Texas Roadhouse (TXRH) 10-Q6 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 29, 2022	Apr. 27, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 29, 2022
Document Transition Report	false
Entity File Number	000-50972
Entity Registrant Name	Texas Roadhouse, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1083890
Entity Address, Address Line One	6040 Dutchmans Lane, Suite 200
Entity Address, City or Town	Louisville
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40205
City Area Code	502
Local Phone Number	426-9984
Title of 12(b) Security	Common Stock
Trading Symbol	TXRH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		68,167,949
Entity Central Index Key	0001289460
Current Fiscal Year End Date	--12-27
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 29, 2022	Dec. 28, 2021
Current assets:
Cash and cash equivalents	$ 325,723	$ 335,645
Receivables, net of allowance for doubtful accounts of $29 at March 29, 2022 and $17 at December 28, 2021	45,152	161,358
Inventories, net	30,043	31,595
Prepaid income taxes	2,668	10,701
Prepaid expenses and other current assets	22,401	24,226
Total current assets	425,987	563,525
Property and equipment, net of accumulated depreciation of $896,035 at March 29, 2022 and $869,375 at December 28, 2021	1,181,707	1,162,441
Operating lease right-of-use assets, net	605,146	578,413
Goodwill	144,334	127,001
Intangible assets, net of accumulated amortization of $15,764 at March 29, 2022 and $15,092 at December 28, 2021	6,848	1,520
Other assets	73,298	79,052
Total assets	2,437,320	2,511,952
Current liabilities:
Current portion of operating lease liabilities	23,845	21,952
Accounts payable	100,093	95,234
Deferred revenue-gift cards	221,479	300,657
Accrued wages and payroll taxes	79,834	64,716
Income taxes payable	3,500	85
Accrued taxes and licenses	33,690	33,375
Other accrued liabilities	79,333	86,125
Total current liabilities	541,774	602,144
Operating lease liabilities, net of current portion	649,069	622,892
Long-term debt	100,000	100,000
Restricted stock and other deposits	8,167	8,027
Deferred tax liabilities, net	14,154	11,734
Other liabilities	88,897	93,671
Total liabilities	1,402,061	1,438,468
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, 68,459,769 and 69,382,418 shares issued and outstanding at March 29, 2022 and December 28, 2021, respectively)	68	69
Additional paid-in-capital	32,754	114,504
Retained earnings	986,958	943,551
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity	1,019,780	1,058,124
Noncontrolling interests	15,479	15,360
Total equity	1,035,259	1,073,484
Total liabilities and equity	$ 2,437,320	$ 2,511,952

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 29, 2022	Dec. 28, 2021
Condensed Consolidated Balance Sheets
Receivables, allowance for doubtful accounts (in dollars)	$ 29	$ 17
Property and equipment, accumulated depreciation (in dollars)	896,035	869,375
Intangible assets, accumulated amortization (in dollars)	$ 15,764	$ 15,092
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	68,459,769	69,382,418
Common stock, shares outstanding	68,459,769	69,382,418

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Revenue:
Total revenue	$ 987,486	$ 800,629
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Food and beverage	337,396	251,482
Labor	321,871	258,036
Rent	16,368	14,452
Other operating	144,154	123,379
Pre-opening	4,291	4,268
Depreciation and amortization	33,620	30,869
Impairment and closure, net	(646)	504
General and administrative	40,294	36,712
Total costs and expenses	897,348	719,702
Income from operations	90,138	80,927
Interest expense, net	397	1,460
Equity income (loss) from investments in unconsolidated affiliates	334	(217)
Income before taxes	90,075	79,250
Income tax expense	12,747	12,820
Net income including noncontrolling interests	77,328	66,430
Less: Net income attributable to noncontrolling interests	2,126	2,280
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	75,202	64,150
Other comprehensive loss, net of tax:
Foreign currency translation adjustment, net of tax of $- and $4, respectively		(12)
Total comprehensive income	$ 75,202	$ 64,138
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic	$ 1.09	$ 0.92
Diluted	$ 1.08	$ 0.91
Weighted average shares outstanding:
Basic	69,086	69,637
Diluted	69,373	70,137
Cash dividends declared per share	$ 0.46
Restaurant and other sales
Revenue:
Total revenue	$ 980,972	$ 794,923
Franchise royalties and fees
Revenue:
Total revenue	$ 6,514	$ 5,706

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Condensed Consolidated Statements of Income and Comprehensive Income
Foreign currency translation adjustment, (tax)/benefit	$ 0	$ 4

