Texas Roadhouse (TXRH) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 27, 2017	Jul. 26, 2017
Document and Entity Information
Entity Registrant Name	Texas Roadhouse, Inc.
Entity Central Index Key	1,289,460
Document Type	10-Q
Document Period End Date	Jun. 27, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-26
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		71,031,612
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 27, 2017	Dec. 27, 2016
Current assets:
Cash and cash equivalents	$ 116,508	$ 112,944
Receivables, net of allowance for doubtful accounts of $52 at June 27, 2017 and $33 at December 27, 2016	29,295	56,127
Inventories, net	15,439	16,088
Prepaid income taxes		954
Prepaid expenses	11,170	12,150
Deferred tax assets, net		1,996
Total current assets	172,412	200,259
Property and equipment, net of accumulated depreciation of $493,506 at June 27, 2017 and $457,102 at December 27, 2016	868,668	830,054
Goodwill	121,040	116,571
Intangible assets, net of accumulated amortization of $12,214 at June 27, 2017 and $11,753 at December 27, 2016	3,161	3,622
Other assets	34,000	29,465
Total assets	1,199,281	1,179,971
Current liabilities:
Current maturities of long-term debt and obligation under capital lease	176	167
Accounts payable	52,061	50,789
Deferred revenue-gift cards	78,779	129,558
Accrued wages	29,121	26,039
Income taxes payable	6,300
Accrued taxes and licenses	20,906	19,698
Dividends payable	14,915	13,418
Other accrued liabilities	43,950	39,858
Total current liabilities	246,208	279,527
Long-term debt and obligation under capital lease, excluding current maturities	52,291	52,381
Stock option and other deposits	7,976	7,491
Deferred rent	38,945	36,103
Deferred tax liabilities, net	6,520	12,268
Other liabilities	37,920	33,959
Total liabilities	389,860	421,729
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, 71,027,174 and 70,619,737 shares issued and outstanding at June 27, 2017 and December 27, 2016, respectively)	71	71
Additional paid-in-capital	224,725	219,626
Retained earnings	572,743	530,723
Accumulated other comprehensive loss	(151)	(194)
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity	797,388	750,226
Noncontrolling interests	12,033	8,016
Total equity	809,421	758,242
Total liabilities and equity	$ 1,199,281	$ 1,179,971

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 27, 2017	Dec. 27, 2016
Condensed Consolidated Balance Sheets
Receivables, allowance for doubtful accounts (in dollars)	$ 52	$ 33
Property and equipment, accumulated depreciation (in dollars)	493,506	457,102
Intangible assets, accumulated amortization (in dollars)	$ 12,214	$ 11,753
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	71,027,174	70,619,737
Common stock, shares outstanding	71,027,174	70,619,737

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
Revenue:
Restaurant sales	$ 562,160	$ 504,630	$ 1,125,480	$ 1,015,914
Franchise royalties and fees	4,102	4,178	8,468	8,453
Total revenue	566,262	508,808	1,133,948	1,024,367
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Cost of sales	185,171	171,551	369,364	344,679
Labor	174,585	150,014	344,932	297,560
Rent	11,112	10,184	21,981	20,211
Other operating	84,837	75,887	170,497	153,499
Pre-opening	5,014	4,411	9,754	9,236
Depreciation and amortization	23,106	20,238	45,702	39,777
Impairment and closure		30	11	41
General and administrative	28,223	26,711	68,471	56,771
Total costs and expenses	512,048	459,026	1,030,712	921,774
Income from operations	54,214	49,782	103,236	102,593
Interest expense, net	379	309	711	614
Equity income from investments in unconsolidated affiliates	(470)	(475)	(790)	(827)
Income before taxes	54,305	49,948	103,315	102,806
Provision for income taxes	15,126	15,087	28,113	30,944
Net income including noncontrolling interests	39,179	34,861	75,202	71,862
Less: Net income attributable to noncontrolling interests	1,598	1,256	3,308	2,664
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	37,581	33,605	71,894	69,198
Other comprehensive income (loss), net of tax:
Unrealized gain on derivatives, net of tax of ($-), ($-), ($-) and ($18), respectively				27
Foreign currency translation adjustment, net of tax of ($14), $20, ($27) and $26, respectively	22	(29)	43	(40)
Total other comprehensive income (loss), net of tax	22	(29)	43	(13)
Total comprehensive income	$ 37,603	$ 33,576	$ 71,937	$ 69,185
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic (in dollars per share)	$ 0.53	$ 0.48	$ 1.01	$ 0.98
Diluted (in dollars per share)	$ 0.53	$ 0.47	$ 1.01	$ 0.98
Weighted average shares outstanding:
Basic (in shares)	70,973	70,368	70,876	70,269
Diluted (in shares)	71,437	70,876	71,398	70,840
Cash dividends declared per share (in dollars per share)	$ 0.21	$ 0.19	$ 0.42	$ 0.38

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
Condensed Consolidated Statements of Income and Comprehensive Income
Unrealized gain on derivatives, (tax)				$ (18)
Foreign currency translation adjustment, (tax)/benefit	$ (14)	$ 20	$ (27)	$ 26

