Texas Roadhouse, Inc. Announces Second Quarter 2020 Results and Provides Business Update
August 03 2020 - 4:03PM
Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial
results for the 13 and 26 week periods ended June 30, 2020 and
provided a business update in response to the continued COVID-19
pandemic.
Statement from Kent Taylor, Founder and
CEO
Let me start by thanking our operators and
support teams for their hard work, dedication, courage, and
commitment during the most challenging times we’ve experienced. Our
operators were able to quickly transition nearly 600 full-service
restaurants to a To-Go only model in March and then transition the
majority of those same restaurants back to a hybrid operating model
of limited capacity dining rooms together with enhanced To-Go
service in May and June. Along the way, they came up with
creative ways to drive traffic through increased outdoor dining,
executing To-Go, managing wait times and other initiatives, with a
priority of keeping our employees and guests safe.
As we began re-opening our dining rooms in May,
it was clear that our guests were excited to return. Since then, we
have been encouraged to see our sales trend favorably through a
solid combination of re-opened dining rooms, outdoor dining, and
strong To-Go sales. With these increased sales, we have also
seen our cashflows steadily improve. While we know there are
challenges that remain relating to the pandemic and its impact on
our business, I know that our operators will continue to face them
head on.
Financial Results
Financial results for the 13 and 26 week periods
ended June 30, 2020 were as follows:
|
|
Second Quarter |
|
Year to Date |
|
($000's) |
|
|
2020 |
|
|
|
2019 |
|
% Change |
|
|
2020 |
|
|
|
2019 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
476,425 |
|
|
$ |
689,828 |
|
(30.9 |
%) |
|
$ |
1,128,949 |
|
|
$ |
1,380,436 |
|
(18.2 |
%) |
|
(Loss) income from
operations |
|
(47,318 |
) |
|
|
53,283 |
|
(188.8 |
%) |
|
|
(31,528 |
) |
|
|
113,728 |
|
(127.7 |
%) |
|
Net (loss) income |
|
|
(33,553 |
) |
|
|
44,845 |
|
(174.8 |
%) |
|
|
(17,524 |
) |
|
|
95,235 |
|
(118.4 |
%) |
|
Diluted (loss)
earnings per share |
$ |
(0.48 |
) |
|
$ |
0.63 |
|
(177.4 |
%) |
|
$ |
(0.25 |
) |
|
$ |
1.32 |
|
(119.1 |
%) |
|
Results for the second quarter included the
following:
- For the April, May, and June periods, comparable restaurant
sales at company restaurants decreased 46.7%, 41.9%, and 14.1%,
respectively. Sales during the June period were positively
impacted by the re-opening of dining rooms in a limited capacity in
the majority of company restaurants. For the quarter,
comparable restaurant sales decreased 32.8% at company restaurants
and 32.1% at domestic franchise restaurants;
- Three company restaurants were opened. One company
restaurant and two international franchise restaurants were
permanently closed. In addition, one company restaurant and
five international franchise locations remain temporarily
closed;
- Restaurant margin, as a percentage of restaurant and other
sales, was 2.5% and restaurant margin dollars were $11.8
million. Restaurant margin was impacted by a decrease in
comparable restaurant sales and higher costs related to the
pandemic. These costs included $4.7 million incurred for
relief pay and benefits for hourly restaurant employees; and,
- The Company increased the capacity of its revolving credit
facility by $82.5 million to further enhance financial flexibility
and subsequently drew down $50 million of this amount. The
Company ended the quarter with debt of $240.0 million and $282.5
million of cash on hand.
Results for the year-to-date period included the
following highlights:
- Comparable restaurant sales decreased 20.5% at company
restaurants and 20.2% at domestic franchise restaurants;
- Eight company restaurants and one domestic franchise restaurant
were opened. One company restaurant and two international
franchise restaurants were permanently closed;
- Restaurant margin, as a percentage of restaurant and other
sales, was 8.1% and restaurant margin dollars were $90.4
million. Restaurant margin included $15.4 million of costs
incurred for relief pay and benefits for hourly restaurant
employees; and,
- The Company repurchased 252,409 shares of common stock for
$12.6 million. These repurchases continued through mid-March
and no proceeds from the revolving credit facility were
utilized.