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Stockholders' Equity - 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. 29, 2020	$ 927,505	$ 70	$ 145,626	$ 781,915	$ (106)	$ 15,546	$ 943,051
Balance (in shares) at Dec. 29, 2020		69,561,861
Increase (Decrease) in Stockholders' Equity
Net income	64,150			64,150		2,280	66,430
Other comprehensive income, net of tax	(12)				(12)		(12)
Distributions to noncontrolling interest holders						(1,429)	(1,429)
Shares issued under share-based compensation plans including tax effects (in shares)		269,918
Indirect repurchase of shares for minimum tax withholdings	(7,930)		(7,930)				(7,930)
Indirect repurchase of shares for minimum tax withholdings (in shares)		(89,259)
Share-based compensation	9,908		9,908				9,908
Balance at Mar. 30, 2021	993,621	$ 70	147,604	846,065	$ (118)	16,397	1,010,018
Balance (in shares) at Mar. 30, 2021		69,742,520
Balance at Dec. 28, 2021	1,058,124	$ 69	114,504	943,551		15,360	$ 1,073,484
Balance (in shares) at Dec. 28, 2021		69,382,418					69,382,418
Increase (Decrease) in Stockholders' Equity
Net income	75,202			75,202		2,126	$ 77,328
Distributions to noncontrolling interest holders						(2,007)	(2,007)
Dividends declared	(31,795)			(31,795)			(31,795)
Shares issued under share-based compensation plans including tax effects (in shares)		204,968
Indirect repurchase of shares for minimum tax withholdings	(6,166)		(6,166)				(6,166)
Indirect repurchase of shares for minimum tax withholdings (in shares)		(66,999)
Repurchase of shares of common stock	(84,705)	$ (1)	(84,704)				$ (84,705)
Repurchase of shares of common stock (in shares)		(1,060,618)					(1,060,618)
Share-based compensation	9,120		9,120				$ 9,120
Balance at Mar. 29, 2022	$ 1,019,780	$ 68	$ 32,754	$ 986,958		$ 15,479	$ 1,035,259
Balance (in shares) at Mar. 29, 2022		68,459,769					68,459,769

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 29, 2022$ / shares
Condensed Consolidated Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.46

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Cash flows from operating activities:
Net income including noncontrolling interests	$ 77,328	$ 66,430
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	33,620	30,869
Deferred income taxes	2,630	1,025
Loss on disposition of assets	1,151	324
Impairment and closure costs	26	494
Equity (income) loss from investments in unconsolidated affiliates	(334)	217
Distributions of income received from investments in unconsolidated affiliates	332	122
Provision for doubtful accounts	12	9
Share-based compensation expense	9,120	9,908
Changes in operating working capital:
Receivables	116,419	60,791
Inventories	1,820	(998)
Prepaid expenses and other current assets	651	874
Other assets	5,756	(2,786)
Accounts payable	6,275	19,937
Deferred revenue-gift cards	(80,009)	(50,454)
Accrued wages and payroll taxes	15,118	17,896
Prepaid income taxes and income taxes payable	11,447	11,055
Accrued taxes and licenses	315	7,559
Other accrued liabilities	(10,676)	(643)
Operating lease right-of-use assets and lease liabilities	1,542	1,520
Other liabilities	(4,774)	3,864
Net cash provided by operating activities	187,769	178,013
Cash flows from investing activities:
Capital expenditures-property and equipment	(49,029)	(38,666)
Acquisition of franchise restaurants, net of cash acquired	(26,437)
Proceeds from sale of property and equipment	2,188
Proceeds from sale leaseback transactions		2,192
Net cash used in investing activities	(73,278)	(36,474)
Cash flows from financing activities:
Distributions to noncontrolling interest holders	(2,007)	(1,429)
Proceeds from restricted stock and other deposits, net	260	311
Indirect repurchase of shares for minimum tax withholdings	(6,166)	(7,930)
Repurchase of shares of common stock	(84,705)
Dividends paid to shareholders	(31,795)
Net cash (used in) provided by financing activities	(124,413)	(9,048)
Net (decrease) increase in cash and cash equivalents	(9,922)	132,491
Cash and cash equivalents-beginning of period	335,645	363,155
Cash and cash equivalents-end of period	325,723	495,646
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized	381	1,195
Income taxes (refunded) paid	(1,317)	740
Capital expenditures included in current liabilities	$ 25,006	$ 14,519

