Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 26, 2023 | Feb. 14, 2024 | Jun. 27, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 26, 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 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 7,271,884,191 | ||
Entity Common Stock, Shares Outstanding | 66,828,113 | ||
Entity Central Index Key | 0001289460 | ||
Current Fiscal Year End Date | --12-26 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Louisville, Kentucky |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 104,246 | $ 173,861 |
Receivables, net of allowance for doubtful accounts of $35 at December 26, 2023 and $50 at December 27, 2022 | 175,474 | 150,264 |
Inventories, net | 38,320 | 38,015 |
Prepaid income taxes | 3,262 | 5,097 |
Prepaid expenses and other current assets | 35,172 | 29,604 |
Total current assets | 356,474 | 396,841 |
Property and equipment, net of accumulated depreciation of $1,078,855 at December 26, 2023 and $968,036 at December 27, 2022 | 1,474,722 | 1,270,349 |
Operating lease right-of-use assets, net | 694,014 | 630,258 |
Goodwill | 169,684 | 148,732 |
Intangible assets, net of accumulated amortization of $20,929 at December 26, 2023 and $17,905 at December 27, 2022 | 3,483 | 5,607 |
Other assets | 94,999 | 73,878 |
Total assets | 2,793,376 | 2,525,665 |
Current liabilities: | ||
Current portion of operating lease liabilities | 27,411 | 25,490 |
Accounts payable | 131,638 | 105,560 |
Deferred revenue-gift cards | 373,913 | 335,403 |
Accrued wages | 68,062 | 54,544 |
Income taxes payable | 112 | 434 |
Accrued taxes and licenses | 42,758 | 35,264 |
Other accrued liabilities | 101,540 | 95,315 |
Total current liabilities | 745,434 | 652,010 |
Operating lease liabilities, net of current portion | 743,476 | 677,874 |
Long-term debt | 0 | 50,000 |
Restricted stock and other deposits | 8,893 | 7,979 |
Deferred tax liabilities, net | 23,104 | 20,979 |
Other liabilities | 114,958 | 89,161 |
Total liabilities | 1,635,865 | 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, 66,789,464 and 66,973,311 shares issued and outstanding at December 26, 2023 and December 27, 2022, respectively) | 67 | 67 |
Additional paid-in-capital | 0 | 13,139 |
Retained earnings | 1,141,595 | 999,432 |
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 1,141,662 | 1,012,638 |
Noncontrolling interests | 15,849 | 15,024 |
Total equity | 1,157,511 | 1,027,662 |
Total liabilities and equity | $ 2,793,376 | $ 2,525,665 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Condensed Consolidated Balance Sheets | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 35 | $ 50 |
Property and equipment, accumulated depreciation (in dollars) | 1,078,855 | 968,036 |
Intangible assets, accumulated amortization (in dollars) | $ 20,929 | $ 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 | 66,789,464 | 66,973,311 |
Common stock, shares outstanding | 66,789,464 | 66,973,311 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Revenue: | |||
Total revenue | $ 4,631,672 | $ 4,014,919 | $ 3,463,946 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | |||
Food and beverage | 1,593,852 | 1,378,192 | 1,156,628 |
Labor | 1,539,124 | 1,319,959 | 1,123,003 |
Rent | 72,766 | 66,834 | 60,005 |
Other operating | 690,848 | 596,305 | 517,808 |
Pre-opening | 29,234 | 21,883 | 24,335 |
Depreciation and amortization | 153,202 | 137,237 | 126,761 |
Impairment and closure, net | 275 | 1,600 | 734 |
General and administrative | 198,382 | 172,712 | 157,480 |
Total costs and expenses | 4,277,683 | 3,694,722 | 3,166,754 |
Income from operations | 353,989 | 320,197 | 297,192 |
Interest income (expense), net | 2,984 | (124) | (3,663) |
Equity income from investments in unconsolidated affiliates | 1,351 | 1,239 | (637) |
Income before taxes | 358,324 | 321,312 | 292,892 |
Income tax expense | 44,649 | 43,715 | 39,578 |
Net income including noncontrolling interests | 313,675 | 277,597 | 253,314 |
Less: Net income attributable to noncontrolling interests | 8,799 | 7,779 | 8,020 |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | 304,876 | 269,818 | 245,294 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment, net of tax of $-, $- and ($36), respectively | 0 | 0 | 106 |
Total comprehensive income | $ 304,876 | $ 269,818 | $ 245,400 |
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | |||
Basic | $ 4.56 | $ 3.99 | $ 3.52 |
Diluted | $ 4.54 | $ 3.97 | $ 3.50 |
Weighted average shares outstanding: | |||
Basic | 66,893 | 67,643 | 69,709 |
Diluted | 67,149 | 67,920 | 70,098 |
Cash dividends declared per share | $ 2.20 | $ 1.84 | $ 1.20 |
Restaurant and other sales | |||
Revenue: | |||
Total revenue | $ 4,604,554 | $ 3,988,791 | $ 3,439,176 |
Franchise royalties and fees | |||
Revenue: | |||
Total revenue | $ 27,118 | $ 26,128 | $ 24,770 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Condensed Consolidated Statements of Income | |||
Foreign currency translation adjustment, tax/(benefit) | $ 0 | $ 0 | $ 36 |
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 | 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 | 245,294 | 245,294 | 8,020 | 253,314 | |||
Other comprehensive income, net of tax | 106 | $ 106 | 106 | ||||
Distributions to noncontrolling interest holders | (8,206) | (8,206) | |||||
Dividends declared | (83,658) | (83,658) | (83,658) | ||||
Shares issued under share-based compensation plans including tax effects (in shares) | 595,534 | ||||||
Indirect repurchase of shares for minimum tax withholdings | (17,628) | (17,628) | (17,628) | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (190,045) | ||||||
Repurchase of shares of common stock | (51,634) | $ (1) | (51,633) | (51,634) | |||
Repurchase of shares of common stock (in shares) | (584,932) | ||||||
Share-based compensation | 38,139 | 38,139 | 38,139 | ||||
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 | 269,818 | 269,818 | 7,779 | 277,597 | |||
Distributions to noncontrolling interest holders | (7,775) | (7,775) | |||||
Acquisition of noncontrolling interest | (1,395) | (1,395) | (340) | (1,735) | |||
Dividends declared | (124,137) | (124,137) | (124,137) | ||||
Shares issued under share-based compensation plans including tax effects (in shares) | 474,771 | ||||||
Indirect repurchase of shares for minimum tax withholdings | (13,576) | (13,576) | (13,576) | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (149,873) | ||||||
Repurchase of shares of common stock | (212,859) | $ (2) | (123,057) | (89,800) | $ (212,859) | ||
Repurchase of shares of common stock (in shares) | (2,734,005) | ||||||
Repurchase of shares of common stock, including excise tax (in shares) | (2,734,005) | ||||||
Share-based compensation | 36,663 | 36,663 | $ 36,663 | ||||
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 | 304,876 | 304,876 | 8,799 | $ 313,675 | |||
Distributions to noncontrolling interest holders | (7,974) | (7,974) | |||||
Dividends declared | (147,182) | (147,182) | (147,182) | ||||
Shares issued under share-based compensation plans including tax effects (in shares) | 391,793 | ||||||
Indirect repurchase of shares for minimum tax withholdings | (12,688) | (12,688) | (12,688) | ||||
Indirect repurchase of shares for minimum tax withholdings (in shares) | (120,614) | ||||||
Repurchase of shares of common stock, including excise tax | (50,212) | (34,681) | (15,531) | $ (50,212) | |||
Repurchase of shares of common stock, including excise tax (in shares) | (455,026) | (455,026) | |||||
Share-based compensation | 34,230 | $ 34,230 | $ 34,230 | ||||
Balance at Dec. 26, 2023 | $ 1,141,662 | $ 67 | $ 1,141,595 | $ 15,849 | $ 1,157,511 | ||
Balance (in shares) at Dec. 26, 2023 | 66,789,464 | 66,789,464 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Condensed Consolidated Statements of Stockholders' Equity | |||
Dividends declared (in dollars per share) | $ 2.20 | $ 1.84 | $ 1.20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Cash flows from operating activities: | |||
Net income including noncontrolling interests | $ 313,675 | $ 277,597 | $ 253,314 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 153,202 | 137,237 | 126,761 |
Deferred income taxes | 3,115 | 9,456 | 8,896 |
Loss on disposition of assets | 3,783 | 5,206 | 3,167 |
Impairment and closure costs | 200 | 1,770 | 673 |
Equity (income) loss from investments in unconsolidated affiliates | (1,351) | (1,239) | 637 |
Distributions of income received from investments in unconsolidated affiliates | 689 | 1,022 | 1,071 |
Provision for doubtful accounts | (14) | 33 | 7 |
Share-based compensation expense | 34,230 | 36,663 | 38,139 |
Changes in operating working capital, net of acquisitions: | |||
Receivables | (24,420) | 11,062 | (62,399) |
Inventories | 105 | (6,099) | (9,231) |
Prepaid expenses and other current assets | (5,612) | (6,540) | (2,485) |
Other assets | (22,617) | 5,775 | (13,918) |
Accounts payable | 23,083 | 5,408 | 27,730 |
Deferred revenue-gift cards | 37,347 | 33,799 | 67,845 |
Accrued wages | 13,518 | (10,172) | 12,734 |
Prepaid income taxes and income taxes payable | 1,514 | 5,953 | (8,973) |
Accrued taxes and licenses | 6,581 | 1,889 | 8,624 |
Other accrued liabilities | (3,460) | 2,147 | 20,352 |
Operating lease right-of-use assets and lease liabilities | 6,313 | 5,268 | 5,553 |
Other liabilities | 25,103 | (4,510) | (9,671) |
Net cash provided by operating activities | 564,984 | 511,725 | 468,826 |
Cash flows from investing activities: | |||
Capital expenditures-property and equipment | (347,034) | (246,121) | (200,692) |
Acquisition of franchise restaurants, net of cash acquired | (39,153) | (33,069) | 0 |
Proceeds from sale of investments in unconsolidated affiliates | 627 | 316 | 0 |
Proceeds from the sale of property and equipment | 2,110 | 2,269 | 0 |
Proceeds from sale leaseback transactions | 16,283 | 12,871 | 5,588 |
Net cash used in investing activities | (367,167) | (263,734) | (195,104) |
Cash flows from financing activities: | |||
Payments on revolving credit facility | (50,000) | (50,000) | (140,000) |
Debt issuance costs | 0 | 0 | (708) |
Distributions to noncontrolling interest holders | (7,974) | (7,775) | (8,206) |
Acquisition of noncontrolling interest | 0 | (1,735) | 0 |
Proceeds from restricted stock and other deposits, net | 405 | 307 | 602 |
Indirect repurchase of shares for minimum tax withholdings | (12,688) | (13,576) | (17,628) |
Repurchase of shares of common stock | (49,993) | (212,859) | (51,634) |
Dividends paid to shareholders | (147,182) | (124,137) | (83,658) |
Net cash used in financing activities | (267,432) | (409,775) | (301,232) |
Net decrease in cash and cash equivalents | (69,615) | (161,784) | (27,510) |
Cash and cash equivalents-beginning of period | 173,861 | 335,645 | 363,155 |
Cash and cash equivalents-end of period | 104,246 | 173,861 | 335,645 |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amounts capitalized | 1,119 | 1,547 | 3,186 |
Income taxes paid | 39,861 | 25,910 | 39,789 |
Capital expenditures included in current liabilities | $ 47,550 | $ 34,689 | $ 23,087 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 26, 2023 | |
Description of Business | |
Description of Business | (1) Description of Business Texas Roadhouse, Inc. and subsidiaries (collectively, the "Company," "we," "our" and/or "us"), is a growing restaurant company operating predominantly in the casual dining segment. Our late founder, W. Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. The Company maintains three restaurant concepts operating as Texas Roadhouse, Bubba’s 33 and Jaggers. As of December 26, 2023, we owned and operated foreign countries. Of the international restaurants. As of December 27, 2022, we owned and operated foreign countries. Of the |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2023 | |
Summary of Significant Accounting Policies. | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements present the financial position, results of operations and cash flows of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of December 26, 2023 and December 27, 2022, we owned a majority interest in 20 company restaurants. The operating results of these majority-owned restaurants are consolidated and the portion of income attributable to noncontrolling interests is reflected in the line item net income attributable to noncontrolling interests in our consolidated statements of income and comprehensive income. As of December 26, 2023 and December 27, 2022, we owned a 5.0% to 10.0% equity interest in 20 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 consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our consolidated statements of income and comprehensive income under equity income (loss) from investments in unconsolidated affiliates. Fiscal Year We utilize a 52 53 week accounting period that typically ends on the last Tuesday in December. We utilize a 13 53 weeks 14 weeks. Fiscal years 2023, 2022 and 2021 were weeks in length. Use of Estimates We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the valuation of property and equipment, goodwill, lease liabilities and right-of-use assets, obligations related to insurance reserves, legal reserves, income taxes and gift card breakage. Actual results could differ from those estimates. Segment Reporting Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ( CODM ) to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company’s operating segments have been identified in accordance with the ASC 280, Segment Reporting . We have identified Texas Roadhouse, Bubba’s 33, Jaggers and our retail initiatives as separate operating segments. In addition, we have identified Texas Roadhouse and Bubba’s 33 as reportable segments. Cash and Cash Equivalents We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents also include receivables from credit card companies as these balances are highly liquid in nature and are settled within two three business days. These amounted to Receivables Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening and other expenses, and franchise restaurants for royalty fees. Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical collection experience, adjusted for current and forecasted economic conditions and other factors such as credit risk or industry trends, and the age of receivables. We review our allowance for doubtful accounts quarterly. Past due balances over are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Inventories Inventories, consisting principally of food, beverages and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight- line method. In most cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods. The estimated useful lives are: Land improvements 10 - 25 years Buildings and leasehold improvements 10 - 25 years Furniture, fixtures and equipment 3 - 10 years The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net. Cloud Computing Arrangements The Company capitalizes cloud computing implementation costs and amortizes these costs on a straight-line basis over the term of the related service agreement, including renewal periods that are reasonably certain to be exercised. Capitalized cloud computing implementation costs were $3.0 million and $1.9 million, net of accumulated amortization, as of December 26, 2023 and December 27, 2022, respectively. These costs are included in prepaid expenses and other current assets and other assets in our consolidated balance sheets. Related amortization expense f is included in general and administrative expenses in our consolidated statements of income and comprehensive income. Leases We recognize operating lease right-of-use assets and operating lease liabilities for real estate leases, including our restaurant leases and Support Center lease, as well as certain restaurant equipment leases based on the present value of the lease payments over the lease term. We estimate the present value based on our incremental borrowing rate which corresponds to the underlying lease term. In addition, operating lease right-of-use assets are reduced for accrued rent and increased for any initial direct costs recognized at lease inception. For real estate and restaurant equipment leases commencing in 2019 and later, we account for lease and non-lease components as a single lease component. Reductions of the right-of-use asset and the changes in the lease liability are included within the changes in operating lease right-of-use assets and lease liabilities in our consolidated statements of cash flows. Certain of our operating leases contain predetermined fixed escalations of the minimum rent over the lease term. For these leases, we recognize the related total rent expense on a straight-line basis over the lease term. We may receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease which we consider when determining straight-line rent expense. We also may receive rent holidays, which would begin on the possession date and end when the store opens, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense. In recognizing straight-line rent expense, we record the difference between amounts charged to operations and amounts paid as accrued rent. Certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense as variable rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. In addition, certain of our operating leases have variable escalations of the minimum rent that depend on an index or rate. For these leases, we recognize operating lease right-of-use assets and operating lease liabilities based on the index or rate at the commencement date. Any subsequent changes to the index or rate are recognized as variable rent expense when the escalation is determinable. Sale-leasebacks are transactions through which we sell previously acquired land at fair value and subsequently enter into a lease agreement on the same land. The resulting lease agreement is evaluated to determine classification as an operating or finance lease and is recorded based on the lease classification. Refer to Note 8 for further discussion of leases. Goodwill Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with ASC 350, Intangibles—Goodwill and Other ASC 350 requires that goodwill be tested for impairment at the reporting unit level, or the level of internal reporting that reflects the way in which an entity manages its businesses. A reporting unit is defined as an operating segment, or one level below an operating segment. Our goodwill reporting units are at the concept level. As stated in ASC 350, an entity may first assess qualitative factors in order to determine if it is necessary to perform the quantitative test. In 2023, 2022 and 2021, we elected to perform a qualitative assessment for our annual review of goodwill. This review included evaluating factors such as macroeconomic conditions, industry and market considerations, cost factors, changes in management or key personnel, sustained decreases in share price and the overall financial performance of the Company’s reporting units at the concept level. As a result of the qualitative assessment, no indicators of impairment were identified, and no additional indicators of impairment were identified through the end of the fiscal year that would require additional testing. In 2023, 2022 and 2021, we determined there was no goodwill impairment. Refer to Note 7 for additional information related to goodwill and intangible assets. Other Assets Other assets consist primarily of deferred compensation plan assets, investments in unconsolidated affiliates and deposits. For further discussion of the deferred compensation plan, refer to Note 15 and Note 16. Impairment or Disposal of Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment , long-lived assets related to each restaurant to be held and used in the business, such as property and equipment, operating lease right-of-use assets and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. For the purposes of this evaluation, we define the asset group at the individual restaurant level. When we evaluate the restaurants, cash flows are the primary indicator of impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12- month cash flow results under a predetermined amount at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its remaining useful life, which can be for a period of over . In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. If the carrying amount of the restaurant exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the estimated fair value of the assets. We generally measure fair value by discounting estimated future cash flows. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. Refer to Note 17 for further discussion of amounts recorded as part of our impairment analysis. Insurance Reserves We self- insure a significant portion of expected losses under our health, workers’ compensation, general liability, employment practices liability, and property insurance programs. We purchase insurance for individual claims that exceed the retention amounts listed below: December 26, 2023 December 27, 2022 Employment practices liability ("EPL") $500,000 $500,000 EPL Class Action $2,500,000 $2,500,000 Workers' compensation $350,000 $350,000 General liability (1) $2,500,000 $2,500,000 Property $250,000 $250,000 Employee healthcare $400,000 $400,000 (1) In addition to the retention amount of $2,500,000 , we have an additional retention corridor that includes claim costs between $5,000,000 and $10,000,000 related to dram shop statutes. We record a liability for unresolved claims and for an estimate of incurred but not reported claims based on historical experience. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances. Revenue Recognition We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, We recognize revenue from company restaurant sales when food and beverage products are sold. Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in the consolidated statements of income and comprehensive income. We record deferred revenue for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. For some of the gift cards that are sold we have determined that, based on our historic gift card redemption patterns, the likelihood of redemption is remote. For these gift cards, we record a breakage adjustment and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine the breakage rate to utilize and recognize the expected breakage amount in a manner generally consistent with the actual redemption pattern of the associated gift card. We review the breakage rate on an annual basis, or sooner if circumstances indicate that the rate may have significantly changed and update the rate accordingly as needed. In addition, we incur fees on all gift cards that are sold through third-party retailers. These fees are also deferred and generally recorded consistent with the actual redemption pattern of the associated gift cards. We also recognize revenue from our franchising of Texas Roadhouse and Jaggers restaurants. This includes franchise royalties and domestic marketing and advertising fees, initial and upfront franchise fees, domestic and international development agreements and supervisory and administrative service fees. We recognize franchise royalties and domestic marketing and advertising fees as franchise restaurant sales occur. For initial and upfront franchise fees and fees from development agreements, because the services we provide related to these fees do not contain separate and distinct performance obligations from the franchise right, these fees are recognized on a straight-line basis over the term of the associated franchise agreement. We recognize fees from supervision and administrative services as incurred. Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes , under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. For all years presented, Advertising We have a domestic system- wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund’s activity for all the years presented. Domestic company and franchise restaurants are required to remit a designated portion of sales to the advertising fund. Advertising contributions related to company restaurants are recorded as a component of other operating costs. Advertising contributions received from our franchisees are recorded as a component of franchise royalties and fees in our consolidated statements of income and comprehensive income. Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income and comprehensive income. These costs and the company restaurant contribution amounted to Pre-opening Expenses Pre-opening expenses, which are charged to operations as incurred, consist of expenses incurred before the opening of a new or relocated restaurant and consist principally of opening team and training team compensation and benefits, travel expenses, rent, food, beverage and other initial supplies and expenses. Comprehensive Income ASC 220, Income Statement—Reporting Comprehensive Income , establishes standards for reporting and the presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and foreign currency translation adjustments which are excluded from net income under GAAP. Foreign currency translation adjustment represents the unrealized impact of translating the financial statements of our foreign investment. Fair Value of Financial Instruments Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820, Fair Value Measurement , establishes a framework for measuring fair value and expands disclosures about fair value measurements. This includes 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. Fair value measurements are separately disclosed by level within the fair value hierarchy. Refer to Note 16 for further discussion of fair value measurement. Recently Adopted Accounting Pronouncements In March 2020, the 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 2023 fiscal year and the adoption did not have an impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. This ASU primarily provides enhanced disclosures about significant segment expenses including requiring segment disclosures to include a description of other segment items by reportable segment and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods as well as the title of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently assessing the impact of this new standard on our segment reporting disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU primarily provides enhanced disclosures about an entity’s income tax including requiring consistent categories and greater disaggregation of the information included in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this update are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. We are currently assessing the impact of this new standard on our income tax disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 26, 2023 | |
Revenue | |
Revenue | (3) Revenue The following table disaggregates our revenue by major source: Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Restaurant and other sales $ 4,604,554 $ 3,988,791 $ 3,439,176 Franchise royalties 24,169 23,058 21,770 Franchise fees 2,949 3,070 3,000 Total revenue $ 4,631,672 $ 4,014,919 $ 3,463,946 The following table presents a rollforward of deferred revenue-gift cards: Fiscal Year Ended December 26, 2023 December 27, 2022 Beginning balance $ 335,403 $ 300,657 Gift card activations, net of third-party fees 420,047 366,606 Gift card redemptions and breakage (381,537) (331,860) Ending balance 373,913 335,403 We recognized restaurant sales of $209.2 million for the year ended December 26, 2023 related to amounts in deferred revenue as of December 27, 2022. We recognized restaurant sales of |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 26, 2023 | |
Acquisitions | |
