 427,547 | 385,819 | ||||
| Rent | 19,425 | 17,828 | ||||
| Other operating | 193,642 | 167,529 | ||||
| Pre-opening | 8,095 | 5,377 | ||||
| Depreciation and amortization | 41,493 | 36,227 | ||||
| Impairment and closure, net | 201 | 55 | ||||
| General and administrative | 52,595 | 49,865 | ||||
| Total costs and expenses | 1,188,089 | 1,073,411 | ||||
| Income from operations | 133,128 | 100,945 | ||||
| Interest income, net | 1,408 | 1,238 | ||||
| Equity income from investments in unconsolidated affiliates | 257 | 755 | ||||
| Income before taxes | 134,793 | 102,938 | ||||
| Income tax expense | 18,803 | 14,334 | ||||
| Net income including noncontrolling interests | 115,990 | 88,604 | ||||
| Less: Net income attributable to noncontrolling interests | 2,784 | 2,217 | ||||
| Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 113,206 | $ | 86,387 | ||
| Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | ||||||
| Basic | $ | 1.69 | $ | 1.29 | ||
| Diluted | $ | 1.69 | $ | 1.28 | ||
| Weighted average shares outstanding: | ||||||
| Basic | 66,843 | 67,016 | ||||
| Diluted | 67,105 | 67,293 | ||||
| Cash dividends declared per share | $ | 0.61 | $ | 0.55 | ||
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited) | ||||||
| March 26, 2024 | December 26, 2023 | |||||
| Cash and cash equivalents | $ | 213,428 | $ | 104,246 | ||
| Other current assets, net | 130,967 | 252,228 | ||||
| Property and equipment, net | 1,499,860 | 1,474,722 | ||||
| Operating lease right-of-use assets, net | 715,731 | 694,014 | ||||
| Goodwill | 169,684 | 169,684 | ||||
| Intangible assets, net | 2,928 | 3,483 | ||||
| Other assets | 97,803 | 94,999 | ||||
| Total assets | $ | 2,830,401 | $ | 2,793,376 | ||
| Current liabilities | 686,428 | 745,434 | ||||
| Operating lease liabilities, net of current portion | 766,516 | 743,476 | ||||
| Other liabilities | 154,341 | 146,955 | ||||
| Texas Roadhouse, Inc. and subsidiaries stockholders’ equity | 1,207,186 | 1,141,662 | ||||
| Noncontrolling interests | 15,930 | 15,849 | ||||
| Total liabilities and equity | $ | 2,830,401 | $ | 2,793,376 | ||
| Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| 13 Weeks Ended | ||||||||
| March 26, 2024 | March 28, 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income including noncontrolling interests | $ | 115,990 | $ | 88,604 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 41,493 | 36,227 | ||||||
| Share-based compensation expense | 9,523 | 8,154 | ||||||
| Deferred income taxes | 202 | 2,988 | ||||||
| Other noncash adjustments, net | 351 | 666 | ||||||
| Change in working capital, net of acquisitions | 75,880 | 52,342 | ||||||
| Net cash provided by operating activities | 243,439 | 188,981 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures – property and equipment | (77,672 | ) | (66,733 | ) | ||||
| Acquisition of franchise restaurants, net of cash acquired | — | (39,111 | ) | |||||
| Proceeds from sale of investments in unconsolidated affiliates | — | 472 | ||||||
| Proceeds from sale of property and equipment | 202 | — | ||||||
| Proceeds from sale leaseback transactions | 2,778 | 2,072 | ||||||
| Net cash used in investing activities | (74,692 | ) | (103,300 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on revolving credit facility | — | (50,000 | ) | |||||
| Repurchase of shares of common stock | (8,941 | ) | (9,623 | ) | ||||
| Dividends paid to shareholders | (40,791 | ) | (36,878 | ) | ||||
| Other financing activities, net | (9,833 | ) | (6,898 | ) | ||||
| Net cash used in financing activities | (59,565 | ) | (103,399 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 109,182 | (17,718 | ) | |||||
| Cash and cash equivalents – beginning of period | 104,246 | 173,861 | ||||||
| Cash and cash equivalents – end of period | $ | 213,428 | $ | 156,143 | ||||
| Texas Roadhouse, Inc. and Subsidiaries Reconciliation of Income from Operations to Restaurant Margin ($ in thousands) (unaudited) | ||||||||
| 13 Weeks Ended | ||||||||
| March 26, 2024 | March 28, 2023 | |||||||
| Income from operations | $ | 133,128 | $ | 100,945 | ||||
| Less: | ||||||||
| Franchise royalties and fees | 7,065 | 6,773 | ||||||
| Add: | ||||||||
| Pre-opening | 8,095 | 5,377 | ||||||
| Depreciation and amortization | 41,493 | 36,227 | ||||||
| Impairment and closure, net | 201 | 55 | ||||||
| General and administrative | 52,595 | 49,865 | ||||||
| Restaurant margin | $ | 228,447 | $ | 185,696 | ||||
| Restaurant margin (as a percentage of restaurant and other sales) | 17.4 | % | 15.9 | % | ||||
| Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except weekly sales by group) (unaudited) | |||||||||
| 13 Weeks Ended | |||||||||