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 29, 2022
Description of Business
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 March 29, 2022 and December 28, 2021 and for the 13 weeks ended March 29, 2022 and March 30, 2021. As of March 29, 2022, we owned and operated 576 restaurants and franchised an additional 96 restaurants in 49 states and ten foreign countries. Of the 576 company restaurants that were operating at March 29, 2022, there were 556 wholly-owned restaurants and 20 majority-owned restaurants. Of the 96 franchise restaurants, there were 63 domestic restaurants and 33 international restaurants. As of March 30, 2021, we owned and operated 540 restaurants and franchised an additional 97 restaurants in 49 states and ten foreign countries. Of the 540 company restaurants that were operating at March 30, 2021, there were 520 wholly-owned restaurants and 20 majority-owned restaurants. Of the 97 franchise restaurants, there were 69 domestic restaurants and 28 international restaurants. The Company has been subject to risks and uncertainties as a result of the global COVID-19 pandemic (the pandemic ). These include federal, state and local restrictions on restaurants, some of which limited capacity or seating in the dining rooms while others allowed to-go or curbside service only. As of March 29, 2022, all of our domestic company and franchise locations were operating without restriction. As of March 30, 2021, all of our domestic company and franchise locations had re-opened their dining rooms, many of which were operating under various limited capacity restrictions. As of March 29, 2022 and March 30, 2021, we owned a 5.0% to 10.0% equity interest in 24 domestic franchise restaurants. Additionally, as of March 30, 2021, we owned a 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 (loss) from investments in unconsolidated affiliates. The investment balance related to our joint venture agreement in China was fully impaired in late 2021 as the related restaurants closed. 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 breakage and third party fees 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. Operating results for the 13 weeks ended March 29, 2022 are not necessarily indicative of the results that may be expected for the year ending December 27, 2022. 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 28, 2021. Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 29, 2022
Recent Accounting Pronouncements
Recent Accounting Pronouncements	(2) Recent Accounting Pronouncements Reference Rate Reform (Accounting Standards Update 2020-04, "ASU 2020-04") In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting. These changes are intended to simplify the market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective upon issuance to modifications made as early as the beginning of the interim period through December 31, 2022. We are currently assessing the impact of this new standard on our condensed consolidated financial statements.

Long-term Debt

Long-term Debt	3 Months Ended
Long-term Debt	Mar. 29, 2022
Long-term Debt
Long-term Debt	(3) Long-term Debt On May 4, 2021, we entered into an agreement to amend our revolving credit facility with The amended revolving credit facility remains an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. The amendment also extended the maturity date to May 1, 2026. The terms of the amendment require us to pay interest on outstanding borrowings at LIBOR plus a margin of 0.875% to 1.875% and pay a commitment fee of 0.125% to 0.30% per year on any unused portion of the revolving credit facility, in each case depending on our leverage ratio. The amendment also provides an Alternate Base Rate that may be substituted for LIBOR. As of March 29, 2022 and December 28, 2021, we had $100.0 million outstanding on the amended revolving credit facility and $189.1 million of availability, net of $10.9 million of outstanding letters of credit. As of March 30, 2021, we had $240.0 million outstanding on the revolving credit facility prior to the May 4, 2021 amendment. These outstanding amounts are included as long-term debt on our unaudited condensed consolidated balance sheets. The weighted-average interest rate for the $100.0 million outstanding as of March 29, 2022 was 1.20% . The weighted-average interest rate for the $240.0 million outstanding as of March 30, 2021 was 1.95% . The lenders’ obligation to extend credit pursuant to the amended revolving credit facility depends on us maintaining certain financial covenants. We were in compliance with all financial covenants as of March 29, 2022.

Revenue

Revenue	3 Months Ended
Revenue	Mar. 29, 2022
Revenue
Revenue	(4) Revenue The following table disaggregates our revenue by major source (in thousands): 13 weeks ended March 29, 2022 March 30, 2021 Restaurant and other sales $ 980,972 $ 794,923 Franchise royalties 5,699 4,973 Franchise fees 815 733 Total revenue $ 987,486 $ 800,629 We record deferred revenue for gift cards which includes cards that have been sold but not yet redeemed, a breakage adjustment for a percentage of gift cards that are not expected to be redeemed, and fees paid on gift cards sold through third party retailers. When gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. We amortize breakage and third party fees consistent with the historic redemption pattern of the associated gift card or on actual redemptions in periods where redemptions do not align with historic redemption patterns. We recognize these amounts as a component of other sales. As of March 29, 2022 and December 28, 2021, our deferred revenue balance related to gift cards was million, respectively. We recognized sales of million for the 13 weeks ended March 29, 2022 related to the amount in deferred revenue as of December 28, 2021. We recognized sales of

