Texas Roadhouse, Inc. Reveals Strong Fourth Quarter 2023 Performance, Raises Quarterly Dividend by 11%.

Financial Highlights

For the periods ending December 26, 2023, compared to December 27, 2022, the financial results were as follows:

For the 13 weeks ending December 26, 2023, compared to the previous year:

• Comparable restaurant sales increased by 9.9% at company-owned restaurants and by 8.9% at domestic franchise restaurants.
• Average weekly sales at company-owned restaurants rose to $141,653, with $17,793 attributed to to-go sales, compared to $130,176 in average weekly sales and $16,414 in to-go sales in the prior year.
• Restaurant margin dollars surged by 21.4% to $176.7 million from $145.6 million due to higher sales, with restaurant margin as a percentage of sales increasing by 75 basis points to 15.3%.
• Diluted earnings per share increased by 21.3%.

For the 52 weeks ending December 26, 2023, compared to the previous year:

• Comparable restaurant sales increased by 10.1% at company-owned restaurants and by 9.8% at domestic franchise restaurants.
• Average weekly sales at company-owned restaurants grew to $143,837, with $18,088 attributed to to-go sales, compared to $131,802 in average weekly sales and $17,504 in to-go sales in the prior year.
• Restaurant margin dollars increased by 12.8% to $708.0 million from $627.5 million due to higher sales, with restaurant margin as a percentage of sales decreasing slightly to 15.4%.
• Diluted earnings per share increased by 14.3%.

Jerry Morgan, CEO of Texas Roadhouse, Inc., expressed gratitude for the exceptional performance in 2023, highlighted by double-digit same-store sales growth and record new system-wide openings. He credited the company’s operators for their leadership and all staff for creating an exceptional dining experience.

Looking Forward to 2024

• Comparable restaurant sales at company-owned restaurants for the first 50 days of the first quarter of fiscal 2024 increased by 6.8% compared to 2023.
• A menu price increase of approximately 2.2% is planned for late March.
• Management anticipates commodity cost inflation of approximately 5% and an effective income tax rate of approximately 14% for 2024.
• Expectations for 2024 include positive comparable restaurant sales growth, store week growth of approximately 8%, wage and other labor inflation of 4% to 5%, and total capital expenditures of $340 million to $350 million.

Dividend Increase

The company’s Board of Directors authorized a quarterly cash dividend of $0.61 per share of common stock, representing an 11% increase from the previous quarter’s dividend. This dividend will be distributed on March 26, 2024, to shareholders of record at the close of business on March 13, 2024.

Non-GAAP Measures

Texas Roadhouse, Inc. provides non-GAAP financial measures such as restaurant margin to evaluate core operating efficiency and performance consistently. Restaurant margin excludes certain non-restaurant-level costs and is widely regarded as a useful metric in the industry.

About Texas Roadhouse, Inc.

Texas Roadhouse, Inc. is a restaurant company operating predominantly in the casual dining segment. Established in 1993, it has grown to over 740 restaurants in 49 states and ten foreign countries.

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

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