Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 25, 2024 | Jul. 24, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 25, 2024 | |
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 Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,676,650 | |
Entity Central Index Key | 0001289460 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 25, 2024 | Dec. 26, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 197,454 | $ 104,246 |
Receivables, net of allowance for doubtful accounts of $27 at June 25, 2024 and $35 at December 26, 2023 | 68,599 | 175,474 |
Inventories, net | 41,199 | 38,320 |
Prepaid income taxes | 0 | 3,262 |
Prepaid expenses and other current assets | 26,034 | 35,172 |
Total current assets | 333,286 | 356,474 |
Property and equipment, net of accumulated depreciation of $1,155,242 at June 25, 2024 and $1,078,855 at December 26, 2023 | 1,523,393 | 1,474,722 |
Operating lease right-of-use assets, net | 726,378 | 694,014 |
Goodwill | 169,684 | 169,684 |
Intangible assets, net of accumulated amortization of $22,039 at June 25, 2024 and $20,929 at December 26, 2023 | 2,374 | 3,483 |
Other assets | 106,796 | 94,999 |
Total assets | 2,861,911 | 2,793,376 |
Current liabilities: | ||
Current portion of operating lease liabilities | 28,308 | 27,411 |
Accounts payable | 136,789 | 131,638 |
Deferred revenue-gift cards | 250,485 | 373,913 |
Accrued wages | 84,920 | 68,062 |
Income taxes payable | 6,073 | 112 |
Accrued taxes and licenses | 45,580 | 42,758 |
Other accrued liabilities | 92,172 | 101,540 |
Total current liabilities | 644,327 | 745,434 |
Operating lease liabilities, net of current portion | 779,517 | 743,476 |
Restricted stock and other deposits | 9,617 | 8,893 |
Deferred tax liabilities, net | 17,733 | 23,104 |
Other liabilities | 133,027 | 114,958 |
Total liabilities | 1,584,221 | 1,635,865 |
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, 66,727,898 and 66,789,464 shares issued and outstanding at June 25, 2024 and December 26, 2023, respectively) | 67 | 67 |
Retained earnings | 1,262,569 | 1,141,595 |
Total Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 1,262,636 | 1,141,662 |
Noncontrolling interests | 15,054 | 15,849 |
Total equity | 1,277,690 | 1,157,511 |
Total liabilities and equity | $ 2,861,911 | $ 2,793,376 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 25, 2024 | Dec. 26, 2023 |
Condensed Consolidated Balance Sheets | ||
Receivables, allowance for doubtful accounts (in dollars) | $ 27 | $ 35 |
Property and equipment, accumulated depreciation (in dollars) | 1,155,242 | 1,078,855 |
Intangible assets, accumulated amortization (in dollars) | $ 22,039 | $ 20,929 |
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 | 66,727,898 | 66,789,464 |
Common stock, shares outstanding | 66,727,898 | 66,789,464 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Revenue: | ||||
Total revenue | $ 1,341,202 | $ 1,171,203 | $ 2,662,419 | $ 2,345,559 |
Restaurant operating costs (excluding depreciation and amortization shown separately below): | ||||
Food and beverage | 436,001 | 401,204 | 881,092 | 811,915 |
Labor | 438,212 | 391,337 | 865,759 | 777,156 |
Rent | 19,956 | 17,996 | 39,381 | 35,824 |
Other operating | 196,862 | 171,092 | 390,504 | 338,621 |
Pre-opening | 6,202 | 5,671 | 14,297 | 11,048 |
Depreciation and amortization | 42,915 | 37,413 | 84,408 | 73,640 |
Impairment and closure, net | 90 | 78 | 291 | 133 |
General and administrative | 58,148 | 51,000 | 110,743 | 100,865 |
Total costs and expenses | 1,198,386 | 1,075,791 | 2,386,475 | 2,149,202 |
Income from operations | 142,816 | 95,412 | 275,944 | 196,357 |
Interest income, net | 1,683 | 996 | 3,091 | 2,234 |
Equity income from investments in unconsolidated affiliates | 286 | 287 | 543 | 1,042 |
Income before taxes | 144,785 | 96,695 | 279,578 | 199,633 |
Income tax expense | 21,710 | 12,270 | 40,513 | 26,604 |
Net income including noncontrolling interests | 123,075 | 84,425 | 239,065 | 173,029 |
Less: Net income attributable to noncontrolling interests | 2,934 | 2,154 | 5,718 | 4,371 |
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ 120,141 | $ 82,271 | $ 233,347 | $ 168,658 |
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | ||||
Basic | $ 1.80 | $ 1.23 | $ 3.49 | $ 2.52 |
Diluted | $ 1.79 | $ 1.22 | $ 3.48 | $ 2.51 |
Weighted average shares outstanding: | ||||
Basic | 66,785 | 66,974 | 66,814 | 66,995 |
Diluted | 67,044 | 67,229 | 67,077 | 67,261 |
Cash dividends declared per share | $ 0.61 | $ 0.55 | $ 1.22 | $ 1.10 |
Restaurant and other sales | ||||
Revenue: | ||||
Total revenue | $ 1,333,642 | $ 1,164,385 | $ 2,647,794 | $ 2,331,968 |
Franchise royalties and fees | ||||
Revenue: | ||||
Total revenue | $ 7,560 | $ 6,818 | $ 14,625 | $ 13,591 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Total Texas Roadhouse, Inc. and Subsidiaries | Common Stock | Additional Paid in Capital | Retained Earnings | Noncontrolling Interests | Total |
Balance at Dec. 27, 2022 | $ 1,012,638,000 | $ 67,000 | $ 13,139,000 | $ 999,432,000 | $ 15,024,000 | $ 1,027,662,000 |
Balance (in shares) at Dec. 27, 2022 | 66,973,311 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 168,658,000 | $ 0 | 0 | 168,658,000 | 4,371,000 | 173,029,000 |
Distributions to noncontrolling interest holders | 0 | 0 | 0 | 0 | (4,127,000) | (4,127,000) |
Dividends declared | (73,698,000) | 0 | 0 | (73,698,000) | 0 | (73,698,000) |
Shares issued under share-based compensation plans including tax effects | 0 | $ 0 | 0 | 0 | 0 | 0 |
Shares issued under share-based compensation plans including tax effects (in shares) | 256,167 | |||||