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 29, 2022
Income Taxes
Income Taxes	(5) Income Taxes For the 13 weeks ended March 29, 2022 and March 30, 2021, we recognized income tax expense using an estimated effective annual tax rate. This resulted in an effective tax rate of 14.2% and 16.2 % for the 13 weeks ended March 29, 2022 and March 30, 2021, respectively. The reduction in our tax rate was primarily driven by an increase in FICA Tip and Work Opportunity tax credits partially offset by a decrease in the tax benefit for stock compensation.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 29, 2022
Commitments and Contingencies
Commitments and Contingencies	(6) Commitments and Contingencies The estimated cost of completing capital project commitments at March 29, 2022 and December 28, 2021 was $160.3 million and $135.0 million, respectively. As of March 29, 2022 and December 28, 2021, we were contingently liable for $12.0 million and $12.2 million, respectively, for seven lease guarantees. 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 March 29, 2022 and December 28, 2021 as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant. During the 13 weeks ended March 29, 2022, we bought most of our beef from four suppliers. We have no material minimum purchase commitments with our vendors that extend beyond a year. Occasionally, we are a defendant in litigation arising in the ordinary course of our business, including "slip and fall" accidents, employment related claims, claims related to our service of alcohol, 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 adverse effect on us during the periods covered by this report 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	3 Months Ended
Acquisitions	Mar. 29, 2022
Acquisitions
Acquisitions	(7) Acquisitions On December 29, 2021, we completed the acquisition of seven franchised Texas Roadhouse restaurants located in South Carolina and Georgia. Pursuant to the terms of the acquisition agreements, we paid a total purchase price of million, net of cash acquired. These acquisitions are consistent with our long-term strategy to increase net income and earnings per share. The transactions were accounted for using the acquisition method as defined in Accounting Standards Codification ("ASC") 805, Business Combinations . The following table summarizes the consideration paid (in thousands) for the acquisitions, and the estimated fair value of the assets acquired, and the liabilities assumed at the acquisition date, which are adjusted for measurement-period adjustments through March 29, 2022. Inventory $ 268 Other assets 211 Property and equipment 3,456 Goodwill 17,333 Intangible assets 6,000 Current liabilities (831) $ 26,437 The aggregate purchase prices are preliminary as the Company is finalizing working capital adjustments. Intangible assets represent reacquired franchise rights which will be amortized over a weighted-average useful life of years. We expect all of the goodwill and intangible asset amortization will be deductible for tax purposes and believe the resulting amount of goodwill reflects the benefit of sales and unit growth opportunities as well as the benefit of the assembled workforce of the acquired restaurants. Pro forma operating results for the 13 weeks ended March 29, 2022 have not been presented as the results of the acquired restaurants are not material to our unaudited condensed consolidated financial position, results of operations or cash flows.

Related Party Transactions

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 29, 2022
Related Party Transactions
Related Party Transactions	(8) Related Party Transactions As of March 29, 2022 and March 30, 2021, we had four franchise restaurants and one majority-owned company restaurant owned in part by a current officer of the Company. The franchise entities paid us fees of million for both of the 13 week periods ended March 29, 2022 and March 30, 2021.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 29, 2022
Earnings Per Share
Earnings Per Share	(9) 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 restricted stock units from our equity incentive plans, except during loss periods as the effect would be anti-dilutive. Performance stock units are not included in the diluted earnings per share calculation until the performance-based criteria have been met. For the 13 weeks ended March 29, 2022, there were 29,887 weighted-average shares of nonvested stock that were outstanding but not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect. For the 13 weeks ended March 30, 2021, there were 4,827 weighted-average shares of nonvested stock that were outstanding but not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect. 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 March 29, 2022 March 30, 2021 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 75,202 $ 64,150 Basic EPS: Weighted-average common shares outstanding 69,086 69,637 Basic EPS $ 1.09 $ 0.92 Diluted EPS: Weighted-average common shares outstanding 69,086 69,637 Dilutive effect of nonvested stock 287 500 Shares-diluted 69,373 70,137 Diluted EPS $ 1.08 $ 0.91

