Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Texas Roadhouse, Inc. | ' |
Entity Central Index Key | '0001289460 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 69,393,116 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $59,307 | $94,874 |
Receivables, net of allowance for doubtful accounts of $13 at September 30, 2014 and $4 at December 31, 2013 | 15,701 | 25,391 |
Inventories, net | 11,993 | 11,954 |
Prepaid income taxes | ' | 421 |
Prepaid expenses | 8,100 | 10,250 |
Deferred tax assets | 3,852 | 2,853 |
Total current assets | 98,953 | 145,743 |
Property and equipment, net of accumulated depreciation of $336,425 at September 30, 2014 and $304,536 at December 31, 2013 | 631,552 | 586,212 |
Goodwill | 117,197 | 117,197 |
Intangible assets, net | 6,546 | 7,876 |
Other assets | 22,059 | 20,616 |
Total assets | 876,307 | 877,644 |
Current liabilities: | ' | ' |
Current maturities of long-term debt and obligations under capital leases | 126 | 243 |
Accounts payable | 37,612 | 38,404 |
Deferred revenue - gift cards | 32,710 | 62,723 |
Accrued wages | 30,548 | 28,994 |
Income taxes payable | 4,457 | ' |
Accrued taxes and licenses | 17,884 | 17,434 |
Dividends payable | 10,421 | ' |
Other accrued liabilities | 31,163 | 27,382 |
Total current liabilities | 164,921 | 175,180 |
Long-term debt and obligations under capital leases, excluding current maturities | 50,727 | 50,990 |
Stock option and other deposits | 5,918 | 5,311 |
Deferred rent | 26,103 | 23,742 |
Deferred tax liabilities | 2,843 | 5,774 |
Fair value of derivative financial instruments | 1,711 | 2,696 |
Other liabilities | 21,169 | 20,091 |
Total liabilities | 273,392 | 283,784 |
Texas Roadhouse, Inc. and subsidiaries stockholders' equity: | ' | ' |
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding) | ' | ' |
Common stock, ($0.001 par value, 100,000,000 shares authorized, 69,472,721 and 70,352,257 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively) | 69 | 70 |
Additional paid-in-capital | 185,826 | 215,051 |
Retained earnings | 411,273 | 374,190 |
Accumulated other comprehensive loss | -1,048 | -1,652 |
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 596,120 | 587,659 |
Noncontrolling interests | 6,795 | 6,201 |
Total equity | 602,915 | 593,860 |
Total liabilities and equity | $876,307 | $877,644 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Receivables, allowance for doubtful accounts (in dollars) | $13 | $4 |
Property and equipment, accumulated depreciation (in dollars) | $336,245 | $304,536 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 69,472,721 | 70,352,257 |
Common stock, shares outstanding | 69,472,721 | 70,352,257 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 |
Revenue: | ' | ' | ' | ' |
Restaurant sales | $381,991 | $331,746 | $1,167,766 | $1,037,239 |
Franchise royalties and fees | 3,227 | 3,024 | 9,957 | 9,326 |
Total revenue | 385,218 | 334,770 | 1,177,723 | 1,046,565 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ' | ' | ' | ' |
Cost of sales | 137,658 | 116,570 | 409,552 | 361,334 |
Labor | 112,521 | 99,003 | 342,375 | 302,387 |
Rent | 8,380 | 7,181 | 24,550 | 21,390 |
Other operating | 59,276 | 51,949 | 180,491 | 162,716 |
Pre-opening | 3,945 | 4,746 | 12,677 | 11,810 |
Depreciation and amortization | 15,164 | 12,462 | 43,682 | 36,864 |
Impairment and closure | -16 | 103 | 10 | 187 |
General and administrative | 19,469 | 17,060 | 60,980 | 56,216 |
Total costs and expenses | 356,397 | 309,074 | 1,074,317 | 952,904 |
Income from operations | 28,821 | 25,696 | 103,406 | 93,661 |
Interest expense, net | 492 | 525 | 1,564 | 1,687 |
Equity income from investments in unconsolidated affiliates | -410 | -173 | -975 | -571 |
Income before taxes | 28,739 | 25,344 | 102,817 | 92,545 |
Provision for income taxes | 9,017 | 7,500 | 31,462 | 26,617 |
Net income including noncontrolling interests | 19,722 | 17,844 | 71,355 | 65,928 |
Less: Net income attributable to noncontrolling interests | 841 | 674 | 2,928 | 2,624 |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | 18,881 | 17,170 | 68,427 | 63,304 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gain on derivatives, net of tax of $(0.1) million, $(0.1) million, $(0.4) million and $(0.4), million, respectively | 228 | 97 | 604 | 634 |
Total comprehensive income | $19,109 | $17,267 | $69,031 | $63,938 |
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.27 | $0.24 | $0.98 | $0.91 |
Diluted (in dollars per share) | $0.27 | $0.24 | $0.97 | $0.89 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 69,544 | 70,361 | 69,793 | 69,914 |
Diluted (in shares) | 70,395 | 71,620 | 70,639 | 71,175 |
Cash dividends declared per share (in dollars per share) | $0.15 | $0.12 | $0.45 | $0.36 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 |
Condensed Consolidated Statements of Income and Comprehensive Income | ' | ' | ' | ' |
Unrealized gain (loss) on derivatives, tax | ($0.10) | ($0.10) | ($0.40) | ($0.40) |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total Texas Roadhouse, Inc. and Subsidiaries | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2013 | $587,659 | $70 | $215,051 | $374,190 | ($1,652) | $6,201 | $593,860 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | 70,352,257 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 68,427 | ' | ' | 68,427 | ' | 2,928 | 71,355 |
Unrealized gain (loss) on derivatives, net of tax of ($0.4) | 604 | ' | ' | ' | 604 | ' | 604 |
Noncontrolling interests contribution | ' | ' | ' | ' | ' | 730 | 730 |
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | -3,064 | -3,064 |
Dividends declared and paid ($0.30 per share) | -20,923 | ' | ' | -20,923 | ' | ' | -20,923 |
Dividends declared ($0.15 per share) | -10,421 | ' | ' | -10,421 | ' | ' | -10,421 |
Shares issued under stock option plan including tax effects | 5,441 | ' | 5,441 | ' | ' | ' | 5,441 |
Shares issued under stock option plan including tax effects (in shares) | ' | ' | ' | ' | ' | ' | 260,515 |
Repurchase shares of common stock | -39,966 | -2 | -39,964 | ' | ' | ' | -39,966 |
Repurchase shares of common stock (in shares) | ' | ' | ' | ' | ' | ' | -1,575,000 |
Settlement of restricted stock units | ' | 1 | -1 | ' | ' | ' | ' |
Settlement of restricted stock units (in shares) | ' | ' | ' | ' | ' | ' | 657,462 |
Indirect repurchase of shares for minimum tax withholdings | -5,638 | ' | -5,638 | ' | ' | ' | -5,638 |
Indirect repurchase of shares for minimum tax withholdings (in shares) | ' | ' | ' | ' | ' | ' | -222,513 |
Share-based compensation | 10,937 | ' | 10,937 | ' | ' | ' | 10,937 |
Balance at Sep. 30, 2014 | $596,120 | $69 | $185,826 | $411,273 | ($1,048) | $6,795 | $602,915 |
Balance (in shares) at Sep. 30, 2014 | ' | ' | ' | ' | ' | ' | 69,472,721 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Condensed Consolidated Statement of Stockholders' Equity | ' |
Unrealized gain (loss) on derivatives, tax | $0.40 |
Dividends declared and paid per share (in dollars per share) | ($0.30) |
Dividends declared per share (in dollars per share) | ($0.15) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 24, 2013 |
Cash flows from operating activities: | ' | ' |
Net income including noncontrolling interests | $71,355 | $65,928 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 43,682 | 36,864 |
Deferred income taxes | -4,311 | -1,739 |
Loss on disposition of assets | 3,461 | 2,641 |
Impairment and closure costs | ' | 84 |
Equity income from investments in unconsolidated affiliates | -975 | -571 |
Distributions of income received from investments in unconsolidated affiliates | 424 | 343 |
Provision for doubtful accounts | 9 | 85 |
Share-based compensation expense | 10,937 | 10,583 |
Changes in operating working capital: | ' | ' |
Receivables | 9,924 | 4,813 |
Inventories | -39 | -53 |
Prepaid expenses | 2,150 | 583 |
Other assets | -891 | -3,201 |
Accounts payable | -3,499 | -324 |
Deferred revenue-gift cards | -30,013 | -27,670 |
Accrued wages | 1,554 | 1,319 |
Excess tax benefits from share-based compensation | -2,236 | -3,013 |
Prepaid income taxes and income taxes payable | 7,114 | 4,943 |
Accrued taxes and licenses | 450 | 1,850 |
Other accrued liabilities | 3,781 | 1,225 |
Deferred rent | 2,361 | 2,536 |
Other liabilities | 1,078 | 1,458 |
Net cash provided by operating activities | 116,316 | 98,684 |
