Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 27, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 27, 2023 | |
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 | 66,748,428 | |
Entity Central Index Key | 0001289460 | |
Current Fiscal Year End Date | --12-26 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2023 | Dec. 27, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 107,324 | $ 173,861 |
Receivables, net of allowance for doubtful accounts of $51 at June 27, 2023 and $50 at December 27, 2022 | 60,537 | 150,264 |
Inventories, net | 38,121 | 38,015 |
Prepaid income taxes | 1,402 | 5,097 |
Prepaid expenses and other current assets | 25,901 | 29,604 |
Total current assets | 233,285 | 396,841 |
Property and equipment, net of accumulated depreciation of $1,019,637 at June 27, 2023 and $968,036 at December 27, 2022 | 1,360,132 | 1,270,349 |
Operating lease right-of-use assets, net | 662,730 | 630,258 |
Goodwill | 169,684 | 148,732 |
Intangible assets, net of accumulated amortization of $19,426 at June 27, 2023 and $17,905 at December 27, 2022 | 4,986 | 5,607 |
Other assets | 84,174 | 73,878 |
Total assets | 2,514,991 | 2,525,665 |
Current liabilities: | ||
Current portion of operating lease liabilities | 27,015 | 25,490 |
Accounts payable | 120,653 | 105,560 |
Deferred revenue-gift cards | 226,130 | 335,403 |
Accrued wages | 67,164 | 54,544 |
Income taxes payable | 1,963 | 434 |
Accrued taxes and licenses | 40,673 | 35,264 |
Other accrued liabilities | 88,385 | 95,315 |
Total current liabilities | 571,983 | 652,010 |
Operating lease liabilities, net of current portion | 712,800 | 677,874 |
Long-term debt | 50,000 | |
Restricted stock and other deposits | 8,594 | 7,979 |
Deferred tax liabilities, net | 22,454 | 20,979 |
Other liabilities | 100,910 | 89,161 |
Total liabilities | 1,416,741 | 1,498,003 |
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, 66,843,456 and 66,973,311 shares issued and outstanding at June 27, 2023 and December 27, 2022, respectively) | 67 | 67 |
Additional paid-in-capital | 0 | 13,139 |
Retained earnings | 1,082,915 | 999,432 |
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 1,082,982 | 1,012,638 |
Noncontrolling interests | 15,268 | 15,024 |
Total equity | 1,098,250 | 1,027,662 |
Total liabilities and equity | $ 2,514,991 | $ 2,525,665 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2023 | Dec. 27, 2022 |
Condensed Consolidated Balance Sheets | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 51 | $ 50 |
Property and equipment, accumulated depreciation (in dollars) | 1,019,637 | 968,036 |
Intangible assets, accumulated amortization (in dollars) | $ 19,426 | $ 17,905 |
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 | 66,843,456 | 66,973,311 |
Common stock, shares outstanding | 66,843,456 | 66,973,311 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Revenue: | ||||
Total revenue | $ 1,171,203 | $ 1,024,606 | $ 2,345,559 | $ 2,012,092 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Food and beverage | 401,204 | 347,041 | 811,915 | 684,437 |
Labor | 391,337 | 333,042 | 777,156 | 654,913 |
Rent | 17,996 | 16,714 | 35,824 | 33,082 |
Other operating | 171,092 | 152,524 | 338,621 | 296,678 |
Pre-opening | 5,671 | 5,323 | 11,048 | 9,614 |
Depreciation and amortization | 37,413 | 34,420 | 73,640 | 68,040 |
Impairment and closure, net | 78 | 411 | 133 | (235) |
General and administrative | 51,000 | 49,213 | 100,865 | 89,507 |
Total costs and expenses | 1,075,791 | 938,688 | 2,149,202 | 1,836,036 |
Income from operations | 95,412 | 85,918 | 196,357 | 176,056 |
Interest income (expense), net | 996 | (395) | 2,234 | (792) |
Equity income from investments in unconsolidated affiliates | 287 | 545 | 1,042 | 879 |
Income before taxes | 96,695 | 86,068 | 199,633 | 176,143 |
Income tax expense | 12,270 | 11,531 | 26,604 | 24,278 |
Net income including noncontrolling interests | 84,425 | 74,537 | 173,029 | 151,865 |
Less: Net income attributable to noncontrolling interests | 2,154 | 2,118 | 4,371 | 4,244 |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ 82,271 | $ 72,419 | $ 168,658 | $ 147,621 |
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | ||||
Basic | $ 1.23 | $ 1.07 | $ 2.52 | $ 2.16 |
Diluted | $ 1.22 | $ 1.07 | $ 2.51 | $ 2.15 |
Weighted average shares outstanding: | ||||
Basic | 66,974 | 67,654 | 66,995 | 68,370 |
Diluted | 67,229 | 67,890 | 67,261 | 68,631 |
Cash dividends declared per share | $ 0.55 | $ 0.46 | $ 1.10 | $ 0.92 |
Restaurant and other sales | ||||
Revenue: | ||||
Total revenue | $ 1,164,385 | $ 1,018,057 | $ 2,331,968 | $ 1,999,029 |
Franchise royalties and fees | ||||
Revenue: | ||||
Total revenue | $ 6,818 | $ 6,549 | $ 13,591 | $ 13,063 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total Texas Roadhouse, Inc. and Subsidiaries | Common Stock | Additional Paid in Capital | Retained Earnings | Noncontrolling Interests | Total |
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 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 147,621 | 147,621 | 4,244 | 151,865 | ||
Distributions to noncontrolling interest holders | (4,137) | (4,137) | ||||
Acquisition of noncontrolling interest | (1,395) | (1,395) | (340) | (1,735) | ||
Dividends declared | (62,547) | (62,547) | (62,547) | |||
Shares issued under share-based compensation plans including tax effects (in shares) | 302,355 | |||||
Indirect repurchase of shares for minimum tax withholdings | (8,664) | (8,664) | (8,664) | |||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (97,472) | |||||