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 27, 2017 - USD ($) $ in Thousands	Total Texas Roadhouse, Inc. and Subsidiaries	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Balance at Dec. 27, 2016	$ 750,226	$ 71	$ 219,626	$ 530,723	$ (194)	$ 8,016	$ 758,242
Balance (in shares) at Dec. 27, 2016		70,619,737					70,619,737
Increase (Decrease) in Stockholders' Equity
Net income	71,894			71,894		3,308	$ 75,202
Other comprehensive income, net	43				43		43
Noncontrolling interests liquidation adjustments						3,457	3,457
Distributions to noncontrolling interests holders						(2,748)	(2,748)
Dividends declared and paid ($0.21 per share)	(14,890)			(14,890)			(14,890)
Dividends declared ($0.21 per share)	(14,915)			(14,915)			(14,915)
Shares issued under share-based compensation plans	1,291	$ 1	1,290				1,291
Shares issued under share-based compensation plans (in shares)		597,172
Indirect repurchase of shares for minimum tax withholdings	(8,626)	$ (1)	(8,625)				(8,626)
Indirect repurchase of shares for minimum tax withholdings (in shares)		(189,735)
Cumulative effect of change in accounting principle			69	(69)
Share-based compensation	12,365		12,365				12,365
Balance at Jun. 27, 2017	$ 797,388	$ 71	$ 224,725	$ 572,743	$ (151)	$ 12,033	$ 809,421
Balance (in shares) at Jun. 27, 2017		71,027,174					71,027,174

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical)	6 Months Ended
	Jun. 27, 2017$ / shares
Condensed Consolidated Statement of Stockholders' Equity
Dividends declared and paid per share (in dollars per share)	$ 0.21
Dividends declared per share (in dollars per share)	$ 0.21

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016
Cash flows from operating activities:
Net income including noncontrolling interests	$ 75,202	$ 71,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	45,702	39,777
Deferred income taxes	(3,780)	(3,395)
Loss on disposition of assets	2,339	2,696
Equity income from investments in unconsolidated affiliates	(790)	(827)
Distributions of income received from investments in unconsolidated affiliates	370	998
Provision for doubtful accounts	19	35
Share-based compensation expense	12,365	11,703
Changes in operating working capital:
Receivables	26,814	24,285
Inventories	819	1,190
Prepaid expenses	980	1,427
Other assets	(4,046)	(1,915)
Accounts payable	(744)	(4,705)
Deferred revenue-gift cards	(51,170)	(39,499)
Accrued wages	3,083	(10,089)
Excess tax benefits from share-based compensation		(2,193)
Prepaid income taxes and income taxes payable	7,254	10,941
Accrued taxes and licenses	1,208	276
Other accrued liabilities	5,883	6,074
Deferred rent	2,842	2,220
Other liabilities	3,958	3,207
Net cash provided by operating activities	128,308	114,068
Cash flows from investing activities:
Capital expenditures-property and equipment	(73,637)	(69,159)
Acquisition of franchise restaurants, net of cash acquired	(16,528)
Net cash used in investing activities	(90,165)	(69,159)
Cash flows from financing activities:
Proceeds from revolving credit facility, net		25,000
Proceeds from noncontrolling interest contribution	3,457
Repurchase of shares of common stock		(4,110)
Distributions to noncontrolling interest holders	(2,748)	(2,487)
Excess tax benefits from share-based compensation		2,193
Proceeds from stock option and other deposits, net	436	285
Indirect repurchase of shares for minimum tax withholdings	(8,626)	(6,337)
Principal payments on long-term debt and capital lease obligation	(81)	(71)
Proceeds from exercise of stock options	1,291	1,866
Dividends paid to shareholders	(28,308)	(25,277)
Net cash used in financing activities	(34,579)	(8,938)
Net increase in cash and cash equivalents	3,564	35,971
Cash and cash equivalents—beginning of period	112,944	59,334
Cash and cash equivalents—end of period	116,508	95,305
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized	588	499
Income taxes paid	24,638	23,398
Capital expenditures included in current liabilities	$ 6,110	$ 3,710

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 27, 2017
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 have a controlling interest (collectively the "Company," "we," "our" and/or "us") as of June 27, 2017 and December 27, 2016 and for the 13 and 26 weeks ended June 27, 2017 and June 28, 2016. As of June 27, 2017, we owned and operated 448 restaurants and franchised an additional 84 restaurants in 49 states and six foreign countries. Of the 448 company-owned restaurants that were operating at June 27, 2017, 430 were wholly-owned and 18 were majority-owned. As of June 28, 2016, we owned and operated 415 restaurants and franchised an additional 84 restaurants in 49 states and five foreign countries. Of the 415 company-owned restaurants that were operating at June 28, 2016, 399 were wholly-owned and 16 were majority-owned. As of June 27, 2017 and June 28, 2016, we owned 5.0% to 10.0% equity interest in 24 franchise restaurants. Additionally, as of June 27, 2017 and June 28, 2016, 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. 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 as well as the entities whose accounts have been consolidated have been eliminated. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and 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 insurance reserves, leases and leasehold improvements, legal reserves, gift card discounts and breakage 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 26 weeks ended June 27, 2017 are not necessarily indicative of the results that may be expected for the year ending December 26, 2017. 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 27, 2016. Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate.