Business Update
Comparable restaurant sales during the second
quarter were impacted by the re-opening of dining rooms across the
country. For the April period, the Company operated under a
fully To-Go model, while the May and June periods included various
capacity restrictions in the dining rooms. By period, the
comparable restaurant sales and average weekly sales for all
company restaurants were as follows:
|
|
April |
|
May |
|
June |
|
Q2 2020 |
|
|
All restaurants |
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales |
|
|
(46.7%) |
|
|
|
(41.9%) |
|
|
|
(14.1%) |
|
|
|
(32.8%) |
|
|
Average weekly sales |
|
$ |
54,937 |
|
|
$ |
62,343 |
|
|
$ |
88,874 |
|
|
$ |
70,281 |
|
|
Number of restaurants - end of
period |
|
|
518 |
|
|
|
519 |
|
|
|
521 |
|
|
|
521 |
|
|
|
|
|
|
|
|
|
|
|
Limited capacity restaurants
(1) |
|
|
|
|
|
|
|
|
Comparable restaurant
sales |
|
|
|
|
|
|
(28.0%) |
|
|
|
(8.2%) |
|
|
|
(13.7%) |
|
|
Average weekly sales |
|
|
N/A |
|
|
$ |
80,235 |
|
|
$ |
96,623 |
|
|
$ |
92,227 |
|
|
To-Go sales as a % of average
weekly sales |
|
|
|
|
|
|
41.9% |
|
|
|
25.9% |
|
|
|
29.7% |
|
|
Number of restaurants - end of
period |
|
|
|
|
|
|
340 |
|
|
|
499 |
|
|
|
499 |
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the full weekly sales for all restaurants with dining
rooms re-opened at limited capacity as of the end of a week and
excludes those restaurants that were operating as To-Go or outdoor
dining only. |
For the July period, comparable restaurant sales
at company restaurants decreased 13.0% and average weekly sales at
all restaurants were $86,062. The decrease in average weekly
sales was impacted by the decision of some states to further limit
capacity or require dining rooms to be re-closed, the negative
impact of the shift in the Fourth of July holiday, and normal
seasonality. As of the end of July, over 95% of company
restaurants had dining rooms operating in a limited capacity.
For the July period, comparable restaurant sales per week and the
average weekly sales for all company restaurants were as
follows:
|
|
Week Ended |
|
|
|
|
7/7/2020 |
|
7/14/2020 |
|
7/21/2020 |
|
7/28/2020 |
|
July |
|
All restaurants |
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales |
|
|
(16.9%) |
|
|
|
(12.3%) |
|
|
|
(13.1%) |
|
|
|
(9.9%) |
|
|
|
(13.0%) |
|
|
Average weekly sales |
|
$ |
79,630 |
|
|
$ |
86,704 |
|
|
$ |
87,835 |
|
|
$ |
90,080 |
|
|
$ |
86,062 |
|
|
Number of restaurants - end of
period |
|
|
523 |
|
|
|
523 |
|
|
|
523 |
|
|
|
523 |
|
|
|
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited capacity restaurants
(1) |
|
|
|
|
|
|
|
|
|
|
Comparable restaurant
sales |
|
|
(14.9%) |
|
|
|
(10.2%) |
|
|
|
(11.4%) |
|
|
|
(8.4%) |
|
|
|
(11.2%) |
|
|
Average weekly sales |
|
$ |
81,725 |
|
|
$ |
89,063 |
|
|
$ |
89,377 |
|
|
$ |
91,364 |
|
|
$ |
87,882 |
|
|
To-Go sales as a % of average
weekly sales |
|
|
25.4% |
|
|
|
25.3% |
|
|
|
25.7% |
|
|
|
25.0% |
|
|
|
25.3% |
|
|
Number of restaurants - end of
period |
|
|
497 |
|
|
|
490 |
|
|
|
497 |
|
|
|
499 |
|
|
|
499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the full weekly sales for all restaurants with dining
rooms re-opened at limited capacity as of the end of the week and
excludes those restaurants that were operating as To-Go or outdoor
dining only. |
For the second quarter, the Company’s cash on
hand position increased approximately $51.9 million due to working
capital inflows, proceeds from the revolving credit facility and
increased sales performance, partially offset by cash used for
capital expenditures. At the current level of restaurant
sales, the Company expects to continue to generate cash from
operations and continue restaurant development. As of today,
the Company has opened 10 restaurants and has resumed construction
on an additional 12 restaurants. The Company currently
expects to open as many as six restaurants in the third quarter,
with two of these already opened. To the extent that state
and local guidelines begin to further reduce capacity and/or
re-close dining rooms, the Company will evaluate further
development and reduce capital expenditures accordingly.
