Texas Roadhouse released full year 2013 earnings today, reporting revenues jumped to $1.422 billion from revenues of $1.263 billion in 2012, a solid 13 percent increase, despite a 7.0 percent inflation in food costs. Net income increased by 8.0 percent.
Looking at the full year, restaurant sales jumped 3.4 percent at company restaurants and 4.3 percent at franchise restaurants, from the year prior.
During 2013, 26 company and four franchise restaurants were opened. The casual dining chain, first established in 1993, now operates 420 restaurants in 48 states and three foreign countries. For 2014, the company plans to open up shop in its 49th state, Alaska, and to increase the number of company stores by 25 to 30, with franchise partners to open around four to five restaurants, reported Scott Colsoi, president, in an web conference held Monday, February 24th. In addition Texas Roadhouse recently signed its second international agreement, providing for the development of multiple restaurants in Taiwan over the next five years.
In the fourth quarter, Texas Roadhouse sold its Aspen Creek concept and two restaurants in a transaction valued at $6.0 million. In exchange, the company received two Texas Roadhouse franchise restaurants in Ohio and $1.5 million in cash. Because the acquisition occurred on December 31, the last day of the company's 2013 fiscal year, the two new franchise restaurants did not have a net revenue or an accretive impact in 2013.
Revenues for the 14-week fourth-quarter, ending December 31, 2013, climbed from $309 million in 2012 to $376 million in 2013, a healthy 21 percent increase. Sales during this period showed a 2.1 percent gain at company restaurants and a 4.5 percent gain at franchise restaurants, over the 13-week fourth-quarter 2012. During fourth-quarter 2013, 12 company restaurants and one franchise restaurant were opened.
The company has delivered 16 consecutive quarters of positive sales growth, reported Colsoi.
"The continued focus by our operators on legendary food and legendary service resulted in our fourth consecutive year of positive comparable restaurant sales growth and a strong finish to 2013,” says Kent Taylor, Texas Roadhouse chief executive officer. “As we head into 2014, we look forward to low single-digit commodity cost inflation, and another year of 25-to-30 company restaurant openings. In addition, we expect to generate a significant amount of free cash flow, which we will continue to allocate to new store development, along with returning excess capital to our shareholders through quarterly dividend payments and share repurchases."
Comparable restaurant sales at company restaurants for the first seven weeks of fiscal 2014 rose approximately 1.0 percent, compared to the prior year period.
By Joann Whitcher