LOUISVILLE, Ky., Feb 20, 2020 (GLOBE NEWSWIRE via COMTEX) -- Texas Roadhouse, Inc. (nasdaqgs:TXRH) today announced financial results for the 14 and 53 week periods ended December 31, 2019.
Fourth Quarter Year to Date ($000's) 2019 2018 % Change 2019 2018 % Change Total revenue $ 725,238 $ 605,912 19.7 % $ 2,756,163 $ 2,457,449 12.2 % Income from operations 53,411 33,207 60.8 % 212,023 187,789 12.9 % Net income 42,686 30,332 40.7 % 174,452 158,225 10.3 % Diluted EPS $ 0.61 $ 0.42 45.4 % $ 2.46 $ 2.20 11.9 %
Note: Fourth quarter and full year 2019 results include 14 and 53 weeks, respectively, compared to 13 and 52 weeks in the fourth quarter and full year of 2018, respectively.
Results for the fourth quarter included the following highlights:
-- Comparable restaurant sales increased 4.4% at company restaurants and 3.4% at domestic franchise restaurants;
-- Restaurant margin, as a percentage of restaurant and other sales, increased 117 basis points to 17.1% as the benefit of the 53 week, a higher average check, and labor productivity were partially offset by wage rate and commodity inflation. Restaurant margin dollars increased 28.6% to $122.9 million from $95.6 million in the prior year;
-- Diluted earnings per share increased 45.4% to $0.61 from $0.42 in the prior year. Diluted earnings per share were positively impacted by $0.10 to $0.11 as a result of the 53 week;
-- 11 company restaurants, including two Bubba's 33 restaurants, and three international franchise restaurants were opened; and
-- The Company repurchased 170,187 shares of common stock for $8.9 million.
Results for the year-to-date period included the following highlights:
-- Comparable restaurant sales increased 4.7% at company restaurants and 3.8% at domestic franchise restaurants;
-- Restaurant margin, as a percentage of restaurant and other sales, decreased six basis points to 17.3%, as higher labor costs driven by wage rate and other inflation was offset by lower cost of sales due to the benefit of a higher average check. Restaurant margin dollars increased 11.8% to $474.2 million from $424.2 million in the prior year;
-- Diluted earnings per share increased 11.9% to $2.46 from $2.20 in the prior year. Diluted earnings per share were positively impacted by $0.10 to $0.11 as a result of the 53 week;
-- 22 company restaurants, including three Bubba's 33 restaurants, and nine, primarily international, franchise restaurants were opened; and
-- The Company repurchased 2,625,245 shares of common stock for $139.8 million.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are very pleased to end the year on a strong note, highlighted by our double digit revenue growth and improved restaurant margins in the second half of the year. Fourth quarter comparable restaurant sales grew 4.4% at company restaurants, which represents our 40 consecutive quarter of growth. This is certainly a credit to our operators, who for 10 straight years have found ways to continue to grow sales. In addition, our healthy cash flow allowed us to increase our quarterly cash dividend to $0.36 per share in 2020 which is our seventh straight year of increasing our dividends by double digits."
Taylor continued, "We are off to a solid start in 2020, with comparable restaurant sales growth of 6.4% for the first seven weeks of the year. In addition, our development pipeline remains strong and we continue to target at least 30 company restaurant openings for the year."
Comparable restaurant sales at company restaurants for the first seven weeks of our first quarter of fiscal 2020 increased 6.4% compared to the prior year period.
Management reiterated the following expectations for 2020:
-- Positive comparable restaurant sales growth;
-- At least 30 company restaurant openings;
-- Store week growth of 3.5% to 4.5%, including the negative impact of lapping the 53 week from 2019;
-- Commodity cost inflation of 1.0% to 2.0%;