Texas Roadhouse, Inc 10-Q for FY2024 Q2

Texas Roadhouse, Inc. (TXRH)

10-Q 2024-08-02 For: 2024-06-25

Added on April 10, 2026

About this 10-Q

Texas Roadhouse, Inc filed this 10-Q on August 2, 2024, covering the quarter ended June 25, 2024 (FY2024 Q2).

Headline figures

Quarter ended June 25, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.34B; up 14.5% from $1.17B a year earlier
Net income: $123.08M; up 45.8% from net income of $84.43M a year earlier
Diluted EPS: $1.79; up 46.7% from $1.22 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware		20-1083890
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification Number)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TXRH	NASDAQ Global Select Market

Large Accelerated Filer ☒	Accelerated Filer ☐	Non-accelerated Filer ☐	Smaller Reporting Company ☐
			Emerging Growth Company ☐

PART I. FINANCIAL INFORMATION

Item 1 — Financial Statements (Unaudited) — Texas Roadhouse, Inc. and Subsidiaries		3
Condensed Consolidated Balance Sheets — June 25, 2024 and December 26, 2023		3
Condensed Consolidated Statements of Income — For the 13 and 26 Weeks Ended June 25, 2024 and June 27, 2023		4
Condensed Consolidated Statements of Stockholders’ Equity — For the 13 and 26 Weeks Ended June 25, 2024 and June 27, 2023		5
Condensed Consolidated Statements of Cash Flows — For the 26 Weeks Ended June 25, 2024 and June 27, 2023		7
Notes to Condensed Consolidated Financial Statements		8
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3 — Quantitative and Qualitative Disclosures About Market Risk		27
Item 4 — Controls and Procedures		28

PART II. OTHER INFORMATION

Item 1 — Legal Proceedings		29
Item 1A — Risk Factors		29
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		29
Item 3 — Defaults Upon Senior Securities		29
Item 4 — Mine Safety Disclosures		29
Item 5 — Other Information		30
Item 6 — Exhibits		30

Signatures		31


	June 25, 2024		December 26, 2023
		(unaudited)
Assets
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		—		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
Liabilities and Stockholders’ Equity
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


	13 Weeks Ended				26 Weeks Ended
	June 25, 2024		June 27, 2023		June 25, 2024		June 27, 2023
Revenue:
Restaurant and other sales	$	1,333,642	$	1,164,385	$	2,647,794	$	2,331,968
Franchise royalties and fees		7,560		6,818		14,625		13,591
Total revenue		1,341,202		1,171,203		2,662,419		2,345,559
Costs and expenses:
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


	For the 13 Weeks Ended June 25, 2024
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, March 26, 2024	66,846,291	$	67	$	—	$	1,207,119	$	1,207,186	$	15,930	$	1,223,116
Net income	—		—		—		120,141		120,141		2,934		123,075
Distributions to noncontrolling interest holders	—		—		—		—		—		(2,922)		(2,922)
Acquisition of noncontrolling interest, net of deferred taxes	—		—		(3,274)		—		(3,274)		(888)		(4,162)
Dividends declared ($0.61 per share)	—		—		—		(40,718)		(40,718)		—		(40,718)
Shares issued under share-based compensation plans including tax effects	63,525		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(19,514)		—		(3,356)		—		(3,356)		—		(3,356)
Repurchase of shares of common stock, including excise tax as applicable	(162,404)		—		(2,225)		(23,973)		(26,198)		—		(26,198)
Share-based compensation	—		—		8,855		—		8,855		—		8,855
Balance, June 25, 2024	66,727,898	$	67	$	—	$	1,262,569	$	1,262,636	$	15,054	$	1,277,690