Repurchase of shares of common stock, including excise tax | (212,859) | $ (2) | (123,057) | (89,800) | $ (212,859) | |
Repurchase of shares of common stock, including excise tax (in shares) | (2,734,005) | (2,734,005) | ||||
Share-based compensation | 18,612 | 18,612 | $ 18,612 | |||
Balance at Jun. 28, 2022 | 938,892 | $ 67 | 938,825 | 15,127 | 954,019 | |
Balance (in shares) at Jun. 28, 2022 | 66,853,296 | |||||
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 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 72,419 | 72,419 | 2,118 | 74,537 | ||
Distributions to noncontrolling interest holders | (2,130) | (2,130) | ||||
Acquisition of noncontrolling interest | (1,395) | (1,395) | (340) | (1,735) | ||
Dividends declared | (30,752) | (30,752) | (30,752) | |||
Shares issued under share-based compensation plans including tax effects (in shares) | 97,387 | |||||
Indirect repurchase of shares for minimum tax withholdings | (2,499) | (2,499) | (2,499) | |||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (30,473) | |||||
Repurchase of shares of common stock, including excise tax | (128,153) | $ (1) | (38,352) | (89,800) | $ (128,153) | |
Repurchase of shares of common stock, including excise tax (in shares) | (1,673,387) | (1,673,387) | ||||
Share-based compensation | 9,492 | 9,492 | $ 9,492 | |||
Balance at Jun. 28, 2022 | 938,892 | $ 67 | 938,825 | 15,127 | 954,019 | |
Balance (in shares) at Jun. 28, 2022 | 66,853,296 | |||||
Balance at Dec. 27, 2022 | 1,012,638 | $ 67 | 13,139 | 999,432 | 15,024 | $ 1,027,662 |
Balance (in shares) at Dec. 27, 2022 | 66,973,311 | 66,973,311 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 168,658 | 168,658 | 4,371 | $ 173,029 | ||
Distributions to noncontrolling interest holders | (4,127) | (4,127) | ||||
Dividends declared | (73,698) | (73,698) | (73,698) | |||
Shares issued under share-based compensation plans including tax effects (in shares) | 256,167 | |||||
Indirect repurchase of shares for minimum tax withholdings | (8,239) | (8,239) | (8,239) | |||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (79,296) | |||||
Repurchase of shares of common stock, including excise tax | (33,121) | (21,644) | (11,477) | $ (33,121) | ||
Repurchase of shares of common stock, including excise tax (in shares) | (306,726) | (306,726) | ||||
Share-based compensation | 16,744 | 16,744 | $ 16,744 | |||
Balance at Jun. 27, 2023 | 1,082,982 | $ 67 | 1,082,915 | 15,268 | $ 1,098,250 | |
Balance (in shares) at Jun. 27, 2023 | 66,843,456 | 66,843,456 | ||||
Balance at Mar. 28, 2023 | 1,055,248 | $ 67 | 6,240 | 1,048,941 | 15,291 | $ 1,070,539 |
Balance (in shares) at Mar. 28, 2023 | 67,000,306 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 82,271 | 82,271 | 2,154 | 84,425 | ||
Distributions to noncontrolling interest holders | (2,177) | (2,177) | ||||
Dividends declared | (36,820) | (36,820) | (36,820) | |||
Shares issued under share-based compensation plans including tax effects (in shares) | 82,547 | |||||
Indirect repurchase of shares for minimum tax withholdings | (2,809) | (2,809) | (2,809) | |||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (25,422) | |||||
Repurchase of shares of common stock, including excise tax | (23,498) | (12,021) | (11,477) | $ (23,498) | ||
Repurchase of shares of common stock, including excise tax (in shares) | (213,975) | (213,975) | ||||
Share-based compensation | 8,590 | $ 8,590 | $ 8,590 | |||
Balance at Jun. 27, 2023 | $ 1,082,982 | $ 67 | $ 1,082,915 | $ 15,268 | $ 1,098,250 | |
Balance (in shares) at Jun. 27, 2023 | 66,843,456 | 66,843,456 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Condensed Consolidated Statements of Stockholders' Equity | ||||
Dividends declared (in dollars per share) | $ 0.55 | $ 0.46 | $ 1.10 | $ 0.92 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2023 | Jun. 28, 2022 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 173,029 | $ 151,865 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,640 | 68,040 |
Deferred income taxes | 1,767 | 3,906 |
Loss on disposition of assets | 3,475 | 1,991 |
Impairment and closure costs | 39 | 386 |
Equity income from investments in unconsolidated affiliates | (1,042) | (879) |
Distributions of income received from investments in unconsolidated affiliates | 358 | 619 |
Provision for doubtful accounts | 1 | 27 |
Share-based compensation expense | 16,744 | 18,612 |
Changes in operating working capital: | ||
Receivables | 90,501 | 115,998 |
Inventories | 303 | 84 |
Prepaid expenses and other current assets | 5,111 | 4,294 |
Other assets | (10,119) | 13,852 |
Accounts payable | 14,365 | 4,301 |
Deferred revenue-gift cards | (110,436) | (93,175) |
Accrued wages | 12,620 | 16,395 |
Prepaid income taxes and income taxes payable | 5,224 | 6,611 |
Accrued taxes and licenses | 5,346 | 1,284 |
Other accrued liabilities | (7,624) | (8,339) |
Operating lease right-of-use assets and lease liabilities | 3,178 | 3,385 |
Other liabilities | 11,753 | (10,554) |
Net cash provided by operating activities | 288,233 | 298,703 |
Cash flows from investing activities: | ||
Capital expenditures-property and equipment | (154,580) | (108,567) |
Acquisition of franchise restaurants, net of cash acquired | (39,153) | (33,069) |
Proceeds from sale of investments in unconsolidated affiliates | 632 | 316 |
Proceeds from the sale of property and equipment | 2,188 | |
Proceeds from sale leaseback transactions | 7,097 | |
Net cash used in investing activities | (186,004) | (139,132) |