Cash flows from investing activities: | ' | ' |
Capital expenditures-property and equipment | -89,645 | -70,911 |
Proceeds from sale of property and equipment, including insurance proceeds, and other | 1,197 | -39 |
Net cash used in investing activities | -88,448 | -70,950 |
Cash flows from financing activities: | ' | ' |
Repurchase of shares of common stock | -39,966 | ' |
Distributions to noncontrolling interests | -3,064 | -2,459 |
Excess tax benefits from share-based compensation | 2,236 | 3,013 |
Proceeds from noncontrolling interest contributions and other | 487 | ' |
Proceeds from stock option and other deposits, net | 607 | 23 |
Indirect repurchase of shares for minimum tax withholdings | -5,638 | -5,477 |
Principal payments on long-term debt and capital lease obligations | -380 | -298 |
Proceeds from exercise of stock options | 3,206 | 13,001 |
Dividends paid to shareholders | -20,923 | -29,939 |
Net cash used in financing activities | -63,435 | -22,136 |
Net increase (decrease) in cash and cash equivalents | -35,567 | 5,598 |
Cash and cash equivalents-beginning of year | 94,874 | 81,746 |
Cash and cash equivalents-end of year | 59,307 | 87,344 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest paid, net of amounts capitalized | 1,774 | 1,803 |
Income taxes paid | 28,659 | 23,410 |
Capital expenditures included in accounts payable | 4,090 | 2,043 |
Receivable from noncontrolling in joint venture | $243 | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
(1) Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc. (“TRI”), our wholly-owned subsidiaries and subsidiaries in which we own more than a 50 percent interest (collectively the “Company,” “we,” “our” and/or “us”) as of September 30, 2014 and December 31, 2013 and for the 13 and 39 weeks ended September 30, 2014 and September 24, 2013. Our wholly-owned subsidiaries include: Texas Roadhouse Holdings LLC (“Holdings”), Texas Roadhouse Development Corporation (“TRDC”), Texas Roadhouse Management Corporation (“Management Corp.”) and Strategic Restaurant Concepts, LLC (“Strategic Concepts”). We and our subsidiaries operate restaurants primarily under the Texas Roadhouse name. Holdings also provides supervisory and administrative services for certain other franchise Texas Roadhouse restaurants. TRDC sells franchise rights and collects the franchise royalties and fees. Management Corp. provides management services to the Company and certain other franchise Texas Roadhouse restaurants. All significant balances and transactions between the consolidated entities have been eliminated. | |
As of September 30, 2014 and September 24, 2013, we owned 5.0% to 10.0% equity interests in 23 franchise restaurants. Additionally, as of September 30, 2014 and September 24, 2013, we owned a 40% equity interest in four non-Texas Roadhouse restaurants as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. While we exercise significant control over these Texas Roadhouse franchise restaurants, we do not consolidate their financial position, results of operations or cash flows as it is immaterial to our consolidated financial position, results of operations and cash flows. Our investments in these unconsolidated affiliates are included in Other assets in our unaudited condensed consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our unaudited condensed consolidated statements of income and comprehensive income under Equity income from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants have been eliminated. | |
We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to self-insurance reserves, share-based compensation expense and income taxes. Actual results could differ from those estimates. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, except that certain information and footnotes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). Operating results for the 13 and 39 weeks ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 30, 2014. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Certain prior year amounts have been reclassified in our unaudited condensed consolidated financial statements to conform with current year presentation. | |
Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate. | |
Sharebased_Compensation
Share-based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Share-based Compensation | ' | |||||||||||||
Share-based Compensation | ' | |||||||||||||
(2) Share-based Compensation | ||||||||||||||
On May 16, 2013, our stockholders approved the Texas Roadhouse, Inc. 2013 Long-Term Incentive Plan (the “Plan”). The Plan provides for the granting of incentive and non-qualified stock options to purchase shares of common stock, stock appreciation rights, and full value awards, including restricted stock, restricted stock units (“RSUs”), deferred stock units, performance stock and performance stock units. As a result of the approval of the Plan, no future awards will be made under the Texas Roadhouse, Inc. 2004 Equity Incentive Plan. | ||||||||||||||
Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by eliminating stock option grants and, instead, granting RSUs as a form of share-based compensation. An RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement. | ||||||||||||||
The following table summarizes the share-based compensation recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income: | ||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, | September 24, | September 30, | September 24, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Labor expense | $ | 1,282 | $ | 1,356 | $ | 4,052 | $ | 4,027 | ||||||
General and administrative expense | 2,256 | 2,256 | 6,885 | 6,556 | ||||||||||
Total share-based compensation expense | $ | 3,538 | $ | 3,612 | $ | 10,937 | $ | 10,583 | ||||||
Share-based compensation activity by type of grant as of September 30, 2014 and changes during the 39 weeks then ended are presented below. | ||||||||||||||
Summary Details for Share Options | ||||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | |||||||||||
Average | Remaining Contractual | Intrinsic | ||||||||||||
Exercise Price | Term (years) | Value | ||||||||||||
Outstanding at December 31, 2013 | 1,043,438 | $ | 13.77 | |||||||||||
Granted | — | — | ||||||||||||
Forfeited | (1,226 | ) | 14.82 | |||||||||||
Exercised | (260,515 | ) | 12.31 | |||||||||||
Outstanding at September 30, 2014 | 781,697 | $ | 14.26 | 1.8 | $ | 10,616 | ||||||||
Exercisable at September 30, 2014 | 781,697 | $ | 14.26 | 1.8 | $ | 10,616 | ||||||||
The total intrinsic value of options exercised during the 13 weeks ended September 30, 2014 and September 24, 2013 was $1.3 million and $1.7 million, respectively. During the 39 weeks ended September 30, 2014 and September 24, 2013, the total intrinsic value of options exercised was $3.6 million and $8.0 million, respectively. No stock options vested during the 13 or 39 weeks ended September 30, 2014 and September 24, 2013. | ||||||||||||||
Summary Details for RSUs | ||||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | |||||||||||
Average | Remaining Contractual | Intrinsic | ||||||||||||
Grant Date | Term (years) | Value | ||||||||||||
Fair Value | ||||||||||||||
Outstanding at December 31, 2013 | 1,283,862 | $ | 18.68 | |||||||||||
Granted | 415,046 | 25.3 | ||||||||||||
Forfeited | (58,927 | ) | 19.52 | |||||||||||
Vested | (657,462 | ) | 18.34 | |||||||||||
Outstanding at September 30, 2014 | 982,519 | $ | 21.66 | 0.9 | $ | 27,353 | ||||||||
As of September 30, 2014, with respect to unvested RSUs, there was $10.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 1.4 years. The vesting terms of the RSUs range from approximately 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the 13 weeks ended September 30, 2014 and September 24, 2013 was $3.1 million and $3.7 million, respectively. For the 39 weeks ended September 30, 2014 and September 24, 2013, the total intrinsic value of RSUs vested was $17.3 million and $16.9 million, respectively. | ||||||||||||||
Longterm_Debt
Long-term Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt | ' | |||||||
Long-term Debt | ' | |||||||
(3) Long-term Debt | ||||||||
Long-term debt consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Installment loans, due 2014 — 2020 | $ | 853 | $ | 1,233 | ||||
