-
Texas Roadhouse, Inc. Announces First Quarter 2023 Results
المصدر: Nasdaq GlobeNewswire / 04 مايو 2023 15:03:25 America/Chicago
LOUISVILLE, Ky., May 04, 2023 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 weeks ended March 28, 2023.
Financial Results
Financial results for the 13 weeks ended March 28, 2023 and March 29, 2022 were as follows:
First Quarter ($000's) 2023 2022 % change Total revenue $ 1,174,356 $ 987,486 18.9 % Income from operations 100,945 90,138 12.0 % Net income 86,387 75,202 14.9 % Diluted earnings per share $ 1.28 $ 1.08 18.4 %
Results for the first quarter, as compared to the prior year as applicable, included the following:- Comparable restaurant sales increased 12.9% at company restaurants and increased 13.3% at domestic franchise restaurants;
- Average weekly sales at company restaurants were $148,437 of which 12.8% were to-go sales as compared to average weekly sales of $132,263 of which 14.8% were to-go sales in the prior year;
- Restaurant margin dollars increased 15.2% to $185.7 million from $161.2 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 53 basis points to 15.9% as commodity inflation of 8.9% and wage and other labor inflation of 8.0% were partially offset by higher sales;
- Diluted earnings per share increased 18.4% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses;
- Six company restaurants and one international franchise restaurant were opened and eight domestic franchise restaurants were acquired; and,
- The Company repurchased 92,751 shares of common stock for $9.6 million.
Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “I want to thank our restaurant operators for continuing to provide a legendary experience to our guests, which led to record traffic and sales levels as well as higher profitability for the quarter.”
Morgan continued, “On the capital allocation front, our development pipeline remains strong, we acquired eight domestic franchise restaurants, and we further strengthened our capital position by repaying the remainder of our debt. We are confident that our restaurant growth, commitment to our operating fundamentals, and strong balance sheet will continue to provide us the flexibility to generate long-term shareholder value.”
2023 Outlook
Comparable restaurant sales at company restaurants for the first five weeks of our second quarter of fiscal 2023 increased 8.6% compared to 2022. In addition, the Company implemented a menu price increase of approximately 2.2% in late March.
Management reiterated the following expectations for 2023:
- Positive comparable restaurant sales growth including the benefit of menu pricing actions;
- 25 to 30 Texas Roadhouse and Bubba’s 33 company restaurant openings;
- Store week growth of at least 6% including the impact of the franchise locations acquired;
- Commodity cost inflation of 5% to 6%;
- Wage and other labor inflation of 5% to 6%;
- An effective income tax rate of approximately 14% excluding the impact of any legislative changes enacted; and,
- Total capital expenditures of approximately $265 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 also excludes pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results. The Company also 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 also 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, May 4, 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. First Quarter 2023 Earnings. A replay of the call will be available until May 11, 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 700 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 Relations Media Michael Bailen Travis 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 March 28, 2023 March 29, 2022 Revenue: Restaurant and other sales $ 1,167,583 $ 980,972 Franchise royalties and fees 6,773 6,514 Total revenue 1,174,356 987,486 Costs and expenses: Restaurant operating costs (excluding depreciation and amortization shown separately below): Food and beverage 410,711 337,396 Labor 385,819 321,871 Rent 17,828 16,368 Other operating 167,529 144,154 Pre-opening 5,377 4,291 Depreciation and amortization 36,227 33,620 Impairment and closure, net 55 (646 ) General and administrative 49,865 40,294 Total costs and expenses 1,073,411 897,348 Income from operations 100,945 90,138 Interest income (expense), net 1,238 (397 ) Equity income from investments in unconsolidated affiliates 755 334 Income before taxes 102,938 90,075 Income tax expense 14,334 12,747 Net income including noncontrolling interests 88,604 77,328 Less: Net income attributable to noncontrolling interests 2,217 2,126 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 86,387 $ 75,202 Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: Basic $ 1.29 $ 1.09 Diluted $ 1.28 $ 1.08 Weighted average shares outstanding: Basic 67,016 69,086 Diluted 67,293 69,373 Cash dividends declared per share $ 0.55 $ 0.46 Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)March 28, 2023 December 27, 2022 Cash