Cash flows from financing activities: | ||
Payments on revolving credit facility | (50,000) | (25,000) |
Distributions to noncontrolling interest holders | (4,127) | (4,137) |
Acquisition of noncontrolling interest | (1,735) | |
Proceeds from restricted stock and other deposits, net | 356 | 137 |
Indirect repurchase of shares for minimum tax withholdings | (8,239) | (8,664) |
Repurchase of shares of common stock | (33,058) | (212,859) |
Dividends paid to shareholders | (73,698) | (62,547) |
Net cash used in financing activities | (168,766) | (314,805) |
Net decrease in cash and cash equivalents | (66,537) | (155,234) |
Cash and cash equivalents-beginning of period | 173,861 | 335,645 |
Cash and cash equivalents-end of period | 107,324 | 180,411 |
Supplemental disclosures of cash flow information: | ||
Interest paid, net of amounts capitalized | 638 | 139 |
Income taxes paid | 19,613 | 13,784 |
Capital expenditures included in current liabilities | $ 36,268 | $ 24,906 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 27, 2023 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc., 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, 2023 and December 27, 2022 and for the 13 and 26 weeks ended June 27, 2023 and June 28, 2022. As of June 27, 2023, we owned and operated 614 restaurants and franchised an additional 95 restaurants in 49 states and ten foreign countries. Of the majority-owned restaurants. Of the as Jaggers restaurants. Of the international restaurants. As of June 28, 2022, we owned and operated 582 restaurants and franchised an additional 96 restaurants in 49 states and ten foreign countries. Of the majority-owned restaurants. Of the as Jaggers restaurants. Of the international restaurants. As of June 27, 2023 and June 28, 2022, we owned a 5.0% to 10.0% equity interest in 19 and 23 domestic franchise restaurants, respectively. These 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 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 amounts of property and equipment, goodwill, obligations related to insurance reserves, leases, 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 statements 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 and 26 weeks ended June 27, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 26, 2023. 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 fiscal year ended December 27, 2022. Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 27, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | (2) Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. We adopted this guidance during the 13 weeks ended June 27, 2023 and the adoption did not have a material impact on our unaudited condensed consolidated financial statements. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 27, 2023 | |
Long-term Debt | |
Long-term Debt | (3) Long-term Debt We maintain a revolving credit facility (the "credit facility") with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A. and PNC Bank, N.A. The credit facility is an unsecured, revolving credit agreement and has a borrowing capacity of up to million subject to certain limitations, including approval by the syndicate of lenders. The credit facility has a maturity date of May 1, 2026. On May 19, 2023, we amended the credit facility to provide for the transition from LIBOR to the Secured Overnight Financing Rate ("SOFR") as the benchmark rate for purposes of calculating interest on outstanding borrowings. Pursuant to the amendment, we are required to pay interest on outstanding borrowings at the Term SOFR, plus a fixed adjustment of depending on our leverage ratio. At the time of transition to the Term SOFR, we had no outstanding borrowings under the credit facility. As of June 27, 2023, we had no outstanding balance on the credit facility and had $284.9 million of availability, net of $15.1 million of outstanding letters of credit. As of December 27, 2022, we had million of outstanding letters of credit. The outstanding amount as of December 27, 2022 is included as long-term debt on our unaudited condensed consolidated balance sheet. The interest rate for the credit facility as of June 27, 2023 and June 28, 2022 was 6.07% and 2.13% , respectively. The lenders’ obligation to extend credit pursuant to the credit facility depends on us maintaining certain financial covenants. We were in compliance with all financial covenants as of June 27, 2023. |
Revenue
Revenue | 6 Months Ended |
Jun. 27, 2023 | |
Revenue | |
Revenue | (4) Revenue The following table disaggregates our revenue by major source: 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Restaurant and other sales $ 1,164,385 $ 1,018,057 $ 2,331,968 $ 1,999,029 Franchise royalties 6,045 5,771 12,064 11,470 Franchise fees 773 778 1,527 1,593 Total revenue $ 1,171,203 $ 1,024,606 $ 2,345,559 $ 2,012,092 The following table presents a rollforward of deferred revenue-gift cards: 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Beginning balance $ 240,729 $ 221,479 $ 335,403 $ 300,657 Gift card activations, net 67,991 59,637 118,554 101,661 Gift card redemptions and breakage (82,590) (72,687) (227,827) (193,889) Ending balance $ 226,130 $ 208,429 $ 226,130 $ 208,429 We recognized restaurant sales of $45.5 million and $165.1 million for the 13 and 26 weeks ended June 27, 2023, respectively, related to amounts in deferred revenue as of December 27, 2022. We recognized restaurant sales of million for the 13 and 26 weeks ended June 28, 2022, respectively, related to amounts in deferred revenue as of December 28, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2023 | |