Share-based Compensation

Share-based Compensation	6 Months Ended
	Jun. 27, 2017
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 ("PSUs"). This Plan replaced the Texas Roadhouse, Inc. 2004 Equity Incentive Plan. The following table summarizes the share-based compensation expense recorded in the accompanying unaudited condensed consolidated statements of income and comprehensive income: 13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Labor expense $ 1,739 $ 1,507 $ 3,433 $ 2,906 General and administrative expense 4,408 4,408 8,932 8,797 Total share-based compensation expense $ 6,147 $ 5,915 $ 12,365 $ 11,703 Effective December 28, 2016, we adopted Accounting Standards Update No. 2016-09, Compensation – Stock Compensation ("ASU 2016-09") which amends and simplifies the accounting for stock compensation. As a result of the adoption of ASU 2016-09, we made a change in our accounting for forfeitures to record as they occur and, as a result, we recorded a $0.1 million cumulative-effect reduction to retained earnings under the modified retrospective approach. We elected the prospective transition for the requirement to classify excess tax benefits as an operating activity. No prior periods have been adjusted. Additionally, as a result of the new guidance requirements, on a prospective basis, all excess tax benefits and tax deficiencies are recognized within the income tax provision in the income statement in the period in which the restricted shares vest or options are exercised. See note 4 for further discussion. Beginning in 2008, we changed the method by which we provide share-based compensation to our employees by granting RSUs as a form of share-based compensation. Prior to 2008, we issued stock options as share-based compensation to our employees. Beginning in 2015, we began granting PSUs to two of our executives. An RSU is the conditional right to receive one share of common stock upon satisfaction of the vesting requirement. A PSU is the conditional right to receive one share of common stock upon meeting defined performance obligations along with the satisfaction of the vesting requirement. Share-based compensation activity by type of grant as of June 27, 2017 and changes during the 26 weeks then ended are presented below. Summary Details for RSUs Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2016 919,463 $ 37.06 Granted 239,416 46.17 Forfeited (27,870) 37.47 Vested (316,078) 37.48 Outstanding at June 27, 2017 814,931 $ 39.55 1.2 $ 41,588 As of June 27, 2017, with respect to unvested RSUs, there was $17.9 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 1.2 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 26 weeks ended June 27, 2017 and June 28, 2016 was $14.6 million and $13.0 million, respectively. The excess tax benefit, which was recognized within the income tax provision, associated with vested RSUs was $1.0 million for the 26 weeks ended June 27, 2017. The excess tax benefit associated with vested RSUs for the 26 weeks ended June 28, 2016 was $0.9 million which was recorded in additional paid-in-capital in the unaudited condensed consolidated balance sheets. Summary Details for PSUs In 2015 and 2016, we granted PSUs to two of our executives subject to an approximate one-year vesting term and the achievement of certain earnings targets, which determine the number of units to vest at the end of the vesting period. Share-based compensation is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant date and through the performance period. For each grant, PSUs vest after meeting the performance and service conditions. On November 19, 2015, we granted PSUs with a grant date fair value of approximately $3.9 million based on the grant date price per share of $34.11. On January 8, 2017, 188,237 shares vested related to this PSU grant and were distributed during the 13 weeks ended March 28, 2017. On November 9, 2016, we granted PSUs with a grant date fair value of $4.6 million based on a grant date price per share of $39.88. As of June 27, 2017, with respect to unvested PSUs, there was $2.1 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of six months. Any distribution of vested PSUs as common stock related to the November 9, 2016 grants will occur in the first quarter of 2018. For the 26 weeks ended June 27, 2017, the excess tax benefit, recognized within the income tax provision, associated with vested PSUs was $0.8 million. Summary Details for Stock Options Weighted- Weighted-Average Average Exercise Remaining Contractual Aggregate Shares Price Term (years) Intrinsic Value Outstanding at December 27, 2016 118,073 $ 13.57 Granted — — Cancelled/Expired (2,650) 15.73 Exercised (92,857) 13.91 Outstanding at June 27, 2017 22,566 $ 11.91 0.3 $ 882 Exercisable at June 27, 2017 22,566 $ 11.91 0.3 $ 882 No stock options vested during the 26 weeks ended June 27, 2017 or June 28, 2016. For the 26 weeks ended June 27, 2017 and June 28, 2016, the total intrinsic value of options exercised was $3.1 million and $4.6 million, respectively. For the 26 weeks ended June 27, 2017 and June 28, 2016, cash received before tax withholdings from options exercised was $1.3 million and $1.9 million, respectively. The excess tax benefit, recognized within the income tax provision, associated with options exercised was $0.8 million for the 26 weeks ended June 27, 2017. The excess tax benefit for the 26 weeks ended June 28, 2016 was $1.3 million which was recorded in additional paid-in-capital in the unaudited condensed consolidated balance sheets.