2020 Outlook
As previously announced, due to the current
unprecedented global market and economic conditions, the Company
withdrew the financial outlook for the fiscal year ending December
29, 2020. The Company cannot yet reasonably estimate the
impact to the business and therefore cannot provide an updated
outlook.
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 cost of sales, labor, rent and other
operating costs. 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 restaurant-level
operating efficiency and performance. In calculating
restaurant margin, the Company excludes certain
non-restaurant-level costs that support operations, including
pre-opening and general and administrative expenses, but do not
have a direct impact on restaurant-level operational efficiency and
performance. 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 is hosting a conference call
today, August 3, 2020 at 5:00 p.m. Eastern Time to discuss these
results. The dial-in number is (877) 699-0953 or (647)
689-5456 for international calls. A replay of the call will
be available for one week following the conference call. To
access the replay, please dial (800) 585-8367 or (416) 621-4642 for
international calls and use 8064639 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 has grown to 620 restaurants
system-wide in 49 states and ten foreign countries. For more
information, please visit the 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. These statements include, but are not limited to,
statements related to the potential impact of the
COVID-19/Coronavirus outbreak and other non-historical
statements. 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; 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 31, 2019 and in the Current Report on Form 8-K
filed on August 3, 2020. 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 RelationsTonya Robinson(502)
515-7269
MediaTravis Doster(502) 638-5457
Texas Roadhouse, Inc. and Subsidiaries |
Condensed Consolidated Statements of Income
(Loss) |
(in thousands, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
26 Weeks Ended |
|
|
|
|
June 30, 2020 |
June 25, 2019 |
|
June 30, 2020 |
|
June 25, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Restaurant and other sales |
$ |
473,090 |
|
|
$ |
684,373 |
|
|
$ |
1,120,716 |
|
|
$ |
1,369,490 |
|
|
|
Franchise
royalties and fees |
|
3,335 |
|
|
|
5,455 |
|
|
|
8,233 |
|
|
|
10,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
476,425 |
|
|
|
689,828 |
|
|
|
1,128,949 |
|
|
|
1,380,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating costs
(excluding depreciation and amortization shown separately
below): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
164,041 |
|
|
|
221,266 |
|
|
|
374,221 |
|
|
|
444,978 |
|
|
|
Labor |
|
194,622 |
|
|
|
225,490 |
|
|
|
435,701 |
|
|
|
449,370 |
|
|
|
Rent |
|
13,251 |
|
|
|
13,051 |
|
|
|
26,722 |
|
|
|
26,179 |
|
|
|
Other
operating |
|
89,348 |
|
|
|
103,811 |
|
|
|
193,637 |
|
|
|
205,613 |
|
|
|
Pre-opening |
|
4,290 |
|
|
|
4,197 |
|
|
|
9,402 |
|
|
|
8,065 |
|
|
|
Depreciation and
amortization |
|
29,016 |
|
|
|
28,454 |
|
|