Acquisitions | (4) 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 step acquisitions and we recorded a gain of These transactions were accounted for using the acquisition method as defined in 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 December 26, 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 are being amortized over a weighted-average useful life of 2.2 years. We expect all of the goodwill 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 year ended December 26, 2023 have not been presented as the results of the acquired restaurants are not material to our 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 are being amortized over a weighted-average useful life of 3.4 years. We expect all of the goodwill 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 year ended December 27, 2022 have not been presented as the results of the acquired restaurants are not material to our consolidated financial position, results of operations or cash flows. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 26, 2023 | |
Long-term Debt | |
Long-term Debt | (5) 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 December 26, 2023, we had no outstanding balance on the credit facility and had $295.3 million of availability, net of $4.7 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 consolidated balance sheet. The interest rate for the credit facility as of December 26, 2023 and December 27, 2022 was 6.23% and 5.21% , respectively. The lenders’ obligation to extend credit pursuant to the credit facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. The credit facility permits us to incur additional secured or unsecured indebtedness, except for the incurrence of secured indebtedness that in the aggregate is equal to or greater than of our consolidated tangible net worth. We were in compliance with all financial covenants as of December 26, 2023 and December 27, 2022. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 26, 2023 | |
Property and Equipment, Net | |
Property and Equipment, Net | (6) Property and Equipment, Net Property and equipment were as follows: December 26, December 27, 2023 2022 Land and improvements $ 165,919 $ 148,220 Buildings and leasehold improvements 1,369,400 1,206,930 Furniture, fixtures and equipment 908,489 797,058 Construction in progress 93,527 73,639 Liquor licenses 16,242 12,538 2,553,577 2,238,385 Accumulated depreciation and amortization (1,078,855) (968,036) $ 1,474,722 $ 1,270,349 For the years ended December 26, 2023, December 27, 2022 and December 28, 2021, the amount of interest capitalized in connection with restaurant construction was $0.5 million, $1.3 million and $0.2 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 26, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | (7) Goodwill and Intangible Assets All of our goodwill and intangible assets reside within the Texas Roadhouse reportable segment. The gross carrying amounts of goodwill and intangible assets were as follows: Goodwill Intangible Assets Balance as of December 28, 2021 $ 127,001 $ 1,520 Additions 21,731 6,900 Amortization expense — (2,813) Balance as of December 27, 2022 $ 148,732 $ 5,607 Additions 20,952 900 Amortization expense — (3,024) Balance as of December 26, 2023 $ 169,684 $ 3,483 Intangible assets consist of reacquired franchise rights. The gross carrying amount and accumulated amortization of the intangible assets at December 26, 2023 were million, respectively. As of December 27, 2022, the gross carrying amount and accumulated amortization of the intangible assets were million, respectively. We amortize reacquired franchise rights on a straight-line basis over the remaining term of the franchise operating agreements, which varies by franchise agreement. Amortization expense for the next four years is expected to range from million. Refer to Note 4 for discussion of the acquisitions completed for the years ended December 26, 2023 and December 27, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2023 | |
Leases | |
Leases | (8) Leases We recognize right-of-use assets and lease liabilities for both real estate and equipment leases that have a term in excess of one year . As of December 26, 2023 and December 27, 2022, these amounts were as follows: December 26, 2023 Real estate Equipment Total Operating lease right-of-use assets $ 686,271 $ 7,743 $ 694,014 Current portion of operating lease liabilities 25,812 1,599 27,411 Operating lease liabilities, net of current portion 740,446 3,030 743,476 Total operating lease liabilities $ 766,258 $ 4,629 $ 770,887 December 27, 2022 Real estate Equipment Total Operating lease right-of-use assets $ 625,164 $ 5,094 $ 630,258 Current portion of operating lease liabilities 23,803 1,687 25,490 Operating lease liabilities, net of current portion 674,468 3,406 677,874 Total operating lease liabilities $ 698,271 $ 5,093 $ 703,364 Information related to our real estate operating leases for the fiscal years ended December 26, 2023 and December 27, 2022 were as follows: Fiscal Year Ended Real estate costs December 26, 2023 December 27, 2022 Operating lease $ 75,068 $ 68,742 Variable lease 5,079 4,393 Total lease costs $ 80,147 $ 73,135 Real estate lease liabilities maturity analysis December 26, 2023 2024 $ 73,511 2025 72,379 2026 72,279 2027 72,690 2028 73,328 Thereafter 968,299 Total $ 1,332,486 Less interest 566,228 Total discounted operating lease liabilities $ 766,258 Fiscal Year Ended Real estate leases other information December 26, 2023 December 27, 2022 Cash paid for amounts included in measurement of operating lease liabilities $ 68,755 $ 63,269 Right-of-use assets obtained in exchange for new operating lease liabilities $ 83,310 $ 54,666 Weighted-average remaining lease term (years) 17.71 17.57 Weighted-average discount rate 6.49 % 6.34 % Operating lease payments exclude $39.2 million of future minimum lease payments for executed real estate leases of which we have not yet taken possession. In addition to the above operating leases, as of December 26, 2023, we had million, respectively. As of December 27, 2022, we had million, respectively. The right-of-use asset balance is included as a component of other assets and the lease liability balance as a component of other liabilities in the consolidated balance sheets. In 2023, we entered into six sale leaseback transactions that generated proceeds of $16.3 million and no gain or loss was recognized on the transactions. In 2022, we entered into million and no gain or loss was recognized on the transactions. The resulting operating leases are included in the operating lease right-of-use assets and lease liabilities noted above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2023 | |
Income Taxes | |
Income Taxes | (9) Income Taxes Components of our income tax expense for the years ended December 26, 2023, December 27, 2022, and December 28, 2021 were as follows: Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Current: Federal $ 21,694 $ 15,549 $ 16,700 State 19,105 18,120 13,539 Foreign 735 590 443 Total current 41,534 34,259 30,682 Deferred: Federal 4,518 9,664 7,391 State (1,403) (208) 1,505 Total deferred 3,115 9,456 8,896 Income tax expense $ 44,649 $ 43,715 $ 39,578 Our pre-tax income is substantially derived from domestic restaurants. A reconciliation of the statutory federal income tax rate to our effective tax rate for December 26, 2023, December 27, 2022, and December 28, 2021 is as follows: Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % State and local tax, net of federal benefit 3.6 3.7 3.8 FICA tip tax credit (11.1) (10.5) (9.3) Work opportunity tax credit (1.0) (1.3) (1.2) Share-based compensation (0.5) (0.1) (1.5) Net income attributable to noncontrolling interests (0.4) (0.4) (0.5) Officers compensation 0.6 0.7 1.1 Other 0.3 0.5 0.1 Total 12.5 % 13.6 % 13.5 % Components of deferred tax liabilities, net were as follows: December 26, 2023 December 27, 2022 Deferred tax assets: Deferred revenue—gift cards $ 32,999 $ 29,889 Insurance reserves 8,351 6,506 Other reserves 1,884 1,060 Share-based compensation 5,241 5,059 Operating lease liabilities 191,422 173,853 Deferred compensation 21,697 17,934 Tax credit carryforwards 45 2,740 Other assets 3,907 2,991 Total deferred tax asset 265,546 240,032 Deferred tax liabilities: Property and equipment (90,638) (82,832) Goodwill and intangibles (9,116) (8,374) Operating lease right-of-use asset (171,999) (155,837) Other liabilities (16,897) (13,968) Total deferred tax liability (288,650) (261,011) Net deferred tax liability $ (23,104) $ (20,979) As of December 27, 2022, we had a tax credit carryforward of $2.7 million primarily related to FICA tip and Work opportunity tax credits that exceeded credit limitations. This federal carryforward was fully utilized during 2023. A reconciliation of the beginning and ending liability for unrecognized tax benefits was as follows: Balance at December 28, 2021 $ 1,528 Additions to tax positions related to prior years 1,545 Additions to tax positions related to current year 872 Reductions due to statute expiration - Reductions due to exam settlement (20) Balance at December 27, 2022 3,925 Additions to tax positions related to prior years 964 Additions to tax positions related to current year 139 Reductions due to statute expiration (246) Reductions due to exam settlement - Balance at December 26, 2023 $ 4,782 As of December 26, 2023 and December 27, 2022, the amount of unrecognized tax benefits that would impact the effective tax rate if recognized was $2.5 million and $2.1 million, respectively. As of December 26, 2023 and December 27, 2022, the total amount of accrued penalties and interest related to uncertain tax provisions was recognized as a part of income tax expense and these amounts were not material. All entities for which unrecognized tax benefits exist as of December 26, 2023 possess a December tax year-end. As a result, as of December 26, 2023, the tax years ended December 27, 2022, December 28, 2021 and December 29, 2020 remain subject to examination by all tax jurisdictions. As of December 26, 2023, no audits were in process by a tax jurisdiction that, if completed during the next twelve months, would be expected to result in a material change to our unrecognized tax benefits. Additionally, as of December 26, 2023, no event occurred that is likely to result in a significant increase or decrease in the unrecognized tax benefits through December 31, 2024. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 26, 2023 | |
Preferred Stock | |
Preferred Stock | (10) Preferred Stock Our Board of Directors (the "Board") is authorized, without further vote or action by the holders of common stock, to issue from time to time up to an aggregate of 1,000,000 shares of preferred stock in one or more series. Each series of preferred stock will have the number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the Board, which may include, but are not limited to, dividend rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. There were |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 26, 2023 | |
Stock Repurchase Program. | |
Stock Repurchase Program | (11) Stock Repurchase Program On March 17, 2022, our 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. 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 year ended December 26, 2023, we paid $50.0 million to repurchase 455,026 shares of our common stock. For the year ended December 27, 2022, we paid shares of our common stock. This included million repurchased under our prior authorization. As of December 26, 2023, we had million remaining under our authorized stock repurchase program. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 26, 2023 | |
Earnings Per Share | |
Earnings Per Share | (12) 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 outstanding 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. Refer to Note 14 for further discussion of our equity incentive plans. 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 as presented in the accompanying consolidated statements of income and comprehensive income: Fiscal Year Ended December 26, December 27, December 28, 2023 2022 2021 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 304,876 $ 269,818 $ 245,294 Basic EPS: Weighted-average common shares outstanding 66,893 67,643 69,709 Basic EPS $ 4.56 $ 3.99 $ 3.52 Diluted EPS: Weighted-average common shares outstanding 66,893 67,643 69,709 Dilutive effect of nonvested stock units 256 277 389 Shares-diluted 67,149 67,920 70,098 Diluted EPS $ 4.54 $ 3.97 $ 3.50 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | (13) Commitments and Contingencies The estimated cost of completing capital project commitments at December 26, 2023 and December 27, 2022 was $237.4 million and $205.7 million, respectively. As of December 26, 2023 and December 27, 2022, we are contingently liable for $10.4 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 liabilities have been recorded as of December 26, 2023 or 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 year ended December 26, 2023, we bought our beef primarily from four suppliers. Although there are a limited number of beef suppliers, we believe that other suppliers could provide a similar product on comparable terms. 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, dram shop statutes 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 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. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 26, 2023 | |
Share-based Compensation | |