Income Taxes | |
Income Taxes | (5) 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, 2023 and June 28, 2022 is as follows: 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % 21.0 % State and local tax, net of federal benefit 3.7 3.8 3.7 3.8 FICA tip tax credit (11.1) (10.8) (10.6) (10.3) Work opportunity tax credit (1.1) (1.7) (1.1) (1.5) Stock compensation (0.8) 0.2 (0.5) — Net income attributable to noncontrolling interests (0.4) (0.4) (0.4) (0.4) Officers compensation 0.7 0.6 0.7 0.6 Other 0.7 0.7 0.5 0.6 Total 12.7 % 13.4 % 13.3 % 13.8 % Our effective tax rate was 12.7% and 13.4% for the 13 weeks ended June 27, 2023 and June 28, 2022, respectively. Our effective tax rate was for the 26 weeks ended June 27, 2023 and June 28, 2022, respectively. The reductions in our tax rate for the 13 and 26 weeks ended June 27, 2023 as compared to the prior year periods were primarily driven by an increase in the excess tax benefit for stock compensation. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | (6) Commitments and Contingencies The estimated cost of completing capital project commitments at June 27, 2023 and December 27, 2022 was $245.1 million and $205.7 million, respectively. As of June 27, 2023 and December 27, 2022, we were contingently liable for $10.8 million and $11.3 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 June 27, 2023 and December 27, 2022, 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 and 26 weeks ended June 27, 2023, 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 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 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, 2023 | |
Acquisitions | |
Acquisitions | (7) Acquisitions On December 28, 2022, the first day of the 2023 fiscal year, we completed the acquisition of eight franchise Texas Roadhouse restaurants located in Maryland and Delaware, including four in which we previously held a 5.0% equity interest. Pursuant to the terms of the acquisition agreements, we paid a total purchase price of of the entities. The transactions in which we held an equity interest were accounted for as a step acquisition and we recorded a gain of in the unaudited condensed consolidated statements of income . These transactions were accounted for using the acquisition method as defined in Accounting Standards Codification ("ASC") 805, Business Combinations . These acquisitions are consistent with our long-term strategy to increase net income and earnings per share. The following table summarizes the consideration paid for these acquisitions, and the estimated preliminary fair value of the assets acquired, and the liabilities assumed at the acquisition date, which are adjusted for measurement-period adjustments through June 27, 2023. Inventory $ 410 Other assets 293 Property and equipment 17,763 Operating lease right-of-use assets 4,775 Goodwill 20,067 Intangible assets 1,700 Deferred revenue-gift cards (1,164) Current portion of operating lease liabilities (110) Operating lease liabilities, net of current portion (4,665) $ 39,069 The aggregate purchase price is preliminary as we are 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 financial detail and operating results for the 13 and 26 weeks ended June 27, 2023 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. On March 30, 2022, we completed the acquisition of one franchise Texas Roadhouse restaurant located in Nebraska in which we previously held a 5.49% equity interest. Pursuant to the terms of the acquisition agreement, we paid a total purchase price of On December 29, 2021, the first day of the 2022 fiscal year, we completed the acquisition of seven franchise 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 ASC 805, Business Combinations . The following table summarizes the consideration paid for these acquisitions, and the estimated fair value of the assets acquired, and the liabilities assumed at the acquisition date, which are adjusted for final measurement-period adjustments. Inventory $ 321 Other assets 222 Property and equipment 4,841 Operating lease right-of-use assets 1,221 Goodwill 22,616 Intangible assets 6,100 Deferred revenue-gift cards (947) Current portion of operating lease liabilities (47) Operating lease liabilities, net of current portion (1,174) $ 33,153 Intangible assets represent reacquired franchise rights which will be amortized over a weighted-average useful life of 3.4 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 27, 2023 | |
Related Party Transactions | |
Related Party Transactions | (8) Related Party Transactions As of June 27, 2023 and June 28, 2022, 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 The franchise entities paid us fees of |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 27, 2023 | |