Revolver | 50,000 | 50,000 | ||||||
50,853 | 51,233 | |||||||
Less current maturities | 126 | 243 | ||||||
$ | 50,727 | $ | 50,990 | |||||
The weighted-average interest rate for installment loans outstanding at September 30, 2014 and December 31, 2013 was 10.46% and 10.54%, respectively. The debt is secured by certain land and building assets and is subject to certain prepayment penalties. | ||||||||
On November 1, 2013, we entered into Omnibus Amendment No. 1 and Consent to Credit Agreement and Guaranty with respect to our revolving credit facility dated as of August 12, 2011 with a syndicate of commercial lenders led by JP Morgan Chase Bank, N.A., PNC Bank, N.A., and Wells Fargo, N.A. The amended revolving credit facility, which has a maturity date of November 1, 2018, remains an unsecured, revolving credit agreement under which we may borrow up to $200.0 million. The amendment provides us with the option to increase the revolving credit facility by $200.0 million, up to $400.0 million, subject to certain limitations. | ||||||||
The terms of the amended revolving credit facility require us to pay interest on outstanding borrowings at the London Interbank Offered Rate (“LIBOR”) plus a margin of 0.875% to 1.875%, depending on our leverage ratio, or the Alternate Base Rate, which is the higher of the issuing bank’s prime lending rate, the Federal Funds rate plus 0.50% or the Adjusted Eurodollar Rate for a one month interest period on such day plus 1.0%. We are also required to pay a commitment fee of 0.125% to 0.30% per year on any unused portion of the amended revolving credit facility, depending on our leverage ratio. The weighted-average interest rate for the revolving credit facility at both September 30, 2014 and December 31, 2013 was 3.96%, including the impact of interest rate swaps. At September 30, 2014, we had $50.0 million outstanding under the revolving credit facility and $144.6 million of availability, net of $5.4 million of outstanding letters of credit. | ||||||||
The lenders’ obligation to extend credit under the amended revolving credit facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio of 2.00 to 1.00 and a maximum consolidated leverage ratio of 3.00 to 1.00. The amended revolving credit facility permits us to incur additional secured or unsecured indebtedness outside the facility, except for the incurrence of secured indebtedness that in the aggregate exceeds 15% of our consolidated tangible net worth or circumstances where the incurrence of secured or unsecured indebtedness would prevent us from complying with our financial covenants. We were in compliance with all covenants as of September 30, 2014. | ||||||||
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Income Taxes | ' | |||||||||
Income taxes | ' | |||||||||
(4) Income taxes | ||||||||||
A reconciliation of the statutory federal income tax rate to our effective tax rate for the 13 and 39 weeks ended September 30, 2014 and September 24, 2013 is as follows: | ||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||
September 30, 2014 | September 24, 2013 | Septmebr 30, 2014 | September 24, 2013 | |||||||
Tax at statutory federal rate | 35 | % | 35 | % | 35 | % | 35 | % | ||
State and local tax, net of federal benefit | 3.5 | 3.7 | 3.5 | 3.7 | ||||||
FICA tip tax credit | (7.5 | ) | (7.5 | ) | (6.4 | ) | (6.3 | ) | ||
Work opportunity tax credit | (0.6 | ) | (1.1 | ) | (0.6 | ) | (2.2 | ) | ||
Incentive stock options | (0.2 | ) | (1.2 | ) | (0.1 | ) | (0.8 | ) | ||
Nondeductible officer compensation | 0.3 | 0.4 | 0.3 | 0.5 | ||||||
Net income attributable to noncontrolling interests | (0.9 | ) | (0.9 | ) | (0.9 | ) | (1.0 | ) | ||
Other | 1.8 | 1.2 | (0.2 | ) | (0.1 | ) | ||||
Total | 31.4 | % | 29.6 | % | 30.6 | % | 28.8 | % | ||
Derivative_and_Hedging_Activit
Derivative and Hedging Activities | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Derivative and Hedging Activities | ' | |||||||||||||||
Derivative and Hedging Activities | ' | |||||||||||||||
(5)Derivative and Hedging Activities | ||||||||||||||||
We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”). We use interest rate-related derivative instruments to manage our exposure to fluctuations of interest rates. By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We attempt to minimize the credit risk by entering into transactions with high-quality counterparties whose credit rating is evaluated on a quarterly basis. Our counterparty in the interest rate swaps is JPMorgan Chase Bank, N.A. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We attempt to minimize market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be taken. | ||||||||||||||||
Interest Rate Swaps | ||||||||||||||||
On October 22, 2008, we entered into an interest rate swap, starting on November 7, 2008, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our revolving credit facility. Under the terms of the swap, we pay a fixed rate of 3.83% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on November 7, 2015, effectively resulting in a fixed rate on the LIBOR component of the $25.0 million notional amount. | ||||||||||||||||
On January 7, 2009, we entered into an interest rate swap, starting on February 7, 2009, with a notional amount of $25.0 million to hedge a portion of the cash flows of our variable rate borrowings. We have designated the interest rate swap as a cash flow hedge of our exposure to variability in future cash flows attributable to interest payments on a $25.0 million tranche of floating rate debt borrowed under our revolving credit facility. Under the terms of the swap, we pay a fixed rate of 2.34% on the $25.0 million notional amount and receive payments from the counterparty based on the one month LIBOR rate for a term ending on January 7, 2016, effectively resulting in a fixed rate on the LIBOR component of the $25.0 million notional amount. | ||||||||||||||||
We entered into the above interest rate swaps with the objective of eliminating the variability of our interest cost that arises because of changes in the variable interest rate for the designated interest payments. Changes in the fair value of the interest rate swaps will be reported as a component of accumulated other comprehensive income or loss (“AOCI”). Additionally, amounts related to the yield adjustment of the hedged interest payments are subsequently reclassified into interest expense in the same period during which the related interest affects earnings. We will reclassify any gain or loss from AOCI, net of tax, in our unaudited condensed consolidated balance sheet to interest expense in our unaudited condensed consolidated statement of income and comprehensive income when the interest rate swap expires or at the time we choose to terminate the swap. See note 11 for fair value discussion of these interest rate swaps. | ||||||||||||||||
The following table summarizes the fair value and presentation in the unaudited condensed consolidated balance sheets for derivatives designated as hedging instruments under FASB ASC 815: | ||||||||||||||||
Balance | Derivative Assets | Derivative Liabilities | ||||||||||||||
Sheet | September 30, | December 31, | September 30, | December 31, | ||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivative Contracts Designated as Hedging Instruments under ASC 815 | -1 | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 1,711 | $ | 2,696 | ||||||||
Total Derivative Contracts | $ | — | $ | — | $ | 1,711 | $ | 2,696 | ||||||||
-1 | Derivative assets and liabilities are included in fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets. | |||||||||||||||
The following table summarizes the effect of our interest rate swaps in the unaudited condensed consolidated statements of income and comprehensive income for the 13 and 39 weeks ended September 30, 2014 and September 24, 2013: | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
September 30, | September 24, | September 30, | September 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Gain recognized in AOCI, net of tax (effective portion) | $ | 228 | $ | 97 | $ | 604 | $ | 634 | ||||||||
Loss reclassified from AOCI to income (effective portion) | $ | 370 | $ | 378 | $ | 1,110 | $ | 1,106 | ||||||||
