Increases Quarterly Dividend 12% to $0.19
per Share
Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced
financial results for the 13 and 52 week periods ended December 29,
2015.
Fourth Quarter Year to
Date ($000's)
2015
2014
% Change
2015
2014
% Change
Total revenue $ 454,351 $ 404,425 12 $ 1,807,368 $ 1,582,148
14 Income from operations 33,713 27,043 25 144,565 130,449 11 Net
income 22,982 18,595 24 96,894 87,022 11 Diluted EPS $ 0.32 $ 0.26
23 $ 1.37 $ 1.23 11
Results for the fourth quarter included the following
highlights:
- Comparable restaurant sales growth of
4.5% at company restaurants and 4.0% at franchise restaurants;
- Restaurant margin, as a percentage of
restaurant sales, increased 112 basis points to 17.6%, primarily
driven by lower other operating costs and lower food costs;
- Diluted earnings per share increased
22.7% to $0.32 from $0.26 in the prior year;
- Seven company-owned Texas Roadhouse
restaurants were opened; and,
- The Company repurchased 189,700 shares
of its common stock for $6.7 million.
Results for the full year included the following highlights:
- Comparable restaurant sales growth of
7.2% at company restaurants and 6.5% at franchise restaurants;
- Restaurant margin, as a percentage of
restaurant sales, decreased 30 basis points to 17.3%. Food cost
inflation of approximately 4.9%, driven by beef, more than offset
the impact of higher average unit volume;
- Diluted earnings per share increased
11.1% to $1.37 from $1.23 in the prior year;
- 29 company-owned restaurants were
opened, including four Bubba's 33 restaurants; and,
- The Company repurchased 321,789 shares
of its common stock for $11.4 million.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc.,
commented, "We ended the year on a strong note, with double digit
revenue and diluted earnings per share growth for both the fourth
quarter and the full year. This represents our 24th consecutive
quarter of positive comparable restaurant sales growth, which is a
testament to our Managing Partners. In addition, our solid balance
sheet and healthy cash flow allowed us to open 29 restaurants,
while returning $58 million of excess capital to shareholders
through quarterly dividend payments and share repurchases
throughout the year."
Taylor continued, "We have assembled a substantial pipeline of
new locations and are on track to open approximately 30 company
restaurants this year. Our top-line momentum has continued into
2016 and we are pleased to have seen continued traffic growth
during the first seven weeks of the year. Looking ahead, we will
stay focused on solidifying our long-term brand position and
capitalizing on our growth potential."
2016 Outlook
The Company reported that comparable restaurant sales growth of
at company restaurants for the first seven weeks of its first
quarter of fiscal 2016 was approximately 4.4% compared to the prior
year period.
Management updated the following expectations for 2016:
- Approximately 30 company restaurant
openings, including approximately seven Bubba’s 33
restaurants;
- 1.0% to 2.0% food cost deflation;
- An income tax rate of approximately
30.0%; and,
- Total capital expenditures of $165.0
million to $175.0 million.
Management reiterated the expectation of positive comparable
restaurant sales growth for 2016.
Cash Dividend Payment
On February 19, 2016, the Company’s Board of Directors
authorized the payment of a quarterly cash dividend of $0.19 per
share of common stock. This payment, which will be distributed on
April 1, 2016 to shareholders of record at the close of business on
March 16, 2016, represents a 12% increase from the cash dividend of
$0.17 per share of common stock declared during each quarter of
2015 and represents our fifth consecutive year of dividend
payments.
Conference Call
The Company is hosting a conference call today, February 22,
2016 at 5:00 p.m. Eastern Time to discuss these results. The
dial-in number is (877) 874-1571 or (719) 325-4839 for
international calls. A replay of the call will be available for one
week following the conference call. To access the replay, please
dial (877) 870-5176 or (858) 384-5517 for international calls, and
use 1297446 as the pass code. There will be a simultaneous Web cast
conducted at www.texasroadhouse.com.
About the Company
Texas Roadhouse is a casual dining concept that first opened in
1993 and today operates over 485 restaurants system-wide in 49
states and four foreign countries. For more information, please
visit the Company’s Web site at www.texasroadhouse.com.
Forward-looking Statements
Certain statements in this release that are not historical
facts, including, without limitation, those relating to our
anticipated financial performance, are forward-looking statements
that involve risks and uncertainties. Such statements are based
upon the current beliefs and expectations of the management of the
Company. Actual results may vary materially from those contained in
forward-looking statements based on a number of factors including,
without limitation, the actual number of restaurants opening; the
sales at these and our other company and franchise restaurants;
changes in restaurant development or operating costs, such as food
and labor; our ability to acquire franchise restaurants; our
ability to integrate the franchise restaurants we acquire or other
concepts we develop; our ability to continue to generate the
necessary cash flows to fund our new restaurant growth, continue
our share repurchase program and pay a quarterly cash dividend;
strength of consumer spending; pending or future legal claims;
breaches of security; conditions beyond our control such as
weather, natural disasters, disease outbreaks, epidemics or
pandemics impacting our customers or food supplies; food safety and
food borne illness concerns; acts of war or terrorism and other
factors disclosed from time to time in our filings with the U.S.
