Texas Roadhouse, Inc. announced financial results for the 13- and 52-week periods ended December 29, 2015.
Results for the fourth quarter included the following highlights:
Comparable restaurant sales growth of 4.5 percent at company restaurants and 4 percent at franchise restaurants.
Restaurant margin, as a percentage of restaurant sales, increased 112 basis points to 17.6 percent, primarily driven by lower other operating costs and lower food costs.
Diluted earnings per share increased 22.7 percent to $0.32 from $0.26 in the prior year.
Seven company-owned Texas Roadhouse restaurants were opened; and, the company repurchased 189,700 shares of its common stock for $6.7 million.
Results for the full year included the following highlights:
Comparable restaurant sales growth of 7.2 percent at company restaurants and 6.5 percent at franchise restaurants.
Restaurant margin, as a percentage of restaurant sales, decreased 30 basis points to 17.3 percent. Food cost inflation of approximately 4.9 percent, driven by beef, more than offset the impact of higher average unit volume.
Diluted earnings per share increased 11.1 percent to $1.37 from $1.23 in the prior year; 29 company-owned restaurants were opened, including four Bubba's 33 restaurants; and, the company repurchased 321,789 shares of its common stock for $11.4 million.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., says, "We ended the year on a strong note, with double-digit revenue and diluted earnings per share growth for both the fourth quarter and the full year. This represents our 24th consecutive quarter of positive comparable restaurant sales growth, which is a testament to our managing partners. In addition, our solid balance sheet and healthy cash flow allowed us to open 29 restaurants, while returning $58 million of excess capital to shareholders through quarterly dividend payments and share repurchases throughout the year."
Taylor continues, "We have assembled a substantial pipeline of new locations and are on track to open approximately 30 company restaurants this year. Our top-line momentum has continued into 2016 and we are pleased to have seen continued traffic growth during the first seven weeks of the year. Looking ahead, we will stay focused on solidifying our long-term brand position and capitalizing on our growth potential."
The company reported that comparable restaurant sales growth of at company restaurants for the first seven weeks of its first quarter of fiscal 2016 was approximately 4.4 percent compared to the prior year period.
Approximately 30 company restaurant openings, including approximately seven Bubba’s 33 restaurants are expected; as well as 1 percent to 2 percent food cost deflation; an income tax rate of approximately 30 percent; and total capital expenditures of $165 million to $175 million.
On February 19, the company’s board of directors authorized the payment of a quarterly cash dividend of $0.19 per share of common stock. This payment, which will be distributed on April 1 to shareholders of record at the close of business on March 16, represents a 12 percent increase from the cash dividend of $0.17 per share of common stock declared during each quarter of 2015 and represents our fifth consecutive year of dividend payments.
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