Share-based Compensation | (14) Share-based Compensation On May 13, 2021, our shareholders approved the Texas Roadhouse, Inc. 2021 Long-Term Incentive Plan (the "Plan"). The Plan provides for the granting of various forms of equity awards including options, stock appreciation rights, full value awards, and performance-based awards. The Company provides restricted stock units ("RSUs") to employees as a form of share-based compensation. A RSU is the conditional right to receive share of common stock upon satisfaction of the vesting requirement. In addition to RSUs, the Company provides performance stock units ("PSUs") to certain members of management as a form of share-based compensation. A PSU is the conditional right to receive share of common stock upon meeting a performance obligation along with the satisfaction of the vesting requirement. The following table summarizes the share-based compensation recorded in the accompanying consolidated statements of income and comprehensive income: Fiscal Year Ended December 26, December 27, December 28, 2023 2022 2021 Labor expense $ 11,470 $ 10,656 $ 10,323 General and administrative expense 22,760 26,007 27,816 Total share-based compensation expense $ 34,230 $ 36,663 $ 38,139 We recognize expense for RSUs and PSUs over the vesting term based on the grant date fair value of the award. We record forfeitures as they occur. Activity for our share- based compensation by type of grant for the year ended December 26, 2023 is presented below. Summary Details for RSUs Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2022 494,839 $ 84.55 Granted 346,013 103.87 Forfeited (38,111) 90.34 Vested (360,414) 85.48 Outstanding at December 26, 2023 442,327 $ 98.41 0.9 $ 53,602 As of December 26, 2023, with respect to unvested RSUs, there was $20.6 million of unrecognized compensation cost that is expected to be recognized over a weighted-average period of 0.9 years. The vesting terms of all RSUs range from 1.0 to 5.0 years. The total intrinsic value of RSUs vested during the years ended December 26, 2023, December 27, 2022 and December 28, 2021 was $37.8 million, $37.1 million and $54.7 million, respectively. The excess tax benefit associated with vested RSUs for the years ended December 26, 2023, December 27, 2022 and December 28, 2021 was $1.7 million, $0.4 million and $4.3 million, respectively, which was recognized in the income tax provision. Summary Details for PSUs Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2022 29,600 $ 87.52 Granted 40,000 95.76 Performance shares adjustment (1) 6,179 85.46 Forfeited (8,700) 91.85 Vested (31,379) 87.05 Outstanding at December 26, 2023 35,700 $ 94.61 0.1 $ 4,324 (1) Additional shares from the January 2022 PSU grant that vested in January 2023 due to exceeding the initial 100% target. We grant PSUs to certain members of management subject to a one-year vesting and the achievement of certain earnings targets, which determine the number of units to vest at the end of the vesting period. Share-based compensation expense is recognized for the number of units expected to vest at the end of the period and is expensed beginning on the grant date and through the performance period. For each grant, PSUs vest after meeting the performance and service conditions. The total intrinsic value of PSUs vested during the years ended December 26, 2023, December 27, 2022 and December 28, 2021 was On January 8, 2024, approximately 43,000 shares vested related to the January 2023 PSU grant and are expected to be distributed during the 13 weeks ending March 26, 2024. As of December 26, 2023, with respect to unvested PSUs, the amount of unrecognized compensation cost that is expected to be recognized over a weighted-average period of year was not significant. The allowable excess tax benefit associated with vested PSUs for the years ended December 26, 2023, December 27, 2022 and December 28, 2021 was not significant. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | (15) Employee Benefit Plans We have a defined contribution benefit plan ("401(k) Plan") that is available to our Support Center employees and managers in our restaurants who meet certain compensation and eligibility requirements. The 401(k) Plan allows participating employees to defer the receipt of a portion of their compensation and contribute such amount to one or more investment options. Beginning in 2022, we implemented a company match of a certain percentage of the employee contributions to the 401(k) Plan. For the year ended December 26, 2023, company contributions totaling million and $1.8 million were recorded in labor expense and general and administrative expense, respectively, within the consolidated statements of income and comprehensive income. For the year ended December 27, 2022, company contributions totaling We also have a deferred compensation plan which allows highly compensated employees to defer a portion of their compensation and contribute such amounts to one or more investment funds held in a rabbi trust. Beginning in 2023, we implemented a company match of a certain percentage of the employee contributions to the deferred compensation plan. For the year ended December 26, 2023, company contributions totaling million were recorded in labor expense and general and administrative expense, respectively, within the consolidated statements of income and comprehensive income. Refer to Note 16 for further discussion on the fair value measurement of the deferred compensation plan assets and liabilities. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 26, 2023 | |
Fair Value Measurement | |
Fair Value Measurement | (16) Fair Value Measurement At December 26, 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 December 26, 2023 December 27, 2022 Deferred compensation plan—assets 1 $ 81,316 $ 61,835 Deferred compensation plan—liabilities 1 $ (81,222) $ (61,668) We report the accounts of the deferred compensation plan in other assets and the corresponding liability in other liabilities in our 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 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) Fiscal Year Ended December 26, December 27, December 26, December 27, Level 2023 2022 2023 2022 Long-lived assets held for sale 3 $ — $ — $ — $ 690 Long-lived assets held for use 3 $ — $ 2,000 $ — $ (997) Operating lease right-of-use assets 3 $ — $ — $ — $ (708) Long-lived assets held for sale included land and building at a site that relocated. These assets were sold during the fiscal year ended December 27, 2022 and resulted in a gain of million which is included in impairment and closure, net in our consolidated statements of income and comprehensive income. Long-lived assets held for use include the land and building for one underperforming restaurant that was impaired down to fair value in 2022. These assets were valued using a Level 3 input. This impairment, which totaled impairment and closure costs , net in our consolidated statements of income and comprehensive income. For further discussion of impairment charges, refer to Note 17. Operating lease right-of-use assets as of December 27, 2022 includes the lease related assets for two restaurants that were relocated in 2022. These assets were reduced to a fair value of in 2022. This resulted in a loss of |
Impairment and Closure Costs
Impairment and Closure Costs | 12 Months Ended |
Dec. 26, 2023 | |
Impairment and Closure Costs | |
Impairment and Closure Costs | (17) Impairment and Closure Costs We recorded impairment and closure costs of $0.3 million, $1.6 million and $0.7 million for the years ended December 26, 2023, December 27, 2022 and December 28, 2021, respectively. Impairment and closure costs in 2023 included $0.3 million related to ongoing closure costs for stores which have relocated. Impairment and closure costs in 2022 included $1.7 million related to the impairment of the land, building and operating lease right-of-use assets at three restaurants, two of which were relocated and $0.6 million related to ongoing closure costs. This was partially offset by a Impairment and closure costs in 2021 included $0.7 million related to the impairment of the fixed assets and operating lease right-of-use assets at two restaurants, both of which have relocated. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 26, 2023 | |
Related Party Transactions | |
Related Party Transactions | (18) Related Party Transactions As of December 26, 2023, December 27, 2022 and December 28, 2021, we had four franchise restaurants and one majority-owned company restaurant owned in part by a current officer of the Company. We recognized revenue of |
Segment Information
Segment Information | 12 Months Ended |
Dec. 26, 2023 | |
Segment Information | |
Segment Information | (19) 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 and franchise 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 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 CODM to evaluate core 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: Fiscal Year Ended December 26, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 4,331,823 $ 247,195 $ 25,536 $ 4,604,554 Restaurant operating costs (excluding depreciation and amortization) 3,660,665 213,253 22,672 3,896,590 Restaurant margin $ 671,158 $ 33,942 $ 2,864 $ 707,964 Depreciation and amortization $ 126,719 $ 14,210 $ 12,273 $ 153,202 Segment assets 2,290,213 232,086 271,077 2,793,376 Capital expenditures 306,599 27,908 12,527 347,034 Fiscal Year Ended December 27, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 3,762,884 $ 211,690 $ 14,217 $ 3,988,791 Restaurant operating costs (excluding depreciation and amortization) 3,162,687 184,756 13,847 3,361,290 Restaurant margin $ 600,197 $ 26,934 $ 370 $ 627,501 Depreciation and amortization $ 112,546 $ 13,012 $ 11,679 $ 137,237 Segment assets 2,015,173 201,503 308,989 2,525,665 Capital expenditures 204,662 30,625 10,834 246,121 Fiscal Year Ended December 28, 2021 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 3,253,889 $ 174,355 $ 10,932 $ 3,439,176 Restaurant operating costs (excluding depreciation and amortization) 2,701,850 145,493 10,101 2,857,444 Restaurant margin $ 552,039 $ 28,862 $ 831 $ 581,732 Depreciation and amortization $ 105,079 $ 12,700 $ 8,982 $ 126,761 Segment assets 1,874,620 179,856 457,476 2,511,952 Capital expenditures 167,746 23,408 9,538 200,692 A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest income (expense), net and equity income (loss) from investments in unconsolidated affiliates to reportable segments. Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Restaurant margin $ 707,964 $ 627,501 $ 581,732 Add: Franchise royalties and fees 27,118 26,128 24,770 Less: Pre-opening 29,234 21,883 24,335 Depreciation and amortization 153,202 137,237 126,761 Impairment and closure, net 275 1,600 734 General and administrative 198,382 172,712 157,480 Income from operations $ 353,989 $ 320,197 $ 297,192 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2023 | |
Summary of Significant Accounting Policies. | |
Principles of Consolidation | The accompanying consolidated financial statements present the financial position, results of operations and cash flows of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As of December 26, 2023 and December 27, 2022, we owned a majority interest in 20 company restaurants. The operating results of these majority-owned restaurants are consolidated and the portion of income attributable to noncontrolling interests is reflected in the line item net income attributable to noncontrolling interests in our consolidated statements of income and comprehensive income. As of December 26, 2023 and December 27, 2022, we owned a 5.0% to 10.0% equity interest in 20 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 consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our consolidated statements of income and comprehensive income under equity income (loss) from investments in unconsolidated affiliates. |
Fiscal Year | Fiscal Year We utilize a 52 53 week accounting period that typically ends on the last Tuesday in December. We utilize a 13 53 weeks 14 weeks. Fiscal years 2023, 2022 and 2021 were weeks in length. |
Use of Estimates | Use of Estimates We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reporting of revenue and expenses during the period to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the valuation of property and equipment, goodwill, lease liabilities and right-of-use assets, obligations related to insurance reserves, legal reserves, income taxes and gift card breakage. Actual results could differ from those estimates. |
Segment Reporting | Segment Reporting Operating segments are defined as components of a company that engage in business activities from which it may earn revenue and incur expenses, and for which separate financial information is available and is regularly reviewed by the chief operating decision maker ( CODM ) to assess the performance of the individual segments and make decisions about resources to be allocated to the segments. The Company’s operating segments have been identified in accordance with the ASC 280, Segment Reporting . We have identified Texas Roadhouse, Bubba’s 33, Jaggers and our retail initiatives as separate operating segments. In addition, we have identified Texas Roadhouse and Bubba’s 33 as reportable segments. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents also include receivables from credit card companies as these balances are highly liquid in nature and are settled within two three business days. These amounted to |