Long-term Debt and Obligations

Long-term Debt and Obligations Under Capital Leases	6 Months Ended
	Jun. 27, 2017
Long-term Debt and Obligation Under Capital Lease
Long-term Debt and Obligations Under Capital Leases	(3) Long-term Debt and Obligation Under Capital Lease Long-term debt consisted of the following: June 27, December 27, 2017 2016 Installment loan, due 2020 $ 472 $ 550 Obligation under capital lease 1,995 1,998 Revolver 50,000 50,000 52,467 52,548 Less current maturities 176 167 $ 52,291 $ 52,381 The interest rate for our installment loan outstanding at both June 27, 2017 and December 27, 2016 was 10.46%. The debt is secured by certain land and building assets and is subject to certain prepayment penalties. During the 52 weeks ended December 27, 2016, we amended an existing lease at one restaurant location to acquire additional square footage. As a result of this amendment, the lease qualified as a capital lease. 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 JPMorgan 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 amended revolving credit facility at June 27, 2017 and December 27, 2016 was 2.08% and 1.57%, respectively. At June 27, 2017, we had $50.0 million outstanding under the amended revolving credit facility and $142.9 million of availability, net of $7.1 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. Our 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 20% 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 financial covenants as of June 27, 2017.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 27, 2017
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 26 weeks ended June 27, 2017 and June 28, 2016 is as follows: 13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Tax at statutory federal rate 35.0 % 35.0 % 35.0 % 35.0 % State and local tax, net of federal benefit 3.4 3.5 3.4 3.5 FICA tip tax credit (7.2) (6.5) (7.1) (6.8) Work opportunity tax credit (0.8) (0.9) (0.8) (0.8) Stock compensation (1.8) — (2.5) — Net income attributable to noncontrolling interests (1.1) (0.9) (1.1) (0.9) Other 0.4 — 0.3 0.1 Total 27.9 % 30.2 % 27.2 % 30.1 % As a result of the adoption of ASU 2016-09 , excess tax benefits and tax deficiencies from share-based compensation are recognized within the income tax provision in the period in which the restricted shares vest or options are exercised. During the 13 weeks ended June 27, 2017, we recognized $1.0 million as an income tax benefit, which resulted in a 1.8% impact on the tax rate. During the 26 weeks ended June 27, 2017, we recognized $2.6 million as an income tax benefit, which resulted in a 2.5% impact on the tax rate. Prior to the adoption of ASU 2016-09, excess tax benefits and deficiencies were recognized in additional paid-in capital in the unaudited condensed consolidated balance sheets. During the first quarter of 2017, we adopted ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which required deferred tax assets and liabilities to be classified as noncurrent on our condensed consolidated balance sheet. We adopted ASU 2015-17 on a prospective basis.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 27, 2017
Commitments and Contingencies
Commitments and Contingencies	(5) Commitments and Contingencies The estimated cost of completing capital project commitments at June 27, 2017 and December 27, 2016 was approximately $144.6 million and $157.5 million, respectively. As of June 27, 2017 and December 27, 2016, we were contingently liable for $16.0 million and $16.4 million, respectively, for seven leases, listed in the table below. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of June 27, 2017 and December 27, 2016 as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant. Lease Current Lease Everett, Massachusetts (1)(2) September 2002 February 2023 Longmont, Colorado (1) October 2003 May 2019 Montgomeryville, Pennsylvania (1) October 2004 March 2021 Fargo, North Dakota (1)(2) February 2006 July 2021 Logan, Utah (1) January 2009 August 2019 Irving, Texas (3) December 2013 December 2019 Louisville, Kentucky (3)(4) December 2013 November 2023 (1) Real estate lease agreements for restaurant locations which we entered into before granting franchise rights to those restaurants. We have subsequently assigned the leases to the franchisees, but remain contingently liable, under the terms of the lease, if the franchisee defaults . (2) As discussed in note 7, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. (3) Leases associated with restaurants which were sold. The leases were assigned to the acquirer, but we remain contingently liable under the terms of the lease if the acquirer defaults. (4) We may be released from liability after the initial contractual lease term expiration contingent upon certain conditions being met by the acquirer. During the 13 and 26 weeks ended June 27, 2017, we bought most of our beef from three 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, higher costs to secure adequate supplies 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. We and the U.S. Equal Employment Opportunity Commission entered into a consent decree dated March 31, 2017 (the "Consent Decree") to settle the lawsuit styled Equal Employment Opportunity Commission v. Texas Roadhouse, Inc., Texas Roadhouse Holdings LLC and Texas Roadhouse Management Corp. in the United States District Court, District of Massachusetts, Civil Action Number 1:11-cv-11732 (the "Lawsuit"). The Consent Decree resolves the issues litigated in the Lawsuit. Under the Consent Decree, among other terms, we have established a fund of $12.0 million, from which awards of monetary relief, allocated as wages for tax purposes, may be made to eligible claimants in accordance with procedures set forth in the Consent Decree. We recorded a pre-tax charge of $14.9 million ($9.2 million after-tax) related to the Lawsuit and Consent Decree. The pre-tax charge includes $12.6 million of costs associated with the legal settlement and $2.3 million of legal fees associated with the defense of the case during the 13 weeks ended March 28, 2017. The pre-tax charge was recorded in general and administrative expense in our unaudited condensed consolidated statements of income and comprehensive income. 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. None of these types of litigation, most of which are covered by insurance, has had a material effect on us and, as of the date of this report, we are not party to any litigation that we believe could have a material adverse effect on our business.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 27, 2017
Acquisitions
Acquisitions	(6) Acquisitions On December 28, 2016, we acquired four franchise restaurants in Florida and Georgia. Pursuant to the terms of the acquisition agreements, we paid a total purchase price of $16.5 million, net of cash acquired. Two of the acquired restaurants are wholly-owned and the remaining two restaurants are majority-owned. These acquisitions are consistent with our long-term strategy to increase net income and earnings per share. These transactions were accounted for using the purchase method as defined in ASC 805, Business Combinations ("ASC 805"). Based on a purchase price of $16.5 million, $4.5 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 preliminarily allocated as follows: Current assets $ 170 Property and equipment 12,281 Goodwill 4,469 Current liabilities (392) $ 16,528 Pro forma results of operations and revenue and earnings for the 26 weeks ended June 27, 2017 have not been presented because the effect of the acquisitions was not material to our financial position, results of operations or cash flows.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 27, 2017
Related Party Transactions
Related Party Transactions	(7) Related Party Transactions As of June 27, 2017 and June 28, 2016, we had 10 franchise restaurants owned in whole or part, by certain of our officers, directors and 5% stockholders of the Company. For both of the 13 week periods ended June 27, 2017 and June 28, 2016, these entities paid us fees of approximately $0.5 million. For the 26 week periods ended June 27, 2017 and June 28, 2016, these entities paid us fees of approximately $1.1 million and $1.0 million, respectively. As disclosed in note 5, we are contingently liable on leases which are related to two of these restaurants.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 27, 2017
Earnings Per Share
Earnings Per Share	(8) 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. For the 13 week period ended June 27, 2017, there were 17,691 shares of 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. There were no shares of nonvested stock that had an anti-dilutive effect during the 13 week period ended June 28, 2016. For the 26 week periods ended June 27, 2017 and June 28, 2016, there were 31,136 and 8,749 shares of nonvested stock, respectively, that had an anti-dilutive effect. For all periods presented, there were no outstanding options that had an anti-dilutive effect. PSUs are not included in the diluted earnings per share calculation until the performance-based criteria have been met. See note 2 for further discussion of PSUs. The following table sets forth the calculation of earnings per share and weighted-average shares outstanding (in thousands) as presented in the accompanying unaudited condensed consolidated statements of income and comprehensive income: 13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 37,581 $ 33,605 $ 71,894 $ 69,198 Basic EPS: Weighted-average common shares outstanding 70,973 70,368 70,876 70,269 Basic EPS $ 0.53 $ 0.48 $ 1.01 $ 0.98 Diluted EPS: Weighted-average common shares outstanding 70,973 70,368 70,876 70,269 Dilutive effect of stock options and nonvested stock 464 508 522 571 Shares-diluted 71,437 70,876 71,398 70,840 Diluted EPS $ 0.53 $ 0.47 $ 1.01 $ 0.98