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. We undertake no obligation to update any
forward-looking statements.
Texas Roadhouse, Inc. and
Subsidiaries Condensed Consolidated Statements of Income
(in thousands, except per share data) (unaudited)
13 Weeks Ended 52 Weeks Ended
December 29,
2015
December 30,
2014
December 29,
2015
December 30,
2014
Revenue: Restaurant sales $ 450,529 $ 400,790 $ 1,791,446 $
1,568,556 Franchise royalties and fees 3,822 3,635
15,922 13,592 Total revenue 454,351
404,425 1,807,368 1,582,148 Costs and
expenses: Restaurant operating costs (excluding depreciation and
amortization shown separately below): Cost of sales 159,301
143,592 644,001 553,144 Labor 131,517 116,744 524,203 459,119 Rent
9,741 8,624 37,183 33,174 Other operating 70,773 65,848 275,296
246,339 Pre-opening 4,640 5,775 19,116 18,452 Depreciation and
amortization 18,700 15,497 69,694 59,179 Impairment and closure 974
626 974 636 General and administrative 24,992 20,676
92,336 81,656 Total costs and expenses
420,638 377,382 1,662,803 1,451,699
Income from operations 33,713 27,043 144,565 130,449
Interest expense, net 479 520 1,959 2,084
Equity income from investments in
unconsolidated affiliates
353 627 1,641 1,602 Income
before taxes 33,587 27,150 144,247 129,967 Provision for income
taxes 9,567 7,528 42,986 38,990
Net income including noncontrolling interests $ 24,020 $ 19,622 $
101,261 $ 90,977 Less: Net income attributable to noncontrolling
interests 1,038 1,027 4,367 3,955 Net
income attributable to Texas Roadhouse, Inc. and subsidiaries $
22,982 $ 18,595 $ 96,894 $ 87,022
Net income per common share attributable
to Texas Roadhouse, Inc. and subsidiaries:
Basic $ 0.33 $ 0.27 $ 1.38 $ 1.25 Diluted $ 0.32 $ 0.26 $ 1.37 $
1.23 Weighted average shares outstanding: Basic
70,143 69,500 70,032 69,719 Diluted
70,865 70,359 70,747 70,608
Texas Roadhouse, Inc. and
Subsidiaries Condensed Consolidated Balance Sheets
(in thousands) (unaudited)
December 29,
2015
December 30,
2014
Cash and cash equivalents $ 59,334 $ 86,122 Other
current assets
74,479
61,604 Property and equipment, net 751,288 649,637 Goodwill 116,571
116,571 Intangible assets, net 4,827 6,203 Other assets 26,207
23,005 Total assets $
1,032,706
$ 943,142 Current maturities of long-term debt 144
129 Other current liabilities
256,498
215,842 Long-term debt, excluding current maturities 25,550 50,693
Other liabilities 73,332 61,522 Texas Roadhouse, Inc. and
subsidiaries stockholders' equity 669,662 607,892 Noncontrolling
interests 7,520 7,064 Total liabilities and equity $
1,032,706
$ 943,142
Texas
Roadhouse, Inc. and Subsidiaries Condensed Consolidated
Statements of Cash Flows (in thousands)
(unaudited) 52 Weeks
Ended December 29, 2015 December 30, 2014
Cash flows from operating activities: Net income
including noncontrolling interests $ 101,261 $ 90,977 Adjustments
to reconcile net income to net cash provided by operating
activities Depreciation and amortization 69,694 59,179
Share-based compensation expense 22,825 14,883 Other noncash
adjustments 5,697 4,078 Change in working capital 28,464
22,596 Net cash provided by operating
activities 227,941 191,713
Cash flows from investing activities: Capital expenditures -
property and equipment (173,475 ) (125,445 ) Proceeds from sale of
property and equipment, including insurance proceeds 272
1,205 Net cash used in investing activities
(173,203 ) (124,240 )
Cash flows from
financing activities: Repayments of revolving credit facility
(25,000 ) - Repurchase shares of common stock (11,397 ) (42,744 )
Dividends paid (46,176 ) (31,333 ) Other financing activities
1,047 (2,148 ) Net cash used in financing
activities (81,526 ) (76,225 ) Net decrease in
cash and cash equivalents (26,788 ) (8,752 ) Cash and cash
equivalents - beginning of period 86,122
94,874 Cash and cash equivalents - end of period $ 59,334
$ 86,122
Texas Roadhouse, Inc. and Subsidiaries Supplemental