Indirect repurchase of shares for minimum tax withholdings | (8,239,000) | $ 0 | (8,239,000) | 0 | 0 | (8,239,000) |
Indirect repurchase of shares for minimum tax withholdings (in shares) | (79,296) | |||||
Repurchase of shares of common stock, including excise tax as applicable | (33,121,000) | $ 0 | (21,644,000) | (11,477,000) | 0 | $ (33,121,000) |
Repurchase of shares of common stock, including excise tax as applicable (in shares) | (306,726) | (306,726) | ||||
Share-based compensation | 16,744,000 | $ 0 | 16,744,000 | 0 | 0 | $ 16,744,000 |
Balance at Jun. 27, 2023 | 1,082,982,000 | $ 67,000 | 0 | 1,082,915,000 | 15,268,000 | 1,098,250,000 |
Balance (in shares) at Jun. 27, 2023 | 66,843,456 | |||||
Balance at Mar. 28, 2023 | 1,055,248,000 | $ 67,000 | 6,240,000 | 1,048,941,000 | 15,291,000 | 1,070,539,000 |
Balance (in shares) at Mar. 28, 2023 | 67,000,306 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 82,271,000 | $ 0 | 0 | 82,271,000 | 2,154,000 | 84,425,000 |
Distributions to noncontrolling interest holders | 0 | 0 | 0 | 0 | (2,177,000) | (2,177,000) |
Dividends declared | (36,820,000) | 0 | 0 | (36,820,000) | 0 | (36,820,000) |
Shares issued under share-based compensation plans including tax effects | 0 | $ 0 | 0 | 0 | 0 | 0 |
Shares issued under share-based compensation plans including tax effects (in shares) | 82,547 | |||||
Indirect repurchase of shares for minimum tax withholdings | (2,809,000) | $ 0 | (2,809,000) | 0 | 0 | (2,809,000) |
Indirect repurchase of shares for minimum tax withholdings (in shares) | (25,422) | |||||
Repurchase of shares of common stock, including excise tax as applicable | (23,498,000) | $ 0 | (12,021,000) | (11,477,000) | 0 | $ (23,498,000) |
Repurchase of shares of common stock, including excise tax as applicable (in shares) | (213,975) | (213,975) | ||||
Share-based compensation | 8,590,000 | $ 0 | 8,590,000 | 0 | 0 | $ 8,590,000 |
Balance at Jun. 27, 2023 | 1,082,982,000 | $ 67,000 | 0 | 1,082,915,000 | 15,268,000 | 1,098,250,000 |
Balance (in shares) at Jun. 27, 2023 | 66,843,456 | |||||
Balance at Dec. 26, 2023 | 1,141,662,000 | $ 67,000 | 0 | 1,141,595,000 | 15,849,000 | $ 1,157,511,000 |
Balance (in shares) at Dec. 26, 2023 | 66,789,464 | 66,789,464 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 233,347,000 | $ 0 | 0 | 233,347,000 | 5,718,000 | $ 239,065,000 |
Distributions to noncontrolling interest holders | 0 | 0 | 0 | 0 | (5,625,000) | (5,625,000) |
Acquisition of noncontrolling interest | (3,274,000) | 0 | (3,274,000) | 0 | (888,000) | (4,162,000) |
Dividends declared | (81,509,000) | 0 | 0 | (81,509,000) | 0 | (81,509,000) |
Shares issued under share-based compensation plans including tax effects | 0 | $ 0 | 0 | 0 | 0 | 0 |
Shares issued under share-based compensation plans including tax effects (in shares) | 234,784 | |||||
Indirect repurchase of shares for minimum tax withholdings | (10,829,000) | $ 0 | (10,829,000) | 0 | 0 | (10,829,000) |
Indirect repurchase of shares for minimum tax withholdings (in shares) | (73,684) | |||||
Repurchase of shares of common stock, including excise tax as applicable | (35,139,000) | $ 0 | (4,275,000) | (30,864,000) | 0 | $ (35,139,000) |
Repurchase of shares of common stock, including excise tax as applicable (in shares) | (222,666) | (222,666) | ||||
Share-based compensation | 18,378,000 | $ 0 | 18,378,000 | 0 | 0 | $ 18,378,000 |
Balance at Jun. 25, 2024 | 1,262,636,000 | $ 67,000 | 0 | 1,262,569,000 | 15,054,000 | $ 1,277,690,000 |
Balance (in shares) at Jun. 25, 2024 | 66,727,898 | 66,727,898 | ||||
Balance at Mar. 26, 2024 | 1,207,186,000 | $ 67,000 | 0 | 1,207,119,000 | 15,930,000 | $ 1,223,116,000 |
Balance (in shares) at Mar. 26, 2024 | 66,846,291 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 120,141,000 | $ 0 | 0 | 120,141,000 | 2,934,000 | 123,075,000 |
Distributions to noncontrolling interest holders | 0 | 0 | 0 | 0 | (2,922,000) | (2,922,000) |
Acquisition of noncontrolling interest | (3,274,000) | 0 | (3,274,000) | 0 | (888,000) | (4,162,000) |
Dividends declared | (40,718,000) | 0 | 0 | (40,718,000) | 0 | (40,718,000) |
Shares issued under share-based compensation plans including tax effects | 0 | $ 0 | 0 | 0 | 0 | 0 |
Shares issued under share-based compensation plans including tax effects (in shares) | 63,525 | |||||
Indirect repurchase of shares for minimum tax withholdings | (3,356,000) | $ 0 | (3,356,000) | 0 | 0 | (3,356,000) |
Indirect repurchase of shares for minimum tax withholdings (in shares) | (19,514) | |||||
Repurchase of shares of common stock, including excise tax as applicable | (26,198,000) | $ 0 | (2,225,000) | (23,973,000) | 0 | $ (26,198,000) |
Repurchase of shares of common stock, including excise tax as applicable (in shares) | (162,404) | (162,404) | ||||
Share-based compensation | 8,855,000 | $ 0 | 8,855,000 | 0 | 0 | $ 8,855,000 |
Balance at Jun. 25, 2024 | $ 1,262,636,000 | $ 67,000 | $ 0 | $ 1,262,569,000 | $ 15,054,000 | $ 1,277,690,000 |
Balance (in shares) at Jun. 25, 2024 | 66,727,898 | 66,727,898 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Condensed Consolidated Statements of Stockholders' Equity | ||||
Dividends declared (in dollars per share) | $ 0.61 | $ 0.55 | $ 1.22 | $ 1.10 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2024 | Jun. 27, 2023 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 239,065 | $ 173,029 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 84,408 | 73,640 |
Deferred income taxes | (4,254) | 1,767 |
Loss on disposition of assets | 1,646 | 3,475 |
Impairment and closure costs | 26 | 39 |
Equity income from investments in unconsolidated affiliates | (543) | (1,042) |