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 27, 2017
Fair Value Measurements
Fair Value Measurements	(9) 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 1 Level 2 Level 3 There were no transfers among levels within the fair value hierarchy during the 13 and 26 weeks ended June 27, 2017. The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: Fair Value Measurements Level June 27, 2017 December 27, 2016 Deferred compensation plan—assets 1 25,303 21,951 Deferred compensation plan—liabilities 1 (25,275) (22,128) 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 amounts of the rabbi trust in other assets and the corresponding liability in other liabilities in our unaudited condensed consolidated financial statements. These investments are considered trading securities and are reported at fair value based on quoted market prices. 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. At June 27, 2017 and December 27, 2016, 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 amended revolving credit facility at June 27, 2017 and December 27, 2016 approximated its carrying value since it is a variable rate credit facility (Level 2). The fair value of our installment loan 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 loan are as follows: June 27, 2017 December 27, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Installment loan—Level 2 $ 472 $ 550 $ 550 $ 599

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 27, 2017
Stock Repurchase Program
Stock Repurchase Program	(10) 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. 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 an evaluation of our stock price, market conditions and other corporate considerations. We did not repurchase any shares of common stock during the 13 and 26 week periods ended June 27, 2017. As of June 27, 2017, we had approximately $69.9 million remaining under our authorized stock repurchase program. For the 13 week period ended June 28, 2016, we did not repurchase any shares of common stock. For the 26 week period ended June 28, 2016, we paid approximately $4.1 million to repurchase 114,700 shares of our common stock.

Share-based Compensation (Table

Share-based Compensation (Tables)	6 Months Ended
	Jun. 27, 2017
Share-based Compensation
Summary of allocation of share-based compensation expense	13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Labor expense $ 1,739 $ 1,507 $ 3,433 $ 2,906 General and administrative expense 4,408 4,408 8,932 8,797 Total share-based compensation expense $ 6,147 $ 5,915 $ 12,365 $ 11,703
Summary of restricted stock unit activity	Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2016 919,463 $ 37.06 Granted 239,416 46.17 Forfeited (27,870) 37.47 Vested (316,078) 37.48 Outstanding at June 27, 2017 814,931 $ 39.55 1.2 $ 41,588
Summary of stock option activity	Weighted- Weighted-Average Average Exercise Remaining Contractual Aggregate Shares Price Term (years) Intrinsic Value Outstanding at December 27, 2016 118,073 $ 13.57 Granted — — Cancelled/Expired (2,650) 15.73 Exercised (92,857) 13.91 Outstanding at June 27, 2017 22,566 $ 11.91 0.3 $ 882 Exercisable at June 27, 2017 22,566 $ 11.91 0.3 $ 882

Long term Debt and Obligation U

Long term Debt and Obligation Under Capital Lease (Tables)	6 Months Ended
	Jun. 27, 2017
Long-term Debt and Obligation Under Capital Lease
Schedule of long-term debt	June 27, December 27, 2017 2016 Installment loan, due 2020 $ 472 $ 550 Obligation under capital lease 1,995 1,998 Revolver 50,000 50,000 52,467 52,548 Less current maturities 176 167 $ 52,291 $ 52,381

