Texas Roadhouse Cooks Up First-Quarter Earnings Beat

Texas Roadhouse says its operating results are exceeding pre-pandemic levels.
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Texas Roadhouse  (TXRH) - Get Report served up better-than-expected first-quarter earnings Friday with the restaurant chain's results exceeding pre-pandemic levels.

Shares of the Louisville, Kentucky, company were climbing 2.62% to $106.43 on Friday.

Texas Roadhouse reported net income of $64.2 million, or 91 cents a share, up from net income of $16 million, or 23 cents a share, a year ago. Analysts expected earnings of 59 cents.

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Revenue totaled $800.6 million, up 23% from a year ago, and came in ahead of the FactSet consensus of $745.8 million.

"A year ago today, all of our dining rooms were still closed and while we knew brighter days were ahead, we never could have anticipated where we are today," the company said in a statement.

Texas Roadhouse said that its operating results have exceeded pre-pandemic levels, due "to the easing of dining room capacity restrictions, guest excitement to get back into our restaurants and the continued strength of our To-Go sales."

Comparable-restaurant sales at company restaurants increased 18.5% and 8.6% compared with 2020 and 2019, respectively.

Comparable-restaurant sales at domestic franchise restaurants increased 15.2% and 5.1% compared with 2020 and 2019, respectively.

Texas Roadhouse said it continues to operate under various capacity restrictions in dining rooms. 

The company's board reinstated the payment of a quarterly cash dividend of 40 cents a share. 

Separately, the company noted the death of CEO and founder Kent Taylor, 65, who committed suicide last month after struggling with post COVID-19 symptoms, including severe tinnitus.

"The entire leadership team is committed to preserving Kent’s legacy and the unique culture he established as we continue to grow Texas Roadhouse just as he did over the past 28 years," the company said. 

Company president Jerry Morgan, a 23-year veteran of the Texas Roadhouse, was named CEO.