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 29, 2022
Fair Value Measurements
Fair Value Measurements	(10) 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 Inputs based on quoted prices in active markets for identical assets. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the assets, either directly or indirectly. Level 3 Inputs that are unobservable for the asset. There were no transfers among levels within the fair value hierarchy during the 13 weeks ended March 29, 2022. The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: Fair Value Measurements Level March 29, 2022 December 28, 2021 Deferred compensation plan—assets 1 $ 61,996 $ 67,512 Deferred compensation plan—liabilities 1 $ (61,839) $ (67,431) 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. The following table presents the fair value of our assets measured on a nonrecurring basis: Fair Value Measurements Total gain (loss) 13 Weeks Ended March 29, December 28, March 29, March 30, Level 2022 2021 2022 2021 Long-lived assets held for sale 3 $ — $ 1,175 $ 690 $ (470) Investments in unconsolidated affiliates 3 $ — $ — $ — $ (531) Long-lived assets held for sale include land and building at a site that was relocated and had a carrying amount of $1.2 million as of December 28, 2021. These assets were included in prepaid expenses and other current assets in our consolidated balance sheets and were valued using a Level 3 input. These assets were sold during the 13 weeks ended March 29, 2022 and resulted in a gain of $0.7 million which is included in impairment and closure, net in our unaudited condensed consolidated statement of income and comprehensive income. Investments in unconsolidated affiliates included a 40% equity interest in a joint venture in China which was fully impaired in late 2021. This asset was valued using a Level 3 input, or the amount we expected to receive upon the sale of this investment. This resulted in a loss of million during the 13 weeks ended March 30, 2021 and is included in equity income (loss) from investments in unconsolidated affiliates in our unaudited condensed consolidated statement of income and comprehensive income for the 13 weeks ended March 30, 2021. At March 29, 2022 and December 28, 2021, 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. At March 29, 2022 and December 28, 2021, the fair value of our amended revolving credit facility approximated its carrying value since it is a variable rate credit facility (Level 2).

Stock Repurchase Program

Stock Repurchase Program	3 Months Ended
Stock Repurchase Program	Mar. 29, 2022
Stock Repurchase Program
Stock Repurchase Program	(11) Stock Repurchase Program On March 17, 2022, our Board of Directors (the "Board") approved a stock repurchase program under which we may repurchase up to $300.0 million of our common stock. This stock repurchase program has no expiration date and replaced a previous stock repurchase program which was approved on May 31, 2019 that authorized the Company to repurchase up to million of our common stock. All repurchases to date under our stock repurchase programs have been made through open market transactions. The timing and the amount of any repurchases are determined by management under parameters established by the Board, based on an evaluation of our stock price, market conditions and other corporate considerations. For the 13 week period ended March 29, 2022, we paid $84.7 million to repurchase 1,060,618 shares of our common stock. This includes million under our current authorized stock repurchase program. For the 13 weeks ended March 30, 2021, we did not repurchase any shares of our common stock. As of March 29, 2022, stock repurchase program.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 29, 2022
Segment Reporting [Abstract]
Segment Information	(12) Segment Information We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba’s 33. The Texas Roadhouse reportable segment includes the results of our domestic company Texas Roadhouse restaurants and domestic and international franchise Texas Roadhouse restaurants. The Bubba's 33 reportable segment includes the results of our domestic company Bubba's 33 restaurants. Our remaining operating segments, which include the results of our domestic company Jaggers restaurants and the results of our retail initiatives, are included in Other. In addition, Corporate-related segment assets, depreciation and amortization, and capital expenditures are also included in Other. Management uses restaurant margin as the measure for assessing performance of our segments. Restaurant margin (in dollars and as a percentage of restaurant and other sales) represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent and other operating costs. Restaurant margin also includes sales and operating costs related to our non-royalty based retail initiatives. Restaurant margin is used by our chief operating decision maker to evaluate restaurant-level operating efficiency and performance. In calculating restaurant margin, we exclude certain non-restaurant-level costs that support operations, including pre-opening and general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. We also exclude depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in our restaurants. We also exclude impairment and closure expense as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in our industry. Restaurant and other sales for all operating segments are derived primarily from food and beverage sales. We do not rely on any major customer as a source of sales and the customers and assets of our reportable segments are located predominantly in the United States. There are no material transactions between reportable segments. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: 13 Weeks Ended March 29, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 926,729 $ 51,225 $ 3,018 $ 980,972 Restaurant operating costs (excluding depreciation and amortization) 773,261 43,431 3,097 819,789 Restaurant margin $ 153,468 $ 7,794 $ (79) $ 161,183 Depreciation and amortization $ 27,541 $ 3,190 $ 2,889 $ 33,620 Capital expenditures 39,677 7,377 1,975 49,029 13 Weeks Ended March 30, 2021 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 756,597 $ 35,685 $ 2,641 $ 794,923 Restaurant operating costs (excluding depreciation and amortization) 615,485 29,682 2,182 647,349 Restaurant margin $ 141,112 $ 6,003 $ 459 $ 147,574 Depreciation and amortization $ 25,663 $ 3,013 $ 2,193 $ 30,869 Capital expenditures 31,154 5,580 1,932 38,666 A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest expense, net and equity income (loss) from investments in unconsolidated affiliates to reportable segments. 13 Weeks Ended March 29, 2022 March 30, 2021 Restaurant margin $ 161,183 $ 147,574 Add: Franchise royalties and fees 6,514 5,706 Less: Pre-opening 4,291 4,268 Depreciation and amortization 33,620 30,869 Impairment and closure, net (646) 504 General and administrative 40,294 36,712 Income from operations $ 90,138 $ 80,927