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 27, 2017
Income Taxes
Schedule of reconciliation of the statutory federal income tax rate to the entity's effective tax rate	13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Tax at statutory federal rate 35.0 % 35.0 % 35.0 % 35.0 % State and local tax, net of federal benefit 3.4 3.5 3.4 3.5 FICA tip tax credit (7.2) (6.5) (7.1) (6.8) Work opportunity tax credit (0.8) (0.9) (0.8) (0.8) Stock compensation (1.8) — (2.5) — Net income attributable to noncontrolling interests (1.1) (0.9) (1.1) (0.9) Other 0.4 — 0.3 0.1 Total 27.9 % 30.2 % 27.2 % 30.1 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 27, 2017
Commitments and Contingencies
Schedule of real estate lease agreements for franchises	Lease Current Lease Everett, Massachusetts (1)(2) September 2002 February 2023 Longmont, Colorado (1) October 2003 May 2019 Montgomeryville, Pennsylvania (1) October 2004 March 2021 Fargo, North Dakota (1)(2) February 2006 July 2021 Logan, Utah (1) January 2009 August 2019 Irving, Texas (3) December 2013 December 2019 Louisville, Kentucky (3)(4) December 2013 November 2023 (1) Real estate lease agreements for restaurant locations which we entered into before granting franchise rights to those restaurants. We have subsequently assigned the leases to the franchisees, but remain contingently liable, under the terms of the lease, if the franchisee defaults . (2) As discussed in note 7, these restaurants are owned, in whole or part, by certain officers, directors and 5% shareholders of the Company. (3) Leases associated with restaurants which were sold. The leases were assigned to the acquirer, but we remain contingently liable under the terms of the lease if the acquirer defaults. (4) We may be released from liability after the initial contractual lease term expiration contingent upon certain conditions being met by the acquirer.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 27, 2017
Acquisitions
Schedule of purchase price allocation	Current assets $ 170 Property and equipment 12,281 Goodwill 4,469 Current liabilities (392) $ 16,528

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 27, 2017
Earnings Per Share
Schedule of calculation of earnings per share and weighted-average shares outstanding	The following table sets forth the calculation of earnings per share and weighted-average shares outstanding (in thousands) as presented in the accompanying unaudited condensed consolidated statements of income and comprehensive income: 13 Weeks Ended 26 Weeks Ended June 27, 2017 June 28, 2016 June 27, 2017 June 28, 2016 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 37,581 $ 33,605 $ 71,894 $ 69,198 Basic EPS: Weighted-average common shares outstanding 70,973 70,368 70,876 70,269 Basic EPS $ 0.53 $ 0.48 $ 1.01 $ 0.98 Diluted EPS: Weighted-average common shares outstanding 70,973 70,368 70,876 70,269 Dilutive effect of stock options and nonvested stock 464 508 522 571 Shares-diluted 71,437 70,876 71,398 70,840 Diluted EPS $ 0.53 $ 0.47 $ 1.01 $ 0.98

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 27, 2017
Fair Value Measurements
Schedule of fair value of assets and liabilities measured on a recurring basis	Fair Value Measurements Level June 27, 2017 December 27, 2016 Deferred compensation plan—assets 1 25,303 21,951 Deferred compensation plan—liabilities 1 (25,275) (22,128)
Schedule of carrying amounts and related estimated fair values for installment loan	June 27, 2017 December 27, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Installment loan—Level 2 $ 472 $ 550 $ 550 $ 599

Basis of Presentation (Details)

Basis of Presentation (Details)	Jun. 27, 2017restaurantitem	Jun. 28, 2016restaurantitem
Description of Business
Number of states in which restaurants operate | item	49	49
Number of countries in which restaurants operate | item	6	5
Company-owned
Description of Business
Number of restaurants	448	415
Company-owned | Wholly-owned
Description of Business
Number of restaurants	430	399
Company-owned | Majority-owned
Description of Business
Number of restaurants	18	16
Franchise
Description of Business
Number of restaurants	84	84
Franchise | Unconsolidated
Description of Business
Number of restaurants	24	24
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
Number of restaurants	4	4
Ownership percentage by entity	40.00%	40.00%

Share-based Compensation (Detai

Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
Share-based compensation expenses
Share-based compensation expense	$ 6,147	$ 5,915	$ 12,365	$ 11,703
Labor expense
Share-based compensation expenses
Share-based compensation expense	1,739	1,507	3,433	2,906
General and administrative expense
Share-based compensation expenses
Share-based compensation expense	$ 4,408	$ 4,408	$ 8,932	$ 8,797

Share-based Compensation, ASU 2

Share-based Compensation, ASU 2016-09 (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016	Dec. 27, 2016
ASU 2016-09 Compensation-Stock Compensation
ASU 2016-09
Cumulative effect on retained earnings	$ 0	$ (0.1)	$ 0	$ 0