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. Performance stock units are not included in the diluted earnings per share calculation until the performance-based criteria have been met. For all periods presented, the weighted-average shares of nonvested stock units that were outstanding but not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect were not significant. 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: 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 82,271 $ 72,419 $ 168,658 $ 147,621 Basic EPS: Weighted-average common shares outstanding 66,974 67,654 66,995 68,370 Basic EPS $ 1.23 $ 1.07 $ 2.52 $ 2.16 Diluted EPS: Weighted-average common shares outstanding 66,974 67,654 66,995 68,370 Dilutive effect of nonvested stock units 255 236 266 261 Shares-diluted 67,229 67,890 67,261 68,631 Diluted EPS $ 1.22 $ 1.07 $ 2.51 $ 2.15 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 27, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | (10) Fair Value Measurements At June 27, 2023 and December 27, 2022, 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 December 27, 2022, the fair value of our credit facility approximated its carrying value since it is a variable rate credit facility (Level 2). There were The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: Fair Value Measurements Level June 27, 2023 December 27, 2022 Deferred compensation plan—assets 1 $ 72,626 $ 61,835 Deferred compensation plan—liabilities 1 $ (72,504) $ (61,668) We report the accounts of the deferred compensation plan 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. The following table presents the fair value of our assets measured on a nonrecurring basis: Fair Value Measurements June 27, December 27, Level 2023 2022 Long-lived assets held for use 3 $ — $ 2,000 Long-lived assets held for use include the land and building for one underperforming restaurant that was impaired to fair value at December 27, 2022 using Level 3 inputs. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 27, 2023 | |
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 and 26 weeks ended June 27, 2023, we paid $23.4 million and $33.1 million to repurchase 213,975 shares and 306,726 shares of our common stock, respectively. For the 13 and 26 weeks ended June 28, 2022, we paid shares of our common stock, respectively. As of June 27, 2023, million remained under our authorized stock repurchase program. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 27, 2023 | |
Segment Information | |
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 primary measure for assessing performance of our segments. Restaurant margin 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 exclude pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results. We 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 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: For the 13 Weeks Ended June 27, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 1,096,252 $ 61,560 $ 6,573 $ 1,164,385 Restaurant operating costs (excluding depreciation and amortization) 924,047 51,928 5,654 981,629 Restaurant margin $ 172,205 $ 9,632 $ 919 $ 182,756 Depreciation and amortization $ 30,768 $ 3,434 $ 3,211 $ 37,413 Capital expenditures 76,455 9,750 1,642 87,847 For the 13 Weeks Ended June 28, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 960,153 $ 54,612 $ 3,292 $ 1,018,057 Restaurant operating costs (excluding depreciation and amortization) 799,102 47,037 3,182 849,321 Restaurant margin $ 161,051 $ 7,575 $ 110 $ 168,736 Depreciation and amortization $ 28,104 $ 3,302 $ 3,014 $ 34,420 Capital expenditures 51,316 6,415 1,807 59,538 For the 26 Weeks Ended June 27, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 2,197,178 $ 122,929 $ 11,861 $ 2,331,968 Restaurant operating costs (excluding depreciation and amortization) 1,847,983 104,844 10,689 1,963,516 Restaurant margin $ 349,195 $ 18,085 $ 1,172 $ 368,452 Depreciation and amortization $ 60,656 $ 6,881 $ 6,103 $ 73,640 Capital expenditures 133,592 16,005 4,983 154,580 For the 26 Weeks Ended June 28, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 1,886,882 $ 105,837 $ 6,310 $ 1,999,029 Restaurant operating costs (excluding depreciation and amortization) 1,572,364 90,469 6,277 1,669,110 Restaurant margin $ 314,518 $ 15,368 $ 33 $ 329,919 Depreciation and amortization $ 55,645 $ 6,492 $ 5,903 $ 68,040 Capital expenditures 90,993 13,792 3,782 108,567 A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest income (expense), net and equity income from investments in unconsolidated affiliates to reportable segments. 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Restaurant margin $ 182,756 $ 168,736 $ 368,452 $ 329,919 Add: Franchise royalties and fees 6,818 6,549 13,591 13,063 Less: Pre-opening 5,671 5,323 11,048 9,614 Depreciation and amortization 37,413 34,420 73,640 68,040 Impairment and closure, net 78 411 133 (235) General and administrative 51,000 49,213 100,865 89,507 Income from operations $ 95,412 $ 85,918 $ 196,357 $ 176,056 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 27, 2023 | |
Recent Accounting Pronouncements | |
Reference Rate Reform | Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 , which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. We adopted this guidance during the 13 weeks ended June 27, 2023 and the adoption did not have a material impact on our unaudited condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
Revenue | |
Schedule of disaggregated revenue | 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Restaurant and other sales $ 1,164,385 $ 1,018,057 $ 2,331,968 $ 1,999,029 Franchise royalties 6,045 5,771 12,064 11,470 Franchise fees 773 778 1,527 1,593 Total revenue $ 1,171,203 $ 1,024,606 $ 2,345,559 $ 2,012,092 |
Schedule of deferred revenue liabilities | 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Beginning balance $ 240,729 $ 221,479 $ 335,403 $ 300,657 Gift card activations, net 67,991 59,637 118,554 101,661 Gift card redemptions and breakage (82,590) (72,687) (227,827) (193,889) Ending balance $ 226,130 $ 208,429 $ 226,130 $ 208,429 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
Income Taxes | |