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Mar. 29, 2022
Recent Accounting Pronouncements
Reference Rate Reform	Reference Rate Reform (Accounting Standards Update 2020-04, "ASU 2020-04") In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting. These changes are intended to simplify the market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective upon issuance to modifications made as early as the beginning of the interim period through December 31, 2022. We are currently assessing the impact of this new standard on our condensed consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Mar. 29, 2022
Revenue
Schedule of disaggregated revenue	The following table disaggregates our revenue by major source (in thousands): 13 weeks ended March 29, 2022 March 30, 2021 Restaurant and other sales $ 980,972 $ 794,923 Franchise royalties 5,699 4,973 Franchise fees 815 733 Total revenue $ 987,486 $ 800,629

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
Acquisitions (Tables)	Mar. 29, 2022
Acquisitions
Summary the consideration paid for the acquisitions, and the estimated fair value of the assets acquired, and the liabilities assumed	Inventory $ 268 Other assets 211 Property and equipment 3,456 Goodwill 17,333 Intangible assets 6,000 Current liabilities (831) $ 26,437

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 29, 2022
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 March 29, 2022 March 30, 2021 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 75,202 $ 64,150 Basic EPS: Weighted-average common shares outstanding 69,086 69,637 Basic EPS $ 1.09 $ 0.92 Diluted EPS: Weighted-average common shares outstanding 69,086 69,637 Dilutive effect of nonvested stock 287 500 Shares-diluted 69,373 70,137 Diluted EPS $ 1.08 $ 0.91

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 29, 2022
Fair Value Measurements
Schedule of fair values for our financial assets and liabilities measured on a recurring basis	Fair Value Measurements Level March 29, 2022 December 28, 2021 Deferred compensation plan—assets 1 $ 61,996 $ 67,512 Deferred compensation plan—liabilities 1 $ (61,839) $ (67,431)
Schedule of fair value of assets and liabilities measured on a nonrecurring basis	Fair Value Measurements Total gain (loss) 13 Weeks Ended March 29, December 28, March 29, March 30, Level 2022 2021 2022 2021 Long-lived assets held for sale 3 $ — $ 1,175 $ 690 $ (470) Investments in unconsolidated affiliates 3 $ — $ — $ — $ (531)

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 29, 2022
Segment Reporting [Abstract]
Schedule to reconcile our segment results to our consolidated results	The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: 13 Weeks Ended March 29, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 926,729 $ 51,225 $ 3,018 $ 980,972 Restaurant operating costs (excluding depreciation and amortization) 773,261 43,431 3,097 819,789 Restaurant margin $ 153,468 $ 7,794 $ (79) $ 161,183 Depreciation and amortization $ 27,541 $ 3,190 $ 2,889 $ 33,620 Capital expenditures 39,677 7,377 1,975 49,029 13 Weeks Ended March 30, 2021 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 756,597 $ 35,685 $ 2,641 $ 794,923 Restaurant operating costs (excluding depreciation and amortization) 615,485 29,682 2,182 647,349 Restaurant margin $ 141,112 $ 6,003 $ 459 $ 147,574 Depreciation and amortization $ 25,663 $ 3,013 $ 2,193 $ 30,869 Capital expenditures 31,154 5,580 1,932 38,666 13 Weeks Ended March 29, 2022 March 30, 2021 Restaurant margin $ 161,183 $ 147,574 Add: Franchise royalties and fees 6,514 5,706 Less: Pre-opening 4,291 4,268 Depreciation and amortization 33,620 30,869 Impairment and closure, net (646) 504 General and administrative 40,294 36,712 Income from operations $ 90,138 $ 80,927

Basis of Presentation (Details)