Share-based Compensation, Restr

Share-based Compensation, Restricted Stock and PSU (Details) $ / shares in Units, $ in Thousands	Jan. 08, 2017shares	Nov. 09, 2016USD ($)$ / shares	Nov. 19, 2015USD ($)$ / shares	Jun. 27, 2017USD ($)$ / sharesshares	Jun. 28, 2016USD ($)	Dec. 27, 2016item$ / sharesshares	Dec. 29, 2015item	Dec. 27, 2016$ / sharesshares	Jun. 27, 2017USD ($)item$ / sharesshares
PSUs
Share-based compensation
Number of executives granted performance stock units | item						2	2		2
Number of common shares that a holder would receive upon meeting a performance obligation and vesting requirement (in shares) | shares				1					1
Restricted Stock Units, Shares
Vested (in shares) | shares	(188,237)
Restricted Stock Units, Weighted-Average Grant Date Fair Value
Granted (in dollars per share) | $ / shares		$ 39.88	$ 34.11
Unrecognized compensation cost
Unrecognized compensation cost of unvested stock awards (in dollars) | $				$ 2,100					$ 2,100
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards				6 months
Share-based Compensation, other disclosures
Vesting period								1 year
Excess tax benefit recognized within the income tax provision | $				$ 800
Grant date fair value | $		$ 4,600	$ 3,900
RSUs
Share-based compensation
Number of common shares that a holder would receive upon satisfaction of the vesting requirement (in shares) | shares				1					1
Restricted Stock Units, Shares
Outstanding at the beginning of the period (in shares) | shares				919,463
Granted (in shares) | shares				239,416
Forfeited (in shares) | shares				(27,870)
Vested (in shares) | shares				(316,078)
Outstanding at the end of period (in shares) | shares				814,931		919,463		919,463	814,931
Restricted Stock Units, Weighted-Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share) | $ / shares				$ 37.06
Granted (in dollars per share) | $ / shares				46.17
Forfeited (in dollars per share) | $ / shares				37.47
Vested (in dollars per share) | $ / shares				37.48
Outstanding at the end of the period (in dollars per share) | $ / shares				$ 39.55		$ 37.06		$ 37.06	$ 39.55
Weighted-Average Remaining Contractual Term (years)
Weighted-Average Remaining Contractual Term				1 year 2 months 12 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars) | $				$ 41,588					$ 41,588
Intrinsic value of awards vested (in dollars) | $				14,600	$ 13,000
Unrecognized compensation cost
Unrecognized compensation cost of unvested stock awards (in dollars) | $				$ 17,900					$ 17,900
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards				1 year 2 months 12 days
Share-based Compensation, other disclosures
Excess tax benefit recognized within the income tax provision | $				$ 1,000
Excess tax benefit recorded in additional paid-in capital | $					$ 900
RSUs | Minimum
Share-based Compensation, other disclosures
Vesting period				1 year
RSUs | Maximum
Share-based Compensation, other disclosures
Vesting period				5 years

Share-based Compensation, Optio

Share-based Compensation, Options (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016
Aggregate Intrinsic Value
Proceeds from exercise of stock options	$ 1,291	$ 1,866
Stock Options
Shares
Outstanding at the beginning of the period (in shares)	118,073
Cancelled/Expired (in shares)	(2,650)
Exercised (in shares)	(92,857)
Outstanding at the end of the period (in shares)	22,566
Exercisable at the end of period (in shares)	22,566
Stock options vested (in shares)	0	0
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 13.57
Cancelled/Expired (in dollars per share)	15.73
Exercised (in dollars per share)	13.91
Outstanding at the end of the period (in dollars per share)	11.91
Exercisable at the end of the period (in dollars per share)	$ 11.91
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	3 months 18 days
Exercisable at the end of the period	3 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	$ 882
Exercisable at the end of the period (in dollars)	882
Intrinsic value of options exercised (in dollars)	3,100	$ 4,600
Proceeds from exercise of stock options	1,300	1,900
Excess tax benefit recognized within the income tax provision	$ 800
Excess tax benefit recorded in additional paid-in capital		$ 1,300

Long-term Debt and Obligation31

Long-term Debt and Obligations Under Capital Leases (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 27, 2017USD ($)	Dec. 27, 2016USD ($)restaurant
Long-term Debt
Long-term debt and capital lease obligations	$ 52,467	$ 52,548
Less current maturities	176	167
Long-term debt and capital lease obligations, excluding current maturities	52,291	$ 52,381
Number of restaurant locations lease amended qualifies as capital lease | restaurant		1
Installment loans, due 2014-2020
Long-term Debt
Long-term debt and capital lease obligations	$ 472	$ 550
Interest rate (as a percent)	10.46%	10.46%
Obligations under capital leases
Long-term Debt
Long-term debt and capital lease obligations	$ 1,995	$ 1,998
Revolver
Long-term Debt
Long-term debt and capital lease obligations	50,000	$ 50,000
Revolving credit facility, maximum borrowing capacity	200,000
Revolving credit facility contingent increase in maximum borrowing capacity	200,000
Revolving credit facility maximum borrowing capacity after contingent increase	$ 400,000
Weighted-average interest rate (as a percent)	2.08%	1.57%
Revolving credit facility, amount outstanding	$ 50,000
Revolving credit facility, remaining borrowing capacity	142,900
Letters of credit outstanding	$ 7,100
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth	20.00%
Revolver | Minimum
Long-term Debt
Percentage of commitment fee on unused credit facility	0.125%
Revolving credit facility, fixed charge coverage ratio	2
Revolver | Maximum
Long-term Debt
Percentage of commitment fee on unused credit facility	0.30%
Revolving credit facility, leverage ratio	3
Revolver | LIBOR | Minimum
Long-term Debt
Interest rate added to base rate (as a percent)	0.875%
Revolver | LIBOR | Maximum
Long-term Debt
Interest rate added to base rate (as a percent)	1.875%
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 (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
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)	3.40%	3.50%	3.40%	3.50%
FICA tip tax credit (as a percent)	(7.20%)	(6.50%)	(7.10%)	(6.80%)
Work opportunity tax credit (as a percent)	(0.80%)	(0.90%)	(0.80%)	(0.80%)
Stock compensation (as a percent)	(1.80%)		(2.50%)
Net income attributable to noncontrolling interests (as a percent)	(1.10%)	(0.90%)	(1.10%)	(0.90%)
Other (as a percent)	0.40%		0.30%	0.10%
Total (as a percent)	27.90%	30.20%	27.20%	30.10%