Distributions of income received from investments in unconsolidated affiliates | 541 | 358 |
Provision for doubtful accounts | (8) | 1 |
Share-based compensation expense | 18,378 | 16,744 |
Changes in operating working capital, net of acquisitions: | ||
Receivables | 106,883 | 90,501 |
Inventories | (2,879) | 303 |
Prepaid expenses and other current assets | 9,138 | 5,111 |
Other assets | (10,377) | (10,119) |
Accounts payable | 11,293 | 14,365 |
Deferred revenue-gift cards | (123,428) | (110,436) |
Accrued wages | 16,858 | 12,620 |
Prepaid income taxes and income taxes payable | 9,220 | 5,224 |
Accrued taxes and licenses | 3,338 | 5,346 |
Other accrued liabilities | (3,540) | (7,624) |
Operating lease right-of-use assets and lease liabilities | 3,515 | 3,178 |
Other liabilities | 18,067 | 11,753 |
Net cash provided by operating activities | 377,347 | 288,233 |
Cash flows from investing activities: | ||
Capital expenditures-property and equipment | (155,478) | (154,580) |
Acquisition of franchise restaurants, net of cash acquired | 0 | (39,153) |
Proceeds from sale of investments in unconsolidated affiliates | 0 | 632 |
Proceeds from the sale of property and equipment | 197 | 0 |
Proceeds from sale leaseback transactions | 9,126 | 7,097 |
Net cash used in investing activities | (146,155) | (186,004) |
Cash flows from financing activities: | ||
Payments on revolving credit facility | 0 | (50,000) |
Distributions to noncontrolling interest holders | (5,625) | (4,127) |
Acquisition of noncontrolling interest | (5,279) | 0 |
Proceeds from restricted stock and other deposits, net | 397 | 356 |
Indirect repurchase of shares for minimum tax withholdings | (10,829) | (8,239) |
Repurchase of shares of common stock | (35,139) | (33,058) |
Dividends paid to shareholders | (81,509) | (73,698) |
Net cash used in financing activities | (137,984) | (168,766) |
Net increase (decrease) in cash and cash equivalents | 93,208 | (66,537) |
Cash and cash equivalents-beginning of period | 104,246 | 173,861 |
Cash and cash equivalents-end of period | 197,454 | 107,324 |
Supplemental disclosures of cash flow information: | ||
Interest paid, net of amounts capitalized | 454 | 638 |
Income taxes paid | 35,768 | 19,613 |
Capital expenditures included in current liabilities | $ 35,565 | $ 36,268 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 25, 2024 | |
Description of Business | |
Basis of Presentation | (1) Basis of Presentation ​ The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc., our wholly owned subsidiaries and subsidiaries in which we have a controlling interest (collectively, the "Company," "we," "our" and/or "us") as of June 25, 2024 and December 26, 2023 and for the 13 and 26 weeks ended June 25, 2024 and June 27, 2023. ​ The Company maintains three restaurant concepts operating as Texas Roadhouse, Bubba’s 33, and Jaggers. As of June 25, 2024, we owned and operated foreign countries. Of the in a U.S. territory. As of June 27, 2023, we owned and operated foreign countries. Of the ​ As of June 25, 2024 and June 27, 2023, we owned a majority interest in 19 and 20 company restaurants, respectively. 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 unaudited condensed consolidated statements of income. ​ As of June 25, 2024 and June 27, 2023, we owned a 5.0% to 10.0% equity interest in 20 domestic franchise restaurants. These unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our unaudited condensed consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our unaudited condensed consolidated statements of income under equity income from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the entities whose accounts have been consolidated have been eliminated. ​ We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reporting of revenue and expenses during the periods to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the 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. ​ In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our unaudited condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, except that certain information and footnotes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. Operating results for the 13 and 26 weeks ended June 25, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2023. ​ Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate. ​ |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 25, 2024 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | ​ (2) Recent Accounting Pronouncements ​ In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure. This ASU ) 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 and expect to provide additional detail and disclosures under this new guidance. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU primarily requires 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 and expect to provide additional detail and disclosures under this new guidance. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 25, 2024 | |
Long-term Debt | |
Long-term Debt | (3) Long-term Debt ​ We maintain a revolving credit facility (the "credit facility") with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A. and PNC Bank, N.A. The credit facility is an unsecured, revolving credit agreement and has a borrowing capacity of up to million subject to certain limitations, including approval by the syndicate of commercial lenders. The credit facility has a maturity date of May 1, 2026. ​ We are required to pay interest on outstanding borrowings at the Term Secured Overnight Financing Rate ("SOFR"), plus a fixed adjustment of 0.10% and a variable adjustment of 0.875% to 1.875% depending on our consolidated leverage ratio. ​ As of June 25, 2024 and December 26, 2023, we had no outstanding borrowings under the credit facility and had $295.3 million of availability, net of $4.7 million of outstanding letters of credit. ​ The interest rate for the credit facility as of June 25, 2024 and June 27, 2023 was 6.21% and 6.07% , 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 $125.0 million and 20% of our consolidated tangible net worth. We were in compliance with all financial covenants as of June 25, 2024. |
