Texas Roadhouse Inc. Announces Q3 2009 Results
-- Restaurants & Institutions, November 3, 2009
LOUISVILLE, Ky.--(BUSINESS WIRE)--Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 week periods ended September 29, 2009.
| Third Quarter | Year to Date | |||||||||||
| ($000's) | 2009 | 2008 | % Change | 2009 | 2008 | % Change | ||||||
| Total revenue | 226,467 | 217,735 | 4 | 714,963 | 646,259 | 11 | ||||||
| Income from operations | 17,281 | 13,421 | 29 | 61,058 | 51,161 | 19 | ||||||
| Net income (1) | 10,695 | 8,644 | 24 | 38,770 | 32,029 | 21 | ||||||
| Diluted EPS | $0.15 | $0.12 | 27 | $0.54 | $0.43 | 28 | ||||||
(1) Net income refers to Net income attributable to Texas Roadhouse, Inc. and subsidiaries.
Results for the quarter included:
* Comparable restaurant sales decreased 4.6% at company-owned restaurants and decreased 3.6% at franchise restaurants;
* One company restaurant and two franchise restaurants opened, while two company restaurants closed;
* Restaurant margins increased 133 basis points;
* Diluted earnings per share increased 27% to $0.15 from $0.12 in the prior year period.
Results year-to-date included:
* Comparable restaurant sales decreased 3.0% at both company-owned restaurants and franchise restaurants;
* Twelve company restaurants and three franchise restaurants opened, while two company restaurants and one franchise restaurant closed;
* Restaurant margins increased 9 basis points;
* Diluted earnings per share increased 28% to $0.54 from $0.43 in the prior year period.
G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, “Sales trends improved during the third quarter and into the start of the fourth, although they still remain negative. We have continued to experience positive earnings growth due to lower pre-opening costs, a favorable commodity cost environment and the ability of our operators to manage the business in a declining sales environment. Financially, we have continued generating positive free cash flow, thereby enabling us to strengthen an already conservative balance sheet. For the balance of 2009 and into 2010, we believe we are well-positioned from a value, operational and financial position.”
Outlook for 2009
The Company reported that comparable restaurant sales for the first four weeks of the fourth quarter of fiscal 2009 decreased 2.3% compared to the same period of the prior year.
The Company announced it is now estimating that 2009 diluted earnings per share growth will be approximately 20% as compared to its 53 week 2008 year. The Company’s target is based, in part, on the following assumptions for 2009:
* 17 company and three franchise restaurant openings;
* Total capital expenditures of $50-55 million; and
* Food cost deflation of 2.5% to 3.0%.
The Company reminds investors that its fourth quarter of fiscal 2008 was a 14 week quarter as compared to a 13 week quarter in fiscal 2009 due to fiscal 2008 being a 53 week year. The Company estimates the extra week in the fourth quarter of 2008 accounted for $0.03 in diluted earnings per share.
Outlook for 2010
Plans relating to fiscal 2010 have not yet been finalized. However, the Company announced that if comparable restaurant sales were negative 2% to flat for the year, 2010 diluted earnings per share growth would likely be flat to up 10% compared to 2009. This is based on the following assumptions:
* Approximately 15 company restaurant openings;
* Total capital expenditures of $50-55 million; and
* Food cost deflation of 2.0-3.0%.
Conference Call
The Company is hosting a conference call today, November 2, 2009, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 637-7710 or (913) 312-0849 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (888) 203-1112 or (719) 457-0820 for international calls, and use 1604475 as the pass code.
There will be a simultaneous Web cast conducted at www.texasroadhouse.com.
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