Income Taxes, ASU 2016-09 (Deta

Income Taxes, ASU 2016-09 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
ASU 2016-09
Income tax (expense) benefit	$ (15,126)	$ (15,087)	$ (28,113)	$ (30,944)
Impact on tax rate (as a percent)	1.80%		2.50%
ASU 2016-09 Compensation-Stock Compensation
ASU 2016-09
Income tax (expense) benefit	$ 1,000		$ 2,600
Impact on tax rate (as a percent)	1.80%		2.50%

Commitments and Contingencies34

Commitments and Contingencies (Details) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 27, 2017USD ($)item	Mar. 28, 2017USD ($)	Jun. 27, 2017USD ($)item	Dec. 27, 2016USD ($)item
Commitments and Contingencies
Estimated cost to complete capital project commitments (in dollars)	$ 144.6		$ 144.6	$ 157.5
Number of suppliers providing most of the company's beef | item	3		3
Lease Agreements
Commitments and Contingencies
Number of leases entity contingently liable | item			7	7
Lease Agreements | Maximum
Commitments and Contingencies
Contingently liable amount	$ 16		$ 16	$ 16.4
U.S. Equal Employment Opportunity Commission
Commitments and Contingencies
Contingently liable amount	$ 12		12
Estimated loss contingency, net of tax			9.2
U.S. Equal Employment Opportunity Commission | General and administrative expense
Commitments and Contingencies
Estimated loss contingency recorded during period			$ 14.9
Legal settlement amount		$ 12.6
Pre-tax charge associated with the legal fees		$ 2.3
Everett, Massachusetts | Lease Agreements
Commitments and Contingencies
Ownership percentage	5.00%		5.00%
Fargo, North Dakota | Lease Agreements
Commitments and Contingencies
Ownership percentage	5.00%		5.00%

Acquisitions (Details)

Acquisitions (Details) $ in Thousands	Dec. 28, 2016USD ($)restaurant	Jun. 27, 2017USD ($)	Dec. 27, 2016USD ($)
Purchase price allocation
Goodwill		$ 121,040	$ 116,571
Four franchise restaurants in Florida and Georgia
Acquisitions
Number of franchise restaurants acquired | restaurant	4
Purchase price paid	$ 16,500
Purchase price allocation
Current assets	170
Property and equipment	12,281
Goodwill	4,469
Current liabilities	(392)
Purchase price	$ 16,528
Four franchise restaurants in Florida and Georgia | Wholly-owned
Acquisitions
Number of franchise restaurants acquired | restaurant	2
Four franchise restaurants in Florida and Georgia | Majority-owned
Acquisitions
Number of franchise restaurants acquired | restaurant	2

Related Party Transactions (Det

Related Party Transactions (Details) - Franchise $ in Millions	3 Months Ended		6 Months Ended
	Jun. 27, 2017USD ($)restaurant	Jun. 28, 2016USD ($)restaurant	Jun. 27, 2017USD ($)restaurant	Jun. 28, 2016USD ($)restaurant
Related Party Transactions
Number of franchise restaurants	84	84	84	84
Officers, directors and shareholders
Related Party Transactions
Number of franchise restaurants	10	10	10	10
Ownership percentage by entity	5.00%	5.00%	5.00%	5.00%
Fees received from franchise and license restaurants | $	$ 0.5	$ 0.5	$ 1.1	$ 1
Number of restaurants for which the entity is contingently liable on the lease			2	2

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2017	Jun. 28, 2016	Jun. 27, 2017	Jun. 28, 2016
Earnings per share
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$ 37,581	$ 33,605	$ 71,894	$ 69,198
Basic EPS:
Weighted-average common shares outstanding (in shares)	70,973,000	70,368,000	70,876,000	70,269,000
Basic EPS (in dollars per share)	$ 0.53	$ 0.48	$ 1.01	$ 0.98
Diluted EPS:
Weighted-average common shares outstanding (in shares)	70,973,000	70,368,000	70,876,000	70,269,000
Dilutive effect of stock options and nonvested stock (in shares)	464,000	508,000	522,000	571,000
Shares - diluted (in shares)	71,437,000	70,876,000	71,398,000	70,840,000
Diluted EPS (in dollars per share)	$ 0.53	$ 0.47	$ 1.01	$ 0.98
Nonvested stock
Antidilutive securities
Anti-dilutive securities (in shares)	17,691	0	31,136	8,749
Stock Options
Antidilutive securities
Anti-dilutive securities (in shares)	0	0	0	0

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	6 Months Ended
	Jun. 27, 2017USD ($)item	Dec. 27, 2016USD ($)
Fair value of financial instruments
Transfer of asset levels within the fair value hierarchy	$ 0
Minimum number of investment funds in rabbi trust for deferred compensation plan | item	1
Fair value measured on a recurring basis | Level 1
Fair value of financial instruments
Deferred compensation plan - assets	$ 25,303	$ 21,951
Deferred compensation plan - liabilities	$ (25,275)	$ (22,128)

Fair Value Measurements, Instal

Fair Value Measurements, Installment Loan (Details) - USD ($) $ in Thousands	Jun. 27, 2017	Dec. 27, 2016
Carrying Amount
Carrying amount and Fair value of financial instruments
Installment loan	$ 472	$ 550
Fair Value | Level 2
Carrying amount and Fair value of financial instruments
Installment loan	$ 550	$ 599

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2016	Jun. 27, 2017	May 22, 2014
Stock Repurchase Program
Repurchase of common stock authorized by board of directors			$ 100,000
Amount remaining under authorized stock repurchase program		$ 69,900
Payments to repurchase common stock	$ 4,110
Number of shares repurchased	114,700