Receivables | Receivables Receivables consist principally of amounts due from retail gift card providers, certain franchise restaurants for reimbursement of labor costs, pre-opening and other expenses, and franchise restaurants for royalty fees. Receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on historical collection experience, adjusted for current and forecasted economic conditions and other factors such as credit risk or industry trends, and the age of receivables. We review our allowance for doubtful accounts quarterly. Past due balances over are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories Inventories, consisting principally of food, beverages and supplies, are valued at the lower of cost (first-in, first-out) or net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Expenditures for major renewals and betterments are capitalized while expenditures for maintenance and repairs are expensed as incurred. Depreciation is computed on property and equipment, including assets located on leased properties, over the shorter of the estimated useful lives of the related assets or the underlying lease term using the straight- line method. In most cases, assets on leased properties are depreciated over a period of time which includes both the initial term of the lease and one or more option periods. The estimated useful lives are: Land improvements 10 - 25 years Buildings and leasehold improvements 10 - 25 years Furniture, fixtures and equipment 3 - 10 years The cost of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived assets and included in Property and equipment, net. |
Cloud Computing Arrangements | Cloud Computing Arrangements The Company capitalizes cloud computing implementation costs and amortizes these costs on a straight-line basis over the term of the related service agreement, including renewal periods that are reasonably certain to be exercised. Capitalized cloud computing implementation costs were $3.0 million and $1.9 million, net of accumulated amortization, as of December 26, 2023 and December 27, 2022, respectively. These costs are included in prepaid expenses and other current assets and other assets in our consolidated balance sheets. Related amortization expense f is included in general and administrative expenses in our consolidated statements of income and comprehensive income. |
Leases | Leases We recognize operating lease right-of-use assets and operating lease liabilities for real estate leases, including our restaurant leases and Support Center lease, as well as certain restaurant equipment leases based on the present value of the lease payments over the lease term. We estimate the present value based on our incremental borrowing rate which corresponds to the underlying lease term. In addition, operating lease right-of-use assets are reduced for accrued rent and increased for any initial direct costs recognized at lease inception. For real estate and restaurant equipment leases commencing in 2019 and later, we account for lease and non-lease components as a single lease component. Reductions of the right-of-use asset and the changes in the lease liability are included within the changes in operating lease right-of-use assets and lease liabilities in our consolidated statements of cash flows. Certain of our operating leases contain predetermined fixed escalations of the minimum rent over the lease term. For these leases, we recognize the related total rent expense on a straight-line basis over the lease term. We may receive rent concessions or leasehold improvement incentives upon opening a restaurant that is subject to a lease which we consider when determining straight-line rent expense. We also may receive rent holidays, which would begin on the possession date and end when the store opens, during which no cash rent payments are typically due under the terms of the lease. Rent holidays are included in the lease term when determining straight-line rent expense. In recognizing straight-line rent expense, we record the difference between amounts charged to operations and amounts paid as accrued rent. Certain of our operating leases contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense as variable rent expense prior to the achievement of the specified target that triggers the contingent rent, provided achievement of the target is considered probable. In addition, certain of our operating leases have variable escalations of the minimum rent that depend on an index or rate. For these leases, we recognize operating lease right-of-use assets and operating lease liabilities based on the index or rate at the commencement date. Any subsequent changes to the index or rate are recognized as variable rent expense when the escalation is determinable. Sale-leasebacks are transactions through which we sell previously acquired land at fair value and subsequently enter into a lease agreement on the same land. The resulting lease agreement is evaluated to determine classification as an operating or finance lease and is recorded based on the lease classification. Refer to Note 8 for further discussion of leases. |
Goodwill | Goodwill Goodwill represents the excess of cost over fair value of assets of businesses acquired. In accordance with ASC 350, Intangibles—Goodwill and Other ASC 350 requires that goodwill be tested for impairment at the reporting unit level, or the level of internal reporting that reflects the way in which an entity manages its businesses. A reporting unit is defined as an operating segment, or one level below an operating segment. Our goodwill reporting units are at the concept level. As stated in ASC 350, an entity may first assess qualitative factors in order to determine if it is necessary to perform the quantitative test. In 2023, 2022 and 2021, we elected to perform a qualitative assessment for our annual review of goodwill. This review included evaluating factors such as macroeconomic conditions, industry and market considerations, cost factors, changes in management or key personnel, sustained decreases in share price and the overall financial performance of the Company’s reporting units at the concept level. As a result of the qualitative assessment, no indicators of impairment were identified, and no additional indicators of impairment were identified through the end of the fiscal year that would require additional testing. In 2023, 2022 and 2021, we determined there was no goodwill impairment. Refer to Note 7 for additional information related to goodwill and intangible assets. |
Other Assets | Other Assets Other assets consist primarily of deferred compensation plan assets, investments in unconsolidated affiliates and deposits. For further discussion of the deferred compensation plan, refer to Note 15 and Note 16. |
Impairment or Disposal of Long-lived Assets | Impairment or Disposal of Long-lived Assets In accordance with ASC 360, Property, Plant and Equipment , long-lived assets related to each restaurant to be held and used in the business, such as property and equipment, operating lease right-of-use assets and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. For the purposes of this evaluation, we define the asset group at the individual restaurant level. When we evaluate the restaurants, cash flows are the primary indicator of impairment. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the restaurant to estimated undiscounted future cash flows expected to be generated by the restaurant. Under our policies, trailing 12- month cash flow results under a predetermined amount at the individual restaurant level signals potential impairment. In our evaluation of restaurants that do not meet the cash flow threshold, we estimate future undiscounted cash flows from operating the restaurant over its remaining useful life, which can be for a period of over . In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods and expectations of future sales growth. Assumptions about important factors such as the trend of future operations and sales growth are limited to those that are supportable based upon the plans for the restaurant and actual results at comparable restaurants. If the carrying amount of the restaurant exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount exceeds the estimated fair value of the assets. We generally measure fair value by discounting estimated future cash flows. When fair value is measured by discounting estimated future cash flows, the assumptions used are consistent with what we believe hypothetical market participants would use. We also use a discount rate that is commensurate with the risk inherent in the projected cash flows. The adjusted carrying amounts of assets to be held and used are depreciated over their remaining useful life. Refer to Note 17 for further discussion of amounts recorded as part of our impairment analysis. |
Insurance Reserves | Insurance Reserves We self- insure a significant portion of expected losses under our health, workers’ compensation, general liability, employment practices liability, and property insurance programs. We purchase insurance for individual claims that exceed the retention amounts listed below: December 26, 2023 December 27, 2022 Employment practices liability ("EPL") $500,000 $500,000 EPL Class Action $2,500,000 $2,500,000 Workers' compensation $350,000 $350,000 General liability (1) $2,500,000 $2,500,000 Property $250,000 $250,000 Employee healthcare $400,000 $400,000 (1) In addition to the retention amount of $2,500,000 , we have an additional retention corridor that includes claim costs between $5,000,000 and $10,000,000 related to dram shop statutes. We record a liability for unresolved claims and for an estimate of incurred but not reported claims based on historical experience. The estimated liability is based on a number of assumptions and factors regarding economic conditions, the frequency and severity of claims and claim development history and settlement practices. Our assumptions are reviewed, monitored, and adjusted when warranted by changing circumstances. |
Revenue Recognition | Revenue Recognition We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, We recognize revenue from company restaurant sales when food and beverage products are sold. Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in the consolidated statements of income and comprehensive income. We record deferred revenue for gift cards that have been sold but not yet redeemed. When the gift cards are redeemed, we recognize restaurant sales and reduce deferred revenue. For some of the gift cards that are sold we have determined that, based on our historic gift card redemption patterns, the likelihood of redemption is remote. For these gift cards, we record a breakage adjustment and reduce deferred revenue by the amount never expected to be redeemed. We use historic gift card redemption patterns to determine the breakage rate to utilize and recognize the expected breakage amount in a manner generally consistent with the actual redemption pattern of the associated gift card. We review the breakage rate on an annual basis, or sooner if circumstances indicate that the rate may have significantly changed and update the rate accordingly as needed. In addition, we incur fees on all gift cards that are sold through third-party retailers. These fees are also deferred and generally recorded consistent with the actual redemption pattern of the associated gift cards. We also recognize revenue from our franchising of Texas Roadhouse and Jaggers restaurants. This includes franchise royalties and domestic marketing and advertising fees, initial and upfront franchise fees, domestic and international development agreements and supervisory and administrative service fees. We recognize franchise royalties and domestic marketing and advertising fees as franchise restaurant sales occur. For initial and upfront franchise fees and fees from development agreements, because the services we provide related to these fees do not contain separate and distinct performance obligations from the franchise right, these fees are recognized on a straight-line basis over the term of the associated franchise agreement. We recognize fees from supervision and administrative services as incurred. |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes , under which deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying values of assets and liabilities and their respective tax bases. We recognize both interest and penalties on unrecognized tax benefits as part of income tax expense. A valuation allowance is established to reduce the carrying value of deferred tax assets if it is considered more likely than not that such assets will not be realized. Any change in the valuation allowance would be charged to income in the period such determination was made. For all years presented, |
Advertising | Advertising We have a domestic system- wide marketing and advertising fund. We maintain control of the marketing and advertising fund and, as such, have consolidated the fund’s activity for all the years presented. Domestic company and franchise restaurants are required to remit a designated portion of sales to the advertising fund. Advertising contributions related to company restaurants are recorded as a component of other operating costs. Advertising contributions received from our franchisees are recorded as a component of franchise royalties and fees in our consolidated statements of income and comprehensive income. Other costs related to local restaurant area marketing initiatives are included in other operating costs in our consolidated statements of income and comprehensive income. These costs and the company restaurant contribution amounted to |
Pre-opening Expenses | Pre-opening Expenses Pre-opening expenses, which are charged to operations as incurred, consist of expenses incurred before the opening of a new or relocated restaurant and consist principally of opening team and training team compensation and benefits, travel expenses, rent, food, beverage and other initial supplies and expenses. |
Comprehensive Income | Comprehensive Income ASC 220, Income Statement—Reporting Comprehensive Income , establishes standards for reporting and the presentation of comprehensive income and its components in a full set of financial statements. Comprehensive income consists of net income and foreign currency translation adjustments which are excluded from net income under GAAP. Foreign currency translation adjustment represents the unrealized impact of translating the financial statements of our foreign investment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants on the measurement date. ASC 820, Fair Value Measurement , establishes a framework for measuring fair value and expands disclosures about fair value measurements. This includes 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. Fair value measurements are separately disclosed by level within the fair value hierarchy. Refer to Note 16 for further discussion of fair value measurement. |