Revenue
Revenue | 6 Months Ended |
Jun. 25, 2024 | |
Revenue | |
Revenue | (4) Revenue ​ The following table disaggregates our revenue by major source: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Restaurant and other sales $ 1,333,642 ​ $ 1,164,385 ​ $ 2,647,794 ​ $ 2,331,968 Franchise royalties ​ 6,945 ​ ​ 6,045 ​ ​ 13,793 ​ ​ 12,064 Franchise fees ​ 615 ​ ​ 773 ​ ​ 832 ​ ​ 1,527 Total revenue $ 1,341,202 ​ $ 1,171,203 ​ $ 2,662,419 ​ $ 2,345,559 ​ The following table presents a rollforward of deferred revenue-gift cards: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Beginning balance $ 266,482 ​ $ 240,729 ​ $ 373,913 ​ $ 335,403 Gift card activations, net of third-party fees ​ 78,643 ​ ​ 67,991 ​ ​ 134,882 ​ ​ 118,554 Gift card redemptions and breakage ​ (94,640) ​ ​ (82,590) ​ ​ (258,310) ​ ​ (227,827) Ending balance $ 250,485 ​ $ 226,130 ​ $ 250,485 ​ $ 226,130 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We recognized restaurant sales of $46.1 million and $184.0 million for the 13 and 26 weeks ended June 25, 2024, respectively, related to amounts in deferred revenue as of December 26, 2023. We recognized restaurant sales of million for the 13 and 26 weeks ended June 27, 2023, respectively, related to amounts in deferred revenue as of December 27, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 25, 2024 | |
Income Taxes | |
Income Taxes | (5) Income Taxes ​ The effective tax rate was 15.0% and 12.7% for the 13 weeks ended June 25, 2024 and June 27, 2023, respectively. The effective tax rate was for the 26 weeks ended June 25, 2024 and June 27, 2023, respectively. The increase in our tax rate for the 13 and 26 weeks ended June 25, 2024 as compared to the prior year periods was primarily due to a decrease in the impact of the FICA tip and work opportunity tax credits, which was driven by increased profitability. ​ |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 25, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | (6) Commitments and Contingencies ​ The estimated cost of completing capital project commitments at June 25, 2024 and December 26, 2023 was $258.9 million and $237.4 million, respectively. ​ As of June 25, 2024 and December 26, 2023, we were contingently liable for $9.9 million and $10.4 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of June 25, 2024 and December 26, 2023, as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant. ​ During the 13 and 26 weeks ended June 25, 2024 and June 27, 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. ​ Occasionally, we are a defendant in litigation arising in the ordinary course of business, including "slip and fall" accidents, employment related claims, claims related to our service of alcohol, and claims from guests or employees alleging illness, injury or food quality, health or operational concerns. None of these types of litigation, most of which are covered by insurance at varying retention levels, has had a material adverse effect on us and, as of the date of this report, we are not party to any litigation that we believe could have a material adverse effect on our business. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 25, 2024 | |
Acquisitions | |
Acquisitions | (7) Acquisitions ​ On December 28, 2022, the first day of the 2023 fiscal year, we completed the acquisition of eight franchise Texas Roadhouse restaurants located in Maryland and Delaware, including four in which we previously held a 5.0% equity interest. Pursuant to the terms of the acquisition agreements, we paid a total purchase price of of the entities. The transactions in which we held an equity interest were accounted for as step acquisitions, and we recorded a gain of in the unaudited condensed consolidated statements of income . These transactions were accounted for using the acquisition method as defined in Accounting Standards Codification 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 fair value of the assets acquired and the liabilities assumed at the acquisition date, which are adjusted for final measurement-period adjustments. ​ ​ ​ ​ ​ 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 ​ 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 25, 2024 | |
Related Party Transactions | |
Related Party Transactions | (8) Related Party Transactions ​ As of June 25, 2024 and June 27, 2023, 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 We recognized revenue of ​ |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 25, 2024 | |
Earnings Per Share | |