Financial and Operating Information ($ amounts in thousands,
except weekly sales by group) (unaudited)
Fourth Quarter
Change Year to Date Change
2015
2014
vs LY
2015
2014
vs LY
Restaurant openings Company - Texas Roadhouse 7 7 0 24 22 2
Company - Bubba's 33 0 2 (2 ) 4 2 2 Company - Other 0 1 (1 ) 1 1 0
Franchise - Texas Roadhouse 1 5 (4 ) 3 6 (3 ) Total 8 15 (7 ) 32 31
1 Restaurant acquisitions/dispositions Company - Texas
Roadhouse 0 1 (1 ) 0 1 (1 ) Company - Bubba's 33 0 0 0 0 0 0
Company - Other 0 0 0 0 0 0 Franchise - Texas Roadhouse 0 (1 ) 1 0
(1 ) 1 Total 0 0 0 0 0 0 Restaurants open at the end of the
quarter Company - Texas Roadhouse 392 368 24 Company - Bubba's 33 7
3 4 Company - Other 2 1 1 Franchise - Texas Roadhouse 82 79 3 Total
483 451 32 Company-owned restaurants Restaurant sales $
450,529 $ 400,790 12.4 % $ 1,791,446 $ 1,568,556 14.2 % Store weeks
5,186 4,766 8.8 % 20,020 18,565 7.8 % Comparable restaurant sales
growth (1) 4.5 % 7.0 % 7.2 % 4.7 % Texas Roadhouse restaurants
only: Comparable restaurant sales growth (1) 4.5 % 7.0 % 7.2 % 4.7
% Average unit volume (2) $ 1,130 $ 1,083 4.3 % $ 4,664 $ 4,351 7.2
% Weekly sales by group: Comparable restaurants (352 units) $
87,038 Average unit volume restaurants (18 units) (3) $ 84,218
Restaurants less than 6 months old (22 units) $ 94,410
Restaurant operating costs (as a % of restaurant sales) Cost of
sales 35.4 % 35.8 % (47)bps 35.9 % 35.3 % 68bps Labor 29.2 % 29.1 %
6bps 29.3 % 29.3 % (1)bps Rent 2.2 % 2.2 % 1bps 2.1 % 2.1 % (4)bps
Other operating 15.7 % 16.4 % (72)bps 15.4 % 15.7 % (34)bps Total
82.4 % 83.5 % (112)bps 82.7 % 82.4 % 30bps Restaurant margin
(4) 17.6 % 16.5 % 112bps 17.3 % 17.6 % (30)bps Restaurant
margin ($ in thousands) $ 79,196 $ 65,982 20.0 % $ 310,762 $
276,782 12.3 % Restaurant margin $/Store week $ 15,272 $ 13,844
10.3 % $ 15,523 $ 14,909 4.1 % Franchise-owned restaurants
Franchise royalties and fees $ 3,822 $ 3,635 5.1 % $ 15,922 $
13,592 17.1 % Store weeks 1,062 998 6.4 % 4,174 3,910 6.8 %
Comparable restaurant sales growth (1) 4.0 % 5.7 % 6.5 % 4.9 %
Average unit volume (2) $ 1,202 $ 1,175 2.3 % $ 5,029 $ 4,639 8.4 %
Pre-opening expense $ 4,640 $ 5,775 (19.7 )% $ 19,116 $
18,452 3.6 % Depreciation and amortization $ 18,700 $ 15,497
20.7 % $ 69,694 $ 59,179 17.8 % As a % of revenue 4.1 % 3.8 % 28bps
3.9 % 3.7 % 12bps General and administrative expenses $
24,992 $ 20,676 20.9 % $ 92,336 $ 81,656 13.1 % As a % of revenue
5.5 % 5.1 % 39bps 5.1 % 5.2 % (5)bps (1) Comparable
restaurant sales growth reflects the change in year-over-year sales
for restaurants open a full 18 months before the beginning of the
period measured, excluding sales from restaurants closed during the
period. (2) Average unit volume includes sales from Texas Roadhouse
restaurants open for a full six months before the beginning of the
period measured, excluding sales from restaurants closed during the
period. (3) Average unit volume restaurants include Texas Roadhouse
restaurants open a full six to 18 months before the beginning of
the period measured. (4) Restaurant margin represents restaurant
sales less cost of sales, labor, rent and other operating costs (as
a percentage of restaurant sales). Restaurant margin is widely
regarded in the restaurant industry as a useful metric by which to
evaluate restaurant-level operating efficiency and performance.
Restaurant margin is not a measurement determined in accordance
with GAAP and should not be considered in isolation, or as an
alternative, to income from operations or other similarly titled
measures of other companies. Amounts may not foot due to
rounding.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160222006541/en/
Texas Roadhouse, Inc.Investor Relations:Tonya Robinson,
502-515-7269orMedia:Travis Doster, 502-638-5457
Texas Roadhouse (NASDAQ:TXRH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Texas Roadhouse (NASDAQ:TXRH)
Historical Stock Chart
From Apr 2023 to Apr 2024