|
58,070 |
|
|
|
56,227 |
|
|
|
Impairment and
closure, net |
|
(440 |
) |
|
|
316 |
|
|
|
155 |
|
|
|
333 |
|
|
|
General and
administrative |
|
29,615 |
|
|
|
39,960 |
|
|
|
62,569 |
|
|
|
75,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and
expenses |
|
523,743 |
|
|
|
636,545 |
|
|
|
1,160,477 |
|
|
|
1,266,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations |
|
(47,318 |
) |
|
|
53,283 |
|
|
|
(31,528 |
) |
|
|
113,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
(income), net |
|
1,030 |
|
|
|
(691 |
) |
|
|
1,099 |
|
|
|
(1,445 |
) |
|
Equity (loss)
income from investments in |
|
|
|
|
|
|
|
|
|
|
|
unconsolidated
affiliates |
|
(90 |
) |
|
|
141 |
|
|
|
(598 |
) |
|
|
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before taxes |
|
(48,438 |
) |
|
|
54,115 |
|
|
|
(33,225 |
) |
|
|
115,427 |
|
|
Income tax
(benefit) expense |
|
(15,132 |
) |
|
|
7,427 |
|
|
|
(17,071 |
) |
|
|
16,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
including noncontrolling interests |
|
(33,306 |
) |
|
|
46,688 |
|
|
|
(16,154 |
) |
|
|
98,881 |
|
|
Less: Net income
attributable to noncontrolling interests |
|
247 |
|
|
|
1,843 |
|
|
|
1,370 |
|
|
|
3,646 |
|
|
Net (loss) income
attributable to Texas Roadhouse, Inc. and subsidiaries |
$ |
(33,553 |
) |
|
$ |
44,845 |
|
|
$ |
(17,524 |
) |
|
$ |
95,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
per common share attributable to Texas Roadhouse, Inc. |
|
|
|
|
|
|
|
|
|
|
and
subsidiaries: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.48 |
) |
|
$ |
0.63 |
|
|
$ |
(0.25 |
) |
|
$ |
1.33 |
|
|
|
Diluted |
$ |
(0.48 |
) |
|
$ |
0.63 |
|
|
$ |
(0.25 |
) |
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
69,361 |
|
|
|
71,362 |
|
|
|
69,391 |
|
|
|
71,558 |
|
|
|
Diluted |
|
69,361 |
|
|
|
71,733 |
|
|
|
69,391 |
|
|
|
71,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share |
$ |
- |
|
|
$ |
0.30 |
|
|
$ |
0.36 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
282,493 |
|
$ |
107,879 |
|
|
|
Other current
assets, net |
|
|
76,884 |
|
|
140,020 |
|
|
|
Property and
equipment, net |
|
|
1,072,173 |
|
|
1,056,563 |
|
|
|
Operating lease
right-of-use assets, net |
|
|
517,260 |
|
|
499,801 |
|
|
|
Goodwill |
|
|
124,748 |
|
|
124,748 |
|
|
|
Intangible assets,
net |
|
|
993 |
|
|
1,234 |
|
|
|
Other assets |
|
|
55,933 |
|
|
53,320 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,130,484 |
|
$ |
1,983,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
402,242 |
|
|
417,220 |
|
|
|
Operating lease
liabilities, net of current portion |
|
|
557,543 |
|
|
538,710 |
|
|
|
Long-term debt,
excluding current maturities |
|
|
190,000 |
|
|
- |
|
|
|
Other
liabilities |
|
|
97,980 |
|
|
96,466 |
|
|
|
Texas Roadhouse,
Inc. and subsidiaries stockholders' equity |
|
|
868,021 |
|
|
915,994 |
|
|
|
Noncontrolling
interests |
|
|
14,698 |
|
|
15,175 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity |
|
$ |
2,130,484 |
|
$ |
1,983,565 |
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries |
Condensed Consolidated Statements of Cash
Flows |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