Earnings Per Share | (9) Earnings Per Share ​ The share and net income per share data for all periods presented are based on the historical weighted-average shares outstanding. The diluted earnings per share calculations show the effect of the weighted-average restricted stock units from our equity incentive plans. Performance stock units are not included in the diluted earnings per share calculation until the performance-based criteria have been met. ​ For all periods presented, the weighted-average shares of nonvested stock units that were outstanding but not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect were not significant. ​ The following table sets forth the calculation of earnings per share and weighted-average shares outstanding as presented in the accompanying unaudited condensed consolidated statements of income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ 26 Weeks Ended ​ June 25, 2024 June 27, 2023 ​ June 25, 2024 June 27, 2023 Net income attributable to Texas Roadhouse, Inc. and subsidiaries ​ $ 120,141 ​ $ 82,271 ​ ​ $ 233,347 ​ $ 168,658 Basic EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 66,785 ​ ​ 66,974 ​ ​ ​ 66,814 ​ ​ 66,995 Basic EPS ​ $ 1.80 ​ $ 1.23 ​ ​ $ 3.49 ​ $ 2.52 Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 66,785 ​ ​ 66,974 ​ ​ ​ 66,814 ​ ​ 66,995 Dilutive effect of nonvested stock units ​ 259 ​ ​ 255 ​ ​ ​ 263 ​ ​ 266 Shares-diluted ​ 67,044 ​ 67,229 ​ ​ 67,077 ​ 67,261 Diluted EPS ​ $ 1.79 ​ $ 1.22 ​ ​ $ 3.48 ​ $ 2.51 ​ |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 25, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | (10) Fair Value Measurements ​ At June 25, 2024 and December 26, 2023, 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. There were ​ The following table presents the fair values for our financial assets and liabilities measured on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ Level June 25, 2024 December 26, 2023 Deferred compensation plan—assets 1 ​ $ 91,765 ​ $ 81,316 Deferred compensation plan—liabilities 1 ​ $ (91,765) ​ $ (81,222) ​ We report the accounts of the deferred compensation plan in other assets and the corresponding liability in other liabilities in our unaudited condensed consolidated balance sheets. These investments are considered trading securities and are reported at fair value based on quoted market prices. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense in the unaudited condensed consolidated statements of income. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 25, 2024 | |
Stock Repurchase Program. | |
Stock Repurchase Program | ​ ​ (11) Stock Repurchase Program ​ On March 17, 2022, our Board of Directors (the "Board") approved a stock repurchase program under which we may repurchase up to $300.0 million of our common stock. This stock repurchase program has no expiration date. 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, including complying with Rule 10b5-1 trading arrangements under the Securities Exchange Act of 1934, as amended (the ​ For the 13 and 26 weeks ended June 25, 2024, we paid $26.2 million and $35.1 million to repurchase 162,404 shares and 222,666 shares of our common stock, respectively. For the 13 and 26 weeks ended June 27, 2023, we paid shares of our common stock, respectively. As of June 25, 2024, million remained under our authorized stock repurchase program. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 25, 2024 | |
Segment Information | |
Segment Information | (12) Segment Information ​ We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers, and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba’s 33. The Texas Roadhouse reportable segment includes the results of our domestic company Texas Roadhouse restaurants and domestic and international franchise Texas Roadhouse restaurants. The Bubba's 33 reportable segment includes the results of our domestic company Bubba's 33 restaurants. Our remaining operating segments, which include the results of our domestic company 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 primary measure for assessing performance of our segments. Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin also includes sales and operating costs related to our non-royalty based retail initiatives. Restaurant margin is used by our CODM to evaluate restaurant-level operating efficiency and performance. ​ In calculating restaurant margin, we exclude certain non-restaurant-level costs that support operations, including general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. We exclude pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results. We exclude depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in our restaurants. We exclude impairment and closure expense as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in our industry. ​ Restaurant and other sales for all operating segments are derived primarily from food and beverage sales. We do not rely on any major customer as a source of sales and the customers and assets of our reportable segments are located predominantly in the United States. There are no material transactions between reportable segments. ​ The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 13 Weeks Ended June 25, 2024 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 1,252,247 ​ $ 73,435 ​ $ 7,960 ​ $ 1,333,642 Restaurant operating costs (excluding depreciation and amortization) ​ 1,023,685 ​ ​ 60,876 ​ ​ 6,470 ​ ​ 1,091,031 Restaurant margin $ 228,562 ​ $ 12,559 ​ $ 1,490 ​ $ 242,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 36,199 ​ $ 3,944 ​ $ 2,772 ​ $ 42,915 Capital expenditures ​ 65,103 ​ ​ 10,574 ​ ​ 2,129 ​ ​ 77,806 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 13 Weeks Ended June 27, 2023 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 1,096,252 ​ $ 61,560 ​ $ 6,573 ​ $ 1,164,385 Restaurant operating costs (excluding depreciation and amortization) ​ 924,047 ​ ​ 51,928 ​ ​ 5,654 ​ ​ 981,629 Restaurant margin $ 172,205 ​ $ 9,632 ​ $ 919 ​ $ 182,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 30,768 ​ $ 3,434 ​ $ 3,211 ​ $ 37,413 Capital expenditures ​ 76,455 ​ ​ 9,750 ​ ​ 1,642 ​ ​ 87,847 