Recent Accounting Pronouncements | In March 2020, the 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 2023 fiscal year and the adoption did not have an impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. This ASU primarily provides enhanced disclosures about significant segment expenses including requiring segment disclosures to include a description of other segment items by reportable segment and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods as well as the title of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently assessing the impact of this new standard on our segment reporting disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU primarily provides enhanced disclosures about an entity’s income tax including requiring consistent categories and greater disaggregation of the information included in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments in this update are effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. We are currently assessing the impact of this new standard on our income tax disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Summary of Significant Accounting Policies. | |
Schedule of estimated useful lives of property and equipment | Land improvements 10 - 25 years Buildings and leasehold improvements 10 - 25 years Furniture, fixtures and equipment 3 - 10 years |
Schedule of type of individual claims against which there is no insurance purchase | December 26, 2023 December 27, 2022 Employment practices liability ("EPL") $500,000 $500,000 EPL Class Action $2,500,000 $2,500,000 Workers' compensation $350,000 $350,000 General liability (1) $2,500,000 $2,500,000 Property $250,000 $250,000 Employee healthcare $400,000 $400,000 (1) In addition to the retention amount of $2,500,000 , we have an additional retention corridor that includes claim costs between $5,000,000 and $10,000,000 related to dram shop statutes. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Revenue | |
Schedule of disaggregated revenue | Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Restaurant and other sales $ 4,604,554 $ 3,988,791 $ 3,439,176 Franchise royalties 24,169 23,058 21,770 Franchise fees 2,949 3,070 3,000 Total revenue $ 4,631,672 $ 4,014,919 $ 3,463,946 |
Schedule of changes in contract liability | Fiscal Year Ended December 26, 2023 December 27, 2022 Beginning balance $ 335,403 $ 300,657 Gift card activations, net of third-party fees 420,047 366,606 Gift card redemptions and breakage (381,537) (331,860) Ending balance 373,913 335,403 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Seven franchise restaurants | |
Summary the consideration paid for the acquisitions, and the estimated preliminary 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 preliminary 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 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Property and Equipment, Net | |
Schedule of property and equipment | December 26, December 27, 2023 2022 Land and improvements $ 165,919 $ 148,220 Buildings and leasehold improvements 1,369,400 1,206,930 Furniture, fixtures and equipment 908,489 797,058 Construction in progress 93,527 73,639 Liquor licenses 16,242 12,538 2,553,577 2,238,385 Accumulated depreciation and amortization (1,078,855) (968,036) $ 1,474,722 $ 1,270,349 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill and intangible assets | Goodwill Intangible Assets Balance as of December 28, 2021 $ 127,001 $ 1,520 Additions 21,731 6,900 Amortization expense — (2,813) Balance as of December 27, 2022 $ 148,732 $ 5,607 Additions 20,952 900 Amortization expense — (3,024) Balance as of December 26, 2023 $ 169,684 $ 3,483 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Leases | |
Schedule of lease costs | December 26, 2023 Real estate Equipment Total Operating lease right-of-use assets $ 686,271 $ 7,743 $ 694,014 Current portion of operating lease liabilities 25,812 1,599 27,411 Operating lease liabilities, net of current portion 740,446 3,030 743,476 Total operating lease liabilities $ 766,258 $ 4,629 $ 770,887 December 27, 2022 Real estate Equipment Total Operating lease right-of-use assets $ 625,164 $ 5,094 $ 630,258 Current portion of operating lease liabilities 23,803 1,687 25,490 Operating lease liabilities, net of current portion 674,468 3,406 677,874 Total operating lease liabilities $ 698,271 $ 5,093 $ 703,364 |
Schedule of operating leases maturity analysis | Fiscal Year Ended Real estate costs December 26, 2023 December 27, 2022 Operating lease $ 75,068 $ 68,742 Variable lease 5,079 4,393 Total lease costs $ 80,147 $ 73,135 Real estate lease liabilities maturity analysis December 26, 2023 2024 $ 73,511 2025 72,379 2026 72,279 2027 72,690 2028 73,328 Thereafter 968,299 Total $ 1,332,486 Less interest 566,228 Total discounted operating lease liabilities $ 766,258 Fiscal Year Ended Real estate leases other information December 26, 2023 December 27, 2022 Cash paid for amounts included in measurement of operating lease liabilities $ 68,755 $ 63,269 Right-of-use assets obtained in exchange for new operating lease liabilities $ 83,310 $ 54,666 Weighted-average remaining lease term (years) 17.71 17.57 Weighted-average discount rate 6.49 % 6.34 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Income Taxes | |
Schedule of components of our income tax provision | Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Current: Federal $ 21,694 $ 15,549 $ 16,700 State 19,105 18,120 13,539 Foreign 735 590 443 Total current 41,534 34,259 30,682 Deferred: Federal 4,518 9,664 7,391 State (1,403) (208) 1,505 Total deferred 3,115 9,456 8,896 Income tax expense $ 44,649 $ 43,715 $ 39,578 |
Schedule of reconciliation of the statutory federal income tax rate to our effective tax rate | Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Tax at statutory federal rate 21.0 % 21.0 % 21.0 % State and local tax, net of federal benefit 3.6 3.7 3.8 FICA tip tax credit (11.1) (10.5) (9.3) Work opportunity tax credit (1.0) (1.3) (1.2) Share-based compensation (0.5) (0.1) (1.5) Net income attributable to noncontrolling interests (0.4) (0.4) (0.5) Officers compensation 0.6 0.7 1.1 Other 0.3 0.5 0.1 Total 12.5 % 13.6 % 13.5 % |
Schedule of components of deferred tax assets (liabilities) | December 26, 2023 December 27, 2022 Deferred tax assets: Deferred revenue—gift cards $ 32,999 $ 29,889 Insurance reserves 8,351 6,506 Other reserves 1,884 1,060 Share-based compensation 5,241 5,059 Operating lease liabilities 191,422 173,853 Deferred compensation 21,697 17,934 Tax credit carryforwards 45 2,740 Other assets 3,907 2,991 Total deferred tax asset 265,546 240,032 Deferred tax liabilities: Property and equipment (90,638) (82,832) Goodwill and intangibles (9,116) (8,374) Operating lease right-of-use asset (171,999) (155,837) Other liabilities (16,897) (13,968) Total deferred tax liability (288,650) (261,011) Net deferred tax liability $ (23,104) $ (20,979) |
Schedule of reconciliation of the beginning and ending liability for unrecognized tax benefits | Balance at December 28, 2021 $ 1,528 Additions to tax positions related to prior years 1,545 Additions to tax positions related to current year 872 Reductions due to statute expiration - Reductions due to exam settlement (20) Balance at December 27, 2022 3,925 Additions to tax positions related to prior years 964 Additions to tax positions related to current year 139 Reductions due to statute expiration (246) Reductions due to exam settlement - Balance at December 26, 2023 $ 4,782 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Earnings Per Share | |
Schedule of calculation of earnings per share and weighted average shares outstanding | Fiscal Year Ended December 26, December 27, December 28, 2023 2022 2021 Net income attributable to Texas Roadhouse, Inc. and subsidiaries $ 304,876 $ 269,818 $ 245,294 Basic EPS: Weighted-average common shares outstanding 66,893 67,643 69,709 Basic EPS $ 4.56 $ 3.99 $ 3.52 Diluted EPS: Weighted-average common shares outstanding 66,893 67,643 69,709 Dilutive effect of nonvested stock units 256 277 389 Shares-diluted 67,149 67,920 70,098 Diluted EPS $ 4.54 $ 3.97 $ 3.50 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Share-based Compensation | |
Summary of allocation of share-based compensation expense | Fiscal Year Ended December 26, December 27, December 28, 2023 2022 2021 Labor expense $ 11,470 $ 10,656 $ 10,323 General and administrative expense 22,760 26,007 27,816 Total share-based compensation expense $ 34,230 $ 36,663 $ 38,139 |
Summary of restricted stock unit activity | Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2022 494,839 $ 84.55 Granted 346,013 103.87 Forfeited (38,111) 90.34 Vested (360,414) 85.48 Outstanding at December 26, 2023 442,327 $ 98.41 0.9 $ 53,602 |
Summary of performance share units | Weighted-Average Weighted-Average Grant Date Fair Remaining Contractual Aggregate Shares Value Term (years) Intrinsic Value Outstanding at December 27, 2022 29,600 $ 87.52 Granted 40,000 95.76 Performance shares adjustment (1) 6,179 85.46 Forfeited (8,700) 91.85 Vested (31,379) 87.05 Outstanding at December 26, 2023 35,700 $ 94.61 0.1 $ 4,324 (1) Additional shares from the January 2022 PSU grant that vested in January 2023 due to exceeding the initial 100% target. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Fair Value Measurement | |
Schedule of fair values for our financial assets and liabilities measured on a recurring basis | Fair Value Measurements Level December 26, 2023 December 27, 2022 Deferred compensation plan—assets 1 $ 81,316 $ 61,835 Deferred compensation plan—liabilities 1 $ (81,222) $ (61,668) |
Schedule of fair value of assets and liabilities measured on a nonrecurring basis | Fair Value Measurements Total gain (loss) Fiscal Year Ended December 26, December 27, December 26, December 27, Level 2023 2022 2023 2022 Long-lived assets held for sale 3 $ — $ — $ — $ 690 Long-lived assets held for use 3 $ — $ 2,000 $ — $ (997) Operating lease right-of-use assets 3 $ — $ — $ — $ (708) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 26, 2023 | |
Segment Information | |
Schedule to reconcile our segment results to our consolidated results | Fiscal Year Ended December 26, 2023 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 4,331,823 $ 247,195 $ 25,536 $ 4,604,554 Restaurant operating costs (excluding depreciation and amortization) 3,660,665 213,253 22,672 3,896,590 Restaurant margin $ 671,158 $ 33,942 $ 2,864 $ 707,964 Depreciation and amortization $ 126,719 $ 14,210 $ 12,273 $ 153,202 Segment assets 2,290,213 232,086 271,077 2,793,376 Capital expenditures 306,599 27,908 12,527 347,034 Fiscal Year Ended December 27, 2022 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 3,762,884 $ 211,690 $ 14,217 $ 3,988,791 Restaurant operating costs (excluding depreciation and amortization) 3,162,687 184,756 13,847 3,361,290 Restaurant margin $ 600,197 $ 26,934 $ 370 $ 627,501 Depreciation and amortization $ 112,546 $ 13,012 $ 11,679 $ 137,237 Segment assets 2,015,173 201,503 308,989 2,525,665 Capital expenditures 204,662 30,625 10,834 246,121 Fiscal Year Ended December 28, 2021 Texas Roadhouse Bubba's 33 Other Total Restaurant and other sales $ 3,253,889 $ 174,355 $ 10,932 $ 3,439,176 Restaurant operating costs (excluding depreciation and amortization) 2,701,850 145,493 10,101 2,857,444 Restaurant margin $ 552,039 $ 28,862 $ 831 $ 581,732 Depreciation and amortization $ 105,079 $ 12,700 $ 8,982 $ 126,761 Segment assets 1,874,620 179,856 457,476 2,511,952 Capital expenditures 167,746 23,408 9,538 200,692 |
Schedule of restaurant margin to income from operations | Fiscal Year Ended December 26, 2023 December 27, 2022 December 28, 2021 Restaurant margin $ 707,964 $ 627,501 $ 581,732 Add: Franchise royalties and fees 27,118 26,128 24,770 Less: Pre-opening 29,234 21,883 24,335 Depreciation and amortization 153,202 137,237 126,761 Impairment and closure, net 275 1,600 734 General and administrative 198,382 172,712 157,480 Income from operations $ 353,989 $ 320,197 $ 297,192 |
Description of Business (Detail
Description of Business (Details) | Dec. 26, 2023 restaurant item | Dec. 27, 2022 restaurant state country |
Description of Business | ||
Number of Restaurant Concepts | 3 | |
Number of states in which restaurants operate | 49 | 49 |
Number of countries in which restaurants operate | 10 | 10 |
Company-owned | ||
Description of Business | ||
Number of restaurants | 635 | 597 |
Company-owned | Majority-owned | ||
Description of Business | ||
Number of restaurants | 20 | 20 |
Franchise | ||
Description of Business | ||
Number of restaurants | 106 | 100 |
Franchise | Domestic franchise restaurants | ||
Description of Business | ||
Number of restaurants | 58 | |
Franchise | Domestic | ||
Description of Business | ||
Number of restaurants | 62 | |
Franchise | International | ||
Description of Business | ||
Number of restaurants | 48 | 38 |
Franchise | Unconsolidated | Domestic | Domestic franchise restaurants | ||
Description of Business | ||
Number of restaurants | 20 | 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% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 26, 2023 USD ($) restaurant | Dec. 27, 2022 USD ($) restaurant | Dec. 28, 2021 | |
Fiscal Year | |||
Length of fiscal year | 364 days | 364 days | 364 days |
Cash and Cash Equivalents | |||
Cash and cash equivalents included receivables from credit card entity | $ | $ 27.8 | $ 22 | |
Settlement period of credit card receivables, minimum | 2 days | ||
Settlement period of credit card receivables, maximum | 3 days | ||
Receivables | |||