| March 26, 2024 | March 28, 2023 | Change | |||||||
| Company restaurants (all concepts) | |||||||||
| Restaurant and other sales | $ | 1,314,152 | $ | 1,167,583 | 12.6 | % | |||
| Store weeks | 8,284 | 7,900 | 4.9 | % | |||||
| Comparable restaurant sales (1) | 8.4 | % | 12.9 | % | |||||
| Restaurant operating costs (as a % of restaurant and other sales) | |||||||||
| Food and beverage costs | 33.9 | % | 35.2 | % | 131 | bps | |||
| Labor | 32.5 | % | 33.0 | % | 51 | bps | |||
| Rent | 1.5 | % | 1.5 | % | 5 | bps | |||
| Other operating | 14.7 | % | 14.3 | % | (39 | )bps | |||
| Total | 82.6 | % | 84.1 | % | |||||
| Restaurant margin | 17.4 | % | 15.9 | % | 148 | bps | |||
| Restaurant margin ($ in thousands) | $ | 228,447 | $ | 185,696 | 23.0 | % | |||
| Restaurant margin $/Store week | $ | 27,577 | $ | 23,505 | 17.3 | % | |||
| Texas Roadhouse restaurants only: | |||||||||
| Store weeks | 7,595 | 7,304 | 4.0 | % | |||||
| Comparable restaurant sales (1) | 8.7 | % | 13.1 | % | |||||
| Average unit volume (2) | $ | 2,133 | $ | 1,966 | 8.5 | % | |||
| Weekly sales by group: | |||||||||
| Comparable restaurants (549 and 527 units) | $ | 164,332 | $ | 151,439 | 8.5 | % | |||
| Average unit volume restaurants (17 and 22 units) | $ | 156,114 | $ | 146,220 | 6.8 | % | |||
| Restaurants less than 6 months old (25 and 15 units) | $ | 149,400 | $ | 162,150 | (7.9 | )% | |||
| Bubba’s 33 restaurants only: | |||||||||
| Store weeks | 585 | 520 | 12.5 | % | |||||
| Comparable restaurant sales (1) | 3.5 | % | 8.7 | % | |||||
| Average unit volume (2) | $ | 1,547 | $ | 1,521 | 1.7 | % | |||
| Weekly sales by group: | |||||||||
| Comparable restaurants (37 and 34 units) | $ | 121,086 | $ | 116,916 | 3.6 | % | |||
| Average unit volume restaurants (4 and 3 units) | $ | 100,079 | $ | 117,920 | (15.1 | )% | |||
| Restaurants less than 6 months old (4 and 3 units) | $ | 135,977 | $ | 127,955 | 6.3 | % | |||
| Texas Roadhouse franchise restaurants only: | |||||||||
| Store weeks | 1,370 | 1,205 | 13.7 | % | |||||
| Comparable restaurant sales | 6.0 | % | 13.0 | % | |||||
| U.S. franchise restaurants only: | |||||||||
| Comparable restaurant sales (1) | 7.7 | % | 13.3 | % | |||||
| Average unit volume (2) | $ | 2,288 | 2,139 | 7.0 | % | ||||
| (1) | Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year 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 | ||||||
| March 26, 2024 | March 28, 2023 | Change | ||||
| Restaurant openings | ||||||
| Company – Texas Roadhouse | 9 | 4 | 5 | |||
| Company – Bubba’s 33 | — | — | — | |||
| Company – Jaggers | — | 2 | (2 | ) | ||
| Total company restaurants | 9 | 6 | 3 | |||
| Franchise – Texas Roadhouse – Domestic | — | — | — | |||
| Franchise – Jaggers – Domestic | 1 | — | 1 | |||
| Franchise – Texas Roadhouse – Int’l | 2 | 1 | 1 | |||
| Total franchise restaurants | 3 | 1 | 2 | |||
| Total restaurants | 12 | 7 | 5 | |||
| Restaurant acquisitions/dispositions | ||||||
| Company – Texas Roadhouse | — | 8 | (8 | ) | ||
| Franchise – Texas Roadhouse – Domestic | — | (8 | ) | 8 | ||
| Restaurant closures | ||||||
| Franchise – Texas Roadhouse – Domestic | — | — | — | |||
| Restaurants open at the end of the quarter | ||||||
| Company – Texas Roadhouse | 591 | 564 | 27 | |||
| Company – Bubba’s 33 | 45 | 40 | 5 | |||
| Company – Jaggers | 8 | 7 | 1 | |||
| Total company restaurants | 644 | 611 | 33 | |||
| Franchise – Texas Roadhouse – Domestic | 56 | 54 | 2 | |||
| Franchise – Jaggers – Domestic | 3 | — | 3 | |||
| Franchise – Texas Roadhouse – Int’l | 50 | 39 | 11 | |||
| Total franchise restaurants | 109 | 93 | 16 | |||
| Total restaurants | 753 | 704 | 49 | |||
Source: https://www.globenewswire.com
Texas Roadhouse is seeking multi-unit franchisees with extensive QSR experience to help grow the brand internationally. Minimum investment for a territory master franchise is about 1,500,000 USD. For more information about Texas Roadhouse franchise opportunities in your region, please visit https://vffranchiseconsulting.com/brand/texas-roadhouse/ or contact us at info@vffranchiseconsulting.com
If you’re seeking a qualified master or area franchise in Asia or franchise in ASEAN, or if you’re looking to transform your business into a franchise, VF Franchise Consulting is here to provide expert guidance and support.
Our franchise directory is a valuable resource for both aspiring franchisees and franchisors. Whether you’re looking to advertise your franchise or explore opportunities, our services are tailored to meet your needs.
Don’t hesitate to reach out to us through email at info@vffranchiseconsulting.com or visit our website at https://vffranchiseconsulting.com/services/ to discover how we can assist you in your franchise journey.