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 26 Weeks Ended June 25, 2024 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 2,488,385 ​ $ 144,085 ​ $ 15,324 ​ $ 2,647,794 Restaurant operating costs (excluding depreciation and amortization) ​ 2,044,610 ​ ​ 119,356 ​ ​ 12,770 ​ ​ 2,176,736 Restaurant margin $ 443,775 ​ $ 24,729 ​ $ 2,554 ​ $ 471,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 70,955 ​ $ 7,811 ​ $ 5,642 ​ $ 84,408 Capital expenditures ​ 132,933 ​ ​ 18,533 ​ ​ 4,012 ​ ​ 155,478 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 26 Weeks Ended June 27, 2023 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 2,197,178 ​ $ 122,929 ​ $ 11,861 ​ $ 2,331,968 Restaurant operating costs (excluding depreciation and amortization) ​ 1,847,983 ​ ​ 104,844 ​ ​ 10,689 ​ ​ 1,963,516 Restaurant margin $ 349,195 ​ $ 18,085 ​ $ 1,172 ​ $ 368,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 60,656 ​ $ 6,881 ​ $ 6,103 ​ $ 73,640 Capital expenditures ​ 133,592 ​ ​ 16,005 ​ ​ 4,983 ​ ​ 154,580 ​ A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest income, net and equity income from investments in unconsolidated affiliates to reportable segments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Restaurant margin $ 242,611 ​ $ 182,756 ​ $ 471,058 ​ $ 368,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Franchise royalties and fees ​ 7,560 ​ ​ 6,818 ​ ​ 14,625 ​ ​ 13,591 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-opening ​ 6,202 ​ ​ 5,671 ​ ​ 14,297 ​ ​ 11,048 Depreciation and amortization ​ 42,915 ​ ​ 37,413 ​ ​ 84,408 ​ ​ 73,640 Impairment and closure, net ​ 90 ​ ​ 78 ​ ​ 291 ​ ​ 133 General and administrative ​ 58,148 ​ ​ 51,000 ​ ​ 110,743 ​ ​ 100,865 Income from operations $ 142,816 ​ $ 95,412 ​ $ 275,944 ​ $ 196,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 25, 2024 shares | Jun. 25, 2024 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 Exchange Act that adopted a Rule 10b5-1 trading arrangement during the 13 weeks ended June 25, 2024. 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 Christopher C. Colson Chief Legal and Administrative Officer 5/9/2024 1/31/2025 1,280 ​ (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 June 25, 2024. | |
Name | Christopher C. Colson | |
Title | Chief Legal and Administrative Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 5/9/2024 | |
Expiration Date | 1/31/2025 | |
Aggregate Available | 1,280 | 1,280 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 25, 2024 | |
Revenue | |
Schedule of disaggregated revenue | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Restaurant and other sales $ 1,333,642 ​ $ 1,164,385 ​ $ 2,647,794 ​ $ 2,331,968 Franchise royalties ​ 6,945 ​ ​ 6,045 ​ ​ 13,793 ​ ​ 12,064 Franchise fees ​ 615 ​ ​ 773 ​ ​ 832 ​ ​ 1,527 Total revenue $ 1,341,202 ​ $ 1,171,203 ​ $ 2,662,419 ​ $ 2,345,559 |
Schedule of deferred revenue liabilities | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Beginning balance $ 266,482 ​ $ 240,729 ​ $ 373,913 ​ $ 335,403 Gift card activations, net of third-party fees ​ 78,643 ​ ​ 67,991 ​ ​ 134,882 ​ ​ 118,554 Gift card redemptions and breakage ​ (94,640) ​ ​ (82,590) ​ ​ (258,310) ​ ​ (227,827) Ending balance $ 250,485 ​ $ 226,130 ​ $ 250,485 ​ $ 226,130 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 25, 2024 | |
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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 25, 2024 | |
Earnings Per Share | |
Schedule of calculation of earnings per share and weighted average shares outstanding | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ ​ 26 Weeks Ended ​ June 25, 2024 June 27, 2023 ​ June 25, 2024 June 27, 2023 Net income attributable to Texas Roadhouse, Inc. and subsidiaries ​ $ 120,141 ​ $ 82,271 ​ ​ $ 233,347 ​ $ 168,658 Basic EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 66,785 ​ ​ 66,974 ​ ​ ​ 66,814 ​ ​ 66,995 Basic EPS ​ $ 1.80 ​ $ 1.23 ​ ​ $ 3.49 ​ $ 2.52 Diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares outstanding ​ 66,785 ​ ​ 66,974 ​ ​ ​ 66,814 ​ ​ 66,995 Dilutive effect of nonvested stock units ​ 259 ​ ​ 255 ​ ​ ​ 263 ​ ​ 266 Shares-diluted ​ 67,044 ​ 67,229 ​ ​ 67,077 ​ 67,261 Diluted EPS ​ $ 1.79 ​ $ 1.22 ​ ​ $ 3.48 ​ $ 2.51 ​ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 25, 2024 | |
Fair Value Measurements | |
Schedule of fair values for our financial assets and liabilities measured on a recurring basis | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ Level June 25, 2024 December 26, 2023 Deferred compensation plan—assets 1 ​ $ 91,765 ​ $ 81,316 Deferred compensation plan—liabilities 1 ​ $ (91,765) ​ $ (81,222) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 25, 2024 | |
Segment Information | |
Schedule to reconcile our segment results to our consolidated results | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 13 Weeks Ended June 25, 2024 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 1,252,247 ​ $ 73,435 ​ $ 7,960 ​ $ 1,333,642 Restaurant operating costs (excluding depreciation and amortization) ​ 1,023,685 ​ ​ 60,876 ​ ​ 6,470 ​ ​ 1,091,031 Restaurant margin $ 228,562 ​ $ 12,559 ​ $ 1,490 ​ $ 242,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 36,199 ​ $ 3,944 ​ $ 2,772 ​ $ 42,915 Capital expenditures ​ 65,103 ​ ​ 10,574 ​ ​ 2,129 ​ ​ 77,806 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 13 Weeks Ended June 27, 2023 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 1,096,252 ​ $ 61,560 ​ $ 6,573 ​ $ 1,164,385 Restaurant operating costs (excluding depreciation and amortization) ​ 924,047 ​ ​ 51,928 ​ ​ 5,654 ​ ​ 981,629 Restaurant margin $ 172,205 ​ $ 