Schedule of reconciliation of the statutory federal income tax rate to our effective tax rate | 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % 21.0 % State and local tax, net of federal benefit 3.7 3.8 3.7 3.8 FICA tip tax credit (11.1) (10.8) (10.6) (10.3) Work opportunity tax credit (1.1) (1.7) (1.1) (1.5) Stock compensation (0.8) 0.2 (0.5) — Net income attributable to noncontrolling interests (0.4) (0.4) (0.4) (0.4) Officers compensation 0.7 0.6 0.7 0.6 Other 0.7 0.7 0.5 0.6 Total 12.7 % 13.4 % 13.3 % 13.8 % |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
Seven franchise restaurants | |
Summary the consideration paid for the acquisitions, and the estimated fair value of the assets acquired, and the liabilities assumed | Inventory $ 321 Other assets 222 Property and equipment 4,841 Operating lease right-of-use assets 1,221 Goodwill 22,616 Intangible assets 6,100 Deferred revenue-gift cards (947) Current portion of operating lease liabilities (47) Operating lease liabilities, net of current portion (1,174) $ 33,153 |
Eight franchise restaurants | |
Summary the consideration paid for the acquisitions, and the estimated fair value of the assets acquired, and the liabilities assumed | Inventory $ 410 Other assets 293 Property and equipment 17,763 Operating lease right-of-use assets 4,775 Goodwill 20,067 Intangible assets 1,700 Deferred revenue-gift cards (1,164) Current portion of operating lease liabilities (110) Operating lease liabilities, net of current portion (4,665) $ 39,069 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
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: 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 82,271 $ 72,419 $ 168,658 $ 147,621 Basic EPS: Weighted-average common shares outstanding 66,974 67,654 66,995 68,370 Basic EPS $ 1.23 $ 1.07 $ 2.52 $ 2.16 Diluted EPS: Weighted-average common shares outstanding 66,974 67,654 66,995 68,370 Dilutive effect of nonvested stock units 255 236 266 261 Shares-diluted 67,229 67,890 67,261 68,631 Diluted EPS $ 1.22 $ 1.07 $ 2.51 $ 2.15 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
Fair Value Measurements | |
Schedule of fair values for our financial assets and liabilities measured on a recurring basis | The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: Fair Value Measurements Level June 27, 2023 December 27, 2022 Deferred compensation plan—assets 1 $ 72,626 $ 61,835 Deferred compensation plan—liabilities 1 $ (72,504) $ (61,668) |
Schedule of fair value of assets and liabilities measured on a nonrecurring basis | The following table presents the fair value of our assets measured on a nonrecurring basis: Fair Value Measurements June 27, December 27, Level 2023 2022 Long-lived assets held for use 3 $ — $ 2,000 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 27, 2023 | |
Segment Information | |
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: For the 13 Weeks Ended June 27, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 1,096,252 $ 61,560 $ 6,573 $ 1,164,385 Restaurant operating costs (excluding depreciation and amortization) 924,047 51,928 5,654 981,629 Restaurant margin $ 172,205 $ 9,632 $ 919 $ 182,756 Depreciation and amortization $ 30,768 $ 3,434 $ 3,211 $ 37,413 Capital expenditures 76,455 9,750 1,642 87,847 For the 13 Weeks Ended June 28, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 960,153 $ 54,612 $ 3,292 $ 1,018,057 Restaurant operating costs (excluding depreciation and amortization) 799,102 47,037 3,182 849,321 Restaurant margin $ 161,051 $ 7,575 $ 110 $ 168,736 Depreciation and amortization $ 28,104 $ 3,302 $ 3,014 $ 34,420 Capital expenditures 51,316 6,415 1,807 59,538 For the 26 Weeks Ended June 27, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 2,197,178 $ 122,929 $ 11,861 $ 2,331,968 Restaurant operating costs (excluding depreciation and amortization) 1,847,983 104,844 10,689 1,963,516 Restaurant margin $ 349,195 $ 18,085 $ 1,172 $ 368,452 Depreciation and amortization $ 60,656 $ 6,881 $ 6,103 $ 73,640 Capital expenditures 133,592 16,005 4,983 154,580 For the 26 Weeks Ended June 28, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 1,886,882 $ 105,837 $ 6,310 $ 1,999,029 Restaurant operating costs (excluding depreciation and amortization) 1,572,364 90,469 6,277 1,669,110 Restaurant margin $ 314,518 $ 15,368 $ 33 $ 329,919 Depreciation and amortization $ 55,645 $ 6,492 $ 5,903 $ 68,040 Capital expenditures 90,993 13,792 3,782 108,567 |
Schedule of restaurant margin to income from operations | A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest income (expense), net and equity income from investments in unconsolidated affiliates to reportable segments. 13 Weeks Ended 26 Weeks Ended June 27, 2023 June 28, 2022 June 27, 2023 June 28, 2022 Restaurant margin $ 182,756 $ 168,736 $ 368,452 $ 329,919 Add: Franchise royalties and fees 6,818 6,549 13,591 13,063 Less: Pre-opening 5,671 5,323 11,048 9,614 Depreciation and amortization 37,413 34,420 73,640 68,040 Impairment and closure, net 78 411 133 (235) General and administrative 51,000 49,213 100,865 89,507 Income from operations $ 95,412 $ 85,918 $ 196,357 $ 176,056 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 27, 2023 restaurant item | Jun. 28, 2022 restaurant item |
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 | 614 | 582 |
Company-owned | Wholly-owned | ||
Description of Business | ||
Number of restaurants | 594 | 562 |
Company-owned | Majority-owned | ||
Description of Business | ||
Number of restaurants | 20 | 20 |
Franchise | ||