The loss reclassified from AOCI to income was recognized in interest expense on our unaudited condensed consolidated statements of income and comprehensive income. For each of the 13 and 39 weeks ended September 30, 2014 and September 24, 2013, we did not recognize any gain or loss due to hedge ineffectiveness related to the derivative instruments in the unaudited condensed consolidated statements of income and comprehensive income. | ||||||||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
(6)Recent Accounting Pronouncements | |
Discontinued Operations | |
(Accounting Standards Update 2014-08, “ASU 2014-08”) | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the requirements for reporting discontinued operations and modifies related disclosure requirements. ASU 2014-08 is effective prospectively for fiscal years beginning on or after December 15, 2014 (our 2015 fiscal year). The adoption of this guidance is not expected to have an impact on our consolidated financial position, results of operations or cash flows. | |
Revenue Recognition | |
(Accounting Standards Update 2014-09, “ASU 2014-09”) | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years beginning on or after December 15, 2016 (our 2017 fiscal year). Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial position, results of operations, cash flows and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | |
Going Concern | |
(Accounting Standards Update 2014-15, “ASU 2014-15”) | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires the management of the Company to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016 (our 2017 fiscal year) and early adoption is permitted. We do not expect this standard to have an impact on our consolidated financial position, results of operations or cash flows upon adoption. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
(7)Commitments and Contingencies | |||||
The estimated cost of completing capital project commitments at September 30, 2014 and December 31, 2013 was approximately $114.0 million and $65.2 million, respectively. | |||||
Effective December 31, 2013, we sold two restaurants, which operated under the name Aspen Creek, located in Irving, Texas and Louisville, Kentucky. We assigned the leases associated with these restaurants to the acquirer, but remain contingently liable under the terms of the leases if the acquirer defaults. We are contingently liable for the initial terms of the leases and any renewal periods. The Irving lease has an initial term that expires December 2019, along with three five-year renewals. The Louisville lease has an initial term that expires November 2023, along with three five-year renewals. The assignment of the Louisville lease releases us from liability after the initial lease term expiration contingent upon certain conditions being met by the acquirer. As the fair value of the guarantees is not considered significant, no liability has been recorded. | |||||
We entered into real estate lease agreements for five franchises, listed in the table below, before granting franchise rights for those restaurants. We have subsequently assigned the leases to the franchisees, but remain contingently liable if a franchisee defaults, under the terms of the lease. | |||||
Lease Assignment Date | Current Lease Term Expiration | ||||
Everett, Massachusetts (1) | September 2002 | February 2018 | |||
Longmont, Colorado (1) | October 2003 | May 2019 | |||
Montgomeryville, Pennsylvania | October 2004 | June 2021 | |||
Fargo, North Dakota (1) | February 2006 | July 2016 | |||
Logan, Utah | January 2009 | August 2019 | |||
-1 | As discussed in note 9, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. | ||||
We are contingently liable for the initial terms of the leases and any renewal periods. All of the leases have three five-year renewals. As the fair value of the guarantees is not considered significant, no liability has been recorded. | |||||
During the 39 weeks ended September 30, 2014, we bought most of our beef from four suppliers. Although there are a limited number of beef suppliers, we believe that other suppliers could provide a similar product on comparable terms. A change in suppliers, however, could cause supply shortages and a possible loss of sales, which would affect operating results adversely. We have no material minimum purchase commitments with our vendors that extend beyond a year. | |||||
On September 30, 2011, the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a lawsuit styled Equal Employment Opportunity Commission v. Texas Roadhouse, Inc., Texas Roadhouse Holdings LLC, Texas Roadhouse Management Corp. in the United States District Court, District of Massachusetts, Civil Action Number 1:11-cv-11732. The complaint alleges that applicants over the age of 40 were denied employment in our restaurants in bartender, host, server and server assistant positions due to their age. The EEOC is seeking injunctive relief, remedial actions, payment of damages to the applicants and costs. We have filed an answer to the complaint, and the case is in discovery. We deny liability; however, in view of the inherent uncertainties of litigation, the outcome of this case cannot be predicted at this time. We cannot estimate the possible amount or range of loss, if any, associated with this matter. | |||||
Occasionally, we are a defendant in litigation arising in the ordinary course of our business, including “slip and fall” accidents, employment related claims and claims from guests or employees alleging illness, injury or food quality, health or operational concerns. In the opinion of management, the ultimate disposition of these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. | |||||
Divestitures_and_Acquisitions
Divestitures and Acquisitions | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Divestitures and Acquisitions | ' | |||||||||
Divestitures and Acquisitions | ' | |||||||||
(8) Divestitures and Acquisitions | ||||||||||
On December 31, 2013, we sold our Aspen Creek concept, including two restaurants, and, pursuant to the terms of the purchase agreement, we received two Texas Roadhouse franchise restaurants in Ohio and $1.5 million in cash, for an aggregate transaction value of $6.0 million. The acquisition of the two franchise restaurants did not have a significant net revenue or accretive impact. The acquisition is consistent with our long-term strategy to increase net income and earnings per share. | ||||||||||
The acquisition of the two franchise restaurants was accounted for using the purchase method as defined in ASC 805, Business Combinations (“ASC 805”). Based on a purchase price of $4.5 million, $3.7 million of goodwill was generated by the acquisition, which is not amortizable for book purposes, but is deductible for tax purposes. | ||||||||||
The purchase price has been allocated as follows: | ||||||||||
Amounts | Measurement | As Adjusted | ||||||||
Previously | Period | |||||||||
Recorded (1) | Adjustments (2) | |||||||||
Current assets | $ | 64 | — | $ | 64 | |||||
Property and equipment, net | 558 | 19 | 577 | |||||||
Goodwill | 3,013 | 730 | 3,743 | |||||||
Intangible asset | 1,154 | (749 | ) | 405 | ||||||
Current liabilities | (139 | ) | — | (139 | ) | |||||
Other liabilities | (150 | ) | — | (150 | ) | |||||
$ | 4,500 | $ | 4,500 | |||||||
-1 | As previously reported in our 2013 Annual Report on Form 10-K. | |||||||||
-2 | Measurement period adjustments were made during the 13 weeks ended April 1, 2014. | |||||||||
As a result of this acquisition, we recorded an intangible asset associated with reacquired franchise rights of $0.4 million in accordance with ASC 805. ASC 805 requires that a business combination between two parties that have a preexisting relationship be evaluated to determine if a settlement of a preexisting relationship exists. ASC 805 also requires that certain reacquired rights (including the rights to the acquirer’s trade name under a franchise agreement) be recognized as intangible assets apart from goodwill. | ||||||||||
The fair value of $0.4 million assigned to the intangible asset acquired was determined primarily using valuation methods that discount expected future cash flow to present value using estimates and assumptions determined by management. The intangible asset has a weighted-average life of approximately 2.7 years based on the remaining terms of the franchise agreements. We expect the annual expense for the next three years to average approximately $0.1 million. | ||||||||||
