Exhibit 99.1
Texas Roadhouse, Inc. Announces First Quarter 2007 Results
LOUISVILLE, Ky (April 30, 2007) — Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 27, 2007.
| | First Quarter | |
($000’s) | | 2007 | | 2006 | | % Change | |
| | | | | | | |
Total revenue | | 178,337 | | 149,399 | | 19 | |
Income from operations | | 19,700 | | 14,097 | | 40 | |
Net income | | 12,296 | | 8,182 | | 50 | |
Diluted EPS | | $ | 0.16 | | $ | 0.11 | | 50 | |
| | | | | | | | | |
Highlights for the first quarter:
· Comparable restaurant sales increased 0.9% at company restaurants and 0.6% at franchise restaurants;
· Ten company restaurants opened; and
· Diluted earnings per share increased to $0.16 from $0.11 for the first quarter of fiscal 2006, a 50% increase over the same period in fiscal 2006.
Notable items for the first quarter versus the prior year period included:
· After-tax expense of approximately $0.2 million related to the Company’s annual managing partner conference compared to approximately $1.6 million, or $0.02 per diluted share, of after-tax expense in the first quarter of fiscal 2006. The difference results from the timing of the Company’s annual managing partner conference which took place in the second quarter of fiscal 2007 versus the first quarter of fiscal 2006; and
· A non-cash charge of approximately $0.8 million, or $0.01 per diluted share, relating to our acquisition of 11 franchise restaurants in the first quarter of fiscal 2006. There was no corresponding charge in the first quarter of fiscal 2007.
G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, “We are pleased with our first quarter results, which were achieved despite challenging weather patterns for much of the period. We credit our value proposition with consumers and our ability to execute at the restaurant level for our success. We are also pleased that our development plans for the year, which are primarily front-loaded, remain on track. Ultimately, we believe Texas Roadhouse is ideally positioned to create value for our stockholders over the long term and remain confident that our target of 20% diluted earnings per share growth for 2007 is achievable.”
Franchise Acquisitions
The Company continues to evaluate opportunities to acquire franchise restaurants under terms which would create value for the Company and its stockholders. To this end, the Company has begun negotiations to acquire nine franchise restaurants. These transactions are subject to customary due diligence and approval of the Company’s board of directors. Should the acquisition of these restaurants be completed, the Company estimates that these transactions would be accretive to diluted earnings per share prior to any acquisition-related charges.
Outlook for 2007
The Company reported that comparable restaurant sales for the first four weeks of the second quarter of fiscal 2007 increased 3.7% over the same period of the prior year.
In addition, the Company reiterates its estimate for 2007 diluted earnings per share growth of at least 20%, or at least $0.53 per diluted share.
This estimate is based on the following assumptions:
· New restaurant openings of 30 to 32 company-owned and two to three franchised; and
· Comparable restaurant sales growth of 2 to 3%.
The 2007 earnings estimate presented excludes any non-cash charges or ongoing earnings impact related to the Company’s potential acquisition of franchise restaurants.
Conference Call
The Company is hosting a conference call today, April 30, 2007, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (800) 811-8824. A replay of the call will be available until May 7, 2007. To access the replay, please dial (888) 203-1112, and use 9554513 as the pass code.
There will be a simultaneous Web cast conducted at www.texasroadhouse.com.
About the Company
Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates 263 restaurants system-wide in 44 states. For more information, please visit the Company’s Web site at www.texasroadhouse.com.
Forward-looking Statements
Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance for the full year 2007, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurants opening during full year 2007, the sales at these and our other company-owned and franchised restaurants, our ability to control restaurant operating costs, our ability to complete the acquisition of franchise restaurants, our ability to integrate the franchise restaurants which we acquire, strength of consumer spending and other factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements.
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Contacts:
Investor Relations
Scott Colosi
502-515-7300
Media
Travis Doster
502-638-5457