26 Weeks Ended |
|
|
|
|
|
June 30, 2020 |
|
June 25, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
Net (loss) income
including noncontrolling interests |
|
$ |
(16,154 |
) |
|
$ |
98,881 |
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities |
|
|
|
|
|
Depreciation and
amortization |
|
|
58,070 |
|
|
|
56,227 |
|
|
|
Share-based
compensation expense |
|
|
14,490 |
|
|
|
16,873 |
|
|
|
Deferred income
taxes |
|
|
(10,926 |
) |
|
|
(2,734 |
) |
|
|
Other noncash
adjustments, net |
|
|
3,052 |
|
|
|
2,707 |
|
|
Change in working
capital |
|
|
13,313 |
|
|
|
15,062 |
|
|
|
|
Net cash provided by operating activities |
|
|
61,845 |
|
|
|
187,016 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
Capital
expenditures - property and equipment |
|
|
(81,833 |
) |
|
|
(87,782 |
) |
|
Proceeds from sale
leaseback transaction |
|
|
2,167 |
|
|
|
- |
|
|
|
|
Net cash used in investing
activities |
|
|
(79,666 |
) |
|
|
(87,782 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
|
|
|
Proceeds from
revolving credit facility |
|
|
240,000 |
|
|
|
- |
|
|
Repurchase of
shares of common stock |
|
|
(12,621 |
) |
|
|
(112,050 |
) |
|
Dividends
paid |
|
|
(24,989 |
) |
|
|
(39,452 |
) |
|
Other financing
activities, net |
|
|
(9,955 |
) |
|
|
(13,018 |
) |
|
|
|
Net cash provided by (used in)
financing activities |
|
|
192,435 |
|
|
|
(164,520 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
|
174,614 |
|
|
|
(65,286 |
) |
|
Cash and cash
equivalents - beginning of period |
|
|
107,879 |
|
|
|
210,125 |
|
|
Cash and cash
equivalents - end of period |
|
$ |
282,493 |
|
|
$ |
144,839 |
|
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries |
Reconciliation of (Loss) Income from Operations to
Restaurant Margin |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
13 Weeks Ended |
|
26 Weeks Ended |
|
|
|
June 30, 2020 |
|
June 25, 2019 |
|
June 30, 2020 |
|
June 25, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
|
$ |
(47,318 |
) |
|
$ |
53,283 |
|
|
$ |
(31,528 |
) |
|
$ |
113,728 |
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Franchise royalties and
fees |
|
|
3,335 |
|
|
|
5,455 |
|
|
|
8,233 |
|
|
|
10,946 |
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
Pre-opening |
|
|
4,290 |
|
|
|
4,197 |
|
|
|
9,402 |
|
|
|
8,065 |
|
|
Depreciation and
amortization |
|
|
29,016 |
|
|
|
28,454 |
|
|
|
58,070 |
|
|
|
56,227 |
|
|
Impairment and closure,
net |
|
|
(440 |
) |
|
|
316 |
|
|
|
155 |
|
|
|
333 |
|
|
General and
administrative |
|
|
29,615 |
|
|
|
39,960 |
|
|
|
62,569 |
|
|
|
75,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin |
|
$ |
11,828 |
|
|
$ |
120,755 |
|
|
$ |
90,435 |
|
|
$ |
243,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin (as a
percentage of restaurant and other sales) |
|
|
2.5% |
|
|
|
17.6% |
|
|
|
8.1% |
|
|
|
17.8% |
|
|
|
|
|
|
|
|
|
|
|
Texas Roadhouse, Inc. and Subsidiaries |
Supplemental Financial and Operating
Information |
($ amounts in thousands, except weekly sales by
group) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Change |
|
|
Year to Date |
|
Change |
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