Pro forma results of operations have not been presented because the effects of the acquisitions were not material to our consolidated financial position, results of operations or cash flows. | ||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
(9) Related Party Transactions | |
The Longview, Texas restaurant, which was acquired by us in connection with the completion of our initial public offering, leases the land and restaurant building from an entity controlled by Steven L. Ortiz, our Chief Operating Officer. The initial lease term was 15 years and was scheduled to terminate in November 2014. We exercised our first renewal term so the lease will now expire on October 31, 2019. The lease can be renewed for three additional terms of five years each. Rent is approximately $19,000 per month. The lease can be terminated if the tenant fails to pay the rent on a timely basis, fails to maintain the insurance specified in the lease, fails to maintain the building or property or becomes insolvent. Total rent payments were approximately $0.1 million for each of the 13 weeks ended September 30, 2014 and September 24, 2013. For each of the 39 week periods ended September 30, 2014 and September 24, 2013, rent payments were approximately $0.2 million. | |
The Bossier City, Louisiana restaurant, of which Mr. Ortiz beneficially owns 66.0% and we own 5.0%, leases the land and restaurant building from an entity owned by Mr. Ortiz. The lease term is 15 years and will terminate on March 31, 2020. Rent is approximately $16,600 per month and escalates 10% each five year period during the term. The next rent escalation is in the second quarter of 2015. The lease can be terminated if the tenant fails to pay rent on a timely basis, fails to maintain insurance, abandons the property or becomes insolvent. Total rent payments were approximately $0.1 million for each of the 13 weeks ended September 30, 2014 and September 24, 2013. For each of the 39 week periods ended September 30, 2014 and September 24, 2013, rent payments were approximately $0.2 million. | |
We have 15 franchise restaurants owned in whole or part, by certain of our officers, directors and stockholders of the Company as of September 30, 2014 and September 24, 2013. These entities paid us fees of approximately $0.6 million for both of the 13 weeks ended September 30, 2014 and September 24, 2013. For the 39 week periods ended September 30, 2014 and September 24, 2013, these entities paid us fees of approximately $1.9 million and $1.8 million, respectively. As disclosed in note 7, we are contingently liable on leases which are related to three of these restaurants. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
(10) Earnings Per Share | ||||||||||||||
The share and net income per share data for all periods presented are based on the historical weighted-average shares outstanding. The diluted earnings per share calculations show the effect of the weighted-average stock options and RSUs outstanding from our equity incentive plans as discussed in note 2. | ||||||||||||||
The following table summarizes the options and nonvested stock that were outstanding but not included in the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect: | ||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, | September 24, | Septmeber 30, | September 24, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options | — | — | — | — | ||||||||||
Nonvested stock | — | — | — | 29,155 | ||||||||||
Total | — | — | — | 29,155 | ||||||||||
The following table sets forth the calculation of weighted-average shares outstanding (in thousands) as presented in the accompanying unaudited condensed consolidated statements of income and comprehensive income: | ||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, 2014 | September 24, 2013 | September 30, 2014 | September 24, 2013 | |||||||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 18,881 | $ | 17,170 | $ | 68,427 | $ | 63,304 | ||||||
Basic EPS: | ||||||||||||||
Weighted-average common shares outstanding | 69,544 | 70,361 | 69,793 | 69,914 | ||||||||||
Basic EPS | $ | 0.27 | $ | 0.24 | $ | 0.98 | $ | 0.91 | ||||||
Diluted EPS: | ||||||||||||||
Weighted-average common shares outstanding | 69,544 | 70,361 | 69,793 | 69,914 | ||||||||||
Dilutive effect of stock options and restricted stock units | 851 | 1,259 | 846 | 1,261 | ||||||||||
Shares — diluted | 70,395 | 71,620 | 70,639 | 71,175 | ||||||||||
Diluted EPS | $ | 0.27 | $ | 0.24 | $ | 0.97 | $ | 0.89 | ||||||
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
(11) Fair Value Measurements | ||||||||||||||||
ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. | ||||||||||||||||
Level 1Inputs based on quoted prices in active markets for identical assets. | ||||||||||||||||
Level 2Inputs other than quoted prices included within Level 1 that are observable for the assets, either directly or indirectly. | ||||||||||||||||
Level 3Inputs that are unobservable for the asset. | ||||||||||||||||
There were no transfers among levels within the fair value hierarchy during the 13 and 39 weeks ended September 30, 2014. | ||||||||||||||||
The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Level | September 30, 2014 | December 31, 2013 | ||||||||||||||
Interest rate swaps | 2 | $ | (1,711 | ) | $ | (2,696 | ) | |||||||||
Deferred compensation plan - assets | 1 | 14,342 | 11,916 | |||||||||||||
Deferred compensation plan - liabilities | 1 | (14,330 | ) | (11,913 | ) | |||||||||||
The fair values of our interest rate swaps were determined based on industry-standard valuation models. Such models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves. See note 5 for discussion of our interest rate swaps. | ||||||||||||||||
The Second Amended and Restated Deferred Compensation Plan of Texas Roadhouse Management Corp., as amended, (the “Deferred Compensation Plan”) is a nonqualified deferred compensation plan which allows highly compensated employees to defer receipt of a portion of their compensation and contribute such amounts to one or more investment funds held in a rabbi trust. We report the accounts of the rabbi trust in our unaudited condensed consolidated financial statements. These investments are considered trading securities and are reported at fair value based on third-party broker statements. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense in the unaudited condensed consolidated statements of income and comprehensive income. | ||||||||||||||||
The following table presents the fair values for our assets and liabilities measured on a nonrecurring basis: | ||||||||||||||||
Fair Value Measurements | Total losses | |||||||||||||||
39 Weeks Ended | ||||||||||||||||
Level | September 30, 2014 | December 31, 2013 | September 30, 2014 | September 24, 2013 | ||||||||||||
Long-lived assets | 2 | $ | — | $ | 1,203 | $ | 15 | $ | — | |||||||
Long-lived assets included land and building related to a previously closed restaurant which were sold for a purchase price of $1.2 million, net of closing costs, during the 13 weeks ended July 1, 2014. At December 31, 2013, these assets were valued using Level 2 inputs, primarily discussions with the broker regarding recent offers on the property, and included cost to market and/or sell the assets. | ||||||||||||||||
At September 30, 2014 and December 31, 2013, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values based on the short-term nature of these instruments. The fair value of our revolving credit facility at September 30, 2014 and December 31, 2013 approximated its carrying value since it is a variable rate credit facility (Level 2). The fair value of our installment loans is estimated based on the current rates offered to us for instruments of similar terms and maturities. The carrying amounts and related estimated fair values for our installment loans are as follows: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Installment loans — Level 2 | $ | 853 | $ | 997 | $ | 1,233 | $ | 1,434 | ||||||||
Stock_Repurchase_Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2014 | |
Stock Repurchase Program | ' |
Stock Repurchase Program | ' |
(12) Stock Repurchase Program | |