9,632 ​ $ 919 ​ $ 182,756 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 30,768 ​ $ 3,434 ​ $ 3,211 ​ $ 37,413 Capital expenditures ​ 76,455 ​ ​ 9,750 ​ ​ 1,642 ​ ​ 87,847 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 26 Weeks Ended June 25, 2024 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 2,488,385 ​ $ 144,085 ​ $ 15,324 ​ $ 2,647,794 Restaurant operating costs (excluding depreciation and amortization) ​ 2,044,610 ​ ​ 119,356 ​ ​ 12,770 ​ ​ 2,176,736 Restaurant margin $ 443,775 ​ $ 24,729 ​ $ 2,554 ​ $ 471,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 70,955 ​ $ 7,811 ​ $ 5,642 ​ $ 84,408 Capital expenditures ​ 132,933 ​ ​ 18,533 ​ ​ 4,012 ​ ​ 155,478 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the 26 Weeks Ended June 27, 2023 ​ Texas Roadhouse ​ Bubba's 33 ​ Other ​ Total Restaurant and other sales $ 2,197,178 ​ $ 122,929 ​ $ 11,861 ​ $ 2,331,968 Restaurant operating costs (excluding depreciation and amortization) ​ 1,847,983 ​ ​ 104,844 ​ ​ 10,689 ​ ​ 1,963,516 Restaurant margin $ 349,195 ​ $ 18,085 ​ $ 1,172 ​ $ 368,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization $ 60,656 ​ $ 6,881 ​ $ 6,103 ​ $ 73,640 Capital expenditures ​ 133,592 ​ ​ 16,005 ​ ​ 4,983 ​ ​ 154,580 |
Schedule of restaurant margin to income from operations | ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 13 Weeks Ended ​ 26 Weeks Ended ​ June 25, 2024 ​ June 27, 2023 ​ June 25, 2024 ​ June 27, 2023 Restaurant margin $ 242,611 ​ $ 182,756 ​ $ 471,058 ​ $ 368,452 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Add: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Franchise royalties and fees ​ 7,560 ​ ​ 6,818 ​ ​ 14,625 ​ ​ 13,591 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-opening ​ 6,202 ​ ​ 5,671 ​ ​ 14,297 ​ ​ 11,048 Depreciation and amortization ​ 42,915 ​ ​ 37,413 ​ ​ 84,408 ​ ​ 73,640 Impairment and closure, net ​ 90 ​ ​ 78 ​ ​ 291 ​ ​ 133 General and administrative ​ 58,148 ​ ​ 51,000 ​ ​ 110,743 ​ ​ 100,865 Income from operations $ 142,816 ​ $ 95,412 ​ $ 275,944 ​ $ 196,357 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Description of Business (Detail
Description of Business (Details) | Jun. 25, 2024 territory restaurant country state | Jun. 27, 2023 restaurant country state |
Description of Business | ||
Number of Restaurant Concepts | 3 | 3 |
Number of states in which restaurants operate | state | 49 | 49 |
Number of countries in which restaurants operate | country | 10 | 10 |
Company-owned | ||
Description of Business | ||
Number of restaurants | 650 | 614 |
Company-owned | Majority-owned | ||
Description of Business | ||
Number of restaurants | 19 | 20 |
Franchise | ||
Description of Business | ||
Number of restaurants | 112 | 95 |
Franchise | Domestic | ||
Description of Business | ||
Number of restaurants | 59 | 54 |
Number of United States Territories in which restaurants operate | territory | 1 | |
Franchise | International | ||
Description of Business | ||
Number of restaurants | 53 | 41 |
Franchise | Unconsolidated | Domestic | Domestic franchise restaurants | ||
Description of Business | ||
Number of restaurants | 20 | 20 |
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% |
Long-term Debt (Details)
Long-term Debt (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | 6 Months Ended | |||
May 19, 2023 | Jun. 25, 2024 | Dec. 26, 2023 | Jun. 27, 2023 | |
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) | 6.21% | 6.07% | ||
Revolving credit facility, remaining borrowing capacity | $ 295.3 | $ 295.3 | ||
Letters of credit outstanding | 4.7 | $ 4.7 | ||
Threshold for aggregate secured indebtedness | $ 125 | |||
Debt instrument condition for additional borrowing of secured debt, based on percentage of consolidated tangible net worth | 20% | |||
Fixed Adjustment Rate [Member] | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 0.10% | |||
Variable Adjustment Rate [Member] | Minimum | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 0.875% | |||
Variable Adjustment Rate [Member] | Maximum | ||||
Revolving Credit Facility | ||||
Interest rate added to base rate (as a percent) | 1.875% |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Revenue | ||||
Total revenue | $ 1,341,202 | $ 1,171,203 | $ 2,662,419 | $ 2,345,559 |
Restaurant and other sales | ||||
Revenue | ||||
Total revenue | 1,333,642 | 1,164,385 | 2,647,794 | 2,331,968 |
Franchise royalties | ||||
Revenue | ||||
Total revenue | 6,945 | 6,045 | 13,793 | 12,064 |
Franchise fees | ||||
Revenue | ||||
Total revenue | $ 615 | $ 773 | $ 832 | $ 1,527 |
Revenue - Roll forward of defer
Revenue - Roll forward of deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Revenue | ||||
Beginning balance | $ 266,482 | $ 240,729 | $ 373,913 | $ 335,403 |
Gift card activations, net | 78,643 | 67,991 | 134,882 | 118,554 |
Gift card redemptions and breakage | (94,640) | (82,590) | (258,310) | (227,827) |
Ending Balance | $ 250,485 | $ 226,130 | $ 250,485 | $ 226,130 |
Revenue - Other (Details)
Revenue - Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Gift Cards | ||||
Revenue | ||||
Deferred revenue recognized | $ 46.1 | $ 45.5 | $ 184 | $ 165.1 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Reconciliation of the statutory federal income tax rate to our effective tax rate: | ||||
Effective tax rate (as a percent) | 15% | 12.70% | 14.50% | 13.30% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 25, 2024 USD ($) item | Dec. 26, 2023 USD ($) item | Jun. 27, 2023 item |
Commitments and Contingencies | |||
Estimated cost to complete capital project commitments (in dollars) | $ | $ 258.9 | $ 237.4 | |