vs LY |
|
|
|
2020 |
|
|
|
2019 |
|
|
vs LY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
openings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas
Roadhouse |
|
2 |
|
|
|
3 |
|
|
(1 |
) |
|
|
|
6 |
|
|
|
7 |
|
|
(1 |
) |
|
|
|
Company - Bubba's
33 |
|
1 |
|
|
|
0 |
|
|
1 |
|
|
|
|
2 |
|
|
|
0 |
|
|
2 |
|
|
|
|
Company -
Other |
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
Franchise - Texas
Roadhouse - U.S. |
|
0 |
|
|
|
1 |
|
|
(1 |
) |
|
|
|
1 |
|
|
|
1 |
|
|
0 |
|
|
|
|
Franchise - Texas
Roadhouse - International |
|
0 |
|
|
|
1 |
|
|
(1 |
) |
|
|
|
0 |
|
|
|
3 |
|
|
(3 |
) |
|
|
|
Total |
|
3 |
|
|
|
5 |
|
|
(2 |
) |
|
|
|
9 |
|
|
|
11 |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
closures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas
Roadhouse |
|
(1 |
) |
|
|
0 |
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
0 |
|
|
(1 |
) |
|
|
|
Company - Bubba's
33 |
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
Company -
Other |
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
0 |
|
|
|
0 |
|
|
0 |
|
|
|
|
Franchise - Texas
Roadhouse - International |
|
(2 |
) |
|
|
(2 |
) |
|
0 |
|
|
|
|
(2 |
) |
|
|
(2 |
) |
|
0 |
|
|
|
|
Total |
|
(3 |
) |
|
|
(2 |
) |
|
(1 |
) |
|
|
|
(3 |
) |
|
|
(2 |
) |
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants open
at the end of the quarter (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company - Texas
Roadhouse |
|
489 |
|
|
|
471 |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
Company - Bubba's
33 |
|
30 |
|
|
|
25 |
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
Company -
Other |
|
2 |
|
|
|
2 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
Franchise - Texas
Roadhouse - U.S. |
|
70 |
|
|
|
70 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
Franchise - Texas
Roadhouse - International |
|
26 |
|
|
|
23 |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
617 |
|
|
|
591 |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
restaurants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant and
other sales |
$ |
473,090 |
|
|
$ |
684,373 |
|
|
(30.9 |
) |
% |
|
$ |
1,120,716 |
|
|
$ |
1,369,490 |
|
|
(18.2 |
) |
% |
|
|
Store weeks |
|
6,742 |
|
|
|
6,460 |
|
|
4.4 |
|
% |
|
|
13,463 |
|
|
|
12,846 |
|
|
4.8 |
|
% |
|
|
Comparable
restaurant sales growth (2) |
|
(32.8 |
) |
% |
|
4.7 |
|
% |
|
|
|
(20.5 |
) |
% |
|
5.0 |
|
% |
|
|
|
Texas Roadhouse
restaurants only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales
growth (2) |
|
(32.4 |
) |
% |
|
4.6 |
|
% |
|
|
|
(20.2 |
) |
% |
|
4.9 |
|
% |
|
|
|
|
Average unit volume (3) |
$ |
935 |
|
|
$ |
1,384 |
|
|
(32.5 |
) |
% |
|
$ |
2,218 |
|
|
$ |
2,786 |
|
|
(20.4 |
) |
% |
|
|
|
Weekly sales by group: |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurants (454
units) |
$ |
72,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average unit volume
restaurants (20 units) (4) |
$ |
69,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurants less than 6 months
old (15 units) |
$ |
61,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