On May 22, 2014, our Board of Directors approved a stock repurchase program under which we may repurchase up to $100.0 million of our common stock. This stock repurchase program has no expiration date and replaced a previous stock repurchase program which was approved on February 16, 2012. The previous program authorized us to repurchase up to $100.0 million of our common stock. All repurchases to date under our stock repurchase program have been made through open market transactions. The timing and the amount of any repurchases will be determined by management under parameters established by our Board of Directors, based on its evaluation of our stock price, market conditions and other corporate considerations. | |
For the 13 week period ended September 30, 2014 we paid approximately $8.2 million to repurchase 315,000 shares of our common stock. For the 39 week period ended September 30, 2014 we paid approximately $40.0 million to repurchase 1,575,000 shares of our common stock. We did not repurchase any shares of our common stock during the 13 and 39 week periods ended September 24, 2013. As of September 30, 2014, we had approximately $88.2 million remaining under our authorized stock repurchase program. | |
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Share-based Compensation | ' | |||||||||||||
Summary of allocation of share-based compensation expense | ' | |||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, | September 24, | September 30, | September 24, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Labor expense | $ | 1,282 | $ | 1,356 | $ | 4,052 | $ | 4,027 | ||||||
General and administrative expense | 2,256 | 2,256 | 6,885 | 6,556 | ||||||||||
Total share-based compensation expense | $ | 3,538 | $ | 3,612 | $ | 10,937 | $ | 10,583 | ||||||
Summary of stock option activity | ' | |||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | |||||||||||
Average | Remaining Contractual | Intrinsic | ||||||||||||
Exercise Price | Term (years) | Value | ||||||||||||
Outstanding at December 31, 2013 | 1,043,438 | $ | 13.77 | |||||||||||
Granted | — | — | ||||||||||||
Forfeited | (1,226 | ) | 14.82 | |||||||||||
Exercised | (260,515 | ) | 12.31 | |||||||||||
Outstanding at September 30, 2014 | 781,697 | $ | 14.26 | 1.8 | $ | 10,616 | ||||||||
Exercisable at September 30, 2014 | 781,697 | $ | 14.26 | 1.8 | $ | 10,616 | ||||||||
Summary of restricted stock unit activity | ' | |||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | |||||||||||
Average | Remaining Contractual | Intrinsic | ||||||||||||
Grant Date | Term (years) | Value | ||||||||||||
Fair Value | ||||||||||||||
Outstanding at December 31, 2013 | 1,283,862 | $ | 18.68 | |||||||||||
Granted | 415,046 | 25.3 | ||||||||||||
Forfeited | (58,927 | ) | 19.52 | |||||||||||
Vested | (657,462 | ) | 18.34 | |||||||||||
Outstanding at September 30, 2014 | 982,519 | $ | 21.66 | 0.9 | $ | 27,353 | ||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-term Debt | ' | |||||||
Schedule of long-term debt | ' | |||||||
September 30, 2014 | December 31, 2013 | |||||||
Installment loans, due 2014 — 2020 | $ | 853 | $ | 1,233 | ||||
Revolver | 50,000 | 50,000 | ||||||
50,853 | 51,233 | |||||||
Less current maturities | 126 | 243 | ||||||
$ | 50,727 | $ | 50,990 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Income Taxes | ' | |||||||||
Schedule of reconciliation of the statutory federal income tax rate to the entity's effective tax rate | ' | |||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||
September 30, 2014 | September 24, 2013 | Septmebr 30, 2014 | September 24, 2013 | |||||||
Tax at statutory federal rate | 35 | % | 35 | % | 35 | % | 35 | % | ||
State and local tax, net of federal benefit | 3.5 | 3.7 | 3.5 | 3.7 | ||||||
FICA tip tax credit | (7.5 | ) | (7.5 | ) | (6.4 | ) | (6.3 | ) | ||
Work opportunity tax credit | (0.6 | ) | (1.1 | ) | (0.6 | ) | (2.2 | ) | ||
Incentive stock options | (0.2 | ) | (1.2 | ) | (0.1 | ) | (0.8 | ) | ||
Nondeductible officer compensation | 0.3 | 0.4 | 0.3 | 0.5 | ||||||
Net income attributable to noncontrolling interests | (0.9 | ) | (0.9 | ) | (0.9 | ) | (1.0 | ) | ||
Other | 1.8 | 1.2 | (0.2 | ) | (0.1 | ) | ||||
Total | 31.4 | % | 29.6 | % | 30.6 | % | 28.8 | % | ||
Derivative_and_Hedging_Activit1
Derivative and Hedging Activities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Derivative and Hedging Activities | ' | |||||||||||||||
Summary of fair value presentation of derivative instruments designated as hedging instrument | ' | |||||||||||||||
Balance | Derivative Assets | Derivative Liabilities | ||||||||||||||
Sheet | September 30, | December 31, | September 30, | December 31, | ||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivative Contracts Designated as Hedging Instruments under ASC 815 | -1 | |||||||||||||||
Interest rate swaps | $ | — | $ | — | $ | 1,711 | $ | 2,696 | ||||||||
Total Derivative Contracts | $ | — | $ | — | $ | 1,711 | $ | 2,696 | ||||||||
-1 | Derivative assets and liabilities are included in fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets. | |||||||||||||||
Summary of effect of interest rate swaps in the unaudited condensed consolidated statements of income and comprehensive income | ' | |||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
September 30, | September 24, | September 30, | September 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Gain recognized in AOCI, net of tax (effective portion) | $ | 228 | $ | 97 | $ | 604 | $ | 634 | ||||||||
Loss reclassified from AOCI to income (effective portion) | $ | 370 | $ | 378 | $ | 1,110 | $ | 1,106 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies | ' | ||||
Schedule of real estate lease agreements for franchises | ' | ||||
Lease Assignment Date | Current Lease Term Expiration | ||||
Everett, Massachusetts (1) | September 2002 | February 2018 | |||
Longmont, Colorado (1) | October 2003 | May 2019 | |||
Montgomeryville, Pennsylvania | October 2004 | June 2021 | |||
Fargo, North Dakota (1) | February 2006 | July 2016 | |||
Logan, Utah | January 2009 | August 2019 | |||
-1 | As discussed in note 9, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. | ||||
Divestitures_and_Acquisitions_
Divestitures and Acquisitions (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Divestitures and Acquisitions | ' | |||||||||
Schedule of purchase price allocations | ' | |||||||||
Amounts | Measurement | As Adjusted | ||||||||
Previously | Period | |||||||||
Recorded (1) | Adjustments (2) | |||||||||
Current assets | $ | 64 | — | $ | 64 | |||||
Property and equipment, net | 558 | 19 | 577 | |||||||
Goodwill | 3,013 | 730 | 3,743 | |||||||
Intangible asset | 1,154 | (749 | ) | 405 | ||||||
Current liabilities | (139 | ) | — | (139 | ) | |||||
Other liabilities | (150 | ) | — | (150 | ) | |||||
$ | 4,500 | $ | 4,500 | |||||||
-1 | As previously reported in our 2013 Annual Report on Form 10-K. | |||||||||
-2 | Measurement period adjustments were made during the 13 weeks ended April 1, 2014. | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Summary of options and nonvested stock that were outstanding but not included in the computation of diluted earnings per share | ' | |||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, | September 24, | Septmeber 30, | September 24, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Options | — | — | — | — | ||||||||||
Nonvested stock | — | — | — | 29,155 | ||||||||||
Total | — | — | — | 29,155 | ||||||||||
Schedule of calculation of weighted average shares outstanding | ' | |||||||||||||
The following table sets forth the calculation of weighted-average shares outstanding (in thousands) as presented in the accompanying unaudited condensed consolidated statements of income and comprehensive income: | ||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||
September 30, 2014 | September 24, 2013 | September 30, 2014 | September 24, 2013 | |||||||||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 18,881 | $ | 17,170 | $ | 68,427 | $ | 63,304 | ||||||
Basic EPS: | ||||||||||||||
Weighted-average common shares outstanding | 69,544 | 70,361 | 69,793 | 69,914 | ||||||||||
Basic EPS | $ | 0.27 | $ | 0.24 | $ | 0.98 | $ | 0.91 | ||||||
Diluted EPS: | ||||||||||||||
Weighted-average common shares outstanding | 69,544 | 70,361 | 69,793 | 69,914 | ||||||||||