and cash equivalents $ 156,143 $ 173,861 Other current assets, net 112,575 222,980 Property and equipment, net 1,310,782 1,270,349 Operating lease right-of-use assets, net 643,485 630,258 Goodwill 169,641 148,732 Intangible assets, net 5,859 5,607 Other assets 76,380 73,878 Total assets $ 2,474,865 $ 2,525,665 Other current liabilities 588,098 652,010 Operating lease liabilities, net of current portion 692,016 677,874 Long-term debt - 50,000 Other liabilities 124,212 118,119 Texas Roadhouse, Inc. and subsidiaries stockholders' equity 1,055,248 1,012,638 Noncontrolling interests 15,291 15,024 Total liabilities and equity $ 2,474,865 $ 2,525,665 Texas Roadhouse, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) 13 Weeks Ended March 28, 2023 March 29, 2022 Cash flows from operating activities: Net income including noncontrolling interests $ 88,604 $ 77,328 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 36,227 33,620 Share-based compensation expense 8,154 9,120 Deferred income taxes 2,988 2,630 Other noncash adjustments, net 666 1,187 Change in working capital 52,342 63,884 Net cash provided by operating activities 188,981 187,769 Cash flows from investing activities: Capital expenditures - property and equipment (66,733) (49,029) Acquistion of franchise restaurants, net of cash acquired (39,111) (26,437) Proceeds from sale of investment in unconsolidated affiliate 472 - Proceeds from sale of property and equipment - 2,188 Proceeds from sale leaseback transactions 2,072 - Net cash used in investing activities (103,300) (73,278) Cash flows from financing activities: Payments on revolving credit facility (50,000) - Repurchase of shares of common stock (9,623) (84,705) Dividends paid (36,878) (31,795) Other financing activities, net (6,898) (7,913) Net cash used in financing activities (103,399) (124,413) Net decrease in cash and cash equivalents (17,718) (9,922) Cash and cash equivalents - beginning of period 173,861 335,645 Cash and cash equivalents - end of period $ 156,143 $ 325,723 Texas Roadhouse, Inc. and Subsidiaries Reconciliation of Income from Operations to Restaurant Margin (in thousands) (unaudited) 13 Weeks Ended March 28, 2023 March 29, 2022 Income from operations $ 100,945 $ 90,138 Less: Franchise royalties and fees 6,773 6,514 Add: Pre-opening 5,377 4,291 Depreciation and amortization 36,227 33,620 Impairment and closure, net 55 (646 ) General and administrative 49,865 40,294 Restaurant margin $ 185,696 $ 161,183 Restaurant margin (as a percentage of restaurant and other sales) 15.9% 16.4% Texas Roadhouse, Inc. and Subsidiaries Supplemental Financial and Operating Information ($ amounts in thousands, except weekly sales by group) (unaudited) First Quarter 2023 2022 Change Restaurant openings Company - Texas Roadhouse 4 3 1 Company - Bubba's 33 0 0 0 Company - Jaggers 2 0 2 Franchise - Texas Roadhouse - U.S. 0 0 0 Franchise - Texas Roadhouse - International 1 2 (1) Total 7 5 2 Restaurant acquisitions/dispositions Company - Texas Roadhouse 8 7 1 Franchise - Texas Roadhouse - U.S. (8) (7) (1) Restaurants open at the end of the quarter Company - Texas Roadhouse 564 536 28 Company - Bubba's 33 40 36 4 Company - Jaggers 7 4 3 Franchise - Texas Roadhouse - U.S. 54 63 (9) Franchise - Texas Roadhouse - International 39 33 6 Total 704 672 32 First Quarter 2023 2022 Change Company restaurants (all concepts) Restaurant and other sales $ 1,167,583 $ 980,972 19.0 % Store weeks 7,900 7,456 6.0 % Comparable restaurant sales (1) 12.9 % 16.0 % Restaurant operating costs (as a % of restaurant and other sales) Food and beverage costs 35.2 % 34.4 % 78 bps Labor 33.0 % 32.8 % 23 bps Rent 1.5 % 1.7 % (14 ) bps Other operating 14.3 % 14.7 % (35 ) bps Total 84.1 % 83.6 % 53 bps Restaurant margin 15.9 % 16.4 % (53 ) bps Restaurant margin ($ in thousands) $ 185,696 $ 161,183 15.2 % Restaurant margin $/Store week $ 23,505 $ 21,618 8.7 % Texas Roadhouse restaurants only: Store weeks 7,304 6,936 5.3 % Comparable restaurant sales (1) 13.1 % 15.8 % Average unit volume (2) $ 1,966 $ 1,741 12.9 % Weekly sales by group: Comparable restaurants (527 and 498 units) $ 151,439 $ 134,422 Average unit volume restaurants (22 and 20 units) $ 146,220 $ 129,143 Restaurants less than 6 months old (15 and 18 units) $ 162,150 $ 140,535 Bubba's 33 restaurants only: Store weeks 520 468 11.1 % Comparable restaurant sales (1) 8.7 % 21.3 % Average unit volume (2) $ 1,521 $ 1,398 8.8 % Weekly sales by group: Comparable restaurants (34 and 30 units) $ 116,916 $ 107,387 Average unit volume restaurants (3 and 4 units) $ 117,920 $ 108,771 Restaurants less than 6 months old (3 and 2 units) $ 127,955 $ 140,855 Franchise restaurants Franchise royalties and fees $ 6,773 $ 6,514 4.0 % Store weeks 1,205 1,237 (2.6 ) % Comparable restaurant sales 13.0 % 22.9 % U.S. franchise restaurants only: Comparable restaurant sales 13.3 % 20.4 % Average unit volume $ 2,122 $ 1,855 14.4 % (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. 