Minimum number of days receivable are past due, warranting individual evaluation for collectability | 120 days | ||
Franchise | |||
Principles of Consolidation | |||
Number of restaurants | 106 | 100 | |
Franchise | Domestic | |||
Principles of Consolidation | |||
Number of restaurants | 62 | ||
Franchise | International | |||
Principles of Consolidation | |||
Number of restaurants | 48 | 38 | |
Franchise | Domestic franchise restaurants | |||
Principles of Consolidation | |||
Number of restaurants | 58 | ||
Company-owned | |||
Principles of Consolidation | |||
Number of restaurants | 635 | 597 | |
Minimum | |||
Fiscal Year | |||
Length of fiscal year | 364 days | ||
Length of fiscal quarter | 91 days | ||
Maximum | |||
Fiscal Year | |||
Length of fiscal year | 371 days | ||
Length of fiscal quarter | 98 days | ||
Unconsolidated | Franchise | Domestic franchise restaurants | Domestic | |||
Principles of Consolidation | |||
Number of restaurants | 20 | 23 | |
Unconsolidated | Minimum | Franchise | Domestic franchise restaurants | |||
Principles of Consolidation | |||
Ownership percentage by entity | 5% | 5% | |
Unconsolidated | Maximum | Franchise | Domestic franchise restaurants | |||
Principles of Consolidation | |||
Ownership percentage by entity | 10% | 10% | |
Majority-owned | Company-owned | |||
Principles of Consolidation | |||
Number of restaurants | 20 | 20 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, PPE (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Impairment of Goodwill | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Minimum | |||
Impairment or Disposal of Long-Lived Assets | |||
Impairment analysis, estimated useful life of operating a restaurant | 20 years | ||
Land improvements | Minimum | |||
Property and Equipment | |||
Estimated useful life | 10 years | ||
Land improvements | Maximum | |||
Property and Equipment | |||
Estimated useful life | 25 years | ||
Buildings and leasehold improvements | Minimum | |||
Property and Equipment | |||
Estimated useful life | 10 years | ||
Buildings and leasehold improvements | Maximum | |||
Property and Equipment | |||
Estimated useful life | 25 years | ||
Furniture, fixtures And equipment | Minimum | |||
Property and Equipment | |||
Estimated useful life | 3 years | ||
Furniture, fixtures And equipment | Maximum | |||
Property and Equipment | |||
Estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Cloud Computing Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Summary of Significant Accounting Policies. | |||
Capitalized cloud computing implementation costs | $ 3 | $ 1.9 | |
Related amortization expense | $ 1.4 | $ 1 | $ 0.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies, Insurance Reserves (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Insurance Reserves | ||
Self-insurance limit, Employee practices liability | $ 500,000,000 | $ 500,000,000 |
Self-insurance limit, Employee practices liability Class Action | 2,500,000,000 | 2,500,000,000 |
Self-insurance limit, Workers compensation | 350,000,000 | 350,000,000 |
Self-insurance limit, General liability | 2,500,000,000 | 2,500,000,000 |
Self-insurance limit, Property | 250,000,000 | 250,000,000 |
Self-insurance limit, Employee healthcare | 400,000,000 | 400,000,000 |
Initial retention amount on general liability | 2,500,000,000 | |
Income Taxes | ||
Deferred Income Tax, Valuation Allowance | 0 | $ 0 |
Minimum | ||
Insurance Reserves | ||
Self-insurance reserve, Additional corridor that includes claim costs | 5,000,000,000 | |
Maximum | ||
Insurance Reserves | ||
Self-insurance reserve, Additional corridor that includes claim costs | $ 10,000,000,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies, Advertising (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Advertising | |||
Company-owned restaurant contribution and other costs related to marketing initiatives | $ 28,300 | $ 25,000 | $ 21,100 |
Foreign currency translation adjustment on impairment of foreign investment | $ 0 | $ 0 | $ 106 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Revenue | |||
Total revenue | $ 4,631,672 | $ 4,014,919 | $ 3,463,946 |
Restaurant and other sales | |||
Revenue | |||
Total revenue | 4,604,554 | 3,988,791 | 3,439,176 |
Franchise royalties | |||
Revenue | |||
Total revenue | 24,169 | 23,058 | 21,770 |
Franchise fees | |||
Revenue | |||
Total revenue | $ 2,949 | $ 3,070 | $ 3,000 |
Revenue - Roll forward of defer
Revenue - Roll forward of deferred revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Revenue | ||
Beginning balance | $ 335,403 | $ 300,657 |
Gift card activations, net | 420,047 | 366,606 |
Gift card redemptions and breakage | (381,537) | (331,860) |
Ending Balance | $ 373,913 | $ 335,403 |
Revenue - Other (Details)
Revenue - Other (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Gift cards | ||
Revenue | ||
Deferred revenue recognized | $ 209.2 | $ 190.5 |
Acquisitions (Details)
Acquisitions (Details) | 12 Months Ended | ||
Dec. 26, 2023 USD ($) restaurant | Dec. 27, 2022 USD ($) | Dec. 28, 2021 USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 169,684,000 | $ 148,732,000 | $ 127,001,000 |
One franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | 1 | ||
Equity interest percentage | 5.49% | ||
Purchase price paid | $ 6.6 | ||
Outstanding equity percentage | 100% | ||
Step acquisition gain | $ 300,000 | ||
Seven franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | 7 | ||
Purchase price paid | $ 26,500,000 | ||
Weighted-average life | 3 years 4 months 24 days | ||
Inventory | $ 321,000 | ||
Other assets | 222,000 | ||
Property and equipment | 4,841,000 | ||
Operating lease right-of-use assets | 1,221,000 | ||
Goodwill | 22,616,000 | ||
Intangible assets | 6,100,000 | ||
Deferred revenue-gift cards | (947,000) | ||
Current portion of operating lease liabilities | (47,000) | ||
Operating lease liabilities, net of current portion | (1,174,000) | ||
Total | $ 33,153,000 | ||
Eight franchise restaurants | |||
Business Acquisition [Line Items] | |||
Number of restaurants acquired | restaurant | 8 | ||
Equity interest percentage | 5% | ||
Purchase price paid | $ 39,100,000 | ||
Outstanding equity percentage | 100% | ||
Step acquisition gain | $ 600,000 | ||
Weighted-average life | 2 years 2 months 12 days | ||
Inventory | $ 410,000,000 | ||
Other assets | 293,000,000 | ||
Property and equipment | 17,763,000,000 | ||
Operating lease right-of-use assets | 4,775,000,000 | ||
Goodwill | 20,067,000,000 | ||
Intangible assets | 1,700,000,000 | ||
Deferred revenue-gift cards | (1,164,000,000) | ||
Current portion of operating lease liabilities | (110,000,000) | ||
Operating lease liabilities, net of current portion | (4,665,000,000) | ||
Total | $ 39,069,000,000 |
Long-term Debt (Details)
Long-term Debt (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | 12 Months Ended | ||
May 19, 2023 | Dec. 26, 2023 | Dec. 27, 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) | 6.23% | 5.21% | |
Revolving credit facility, amount outstanding | $ 50 | ||
Revolving credit facility, remaining borrowing capacity | $ 295.3 | 233.5 | |
Letters of credit outstanding | 4.7 | $ 16.5 | |
Threshold for aggregate secured indebtedness | $ 125 | ||
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth | 20% | ||
Variable 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% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Property and Equipment, Net | |||
Property and Equipment, Gross | $ 2,553,577 | $ 2,238,385 | |
Accumulated depreciation and amortization | (1,078,855) | (968,036) | |
Property, Plant and Equipment, Net | 1,474,722 | 1,270,349 | |
Interest capitalized | 500 | 1,300 | $ 200 |
Land and improvements | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 165,919 | 148,220 | |
Buildings and leasehold improvements | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 1,369,400 | 1,206,930 | |
Furniture, fixtures And equipment | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 908,489 | 797,058 | |
Construction in progress | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | 93,527 | 73,639 | |
Liquor licenses | |||
Property and Equipment, Net | |||
Property and Equipment, Gross | $ 16,242 | $ 12,538 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | $ 148,732,000 | $ 127,001,000 | |
Additions | 20,952,000 | 21,731,000 | |
Impairment | 0 | 0 | $ 0 |
Balance at the end of the period | 169,684,000 | 148,732,000 | 127,001,000 |
Changes in the carrying amount of intangible assets | |||
Balance at the beginning of the period, net | 5,607,000 | 1,520,000 | |
Additions | 900,000 | 6,900,000 | |
Amortization expense | (3,024,000) | (2,813,000) | |
Balance at the end of the period, net | 3,483,000 | 5,607,000 | $ 1,520,000 |
Gross carrying amount | 24,400,000 | 23,500,000 | |
Accumulated amortization | 20,929,000 | $ 17,905,000 | |
Minimum | |||
Changes in the carrying amount of intangible assets | |||
Expected amortization expense for each of the next four years | 0 | ||
Maximum | |||
Changes in the carrying amount of intangible assets | |||
Expected amortization expense for each of the next four years | $ 2,200,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Leases | ||
Term (in years) | 1 year | |
Operating lease right-of-use assets, net | $ 694,014 | $ 630,258 |
Current portion of operating lease liabilities | 27,411 | 25,490 |
Operating lease liabilities, net of current portion | 743,476 | 677,874 |
Total discounted operating lease liabilities | 770,887 | 703,364 |
Real estate | ||
Leases | ||
Operating lease right-of-use assets, net | 686,271 | 625,164 |
Current portion of operating lease liabilities | 25,812 | 23,803 |
Operating lease liabilities, net of current portion | 740,446 | 674,468 |
Total discounted operating lease liabilities | 766,258 | 698,271 |
Equipment | ||
Leases | ||
Operating lease right-of-use assets, net | 7,743 | 5,094 |
Current portion of operating lease liabilities | 1,599 | 1,687 |
Operating lease liabilities, net of current portion | 3,030 | 3,406 |
Total discounted operating lease liabilities | $ 4,629 | $ 5,093 |
Leases - Real estate costs (Det
Leases - Real estate costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Lease costs | ||
Operating lease | $ 75,068 | $ 68,742 |
Variable lease | 5,079 | 4,393 |
Total lease costs | $ 80,147 | $ 73,135 |
Leases - Real estate lease liab
Leases - Real estate lease liability maturity analysis (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Leases | ||
Total discounted operating lease liabilities | $ 770,887 | $ 703,364 |
Real estate | ||
Leases | ||
2024 | 73,511 | |
2025 | 72,379 | |
2026 | 72,279 | |
2027 | 72,690 | |
2028 | 73,328 | |
Thereafter | 968,299 | |
Total | 1,332,486 | |
Less interest | 566,228 | |
Total discounted operating lease liabilities | $ 766,258 | $ 698,271 |
Leases - Real estate leases oth
Leases - Real estate leases other information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 USD ($) item lease | Dec. 27, 2022 USD ($) lease item | Dec. 28, 2021 USD ($) | |
Leases | |||
Cash paid for amounts included in measurement of operating lease liabilities | $ 68,755 | $ 63,269 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 83,310 | $ 54,666 | |
Weighted-average remaining lease term | 17 years 8 months 15 days | 17 years 6 months 25 days | |
Weighted-average discount rate | 6.49% | 6.34% | |
Operating lease not yet taken possession | $ 39,200 | ||
Number of finance leases | lease | 2 | 2 | |
Right-of-use asset | $ 2,000 | $ 2,100 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Lease liability | $ 2,800 | $ 2,700 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
Number of sale leaseback transactions | item | 6 | 4 | |
Proceeds from sale leaseback transactions | $ 16,283 | $ 12,871 | $ 5,588 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Current: | |||
Federal | $ 21,694 | $ 15,549 | $ 16,700 |
State | 19,105 | 18,120 | 13,539 |
Foreign | 735 | 590 | 443 |
Total current | 41,534 | 34,259 | 30,682 |
Deferred: | |||
Federal | 4,518 | 9,664 | 7,391 |
State | $ (1,403) | $ (208) | $ 1,505 |
Reconciliation of the statutory federal income tax rate to our effective tax rate: | |||
Tax at statutory federal rate (as a percent) | 21% | 21% | 21% |
State and local tax, net of federal benefit (as a percent) | 3.60% | 3.70% | 3.80% |
FICA tip tax credit (as a percent) | (11.10%) | (10.50%) | (9.30%) |
Work opportunity tax credit (as a percent) | (1.00%) | (1.30%) | (1.20%) |
Stock compensation (as a percent) | (0.50%) | (0.10%) | (1.50%) |
Net income attributable to noncontrolling interests (as a percent) | (0.40%) | (0.40%) | (0.50%) |
Officers compensation | 0.60% | 0.70% | 1.10% |
Other (as a percent) | 0.30% | 0.50% | 0.10% |
Total (as a percent) | 12.50% | 13.60% | 13.50% |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 26, 2023 | Dec. 27, 2022 |
Deferred tax assets: | ||
Deferred revenue-gift cards | $ 32,999 | $ 29,889 |
Insurance reserves | 8,351 | 6,506 |
Other reserves | 1,884 | 1,060 |
Share-based compensation | 5,241 | 5,059 |
Operating lease liabilities | 191,422 | 173,853 |
Deferred compensation | 21,697 | 17,934 |
Tax credit carryforwards | 45 | 2,740 |
Other assets | 3,907 | 2,991 |
Total deferred tax asset | 265,546 | 240,032 |
Deferred tax liabilities: | ||
Property and equipment | (90,638) | (82,832) |
Goodwill and intangibles | (9,116) | (8,374) |
Operating lease right-of-use asset | (171,999) | (155,837) |
Other liabilities | (16,897) | (13,968) |
Total deferred tax liability | (288,650) | (261,011) |
Net deferred tax liability | $ (23,104) | (20,979) |
Federal Tax | ||
Deferred tax assets: | ||
Tax credit carryforwards | $ 2,700 |
Income Taxes (Unrecognized) (De
Income Taxes (Unrecognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Reconciliation of the beginning and ending liability for unrecognized tax benefits: | ||
Balance at the beginning of the period | $ 3,925 | $ 1,528 |