operating costs (as a % of restaurant and other sales) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
34.7 |
|
% |
|
32.3 |
|
% |
234 |
|
bps |
|
|
33.4 |
|
% |
|
32.5 |
|
% |
90 |
|
bps |
|
Labor |
|
41.1 |
|
% |
|
32.9 |
|
% |
819 |
|
bps |
|
|
38.9 |
|
% |
|
32.8 |
|
% |
606 |
|
bps |
|
Rent |
|
2.8 |
|
% |
|
1.9 |
|
% |
89 |
|
bps |
|
|
2.4 |
|
% |
|
1.9 |
|
% |
47 |
|
bps |
|
Other
operating |
|
18.9 |
|
% |
|
15.2 |
|
% |
372 |
|
bps |
|
|
17.3 |
|
% |
|
15.0 |
|
% |
226 |
|
bps |
|
Total |
|
97.5 |
|
% |
|
82.4 |
|
% |
1,514 |
|
bps |
|
|
91.9 |
|
% |
|
82.2 |
|
% |
970 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant
margin |
|
2.5 |
|
% |
|
17.6 |
|
% |
(1,514 |
) |
bps |
|
|
8.1 |
|
% |
|
17.8 |
|
% |
(970 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant margin
($ in thousands) |
$ |
11,828 |
|
|
$ |
120,755 |
|
|
(90.2 |
) |
% |
|
$ |
90,435 |
|
|
$ |
243,350 |
|
|
(62.8 |
) |
% |
|
|
Restaurant margin
$/Store week |
$ |
1,754 |
|
|
$ |
18,692 |
|
|
(90.6 |
) |
% |
|
$ |
6,717 |
|
|
$ |
18,943 |
|
|
(64.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
restaurants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
royalties and fees |
$ |
3,335 |
|
|
$ |
5,455 |
|
|
(38.9 |
) |
% |
|
$ |
8,233 |
|
|
$ |
10,946 |
|
|
(24.8 |
) |
% |
|
|
Store weeks |
|
1,248 |
|
|
|
1,208 |
|
|
3.3 |
|
% |
|
|
2,511 |
|
|
|
2,403 |
|
|
4.5 |
|
% |
|
|
Comparable
restaurant sales growth (2) |
|
(38.2 |
) |
% |
|
3.7 |
|
% |
|
|
|
(23.4 |
) |
% |
|
3.3 |
|
% |
|
|
|
U.S. franchise
restaurants only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable restaurant sales
growth (2) |
|
(32.1 |
) |
% |
|
4.3 |
|
% |
|
|
|
(20.2 |
) |
% |
|
4.3 |
|
% |
|
|
|
|
Average unit volume (3) |
$ |
980 |
|
|
$ |
1,432 |
|
|
(31.6 |
) |
% |
|
$ |
2,314 |
|
|
$ |
2,880 |
|
|
(19.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-opening
expense |
$ |
4,290 |
|
|
$ |
4,197 |
|
|
2.2 |
|
% |
|
$ |
9,402 |
|
|
$ |
8,065 |
|
|
16.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
$ |
29,016 |
|
|
$ |
28,454 |
|
|
2.0 |
|
% |
|
$ |
58,070 |
|
|
$ |
56,227 |
|
|
3.3 |
|
% |
|
|
As a % of
revenue |
|
6.1 |
|
% |
|
4.1 |
|
% |
197 |
|
bps |
|
|
5.1 |
|
% |
|
4.1 |
|
% |
107 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
$ |
29,615 |
|
|
$ |
39,960 |
|
|
(25.9 |
) |
% |
|
$ |
62,569 |
|
|
$ |
75,943 |
|
|
(17.6 |
) |
% |
|
|
As a % of
revenue |
|
6.2 |
|
% |
|
5.8 |
|
% |
42 |
|
bps |
|
|
5.5 |
|
% |
|
5.5 |
|
% |
4 |
|
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
one domestic company-owned and five international franchise
locations that are temporarily closed. |
|
|
|
|
|
|
|
|
(2) 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 permanently
closed during the period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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(3) 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 permanently closed during the
period. |
|
|
(4) Average
unit volume restaurants include restaurants open a full six and up
to 18 months before the beginning of the period measured. |
|
|
Amounts may not
foot due to rounding. |
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