Basis of Presentation (Details)	Mar. 29, 2022restaurantitem	Mar. 30, 2021itemrestaurant
Description of Business
Number of states in which restaurants operate \| item	49	49
Number of countries in which restaurants operate \| item	10	10
Company-owned
Description of Business
Number of restaurants	576	540
Company-owned \| Wholly-owned
Description of Business
Number of restaurants	556	520
Company-owned \| Majority-owned
Description of Business
Number of restaurants	20	20
Franchise
Description of Business
Number of restaurants	96	97
Franchise \| Domestic
Description of Business
Number of restaurants	63	69
Franchise \| International
Description of Business
Number of restaurants	33	28
Franchise \| Unconsolidated \| Domestic \| Domestic Franchise Restaurants Units [Member]
Description of Business
Number of restaurants	24	24
Franchise \| Minimum \| Unconsolidated \| Domestic Franchise Restaurants Units [Member]
Description of Business
Ownership percentage	5.00%	5.00%
Franchise \| Maximum \| Unconsolidated \| Domestic Franchise Restaurants Units [Member]
Description of Business
Ownership percentage	10.00%	10.00%
Non-Texas Roadhouse restaurants \| Unconsolidated
Description of Business
Number of restaurants		4
Non-Texas Roadhouse restaurants \| Unconsolidated \| Non-Texas Roadhouse Restaurants Units [Member]
Description of Business
Ownership percentage		40.00%

Long-term Debt (Details)

Long-term Debt (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 29, 2022	Dec. 28, 2021	Mar. 30, 2021
Revolving Credit Facility
Revolving credit facility, maximum borrowing capacity	$ 300
Revolving credit facility contingent increase in maximum borrowing capacity	$ 200
Weighted-average interest rate (as a percent)	1.20%		1.95%
Amount borrowed			$ 240
Revolving credit facility, amount outstanding	$ 100	$ 100
Revolving credit facility, remaining borrowing capacity	189.1	$ 189.1
Letters of credit outstanding	$ 10.9
Minimum
Revolving Credit Facility
Percentage of commitment fee on unused credit facility	0.125%
Maximum
Revolving Credit Facility
Percentage of commitment fee on unused credit facility	0.30%
LIBOR \| Minimum
Long-term debt
Interest rate (as a percent)	0.875%
LIBOR \| Maximum
Long-term debt
Interest rate (as a percent)	1.875%

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Mar. 29, 2022	Mar. 30, 2021
Revenue
Total revenue	$ 987,486	$ 800,629
Restaurant and other sales
Revenue
Total revenue	980,972	794,923
Franchise royalties
Revenue
Total revenue	5,699	4,973
Franchise fees
Revenue
Total revenue	$ 815	$ 733

Revenue - Other (Details)

Revenue - Other (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue - Other (Details) - USD ($) $ in Thousands	Mar. 29, 2022	Mar. 30, 2021	Dec. 28, 2021
Revenue
Deferred revenue-gift cards	$ 221,479		$ 300,657
Gift cards
Revenue
Deferred revenue-gift cards	221,500		$ 300,700
Deferred revenue recognized	$ 102,100	$ 71,400

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 29, 2022	Mar. 30, 2021
Reconciliation of the statutory federal income tax rate to our effective tax rate:
Tax expense (tax benefit), as a percent	14.20%	16.20%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 29, 2022USD ($)item	Dec. 28, 2021USD ($)item
Commitments and Contingencies
Estimated cost to complete capital project commitments (in dollars) \| $	$ 160.3	$ 135
Number of suppliers providing most of the company's beef \| item	4
Lease Agreements
Commitments and Contingencies
Number of leases guarantees entity contingently liable \| item	7	7
Lease Agreements \| Maximum
Commitments and Contingencies
Contingently liable amount \| $	$ 12	$ 12.2

Disclosure - Acquisitions (Deta

Disclosure - Acquisitions (Details) $ in Thousands	Dec. 29, 2021USD ($)restaurant	Mar. 29, 2022USD ($)	Dec. 28, 2021USD ($)
Business Acquisition [Line Items]
Goodwill		$ 144,334	$ 127,001
Reacquired franchise rights
Business Acquisition [Line Items]
Weighted-average life		3 years 6 months
Seven Franchise Restaurants [Member]
Business Acquisition [Line Items]
Number of restaurants acquired \| restaurant	7
Purchase price paid	$ 26,400
Inventory		$ 268
Other assets		211
Property and equipment		3,456
Goodwill		17,333
Intangible assets		6,000
Current liabilities		(831)
Total		$ 26,437

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	3 Months Ended
Related Party Transactions (Details) $ in Millions	Mar. 29, 2022USD ($)restaurant	Mar. 30, 2021USD ($)restaurant
Franchise
Related Party Transactions
Number of restaurants	96	97
Officers, directors and shareholders \| Majority-owned
Related Party Transactions
Number of restaurants	1	1
Officers, directors and shareholders \| Franchise
Related Party Transactions
Number of restaurants	4	4
Fees received from franchise and license restaurants \| $	$ 0.4	$ 0.4