Dilutive effect of stock options and restricted stock units | 851 | 1,259 | 846 | 1,261 | ||||||||||
Shares — diluted | 70,395 | 71,620 | 70,639 | 71,175 | ||||||||||
Diluted EPS | $ | 0.27 | $ | 0.24 | $ | 0.97 | $ | 0.89 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
Schedule of fair value of assets and liabilities measured on a recurring basis | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Level | September 30, 2014 | December 31, 2013 | ||||||||||||||
Interest rate swaps | 2 | $ | (1,711 | ) | $ | (2,696 | ) | |||||||||
Deferred compensation plan - assets | 1 | 14,342 | 11,916 | |||||||||||||
Deferred compensation plan - liabilities | 1 | (14,330 | ) | (11,913 | ) | |||||||||||
Schedule of fair value of assets and liabilities measured on a nonrecurring basis | ' | |||||||||||||||
Fair Value Measurements | Total losses | |||||||||||||||
39 Weeks Ended | ||||||||||||||||
Level | September 30, 2014 | December 31, 2013 | September 30, 2014 | September 24, 2013 | ||||||||||||
Long-lived assets | 2 | $ | — | $ | 1,203 | $ | 15 | $ | — | |||||||
Schedule of carrying amounts and related estimated fair values for installment loans | ' | |||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
Installment loans — Level 2 | $ | 853 | $ | 997 | $ | 1,233 | $ | 1,434 | ||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 24, 2013 |
Minimum | ' | ' | ' |
Description of Business | ' | ' | ' |
Threshold percentage of ownership for consolidated subsidiaries | 50.00% | 50.00% | 50.00% |
Franchise | Unconsolidated | ' | ' | ' |
Description of Business | ' | ' | ' |
Number of restaurants | 23 | ' | 23 |
Franchise | Unconsolidated | Minimum | ' | ' | ' |
Description of Business | ' | ' | ' |
Ownership percentage by entity | 5.00% | ' | 5.00% |
Franchise | Unconsolidated | Maximum | ' | ' | ' |
Description of Business | ' | ' | ' |
Ownership percentage by entity | 10.00% | ' | 10.00% |
Non-Texas Roadhouse restaurants | Unconsolidated | ' | ' | ' |
Description of Business | ' | ' | ' |
Ownership percentage by entity | 40.00% | ' | 40.00% |
Number of restaurants | 4 | ' | ' |
Sharebased_Compensation_Detail
Share-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 |
Share-based Compensation | ' | ' | ' | ' |
Number of common shares that an RSU holder would receive upon satisfaction of the vesting requirement (in shares) | 1 | ' | 1 | ' |
Share-based compensation expenses | ' | ' | ' | ' |
Share-based compensation expense | $3,538 | $3,612 | $10,937 | $10,583 |
Labor expense | ' | ' | ' | ' |
Share-based compensation expenses | ' | ' | ' | ' |
Share-based compensation expense | 1,282 | 1,356 | 4,052 | 4,027 |
General and administrative exp | ' | ' | ' | ' |
Share-based compensation expenses | ' | ' | ' | ' |
Share-based compensation expense | $2,256 | $2,256 | $6,885 | $6,556 |
Sharebased_Compensation_Detail1
Share-based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 | |
Shares | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | -260,515 | ' |
Stock Options | ' | ' | ' | ' |
Shares | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 1,043,438 | ' |
Exercised (in shares) | ' | ' | -260,515 | ' |
Outstanding at the end of the period (in shares) | 781,697 | ' | 781,697 | ' |
Exercisable at the end of period (in shares) | 781,697 | ' | 781,697 | ' |
Forfeited (in shares) | ' | ' | -1,226 | ' |
Weighted-Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $13.77 | ' |
Exercised (in dollars per share) | ' | ' | $12.31 | ' |
Outstanding at the end of the period (in dollars per share) | $14.26 | ' | $14.26 | ' |
Exercisable at the end of the period (in dollars per share) | $14.26 | ' | $14.26 | ' |
Forfeited (in dollars per share) | ' | ' | $14.82 | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | '1 year 9 months 18 days | ' |
Exercisable at the end of the period | ' | ' | '1 year 9 months 18 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $10,616,000 | ' | $10,616,000 | ' |
Exercisable at the end of the period (in dollars) | 10,616,000 | ' | 10,616,000 | ' |
Intrinsic value of options exercised (in dollars) | $1,300,000 | $1,700,000 | $3,600,000 | $8,000,000 |
Awards vested (in shares) | 0 | 0 | 0 | 0 |
Sharebased_Compensation_Detail2
Share-based Compensation (Details 3) (RSUs, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 | |
Restricted Stock Units, Shares | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 1,283,862 | ' |
Granted (in shares) | ' | ' | 415,046 | ' |
Forfeited (in shares) | ' | ' | -58,927 | ' |
Vested (in shares) | ' | ' | -657,462 | ' |
Outstanding at the end of period (in shares) | 982,519 | ' | 982,519 | ' |
Restricted Stock Units, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $18.68 | ' |
Granted (in dollars per share) | ' | ' | $25.30 | ' |
Forfeited (in dollars per share) | ' | ' | $19.52 | ' |
Vested (in dollars per share) | ' | ' | $18.34 | ' |
Outstanding at the end of the period (in dollars per share) | $21.66 | ' | $21.66 | ' |
Weighted-Average Remaining Contractual Term (years) | ' | ' | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | '10 months 24 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $27,353,000 | ' | $27,353,000 | ' |
Unrecognized compensation cost of unvested stock awards (in dollars) | 10,100,000 | ' | 10,100,000 | ' |
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards | ' | ' | '1 year 4 months 24 days | ' |
Intrinsic value of awards vested (in dollars) | $3,100,000 | $3,700,000 | $17,300,000 | $16,900,000 |
Minimum | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' |
Maximum | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Long-term Debt | ' | ' |
Long-term debt | $50,853,000 | $51,233,000 |
Less current maturities | 126,000 | 243,000 |
Long-term debt, excluding current maturities | 50,727,000 | 50,990,000 |
Installment loans, due 2014-2020 | ' | ' |
Long-term Debt | ' | ' |
Long-term debt | 853,000 | 1,233,000 |
Weighted-average interest rate (as a percent) | 10.46% | 10.54% |
Revolver | ' | ' |
Long-term Debt | ' | ' |
Long-term debt | 50,000,000 | 50,000,000 |
Weighted-average interest rate (as a percent) | 3.96% | 3.96% |
Revolving credit facility, maximum borrowing capacity | 200,000,000 | ' |
Revolving credit facility contingent increase in maximum borrowing capacity | 200,000,000 | ' |
Revolving credit facility maximum borrowing capacity after contingent increase | 400,000,000 | ' |
Revolving credit facility, amount outstanding | 50,000,000 | ' |
Revolving credit facility, remaining borrowing capacity | 144,600,000 | ' |
Letters of credit outstanding | $5,400,000 | ' |
Revolving credit facility, fixed charge coverage ratio | 2 | ' |
Revolving credit facility, leverage ratio | 3 | ' |
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth | 15.00% | ' |
Revolver | Minimum | ' | ' |
Long-term Debt | ' | ' |
Percentage of commitment fee on unused credit facility | 0.13% | ' |
Revolver | Maximum | ' | ' |
Long-term Debt | ' | ' |
Percentage of commitment fee on unused credit facility | 0.30% | ' |
Revolver | LIBOR | Minimum | ' | ' |
Long-term Debt | ' | ' |
Interest rate added to base rate (as a percent) | 0.88% | ' |
Revolver | LIBOR | Maximum | ' | ' |
Long-term Debt | ' | ' |
Interest rate added to base rate (as a percent) | 1.88% | ' |
Revolver | Federal Funds | ' | ' |
Long-term Debt | ' | ' |
Interest rate added to base rate (as a percent) | 0.50% | ' |
Revolver | Adjusted Eurodollar Rate | ' | ' |
Long-term Debt | ' | ' |
Interest rate added to base rate (as a percent) | 1.00% | ' |
Income_Taxes_Detail
Income Taxes (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 | |
Reconciliation of the statutory federal income tax rate to the entity's effective tax rate | ' | ' | ' | ' |
Tax at statutory federal rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
State and local tax, net of federal benefit (as a percent) | 3.50% | 3.70% | 3.50% | 3.70% |
FICA tip tax credit (as a percent) | -7.50% | -7.50% | -6.40% | -6.30% |
Work opportunity tax credit (as a percent) | -0.60% | -1.10% | -0.60% | -2.20% |
Incentive stock options (as a percent) | -0.20% | -1.20% | -0.10% | -0.80% |
Nondeductible officer compensation (as a percent) | 0.30% | 0.40% | 0.30% | 0.50% |
Net income attributable to noncontrolling interests (as a percent) | -0.90% | -0.90% | -0.90% | -1.00% |