Number of suppliers providing most of the company's beef | item | 4 | 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 | $ | $ 9.9 | $ 10.4 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 12 Months Ended | |
Dec. 26, 2023 USD ($) restaurant | Jun. 25, 2024 USD ($) | |
Business Acquisition [Line Items] | ||
Goodwill | $ 169,684 | $ 169,684 |
Eight franchise restaurants | ||
Business Acquisition [Line Items] | ||
Number of restaurants acquired | restaurant | 8 | |
Equity interest percentage | 5% | |
Purchase price paid | $ 39,100 | |
Outstanding equity percentage | 100% | |
Step acquisition gain | $ 600 | |
Weighted-average life | 2 years 2 months 12 days | |
Inventory | $ 410 | |
Other assets | 293 | |
Property and equipment | 17,763 | |
Operating lease right-of-use assets | 4,775 | |
Goodwill | 20,067 | |
Intangible assets | 1,700 | |
Deferred revenue-gift cards | (1,164) | |
Current portion of operating lease liabilities | (110) | |
Operating lease liabilities, net of current portion | (4,665) | |
Total | $ 39,069 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 USD ($) restaurant | Jun. 27, 2023 USD ($) restaurant | Jun. 25, 2024 USD ($) restaurant | Jun. 27, 2023 USD ($) restaurant | |
Franchise | ||||
Related Party Transactions | ||||
Number of restaurants | 112 | 95 | 112 | 95 |
Officers, directors and shareholders | Majority-owned | ||||
Related Party Transactions | ||||
Number of restaurants | 1 | 1 | 1 | 1 |
Officers, directors and shareholders | Franchise | ||||
Related Party Transactions | ||||
Number of restaurants | 4 | 4 | 4 | 4 |
Royalities and fees received from franchise and license restaurants | $ | $ 0.5 | $ 0.5 | $ 1 | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Earnings per share | ||||
Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ 120,141 | $ 82,271 | $ 233,347 | $ 168,658 |
Basic EPS: | ||||
Weighted-average common shares outstanding (in shares) | 66,785 | 66,974 | 66,814 | 66,995 |
Basic EPS (in dollars per share) | $ 1.80 | $ 1.23 | $ 3.49 | $ 2.52 |
Diluted EPS: | ||||
Weighted-average common shares outstanding (in shares) | 66,785 | 66,974 | 66,814 | 66,995 |
Dilutive effect of nonvested stock units (in shares) | 259 | 255 | 263 | 266 |
Shares-diluted (in shares) | 67,044 | 67,229 | 67,077 | 67,261 |
Diluted EPS (in dollars per share) | $ 1.79 | $ 1.22 | $ 3.48 | $ 2.51 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 25, 2024 | Dec. 26, 2023 | |
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 | 91,765 | $ 81,316 |
Deferred compensation plan - liabilities | $ (91,765) | $ (81,222) |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | Mar. 17, 2022 | |
Stock Repurchase Program. | |||||
Repurchase of common stock authorized by board of directors | $ 300,000 | ||||
Payments to repurchase common stock | $ 26,200 | $ 23,400 | $ 35,139 | $ 33,058 | |
Number of shares repurchased | 162,404 | 213,975 | 222,666 | 306,726 | |
Amount remaining under authorized stock repurchase program | $ 81,700 | $ 81,700 |
Segment Information - Segment A
Segment Information - Segment Assets Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Segment Information | ||||
Revenue | $ 1,341,202 | $ 1,171,203 | $ 2,662,419 | $ 2,345,559 |
Restaurant operating costs (excluding depreciation and amortization) | 1,091,031 | 981,629 | 2,176,736 | 1,963,516 |
Restaurant margin | 242,611 | 182,756 | 471,058 | 368,452 |
Depreciation and amortization | 42,915 | 37,413 | 84,408 | 73,640 |
Capital expenditures | 77,806 | 87,847 | 155,478 | 154,580 |
Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 1,333,642 | 1,164,385 | 2,647,794 | 2,331,968 |
Texas Roadhouse | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 1,023,685 | 924,047 | 2,044,610 | 1,847,983 |
Restaurant margin | 228,562 | 172,205 | 443,775 | 349,195 |
Depreciation and amortization | 36,199 | 30,768 | 70,955 | 60,656 |
Capital expenditures | 65,103 | 76,455 | 132,933 | 133,592 |
Texas Roadhouse | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 1,252,247 | 1,096,252 | 2,488,385 | 2,197,178 |
Bubba's 33 | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 60,876 | 51,928 | 119,356 | 104,844 |
Restaurant margin | 12,559 | 9,632 | 24,729 | 18,085 |
Depreciation and amortization | 3,944 | 3,434 | 7,811 | 6,881 |
Capital expenditures | 10,574 | 9,750 | 18,533 | 16,005 |
Bubba's 33 | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | 73,435 | 61,560 | 144,085 | 122,929 |
Other | ||||
Segment Information | ||||
Restaurant operating costs (excluding depreciation and amortization) | 6,470 | 5,654 | 12,770 | 10,689 |
Restaurant margin | 1,490 | 919 | 2,554 | 1,172 |
Depreciation and amortization | 2,772 | 3,211 | 5,642 | 6,103 |
Capital expenditures | 2,129 | 1,642 | 4,012 | 4,983 |
Other | Restaurant and other sales | ||||
Segment Information | ||||
Revenue | $ 7,960 | $ 6,573 | $ 15,324 | $ 11,861 |
Segment Information - Consolida
Segment Information - Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2024 | Jun. 27, 2023 | Jun. 25, 2024 | Jun. 27, 2023 | |
Segment Information | ||||
Restaurant margin | $ 242,611 | $ 182,756 | $ 471,058 | $ 368,452 |
Revenue: | ||||
Revenue | 1,341,202 | 1,171,203 | 2,662,419 | 2,345,559 |
Costs and expenses: | ||||
Pre-opening | 6,202 | 5,671 | 14,297 | 11,048 |
Depreciation and amortization | 42,915 | 37,413 | 84,408 | 73,640 |
Impairment and closure, net | 90 | 78 | 291 | 133 |
General and administrative | 58,148 | 51,000 | 110,743 | 100,865 |
Income from operations | 142,816 | 95,412 | 275,944 | 196,357 |
Franchise royalties and fees | ||||
Revenue: | ||||
Revenue | $ 7,560 | $ 6,818 | $ 14,625 | $ 13,591 |