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Earnings per share
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$ 75,202	$ 64,150
Basic EPS:
Weighted-average common shares outstanding (in shares)	69,086,000	69,637,000
Basic EPS (in dollars per share)	$ 1.09	$ 0.92
Diluted EPS:
Weighted-average common shares outstanding (in shares)	69,086,000	69,637,000
Dilutive effect of nonvested stock (in shares)	287,000	500,000
Shares-diluted (in shares)	69,373,000	70,137,000
Diluted EPS (in dollars per share)	$ 1.08	$ 0.91
Nonvested stock
Antidilutive securities
Anti-dilutive securities (in shares)	29,887	4,827

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 29, 2022USD ($)item	Dec. 28, 2021USD ($)
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
Land and Building Relocated [Member] \| Carrying Amount
Fair value of financial instruments
Long-lived assets held for sale		$ 1,200
Fair value measured on a recurring basis \| Level 1
Fair value of financial instruments
Deferred compensation plan - assets	$ 61,996	67,512
Deferred compensation plan - liabilities	$ (61,839)	(67,431)
Fair value measured on a nonrecurring basis \| Level 3
Fair value of financial instruments
Long-lived assets held for sale		$ 1,175

Fair Value Measurements - Asset

Fair Value Measurements - Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021	Dec. 28, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity income (loss) from investments in unconsolidated affiliates	$ 334	$ (217)
Level 3 \| Fair value measured on a nonrecurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held for sale			$ 1,175
Long-lived assets held for sale, total gain (loss)	$ 690	(470)
Equity income (loss) from investments in unconsolidated affiliates		(531)
Level 3 \| Fair value measured on a nonrecurring basis \| China Joint Venture
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ownership percentage			40.00%
Level 3 \| Fair value measured on a nonrecurring basis \| China Joint Venture
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity income (loss) from investments in unconsolidated affiliates		$ (500)

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($) $ in Thousands	3 Months Ended
Stock Repurchase Program (Details) - USD ($) $ in Thousands	Mar. 29, 2022	Mar. 17, 2022	May 31, 2019
Stockholders' Equity
Repurchase of common stock authorized by board of directors		$ 300,000	$ 250,000
Payments to repurchase common stock	$ 84,705
Number of shares repurchased	1,060,618
Amount remaining under authorized stock repurchase program	$ 295,000
Stock Repurchase Program [Member]
Stockholders' Equity
Payments to repurchase common stock	5,000
Previous Stock Repurchase Program [Member]
Stockholders' Equity
Payments to repurchase common stock	$ 79,700

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Mar. 29, 2022	Mar. 30, 2021
Segment Information
Revenue	$ 987,486	$ 800,629
Restaurant operating costs (excluding depreciation and amortization)	819,789	647,349
Restaurant margin	161,183	147,574
Restaurant and other sales
Segment Information
Revenue	980,972	794,923
Texas Roadhouse
Segment Information
Restaurant operating costs (excluding depreciation and amortization)	773,261	615,485
Restaurant margin	153,468	141,112
Texas Roadhouse \| Restaurant and other sales
Segment Information
Revenue	926,729	756,597
Bubba's 33
Segment Information
Restaurant operating costs (excluding depreciation and amortization)	43,431	29,682
Restaurant margin	7,794	6,003
Bubba's 33 \| Restaurant and other sales
Segment Information
Revenue	51,225	35,685
Other
Segment Information
Restaurant operating costs (excluding depreciation and amortization)	3,097	2,182
Restaurant margin	(79)	459
Other \| Restaurant and other sales
Segment Information
Revenue	$ 3,018	$ 2,641

Segment Information - Segment A

Segment Information - Segment Assets Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Segment Information
Depreciation and amortization	$ 33,620	$ 30,869
Capital expenditures	49,029	38,666
Texas Roadhouse
Segment Information
Depreciation and amortization	27,541	25,663
Capital expenditures	39,677	31,154
Bubba's 33
Segment Information
Depreciation and amortization	3,190	3,013
Capital expenditures	7,377	5,580
Other
Segment Information
Depreciation and amortization	2,889	2,193
Capital expenditures	$ 1,975	$ 1,932

Segment Information - Consolida

Segment Information - Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2022	Mar. 30, 2021
Segment Information
Restaurant margin	$ 161,183	$ 147,574
Revenue:
Revenue	987,486	800,629
Costs and expenses:
Pre-opening	4,291	4,268
Depreciation and amortization	33,620	30,869
Impairment and closure, net	(646)	504
General and administrative	40,294	36,712
Income from operations	90,138	80,927
Franchise royalties and fees
Revenue:
Revenue	$ 6,514	$ 5,706