Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 week periods ended June 25, 2013.
|Second Quarter||Year to Date|
|($000's)||2013||2012||% Change||2013||2012||% Change|
|Income from operations (a)||29,797||31,247||(5)||67,965||60,649||12|
|Net income (a)||19,963||20,310||(2)||46,134||39,179||18|
|Diluted EPS (a)||$0.28||$0.28||(1)||$0.65||$0.55||18|
|(a) 2012 YTD includes a charge related to a legal settlement discussed below.|
Results for the second quarter included:
- Diluted earnings per share remained relatively flat at $0.28 compared to the prior year period;
- Comparable restaurant sales increased 4.5% at company restaurants and 5.3% at franchise restaurants;
- Seven company restaurants and one franchise restaurant were opened;
- Restaurant margin, as a percentage of restaurant sales, decreased 47 basis points to 18.6% primarily due to higher commodity costs; and
- Higher than average spending on the Company’s annual managing partner conference, which marked its 20 th anniversary, impacted year-over-year operating results for the quarter as costs were $2.3 million higher compared to the prior year period.
Results for the year-to-date included:
- Excluding the impact of a prior year charge, diluted earnings per share increased 9.7% to $0.65 from $0.59 in the prior year. The year-to-date 2012 results included a pre-tax charge of $5.0 million ($3.1 million after-tax) which had a negative $0.04 impact on diluted earnings per share;
- Comparable restaurant sales increased 4.1% at company restaurants and 4.5 % at franchise restaurants;
- 10 company and three franchise restaurants were opened;
- Restaurant margin, as a percentage of restaurant sales, decreased 32 basis points to 18.8%; and
- Costs associated with the Company’s annual managing partner conference were $2.4 million higher compared to the prior year period.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, “We are pleased with our top-line momentum, which resulted in another quarter of solid revenue growth led by positive comparable restaurant sales. Our new restaurants continue to generate solid returns, and we are still generating sufficient cash flows to not only fund our restaurant growth, but also enhance our existing assets and return capital to shareholders. We are confident that our relentless focus on legendary food and service is the best way to continue driving market share gains in this economic environment.”