	For the 13 Weeks Ended June 27, 2023
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, March 28, 2023	67,000,306	$	67	$	6,240	$	1,048,941	$	1,055,248	$	15,291	$	1,070,539
Net income	—		—		—		82,271		82,271		2,154		84,425
Distributions to noncontrolling interest holders	—		—		—		—		—		(2,177)		(2,177)
Dividends declared ($0.55 per share)	—		—		—		(36,820)		(36,820)		—		(36,820)
Shares issued under share-based compensation plans including tax effects	82,547		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(25,422)		—		(2,809)		—		(2,809)		—		(2,809)
Repurchase of shares of common stock, including excise tax as applicable	(213,975)		—		(12,021)		(11,477)		(23,498)		—		(23,498)
Share-based compensation	—		—		8,590		—		8,590		—		8,590
Balance, June 27, 2023	66,843,456	$	67	$	—	$	1,082,915	$	1,082,982	$	15,268	$	1,098,250


	For the 26 Weeks Ended June 25, 2024
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, December 26, 2023	66,789,464	$	67	$	—	$	1,141,595	$	1,141,662	$	15,849	$	1,157,511
Net income	—		—		—		233,347		233,347		5,718		239,065
Distributions to noncontrolling interest holders	—		—		—		—		—		(5,625)		(5,625)
Acquisition of noncontrolling interest, net of deferred taxes	—		—		(3,274)		—		(3,274)		(888)		(4,162)
Dividends declared ($1.22 per share)	—		—		—		(81,509)		(81,509)		—		(81,509)
Shares issued under share-based compensation plans including tax effects	234,784		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(73,684)		—		(10,829)		—		(10,829)		—		(10,829)
Repurchase of shares of common stock, including excise tax as applicable	(222,666)		—		(4,275)		(30,864)		(35,139)		—		(35,139)
Share-based compensation	—		—		18,378		—		18,378		—		18,378
Balance, June 25, 2024	66,727,898	$	67	$	—	$	1,262,569	$	1,262,636	$	15,054	$	1,277,690


	For the 26 Weeks Ended June 27, 2023
								Total Texas
				Additional				Roadhouse, Inc.
		Par		Paid-in-		Retained		and		Noncontrolling
	Shares	Value		Capital		Earnings		Subsidiaries		Interests		Total
Balance, December 27, 2022	66,973,311	$	67	$	13,139	$	999,432	$	1,012,638	$	15,024	$	1,027,662
Net income	—		—		—		168,658		168,658		4,371		173,029
Distributions to noncontrolling interest holders	—		—		—		—		—		(4,127)		(4,127)
Dividends declared ($1.10 per share)	—		—		—		(73,698)		(73,698)		—		(73,698)
Shares issued under share-based compensation plans including tax effects	256,167		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(79,296)		—		(8,239)		—		(8,239)		—		(8,239)
Repurchase of shares of common stock, including excise tax as applicable	(306,726)		—		(21,644)		(11,477)		(33,121)		—		(33,121)
Share-based compensation	—		—		16,744		—		16,744		—		16,744
Balance, June 27, 2023	66,843,456	$	67	$	—	$	1,082,915	$	1,082,982	$	15,268	$	1,098,250


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


	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)


	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


Reconciliation of Income from Operations to Restaurant Margin
(in thousands)

	13 Weeks Ended				26 Weeks Ended
	June 25, 2024		June 27, 2023		June 25, 2024		June 27, 2023


Income from operations	$	142,816	$	95,412	$	275,944	$	196,357

Less:
Franchise royalties and fees		7,560		6,818		14,625		13,591

Add:
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
Restaurant margin	$	242,611	$	182,756	$	471,058	$	368,452

Restaurant margin $/store week	$	28,855	$	22,961	$	28,222	$	23,232
Restaurant margin (as a percentage of restaurant and other sales)		18.2%		15.7%		17.8%		15.8%


	June 25, 2024	June 27, 2023
Company - Texas Roadhouse	594	566
Company - Bubba's 33	48	41
Company - Jaggers	8	7
Total company	650	614

Franchise - Texas Roadhouse - Domestic	56	54
Franchise - Jaggers - Domestic	3	—
Franchise - Texas Roadhouse - International (1)	53	41
Total franchise	112	95