Other (as a percent) | 1.80% | 1.20% | -0.20% | -0.10% |
Total (as a percent) | 31.40% | 29.60% | 30.60% | 28.80% |
Derivative_and_Hedging_Activit2
Derivative and Hedging Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 | Dec. 31, 2013 | |
Fair value of derivative instruments | ' | ' | ' | ' | ' |
Fair value of Derivative Assets, Interest rate swaps | $1,711,000 | ' | $1,711,000 | ' | $2,696,000 |
Fair value of Derivative Liabilities | 1,711,000 | ' | 1,711,000 | ' | 2,696,000 |
Interest rate cash flow hedges | ' | ' | ' | ' | ' |
Gain recognized in AOCI, net of tax (effective portion) | 228,000 | 97,000 | 604,000 | 634,000 | ' |
Loss reclassified from AOCI to income (effective portion) | 370,000 | 378,000 | 1,110,000 | 1,106,000 | ' |
Interest rate swap, entered October 22, 2008 | ' | ' | ' | ' | ' |
Interest Rate Swaps | ' | ' | ' | ' | ' |
Notional amount of interest rate swap | 25,000,000 | ' | 25,000,000 | ' | ' |
Notional amount of hedge obligation | 25,000,000 | ' | 25,000,000 | ' | ' |
Fixed interest rate of derivative (as a percent) | 3.83% | ' | 3.83% | ' | ' |
Interest rate swap, entered January 7, 2009 | ' | ' | ' | ' | ' |
Interest Rate Swaps | ' | ' | ' | ' | ' |
Notional amount of interest rate swap | 25,000,000 | ' | 25,000,000 | ' | ' |
Notional amount of hedge obligation | $25,000,000 | ' | $25,000,000 | ' | ' |
Fixed interest rate of derivative (as a percent) | 2.34% | ' | 2.34% | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
item | Irving lease | Louisville lease | Everett, Massachusetts | Longmont, Colorado | Montgomeryville, Pennsylvania | Fargo, North Dakota | Logan, Utah | Aspen Creek concept | Aspen Creek concept | ||
item | item | item | item | item | item | item | restaurant | restaurant | |||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated cost to complete capital project commitments (in dollars) | $114 | $65.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate lease agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Number of lease renewal terms | ' | ' | 3 | 3 | 3 | 3 | 3 | 3 | 3 | ' | ' |
Lease renewal term | ' | ' | '5 years | '5 years | '5 years | '5 years | '5 years | '5 years | '5 years | ' | ' |
Number of franchises with real estate lease agreements | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | 5.00% | 5.00% | ' | 5.00% | ' | ' | ' |
Amount of liability recorded for guarantees | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of suppliers providing most of the company's beef | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum age specified in age discrimination allegation against entity | '40 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Divestitures_and_Acquisitions_1
Divestitures and Acquisitions (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Franchise restaurants in Ohio | Franchise restaurants in Ohio | Franchise restaurants in Ohio | Franchise restaurants in Ohio | Aspen Creek concept | Aspen Creek concept | |||
restaurant | Amounts Previously Recorded | Measurement Period Adjustments | restaurant | restaurant | ||||
Divestitures and acquisitions | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants sold | ' | ' | ' | ' | ' | ' | 2 | 2 |
Number of franchise restaurants acquired | ' | ' | 2 | ' | ' | ' | ' | ' |
Cash received on sale | ' | ' | $1,500,000 | ' | ' | ' | ' | ' |
Aggregate transaction value | ' | ' | 6,000,000 | ' | ' | ' | ' | ' |
Purchase price allocated | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | 64,000 | 64,000 | ' | ' | ' |
Property and equipment, net | ' | ' | ' | 577,000 | 558,000 | 19,000 | ' | ' |
Goodwill | 117,197,000 | 117,197,000 | ' | 3,743,000 | 3,013,000 | 730,000 | ' | ' |
Intangible asset | ' | ' | ' | 405,000 | 1,154,000 | -749,000 | ' | ' |
Current liabilities | ' | ' | ' | -139,000 | -139,000 | ' | ' | ' |
Other liabilities | ' | ' | ' | -150,000 | -150,000 | ' | ' | ' |
Purchase Price | ' | ' | ' | 4,500,000 | 4,500,000 | ' | ' | ' |
Intangible assets weighted-average life | ' | ' | ' | '2 years 8 months 12 days | ' | ' | ' | ' |
Amortization expense relating to the intangible asset | ' | ' | ' | $100,000 | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 | |
item | ||||
Steven L. Ortiz | The Longview, Texas restaurant | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Lease term | ' | ' | '15 years | ' |
Number of possible lease renewal terms | ' | ' | 3 | ' |
Lease renewal term | ' | ' | '5 years | ' |
Lease rent payments to related party per month | ' | ' | $19,000 | ' |
Total lease rent payments to related party | 100,000 | 100,000 | 200,000 | 200,000 |
Steven L. Ortiz | The Bossier City, Louisiana restaurant | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Lease term | ' | ' | '15 years | ' |
Lease rent payments to related party per month | ' | ' | 16,600 | ' |
Total lease rent payments to related party | 100,000 | 100,000 | 200,000 | 200,000 |
Ownership percentage by related party | 66.00% | ' | 66.00% | ' |
Ownership percentage by entity | 5.00% | ' | 5.00% | ' |
Percentage of lease rent escalation during each five year period | ' | ' | 10.00% | ' |
Number of years for each escalation period | ' | ' | '5 years | ' |
Officers, directors and shareholders | ' | ' | ' | ' |
Related Party Transactions | ' | ' | ' | ' |
Number of franchise restaurants owned, in whole or part, by certain of entity's officers, directors or 5% shareholders | 15 | 15 | 15 | 15 |
Fees received from franchise and license restaurants | $600,000 | $600,000 | $1,900,000 | $1,800,000 |
Number of restaurants for which the entity is contingently liable on the lease | ' | ' | 3 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Sep. 24, 2013 |
Antidilutive securities | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | ' | ' | ' | 29,155 |
Earnings per share | ' | ' | ' | ' |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $18,881 | $17,170 | $68,427 | $63,304 |
Basic EPS: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 69,544,000 | 70,361,000 | 69,793,000 | 69,914,000 |
Basic EPS (in dollars per share) | $0.27 | $0.24 | $0.98 | $0.91 |
Diluted EPS: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 69,544,000 | 70,361,000 | 69,793,000 | 69,914,000 |
Dilutive effect of stock options and nonvested stock (in shares) | 851,000 | 1,259,000 | 846,000 | 1,261,000 |
Shares - diluted | 70,395,000 | 71,620,000 | 70,639,000 | 71,175,000 |
Diluted EPS (in dollars per share) | $0.27 | $0.24 | $0.97 | $0.89 |
Nonvested stock | ' | ' | ' | ' |
Antidilutive securities | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | ' | ' | ' | 29,155 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Jul. 01, 2014 | Sep. 30, 2014 | Sep. 24, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a nonrecurring basis | Fair value measured on a nonrecurring basis | ||||
Level 2 | Level 2 | Level 1 | Level 1 | Level 2 | Level 2 | ||||
Fair Value Measurement | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of asset levels within the fair value hierarchy | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Transfer of liability levels within the fair value hierarchy | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swaps | ' | ' | ' | -1,711 | -2,696 | ' | ' | ' | ' |
Deferred compensation plan - assets | ' | ' | ' | ' | ' | 14,342 | 11,916 | ' | ' |
Deferred compensation plan - liabilities | ' | ' | ' | ' | ' | -14,330 | -11,913 | ' | ' |
Long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 1,203 |
Total losses | ' | ' | ' | ' | ' | ' | ' | 15 | ' |
Purchase price of land and building sold | $1,200 | $1,197 | ($39) | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Level 2, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Carrying amount and Fair value of financial instruments | ' | ' |
Installment loans | $853 | $1,233 |
Fair Value | ' | ' |
Carrying amount and Fair value of financial instruments | ' | ' |
Installment loans | $997 | $1,434 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | 22-May-14 | Feb. 16, 2014 |
Stock Repurchase Program | ' | ' | ' | ' |
Repurchase of common stock authorized by board of directors | ' | ' | $100 | $100 |
Amount paid for repurchase of common stock | 8.2 | 40 | ' | ' |
Number of shares repurchased | 315,000 | 1,575,000 | ' | ' |
Amount remaining under authorized stock repurchase program | $88.20 | $88.20 | ' | ' |