Additions to tax positions related to prior years | 964 | 1,545 |
Additions to tax positions related to current year | 139 | 872 |
Reductions due to statute expiration | (246) | |
Reductions due to exam settlement | (20) | |
Balance at the end of the period | 4,782 | 3,925 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 2,500 | $ 2,100 |
Preferred Stock (Details)
Preferred Stock (Details) | Dec. 26, 2023 item shares | Dec. 27, 2022 item shares |
Preferred Stock | ||
Number of preferred stock shares authorized to issue | 1,000,000 | 1,000,000 |
Minimum number of series of preferred stock authorized | item | 1 | 1 |
Number of shares of preferred stock outstanding | 0 | 0 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | Mar. 17, 2022 | |
Stockholders' Equity | ||||
Repurchase of common stock authorized by board of directors | $ 300,000 | |||
Payments to repurchase common stock | $ 49,993 | $ 212,859 | $ 51,634 | |
Number of shares repurchased | 455,026 | 2,734,005 | ||
Amount remaining under authorized stock repurchase program | $ 116,900 | |||
Stock Repurchase Program | ||||
Stockholders' Equity | ||||
Payments to repurchase common stock | $ 133,100 | |||
Previous Stock Repurchase Program | ||||
Stockholders' Equity | ||||
Payments to repurchase common stock | $ 79,700 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Earnings per share | |||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ 304,876 | $ 269,818 | $ 245,294 |
Basic EPS: | |||
Weighted-average common shares outstanding (in shares) | 66,893 | 67,643 | 69,709 |
Basic EPS (in dollars per share) | $ 4.56 | $ 3.99 | $ 3.52 |
Diluted EPS: | |||
Weighted-average common shares outstanding (in shares) | 66,893 | 67,643 | 69,709 |
Dilutive effect of nonvested stock units (in shares) | 256 | 277 | 389 |
Shares-diluted (in shares) | 67,149 | 67,920 | 70,098 |
Diluted EPS (in dollars per share) | $ 4.54 | $ 3.97 | $ 3.50 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 26, 2023 USD ($) item | Dec. 27, 2022 USD ($) item |
Commitments and Contingencies | ||
Estimated cost to complete capital project commitments (in dollars) | $ | $ 237.4 | $ 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 | $ | $ 10.4 | $ 11.3 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Share-based Compensation | |||
Share-based compensation expense | $ 34,230 | $ 36,663 | $ 38,139 |
Labor expense | |||
Share-based Compensation | |||
Share-based compensation expense | 11,470 | 10,656 | 10,323 |
General and administrative expense | |||
Share-based Compensation | |||
Share-based compensation expense | $ 22,760 | $ 26,007 | $ 27,816 |
Share-based Compensation, RSU a
Share-based Compensation, RSU and PSU (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 08, 2024 | Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
RSUs | ||||
Share-based Compensation | ||||
Number of common shares that a holder would receive upon satisfaction of the vesting requirement (in shares) | 1 | |||
Shares | ||||
Outstanding at the beginning of the period (in shares) | 494,839 | |||
Granted (in shares) | 346,013 | |||
Forfeited (in shares) | (38,111) | |||
Vested (in shares) | (360,414) | |||
Outstanding at the end of period (in shares) | 442,327 | 494,839 | ||
Weighted-Average Grant Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 84.55 | |||
Granted (in dollars per share) | 103.87 | |||
Forfeited (in dollars per share) | 90.34 | |||
Vested (in dollars per share) | 85.48 | |||
Outstanding at the end of the period (in dollars per share) | $ 98.41 | $ 84.55 | ||
Weighted-Average Remaining Contractual Term (years) | ||||
Weighted-Average Remaining Contractual Term | 10 months 24 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period (in dollars) | $ 53,602 | |||
Unrecognized compensation cost | ||||
Unrecognized compensation cost of unvested stock awards (in dollars) | $ 20,600 | |||
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards | 10 months 24 days | |||
Share-based Compensation, other disclosures | ||||
Intrinsic value of awards vested (in dollars) | $ 37,800 | $ 37,100 | $ 54,700 | |
Excess tax benefit recognized within the income tax provision | $ 1,700 | $ 400 | 4,300 | |
RSUs | Minimum | ||||
Share-based Compensation, other disclosures | ||||
Vesting period | 1 year | |||
RSUs | Maximum | ||||
Share-based Compensation, other disclosures | ||||
Vesting period | 5 years | |||
PSUs | ||||
Share-based Compensation | ||||
Number of common shares that a holder would receive upon meeting a performance obligation and vesting requirement (in shares) | 1 | |||
Shares | ||||
Outstanding at the beginning of the period (in shares) | 29,600 | |||
Granted (in shares) | 40,000 | |||
Incremental Performance Shares (in shares) | 6,179 | |||
Forfeited (in shares) | (8,700) | |||
Vested (in shares) | (43,000) | (31,379) | ||
Outstanding at the end of period (in shares) | 35,700 | 29,600 | ||
Weighted-Average Grant Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 87.52 | |||
Granted (in dollars per share) | 95.76 | |||
Incremental Performance Shares (in dollars per share) | 85.46 | |||
Forfeited (in dollars per share) | 91.85 | |||
Vested (in dollars per share) | 87.05 | |||
Outstanding at the end of the period (in dollars per share) | $ 94.61 | $ 87.52 | ||
Weighted-Average Remaining Contractual Term (years) | ||||
Weighted-Average Remaining Contractual Term | 1 month 6 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period (in dollars) | $ 4,324 | |||
Unrecognized compensation cost | ||||
Expected weighted-average period of recognition of unrecognized compensation cost of unvested awards | 1 month 6 days | |||
Share-based Compensation, other disclosures | ||||
Vesting period | 1 year | |||
Intrinsic value of awards vested (in dollars) | $ 3,300 | $ 5,400 | $ 400 |
Share-based Compensation - PSU
Share-based Compensation - PSU (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 08, 2024 | Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Share-based Compensation | ||||
Expense compensation | $ 34,230 | $ 36,663 | $ 38,139 | |
RSUs | ||||
Share-based Compensation | ||||
Intrinsic value of awards vested (in dollars) | $ 37,800 | 37,100 | 54,700 | |
Vested (in shares) | 360,414 | |||
Granted (in shares) | 346,013 | |||
Unrecognized compensation cost of unvested stock awards (in dollars) | $ 20,600 | |||
Unrecognized Compensation Cost Recognized Weighted Average Period | 10 months 24 days | |||
RSUs | Minimum | ||||
Share-based Compensation | ||||
Vesting period | 1 year | |||
RSUs | Maximum | ||||
Share-based Compensation | ||||
Vesting period | 5 years | |||
PSUs | ||||
Share-based Compensation | ||||
Vesting period | 1 year | |||
Intrinsic value of awards vested (in dollars) | $ 3,300 | $ 5,400 | $ 400 | |
Vested (in shares) | 43,000 | 31,379 | ||
Granted (in shares) | 40,000 | |||
Incremental Performance Shares (in shares) | 6,179 | |||
Unrecognized Compensation Cost Recognized Weighted Average Period | 1 month 6 days |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Labor Cost | ||
Contribution expense | $ 1.6 | |
Labor Cost | Defined Contribution Benefit Plan | ||
Contribution expense | 7.1 | $ 5.4 |
General and administrative expense | ||
Contribution expense | 1.5 | |
General and administrative expense | Defined Contribution Benefit Plan | ||
Contribution expense | $ 1.8 | $ 1.6 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2023 | Dec. 27, 2022 | |
Fair value of financial instruments | ||
Transfer of asset levels within the fair value hierarchy | $ 0 | |
Fair value measured on a recurring basis | Level 1 | ||
Fair value of financial instruments | ||
Deferred compensation plan - assets | 81,316 | $ 61,835 |
Deferred compensation plan - liabilities | $ (81,222) | $ (61,668) |
Fair Value Measurement - Assets
Fair Value Measurement - Assets (Details) | 12 Months Ended | ||
Dec. 26, 2023 USD ($) | Dec. 27, 2022 USD ($) restaurant | Dec. 28, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring, Settlement and Impairment Provisions | ||
Impairment | $ 0 | $ 0 | $ 0 |
Property Plant and Equipment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of restaurants | restaurant | 1 | ||
Operating Lease Right-of-Use Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of restaurants | restaurant | 2 | ||
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 | $ 2,000,000 | ||
Long-lived assets held for use, total gain (loss) | 997,000 | ||
Long-lived assets held for sale, total gain (loss) | 690,000 | ||
Long-lived assets held for sale. total gain (loss) | 700,000 | ||
Operating lease right-of-use assets, total gain (loss) | (708,000) | ||
Assets reduced to fair value | $ 0 |
Impairment and Closure Costs (D
Impairment and Closure Costs (Details) | 12 Months Ended | ||
Dec. 26, 2023 USD ($) | Dec. 27, 2022 USD ($) restaurant | Dec. 28, 2021 USD ($) restaurant | |
Impairment and Closure Costs | |||
Impairment and closure, net | $ 275,000 | $ 1,600,000 | $ 734,000 |
Impairment of goodwill | 0 | 0 | 0 |
Ongoing closure costs | $ 300,000 | 600,000 | |
Gain on sale of land and building | $ 700,000 | ||
Impairment And Closures, Three Restaurants [Member] | |||
Impairment and Closure Costs | |||
Number of Restaurants | restaurant | 3 | ||
Impairment And Closures, Two Restaurants [Member] | |||
Impairment and Closure Costs | |||
Asset Impairment Charges | $ 1,700,000 | $ 700,000 | |
Number of Restaurants | restaurant | 2 | ||
Number of restaurants relocated | restaurant | 2 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended | ||
Dec. 26, 2023 USD ($) restaurant | Dec. 27, 2022 USD ($) restaurant | Dec. 28, 2021 USD ($) restaurant | |
Franchise | |||
Related Party Transactions | |||
Number of restaurants | 106 | 100 | |
Officers, directors and shareholders | |||
Related Party Transactions | |||
Number of restaurants | 4 | 4 | 4 |
Officers, directors and shareholders | Majority-owned | |||
Related Party Transactions | |||
Number of restaurants | 1 | 1 | 1 |
Officers, directors and shareholders | Franchise | |||
Related Party Transactions | |||
Fees received from franchise and license restaurants | $ | $ 2 | $ 1.8 | $ 1.7 |
Segment Information - Segment A
Segment Information - Segment Assets Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Segment Information | |||
Revenue | $ 4,631,672 | $ 4,014,919 | $ 3,463,946 |
Restaurant operating costs (excluding depreciation and amortization) | 3,896,590 | 3,361,290 | 2,857,444 |
Restaurant margin | 707,964 | 627,501 | 581,732 |
Depreciation and amortization | 153,202 | 137,237 | 126,761 |
Segment assets | 2,793,376 | 2,525,665 | 2,511,952 |
Capital expenditures | 347,034 | 246,121 | 200,692 |
Restaurant and other sales | |||
Segment Information | |||
Revenue | 4,604,554 | 3,988,791 | 3,439,176 |
Texas Roadhouse | |||
Segment Information | |||
Restaurant operating costs (excluding depreciation and amortization) | 3,660,665 | 3,162,687 | 2,701,850 |
Restaurant margin | 671,158 | 600,197 | 552,039 |
Depreciation and amortization | 126,719 | 112,546 | 105,079 |
Segment assets | 2,290,213 | 2,015,173 | 1,874,620 |
Capital expenditures | 306,599 | 204,662 | 167,746 |
Texas Roadhouse | Restaurant and other sales | |||
Segment Information | |||
Revenue | 4,331,823 | 3,762,884 | 3,253,889 |
Bubba's 33 | |||
Segment Information | |||
Restaurant operating costs (excluding depreciation and amortization) | 213,253 | 184,756 | 145,493 |
Restaurant margin | 33,942 | 26,934 | 28,862 |
Depreciation and amortization | 14,210 | 13,012 | 12,700 |
Segment assets | 232,086 | 201,503 | 179,856 |
Capital expenditures | 27,908 | 30,625 | 23,408 |
Bubba's 33 | Restaurant and other sales | |||
Segment Information | |||
Revenue | 247,195 | 211,690 | 174,355 |
Other | |||
Segment Information | |||
Restaurant operating costs (excluding depreciation and amortization) | 22,672 | 13,847 | 10,101 |
Restaurant margin | 2,864 | 370 | 831 |
Depreciation and amortization | 12,273 | 11,679 | 8,982 |
Segment assets | 271,077 | 308,989 | 457,476 |
Capital expenditures | 12,527 | 10,834 | 9,538 |
Other | Restaurant and other sales | |||
Segment Information | |||
Revenue | $ 25,536 | $ 14,217 | $ 10,932 |
Segment Information - Consolida
Segment Information - Consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2023 | Dec. 27, 2022 | Dec. 28, 2021 | |
Segment Information | |||
Restaurant margin | $ 707,964 | $ 627,501 | $ 581,732 |
Revenue: | |||
Revenue | 4,631,672 | 4,014,919 | 3,463,946 |
Costs and expenses: | |||
Pre-opening | 29,234 | 21,883 | 24,335 |
Depreciation and amortization | 153,202 | 137,237 | 126,761 |
Impairment and closure, net | 275 | 1,600 | 734 |
General and administrative | 198,382 | 172,712 | 157,480 |
Income from operations | 353,989 | 320,197 | 297,192 |
Franchise royalties and fees | |||
Revenue: | |||
Revenue | $ 27,118 | $ 26,128 | $ 24,770 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 26, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans In accordance with the disclosure requirement set forth in Item 408 of Regulation S-K, the following table discloses any executive officer or director who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934 that adopted a Rule 10b5-1 trading arrangement during the 13 weeks ended December 26, 2023. These trading arrangements are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). Name Title Adoption Date End Date (1) Aggregate Number of Securities to be Sold Hernan E. Mujica Chief Technology Officer 11/22/2023 3/12/2024 1,740 (1) A trading plan may expire on such earlier date that all transactions under the trading plan are completed. Other than as disclosed above, no other executive officer or director adopted, modified or terminated a Rule 10b5-1 or a non-Rule 10b5-1 trading arrangement during the 13 weeks ended December 26, 2023. |
Name | Hernan E. Mujica |
Title | Chief Technology Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 11/22/2023 |
Aggregate Available | 1,740 |
Expiration Date | 3/12/2024 |