Description of Business | ||
Number of restaurants | 95 | 96 |
Franchise | Domestic | ||
Description of Business | ||
Number of restaurants | 54 | 62 |
Franchise | International | ||
Description of Business | ||
Number of restaurants | 41 | 34 |
Franchise | Unconsolidated | Domestic | Domestic franchise restaurants | ||
Description of Business | ||
Number of restaurants | 19 | 23 |
Franchise | Minimum | Unconsolidated | Domestic franchise restaurants | ||
Description of Business | ||
Ownership percentage | 5% | 5% |
Franchise | Maximum | Unconsolidated | Domestic franchise restaurants | ||
Description of Business | ||
Ownership percentage | 10% | 10% |
Texas Roadhouse | ||
Description of Business | ||
Number of restaurants | 566 | 541 |
Bubba's 33 | ||
Description of Business | ||
Number of restaurants | 41 | 37 |
Jaggers restaurants | ||
Description of Business | ||
Number of restaurants | 7 | 4 |
Long-term Debt (Details)
Long-term Debt (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | May 19, 2023 | Jun. 27, 2023 | Dec. 27, 2022 | Jun. 28, 2022 |
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) | 6.07% | 2.13% | ||
Revolving credit facility, amount outstanding | $ 0 | $ 50 | ||
Revolving credit facility, remaining borrowing capacity | 284.9 | 233.5 | ||
Letters of credit outstanding | $ 15.1 | $ 16.5 | ||
Fixed Adjustment Rate [Member] | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 0.10% | |||
Variable Adjustment Rate [Member] | Minimum | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 0.875% | |||
Variable Adjustment Rate [Member] | Maximum | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 1.875% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Revenue | ||||
Total revenue | $ 1,171,203 | $ 1,024,606 | $ 2,345,559 | $ 2,012,092 |
Restaurant and other sales | ||||
Revenue | ||||
Total revenue | 1,164,385 | 1,018,057 | 2,331,968 | 1,999,029 |
Franchise royalties | ||||
Revenue | ||||
Total revenue | 6,045 | 5,771 | 12,064 | 11,470 |
Franchise fees | ||||
Revenue | ||||
Total revenue | $ 773 | $ 778 | $ 1,527 | $ 1,593 |
Revenue - Other (Details)
Revenue - Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Gift cards | ||||
Revenue | ||||
Deferred revenue recognized | $ 45.5 | $ 39.5 | $ 165.1 | $ 141.6 |
Revenue - Roll forward of defer
Revenue - Roll forward of deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Revenue | ||||
Beginning balance | $ 240,729 | $ 221,479 | $ 335,403 | $ 300,657 |
Gift card activations, net | 67,991 | 59,637 | 118,554 | 101,661 |
Gift card redemptions and breakage | (82,590) | (72,687) | (227,827) | (193,889) |
Ending Balance | $ 226,130 | $ 208,429 | $ 226,130 | $ 208,429 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Reconciliation of the statutory federal income tax rate to our effective tax rate: | ||||
Tax at statutory federal rate (as a percent) | 21% | 21% | 21% | 21% |
State and local tax, net of federal benefit (as a percent) | 3.70% | 3.80% | 3.70% | 3.80% |
FICA tip tax credit (as a percent) | (11.10%) | (10.80%) | (10.60%) | (10.30%) |
Work opportunity tax credit (as a percent) | (1.10%) | (1.70%) | (1.10%) | (1.50%) |
Stock compensation (as a percent) | (0.80%) | 0.20% | (0.50%) | 0% |
Net income attributable to noncontrolling interests (as a percent) | (0.40%) | (0.40%) | (0.40%) | (0.40%) |
Officers compensation (as a percent) | 0.70% | 0.60% | 0.70% | 0.60% |
Other (as a percent) | 0.70% | 0.70% | 0.50% | 0.60% |
Total (as a percent) | 12.70% | 13.40% | 13.30% | 13.80% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 27, 2023 USD ($) item | Dec. 27, 2022 USD ($) item |
Commitments and Contingencies | ||
Estimated cost to complete capital project commitments (in dollars) | $ | $ 245.1 | $ 205.7 |
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 | $ | $ 10.8 | $ 11.3 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2023 USD ($) restaurant | Jun. 28, 2022 USD ($) restaurant | Dec. 27, 2022 USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 169,684 | $ 148,732 | |
One franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | restaurant | 1 | ||
Equity interest percentage | 5.49% | ||
Purchase price paid | $ 6,600 | ||
Outstanding equity percentage | 100% | ||
Step acquisition gain | $ 300 | ||
Seven franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | restaurant | 7 | ||
Purchase price paid | $ 26,500 | ||
Weighted-average life | 3 years 4 months 24 days | ||
Inventory | $ 321 | ||
Other assets | 222 | ||
Property and equipment | 4,841 | ||
Operating lease right-of-use assets | 1,221 | ||
Goodwill | 22,616 | ||
Intangible assets | 6,100 | ||
Deferred revenue-gift cards | (947) | ||
Current portion of operating lease liabilities | (47) | ||
Operating lease liabilities, net of current portion | (1,174) | ||
Total | $ 33,153 | ||
Eight franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | restaurant | 8 | ||
Equity interest percentage | 5% | ||
Purchase price paid | $ 39,100 | ||
Outstanding equity percentage | 100% | ||
Step acquisition gain | $ 600 | ||
Weighted-average life | 2 years 2 months 12 days | ||
Inventory | $ 410 | ||
Other assets | 293 | ||
Property and equipment | 17,763 | ||
Operating lease right-of-use assets | 4,775 | ||
Goodwill | 20,067 | ||
Intangible assets | 1,700 | ||
Deferred revenue-gift cards | (1,164) | ||
Current portion of operating lease liabilities | (110) | ||
Operating lease liabilities, net of current portion | (4,665) | ||
