Texas Roadhouse, Inc. announced financial results for the 13- and 39-week periods ended September 27.
Results included the following highlights:
Comparable restaurant sales growth of 3.4 percent at company restaurants and 3.3 percent at domestic franchise restaurants.
Restaurant margin, as a percentage of restaurant sales, increased 155 basis points to 18.1 percent, primarily driven by lower food costs, partially offset by higher labor costs.
Seven company-owned restaurants were opened, including two Bubba’s 33 restaurants.
Results for year-to-date included the following highlights:
Comparable restaurant sales growth of 4.2 percent at company restaurants and 3.9 percent at domestic franchise restaurants.
Restaurant margin, as a percentage of restaurant sales, increased 192 basis points to 19.2 percent.
Twenty-one company-owned restaurants were opened, including five Bubba’s 33 restaurants.
Kent Taylor, chief executive officer of Texas Roadhouse, Inc., comments, "We are pleased to report another quarter of restaurant margin expansion and double-digit diluted earnings per share growth. Our results were driven by the opening of new restaurants, positive comparable restaurant sales and continued commodity deflation. As we move into the fourth quarter, our sales momentum continues with October comparable restaurant sales up 3.8 percent, including positive traffic growth."
Taylor continues, "Looking ahead to 2017, we will stay focused on protecting our long-term brand position by enhancing our ongoing commitment to our value proposition with consumers and to legendary food and legendary service. This commitment has served us well with 26 consecutive quarters of positive traffic growth. In addition, our strong balance sheet and healthy cash flow allow us to continue to internally fund our growth, while returning excess capital to our shareholders through dividend payments and ongoing share repurchases."