Total	762	709


	Q2 2024			Q2 2023			2024 YTD			2023 YTD
Company Restaurants:
Increase in store weeks		5.6	%		5.6	%		5.2	%		5.8	%
Increase in average unit volume		8.5	%		8.7	%		8.2	%		10.6	%
Other (1)		0.4	%		—	%		0.1	%		0.2	%
Total increase in restaurant sales		14.5	%		14.3	%		13.5	%		16.6	%
Other sales		—	%		0.1	%		—	%		0.1	%
Total increase in restaurant and other sales		14.5	%		14.4	%		13.5	%		16.7	%

Store weeks		8,408			7,960			16,691			15,860
Comparable restaurant sales		9.3	%		9.1	%		8.9	%		11.0	%

Texas Roadhouse restaurants:
Store weeks		7,708			7,343			15,302			14,647
Comparable restaurant sales		9.4	%		9.4	%		9.1	%		11.2	%
Average unit volume (in thousands) (2)	$	2,123		$	1,946		$	4,261		$	3,912

Weekly sales by group:
Comparable restaurants (553, 533, 549, and 527 units)	$	163,797		$	149,847		$	164,113		$	150,770
Average unit volume restaurants (20, 20, 17, and 22 units)	$	150,736		$	144,554		$	156,943		$	143,496
Restaurants less than six months old (21, 13, 28, and 17 units)	$	151,647		$	158,608		$	147,941		$	157,585

Bubba's 33 restaurants:
Store weeks		596			526			1,181			1,046
Comparable restaurant sales		5.5	%		3.9	%		4.7	%		6.4	%
Average unit volume (in thousands) (2)	$	1,580		$	1,514		$	3,133		$	3,044

Weekly sales by group:
Comparable restaurants (38, 35, 37, and 34 units)	$	122,868		$	117,906		$	122,518		$	117,181
Average unit volume restaurants (5, 3, 4, and 3 units)	$	111,244		$	99,324		$	101,695		$	115,846
Restaurants less than six months old (5, 3, 7, and 4 units)	$	142,429		$	123,594		$	132,824		$	120,459


					Maximum Number
					(or Approximate
				Total Number of	Dollar Value)
				Shares Purchased	of Shares that
	Total Number	Average		as Part of Publicly	May Yet Be
	of Shares	Price Paid		Announced Plans	Purchased Under the
Period	Purchased	per Share		or Programs	Plans or Programs
March 27 to April 23	58,404	$	150.93	58,404	$	99,126,873
April 24 to May 21	43,000	$	163.50	43,000	$	92,096,376
May 22 to June 25	61,000	$	169.69	61,000	$	81,745,352
Total	162,404			162,404


	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


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


Exhibit No.		Description
3.1		Restated Certificate of Incorporation for Texas Roadhouse, Inc. dated as of May 16, 2024 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K dated May 16, 2024)
3.2		Amended and Restated Bylaws for Texas Roadhouse, Inc. dated as of May 16, 2024 (incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on Form 8-K dated May 16, 2024)
10.1		Third Amendment to Employment Agreement between Texas Roadhouse Management Corp. and Gerald L. Morgan dated May 22, 2024
31.1		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	TEXAS ROADHOUSE, INC.

Date: August 2, 2024	By:	/s/ GERALD L. MORGAN
		Gerald L. Morgan
		Chief Executive Officer (Principal Executive Officer)


Date: August 2, 2024	By:	/s/ D. CHRISTOPHER MONROE
		D. Christopher Monroe
		Chief Financial Officer
		(Principal Financial Officer)

Date: August 2, 2024	By:	/s/ KEITH V. HUMPICH
		Keith V. Humpich
		Vice President of Finance
		(Principal Accounting Officer)

TEXAS ROADHOUSE MANAGEMENT CORP.,
a Kentucky corporation

By:	/s/ Christopher C. Colson
Name:	Christopher C. Colson
Title:	Secretary

EXECUTIVE:

By:	/s/ Gerald L. Morgan
	GERALD L. MORGAN, an individual resident
	of the Commonwealth of Kentucky