Total | $ 39,069 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 USD ($) restaurant | Jun. 28, 2022 USD ($) restaurant | Jun. 27, 2023 USD ($) restaurant | Jun. 28, 2022 USD ($) restaurant | |
Franchise | ||||
Related Party Transactions | ||||
Number of restaurants | 95 | 96 | 95 | 96 |
Four Franchise Restaurants and One Majority-Owned Company Restaurant [Member] | Franchise fees | ||||
Related Party Transactions | ||||
Fees received from franchise and license restaurants | $ | $ 0.5 | $ 0.5 | $ 1 | $ 0.9 |
Revenues | $ | $ 0.5 | $ 0.5 | $ 1 | $ 0.9 |
Officers, directors and shareholders | Majority-owned | ||||
Related Party Transactions | ||||
Number of restaurants | 1 | 1 | 1 | 1 |
Officers, directors and shareholders | Franchise | ||||
Related Party Transactions | ||||
Number of restaurants | 4 | 4 | 4 | 4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Earnings per share | ||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ 82,271 | $ 72,419 | $ 168,658 | $ 147,621 |
Basic EPS: | ||||
Weighted-average common shares outstanding (in shares) | 66,974 | 67,654 | 66,995 | 68,370 |
Basic EPS (in dollars per share) | $ 1.23 | $ 1.07 | $ 2.52 | $ 2.16 |
Diluted EPS: | ||||
Weighted-average common shares outstanding (in shares) | 66,974 | 67,654 | 66,995 | 68,370 |
Dilutive effect of nonvested stock (in shares) | 255 | 236 | 266 | 261 |
Shares-diluted (in shares) | 67,229 | 67,890 | 67,261 | 68,631 |
Diluted EPS (in dollars per share) | $ 1.22 | $ 1.07 | $ 2.51 | $ 2.15 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 27, 2023 | Jun. 27, 2023 | Dec. 27, 2022 | |
Fair value of financial instruments | |||
Transfer of asset levels within the fair value hierarchy | $ 0 | $ 0 | |
Fair value measured on a recurring basis | Level 1 | |||
Fair value of financial instruments | |||
Deferred compensation plan - assets | 72,626 | 72,626 | $ 61,835 |
Deferred compensation plan - liabilities | $ (72,504) | $ (72,504) | $ (61,668) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets (Details) $ in Thousands | Dec. 27, 2022 USD ($) restaurant |
Property Plant and Equipment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of restaurants | restaurant | 1 |
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 use | $ | $ 2,000 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | Mar. 17, 2022 | May 31, 2019 | |
Stock Repurchase Program | ||||||
Repurchase of common stock authorized by board of directors | $ 300,000 | $ 250,000 | ||||
Payments to repurchase common stock | $ 23,400 | $ 128,100 | $ 33,058 | $ 212,859 | ||
Number of shares repurchased | 213,975 | 1,673,387 | 306,726 | 2,734,005 | ||
Amount remaining under authorized stock repurchase program | $ 133,800 | $ 133,800 |
Segment Information - Segment A
Segment Information - Segment Assets Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Segment Information | ||||
Revenue | $ 1,171,203 | $ 1,024,606 | $ 2,345,559 | $ 2,012,092 |
Restaurant operating costs (excluding depreciation and amortization) | 981,629 | 849,321 | 1,963,516 | 1,669,110 |
Restaurant margin | 182,756 | 168,736 | 368,452 | 329,919 |
Depreciation and amortization | 37,413 | 34,420 | 73,640 | 68,040 |
Capital expenditures-property and equipment | 87,847 | 59,538 | 154,580 | 108,567 |
Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 1,164,385 | 1,018,057 | 2,331,968 | 1,999,029 |
Texas Roadhouse | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 924,047 | 799,102 | 1,847,983 | 1,572,364 |
Restaurant margin | 172,205 | 161,051 | 349,195 | 314,518 |
Depreciation and amortization | 30,768 | 28,104 | 60,656 | 55,645 |
Capital expenditures-property and equipment | 76,455 | 51,316 | 133,592 | 90,993 |
Texas Roadhouse | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 1,096,252 | 960,153 | 2,197,178 | 1,886,882 |
Bubba's 33 | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 51,928 | 47,037 | 104,844 | 90,469 |
Restaurant margin | 9,632 | 7,575 | 18,085 | 15,368 |
Depreciation and amortization | 3,434 | 3,302 | 6,881 | 6,492 |
Capital expenditures-property and equipment | 9,750 | 6,415 | 16,005 | 13,792 |
Bubba's 33 | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 61,560 | 54,612 | 122,929 | 105,837 |
Other | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 5,654 | 3,182 | 10,689 | 6,277 |
Restaurant margin | 919 | 110 | 1,172 | 33 |
Depreciation and amortization | 3,211 | 3,014 | 6,103 | 5,903 |
Capital expenditures-property and equipment | 1,642 | 1,807 | 4,983 | 3,782 |
Other | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | $ 6,573 | $ 3,292 | $ 11,861 | $ 6,310 |
Segment Information - Consolida
Segment Information - Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Segment Information | ||||
Restaurant margin | $ 182,756 | $ 168,736 | $ 368,452 | $ 329,919 |
Revenue: | ||||
Revenue | 1,171,203 | 1,024,606 | 2,345,559 | 2,012,092 |
Costs and expenses: | ||||
Pre-opening | 5,671 | 5,323 | 11,048 | 9,614 |
Depreciation and amortization | 37,413 | 34,420 | 73,640 | 68,040 |
Impairment and closure, net | 78 | 411 | 133 | (235) |
General and administrative | 51,000 | 49,213 | 100,865 | 89,507 |
Income from operations | 95,412 | 85,918 | 196,357 | 176,056 |
Franchise royalties and fees | ||||
Revenue: | ||||
Revenue | $ 6,818 | $ 6,549 | $ 13,591 | $ 13,063 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2023 | Jun. 28, 2022 | Jun. 27, 2023 | Jun. 28, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 82,271 | $ 72,419 | $ 168,658 | $ 147,621 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 27, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |