TXRH 8-K
Texas Roadhouse, Inc. (TXRH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On February 18, 2021, Texas Roadhouse, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended December 29, 2020. Attached to this Current Report on Form 8-K as Exhibit 99.1 is a copy of the press release.
| ITEM 8.01. | OTHER EVENTS |
Supplemental Risk Factor
The Company is supplementing the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, with the following risk factor. Careful consideration should be given to the risks described below. If any of the risks and uncertainties described below actually occurs, our business, financial condition and results of operations, and the trading price of our common stock could be materially and adversely affected.
The novel coronavirus ("COVID-19") pandemic has disrupted and is expected to continue to disrupt our business, which has and could continue to materially affect our business, financial condition, and results of operations, for an extended period of time.
On March 13, 2020, the COVID-19 pandemic was declared a National Public Health Emergency. Shortly after the national emergency declaration, state and local officials began placing restrictions on restaurants, some of which allowed To-Go or curbside service only while others limited capacity in the dining room. By late March all of our domestic company and franchise restaurants were under state or local order which only allowed for To-Go or curbside service. Beginning in early May 2020, state and local guidelines began to allow dining rooms to re-open, typically at a limited capacity. While all of our dining rooms were able to re-open in some capacity, many were required to close again in areas more severely impacted by the pandemic. As of December 29, 2020, 82% of our company restaurants had their dining rooms operating under various limited capacity restrictions. Our remaining restaurants were limited to outdoor and/or To-Go or curbside service only.
As a result of the dining room restrictions and temporary closures, we have experienced a significant decrease in traffic which has impacted our operating results. While the majority of our dining rooms have re-opened, a significant portion continue to operate under capacity restrictions that severely limit the number of guests we can serve. In addition, while we have seen significant sales growth in our To-Go program, even with dining rooms re-opened, we currently do not expect these sales will generate a similar profit margin and cash flows to our normal operating model. We expect our operating results to continue to be impacted until at least such time that all state and local restrictions are lifted, and our dining rooms can operate at full capacity. We cannot predict how long the pandemic will last, how long it will take until all state and local restrictions will be lifted, or the extent to which our dining rooms will have to close again. In addition, we cannot predict the overall impact on the economy or consumer spending habits.
The pandemic has also adversely impacted our ability to open new restaurants. At the onset of the pandemic, we delayed construction on all restaurants that were not substantially complete. As a result, we only opened 22 restaurants in 2020 across all concepts. As of December 29, 2020, 10 restaurants were under construction. Our ability to grow our business could be further impacted, particularly if we have to delay construction on these sites in future periods.
In March 2020, we borrowed $190.0 million under our Amended Credit Agreement in order to enhance our financial flexibility. The Amended Credit Agreement also provides us the option to increase the credit facility by $200.0 million subject to certain limitations, including approval by the syndicate of lenders, set forth in the Amended Credit Agreement. On May 11, 2020, as a precautionary measure to further enhance financial flexibility, we amended the revolving credit facility to increase the amount available under the facility by $82.5 million and drew down $50.0 million of this amount. If the pandemic continues to adversely impact our business for a significant period of time, we may need to further increase the credit facility and/or seek other sources of liquidity. There is no guarantee that we can increase the credit facility or that additional liquidity will be readily available or available at favorable terms.
Our suppliers could be adversely impacted by the pandemic. If our supplier’s employees are unable to work, whether because of illness, quarantine, limitations on travel or other government restrictions in connection with the pandemic, we could face shortages of food items or other supplies at our restaurants and our operations and sales could be adversely impacted by such interruptions.
The capacity restrictions and temporary closures of our dining rooms have resulted in decreased staffing levels at our restaurants. We have taken compensation actions to support certain restaurant employees during the pandemic, but those actions may not be enough to compensate them until such time that our dining rooms can re-open at full capacity. Those restaurant employees might seek and find other employment during the interruption, which could have a material adverse effect on our ability to properly staff our restaurants with experienced team members once we resume our normal operations.
Our restaurant operations could be further disrupted if a significant number of restaurants have employees diagnosed with COVID-19 resulting in some or all of the restaurant’s employees being quarantined and our restaurant facilities having to be disinfected. If a significant percentage of our workforce is unable to work, whether because of illness or required quarantine, our operations may be negatively impacted which could have a material adverse effect on our business.
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| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
(d) EXHIBITS
| 99.1 | Press Release issued by the company on February 18, 2021. | |
| 104 | Cover Page Interactive Data File: The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101). |
The information in this Current Report on Form 8-K at Item 2.02 and the Exhibit attached hereto shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| TEXAS ROADHOUSE, INC. | ||
| Date: February 18, 2021 | By: | /s/ Tonya Robinson |
| Tonya Robinson | ||
| Chief Financial Officer | ||
4
Exhibit 99.1
Texas Roadhouse, Inc. Announces Fourth Quarter 2020 Results
and Provides Business Update
LOUISVILLE, KY. (February 18, 2021) – Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 52 week periods ended December 29, 2020 and provided a business update in response to the continued COVID-19 pandemic.
| Fourth Quarter | Year to Date | |||||||||||||||||||||||
| ($000's) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||
| Total revenue | $ | 637,989 | $ | 725,238 | (12.0 | )% | $ | 2,398,123 | $ | 2,756,163 | (13.0 | )% | ||||||||||||
| Income from operations | 20,396 | 53,411 | (61.8 | )% | 23,844 | 212,023 | (88.8 | )% | ||||||||||||||||
| Net income | 19,549 | 42,686 | (54.2 | )% | 31,255 | 174,452 | (82.1 | )% | ||||||||||||||||
| Diluted earnings per share | $ | 0.28 | $ | 0.61 | (54.3 | )% | $ | 0.45 | $ | 2.46 | (81.8 | )% | ||||||||||||
Note: Fourth quarter and full year 2020 results include 13 and 52 weeks, respectively, compared to 14 and 53 weeks in the fourth quarter and full year of 2019, respectively.
Results for the fourth quarter included the following:
| · | Total revenue was negatively impacted by lapping the $59.5 million benefit of the 14th week in 2019, which represented 7.9% of the decrease in total revenue for the quarter. Diluted earnings per share in the prior year quarter benefitted by $0.10 to $0.11 as a result of the 14th week; | |
| · | For the October, November, and December periods, comparable restaurant sales at domestic company restaurants increased 0.8%, decreased 6.3%, and decreased 18.2%, respectively. Sales during the period were negatively impacted by dining room closures and capacity restrictions throughout the country. For the quarter, comparable restaurant sales decreased 8.9% at domestic company restaurants and decreased 11.2% at domestic franchise restaurants; |
| · | Nine company restaurants, including one Jaggers restaurant, our fast-casual concept, were opened and two franchise restaurants were opened; |
| · | Restaurant margin, as a percentage of restaurant and other sales, was 13.3% and restaurant margin dollars were $84.1 million. Restaurant margin was impacted by a decrease in comparable restaurant sales and higher costs related to the pandemic. These costs included $0.5 million of costs incurred for relief pay and enhanced benefits for hourly restaurant employees, net of employee retention payroll tax credits of $2.5 million; and, |
| · | The Company ended the quarter with debt of $240.0 million and $363.2 million of cash on hand. |
Results for the year-to-date period included the following:
| · | Comparable restaurant sales decreased 14.2% at domestic company restaurants and 15.5% at domestic franchise restaurants; |
| · | 22 company restaurants, including three Bubba’s 33 restaurants and one Jaggers restaurant, were opened and four franchise restaurants were opened. One company restaurant and two international franchise restaurants were closed; |
| · | Restaurant margin, as a percentage of restaurant and other sales, was 11.2% and restaurant margin dollars were $265.6 million. Restaurant margin was impacted by a decrease in comparable restaurant sales and higher costs related to the pandemic. These costs included $13.2 million of costs incurred for relief pay and enhanced benefits for hourly restaurant employees, net of employee retention payroll tax credits of $7.0 million; and, |
| · | The Company repurchased 252,409 shares of common stock for $12.6 million, the last of which occurred on March 17th. No proceeds from the revolving credit facility were utilized to repurchase shares. |
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, “This past year has been without question the most challenging I’ve ever experienced in the restaurant business. Despite these challenges, our operators quickly adapted and found ways to continue to serve our guests, many times in ways they never had before. This sustained our cashflows at a level that allowed us to continue to grow by opening 22 restaurants during the year. While we expect continued headwinds in the first half of 2021, we remain well-positioned for future growth.”
Business Update
For the quarter, the Company continued to operate under various capacity restrictions in the dining rooms along with enhanced To-Go, which included a curbside and/or drive-up operating model, as permitted by local guidelines. Comparable restaurant sales during the fourth quarter were impacted by dining room closures at a number of company restaurants. At the beginning of the quarter, nearly all company restaurants had their dining rooms open under various limited capacity restrictions. At the end of the quarter, 82% of company restaurants had their dining rooms open. By period, the comparable restaurant sales, average weekly sales, and To-Go sales for all company restaurants were as follows:
| October | November | December | Q4 2020 | |||||||||||||
| All restaurants | ||||||||||||||||
| Comparable restaurant sales | 0.8 | % | (6.3 | )% | (18.2 | )% | (8.9 | )% | ||||||||
| Average weekly sales | $ | 98,797 | $ | 93,946 | $ | 84,184 | $ | 91,644 | ||||||||
| To-Go sales as a % of average weekly sales | 20.0 | % | 22.4 | % | 26.5 | % | 23.1 | % | ||||||||
| Number of restaurants - end of period | 528 | 533 | 537 | 537 | ||||||||||||
| Limited capacity restaurants (1) | ||||||||||||||||
| Comparable restaurant sales | 1.1 | % | (3.4 | )% | (9.1 | )% | (4.0 | )% | ||||||||
| Average weekly sales | $ | 99,139 | $ | 96,841 | $ | 93,894 | $ | 96,568 | ||||||||
| To-Go sales as a % of average weekly sales | 19.9 | % | 21.1 | % | 21.4 | % | 20.8 | % | ||||||||
| Number of restaurants - end of period | 519 | 452 | 440 | 440 | ||||||||||||
| (1) Includes the full weekly sales for all restaurants with dining rooms re-opened at limited capacity as of the end of a week and excludes those restaurants that were operating as To-Go or outdoor dining only. |
For the fourth quarter, the Company’s cash on hand position increased approximately $34.5 million due to operating cashflows and working capital inflows, partially offset by cash used for capital expenditures. In addition, the Company acquired two franchise locations for a total purchase price of $10.6 million. As of the end of the year, the Company had opened 22 company restaurants across all concepts and an additional ten company restaurants were under construction.
For the January period and the first seven weeks of the first quarter of fiscal 2021, the comparable restaurant sales, average weekly sales, and To-Go sales for all company restaurants were as follows:
| First 7 weeks | ||||||||
| January | Q1 2021 | |||||||
| All restaurants | ||||||||
| Comparable restaurant sales | (0.3 | )% | (2.0 | )% | ||||
| Average weekly sales | $ | 105,595 | $ | 105,505 | ||||
| To-Go sales as a % of average weekly sales | 25.9 | % | 24.8 | % | ||||
| Number of restaurants - end of period | 537 | 538 | ||||||
| Limited capacity restaurants (1) | ||||||||
| Comparable restaurant sales | 3.8 | % | 0.3 | % | ||||
| Average weekly sales | $ | 110,587 | $ | 108,374 | ||||
| To-Go sales as a % of average weekly sales | 23.7 | % | 23.4 | % | ||||
| Number of restaurants - end of period | 504 | 530 | ||||||
| (1) Includes the full weekly sales for all restaurants with dining rooms re-opened at limited capacity as of the end of a week and excludes those restaurants that were operating as To-Go or outdoor dining only. |
2021 Outlook
As previously announced, due to the uncertainty surrounding the pandemic, the Company had not yet provided a financial outlook for the fiscal year ending December 28, 2021. However, based on improved cashflow and stabilizing operations at company restaurants, the Company is providing the following expectations for 2021:
| · | 25 to 30 company restaurant openings across all concepts; |
| · | Store week growth of 4.0% to 5.0%; |
| · | Commodity cost inflation of approximately 3.0%; and |
| · | Total capital expenditures of $210 million to $220 million. |
To the extent that state and local guidelines begin to significantly reduce capacity and/or re-close dining rooms, the Company could pull back on development and reduce capital spend accordingly.
Non-GAAP Measures
The Company prepares the consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). Within the press release, the Company makes reference to restaurant margin (in dollars and as a percentage of restaurant and other sales). 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 should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate restaurant-level operating efficiency and performance. In calculating restaurant margin, the Company excludes 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. The Company also excludes depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in restaurants. The Company also excludes impairment and closure expense as it believes this provides a clearer perspective of 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 the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables.
Conference Call
Texas Roadhouse is hosting a conference call today, February 18, 2021 at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (877) 699-0953 or (647) 689-5456 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (800) 585-8367 or (416) 621-4642 for international calls, and use 6659886 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.
About the Company
Texas Roadhouse is a casual dining concept that first opened in 1993 and today has grown to over 630 restaurants system-wide in 49 states and ten foreign countries. For more information, please visit the Company’s Web site at www.texasroadhouse.com.
Forward-looking Statements
Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to the potential impact of the COVID-19/Coronavirus outbreak and other non-historical statements. Such statements are based upon the current beliefs and expectations of the management of Texas Roadhouse. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond its control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting customers or food supplies; food safety and food-borne illness concerns; and other factors disclosed from time to time in its filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under “Part I—Item 1A. Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in the Current Report on Form 8-K filed on February 18, 2021. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
# # #
Contacts:
Investor Relations
Michael Bailen
(502) 515-7298
Media
Travis Doster
(502) 638-5457
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
| 13 and 14 Weeks Ended | 52 and 53 Weeks Ended | ||||||||||||||||
| December
29, 2020 | December
31, 2019 | December
29, 2020 | December
31, 2019 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Restaurant and other sales | $ | 633,032 | $ | 719,457 | $ | 2,380,177 | $ | 2,734,177 | |||||||||
| Franchise royalties and fees | 4,957 | 5,781 | 17,946 | 21,986 | |||||||||||||
| Total revenue | 637,989 | 725,238 | 2,398,123 | 2,756,163 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Restaurant operating costs (excluding depreciation and amortization shown separately below): | |||||||||||||||||
| Food and beverage | 205,117 | 233,221 | 780,646 | 883,357 | |||||||||||||
| Labor | 222,788 | 237,902 | 875,764 | 905,614 | |||||||||||||
| Rent | 13,956 | 13,358 | 54,401 | 52,531 | |||||||||||||
| Other operating | 107,111 | 112,093 | 403,726 | 418,448 | |||||||||||||
| Pre-opening | 5,803 | 7,355 | 20,099 | 20,156 | |||||||||||||
| Depreciation and amortization | 30,443 | 30,970 | 117,877 | 115,544 | |||||||||||||
| Impairment and closure, net | 1,392 | (1,293 | ) | 2,263 | (899 | ) | |||||||||||
| General and administrative | 30,983 | 38,221 | 119,503 | 149,389 | |||||||||||||
| Total costs and expenses | 617,593 | 671,827 | 2,374,279 | 2,544,140 | |||||||||||||
| Income from operations | 20,396 | 53,411 | 23,844 | 212,023 | |||||||||||||
| Interest expense (income), net | 1,490 | 12 | 4,091 | (1,514 | ) | ||||||||||||
| Equity income (loss) from investments in unconsolidated affiliates | 97 | 278 | (500 | ) | 378 | ||||||||||||
| Income before taxes | 19,003 | 53,677 | 19,253 | 213,915 | |||||||||||||
| Income tax (benefit) expense | (1,673 | ) | 9,066 | (15,672 | ) | 32,397 | |||||||||||
| Net income including noncontrolling interests | 20,676 | 44,611 | 34,925 | 181,518 | |||||||||||||
| Less: Net income attributable to noncontrolling interests | 1,127 | 1,925 | 3,670 | 7,066 | |||||||||||||
| Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $ | 19,549 | $ | 42,686 | $ | 31,255 | $ | 174,452 | |||||||||
| Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: | |||||||||||||||||
| Basic | $ | 0.28 | $ | 0.61 | $ | 0.45 | $ | 2.47 | |||||||||
| Diluted | $ | 0.28 | $ | 0.61 | $ | 0.45 | $ | 2.46 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Basic | 69,525 | 69,431 | 69,438 | 70,509 | |||||||||||||
| Diluted | 70,052 | 69,888 | 69,893 | 70,916 | |||||||||||||
| Cash dividends declared per share | $ | - | $ | 0.30 | $ | 0.36 | $ | 1.20 | |||||||||
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| December 29, 2020 | December 31, 2019 | |||||||
| Cash and cash equivalents | $ | 363,155 | $ | 107,879 | ||||
| Other current assets, net | 147,496 | 140,020 | ||||||
| Property and equipment, net | 1,088,623 | 1,056,563 | ||||||
| Operating lease right-of-use assets, net | 530,625 | 499,801 | ||||||
| Goodwill | 127,001 | 124,748 | ||||||
| Intangible assets, net | 2,271 | 1,234 | ||||||
| Other assets | 65,990 | 53,320 | ||||||
| Total assets | $ | 2,325,161 | $ | 1,983,565 | ||||
| Current maturities of long-term debt | 50,000 | - | ||||||
| Other current liabilities | 456,318 | 417,220 | ||||||
| Operating lease liabilities, net of current portion | 572,171 | 538,710 | ||||||
| Long-term debt, excluding current maturities | 190,000 | - | ||||||
| Other liabilities | 113,621 | 96,466 | ||||||
| Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 927,505 | 915,994 | ||||||
| Noncontrolling interests | 15,546 | 15,175 | ||||||
| Total liabilities and equity | $ | 2,325,161 | $ | 1,983,565 | ||||
Texas Roadhouse, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| 52 and 53 Weeks Ended | ||||||||
| December 29, 2020 | December 31, 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income including noncontrolling interests | $ | 34,925 | $ | 181,518 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 117,877 | 115,544 | ||||||
| Share-based compensation expense | 29,431 | 35,500 | ||||||
| Deferred income taxes | (19,932 | ) | 6,335 | |||||
| Other noncash adjustments, net | 6,262 | 6,039 | ||||||
| Change in working capital | 61,875 | 29,362 | ||||||
| Net cash provided by operating activities | 230,438 | 374,298 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures - property and equipment | (154,401 | ) | (214,340 | ) | ||||
| Acquisition of franchise restaurants, net of cash acquired | (10,580 | ) | (1,536 | ) | ||||
| Proceeds from sale of property and equipment | 1,709 | 1,056 | ||||||
| Proceeds from sale leaseback transaction | 2,167 | - | ||||||
| Net cash used in investing activities | (161,105 | ) | (214,820 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving credit facility | 240,000 | - | ||||||
| Repurchase of shares of common stock | (12,621 | ) | (139,849 | ) | ||||
| Dividends paid | (24,989 | ) | (102,366 | ) | ||||
| Other financing activities, net | (16,447 | ) | (19,509 | ) | ||||
| Net cash provided by (used in) financing activities | 185,943 | (261,724 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 255,276 | (102,246 | ) | |||||
| Cash and cash equivalents - beginning of period | 107,879 | 210,125 | ||||||
| Cash and cash equivalents - end of period | $ | 363,155 | $ | 107,879 | ||||
Texas Roadhouse, Inc. and Subsidiaries
Reconciliation of Income from Operations to Restaurant Margin
(in thousands)
(unaudited)
| 13 and 14 Weeks Ended | 52 and 53 Weeks Ended | |||||||||||||||
| December
29, 2020 | December
31, 2019 | December
29, 2020 | December
31, 2019 | |||||||||||||
| Income from operations | $ | 20,396 | $ | 53,411 | $ | 23,844 | $ | 212,023 | ||||||||
| Less: | ||||||||||||||||
| Franchise royalties and fees | 4,957 | 5,781 | 17,946 | 21,986 | ||||||||||||
| Add: | ||||||||||||||||
| Pre-opening | 5,803 | 7,355 | 20,099 | 20,156 | ||||||||||||
| Depreciation and amortization | 30,443 | 30,970 | 117,877 | 115,544 | ||||||||||||
| Impairment and closure, net | 1,392 | (1,293 | ) | 2,263 | (899 | ) | ||||||||||
| General and administrative | 30,983 | 38,221 | 119,503 | 149,389 | ||||||||||||
| Restaurant margin | $ | 84,060 | $ | 122,883 | $ | 265,640 | $ | 474,227 | ||||||||
| Restaurant margin (as a percentage of restaurant and other sales) | 13.3 | % | 17.1 | % | 11.2 | % | 17.3 | % | ||||||||
Texas Roadhouse, Inc. and Subsidiaries
Supplemental Financial and Operating Information
($ amounts in thousands, except weekly sales by group)
(unaudited)
| Fourth Quarter | Change | Year to Date | Change | ||||||||||||||||||||||
| 2020 | 2019 | vs LY | 2020 | 2019 | vs LY | ||||||||||||||||||||
| Restaurant openings | |||||||||||||||||||||||||
| Company - Texas Roadhouse | 8 | 9 | (1 | ) | 18 | 19 | (1 | ) | |||||||||||||||||
| Company - Bubba's 33 | 0 | 2 | (2 | ) | 3 | 3 | 0 | ||||||||||||||||||
| Company - Jaggers | 1 | 0 | 1 | 1 | 0 | 1 | |||||||||||||||||||
| Franchise - Texas Roadhouse - U.S. | 1 | 0 | 1 | 2 | 1 | 1 | |||||||||||||||||||
| Franchise - Texas Roadhouse - International | 1 | 3 | (2 | ) | 2 | 8 | (6 | ) | |||||||||||||||||
| Total | 11 | 14 | (3 | ) | 26 | 31 | (5 | ) | |||||||||||||||||
| Restaurant acquisitions/dispositions | |||||||||||||||||||||||||
| Company | 2 | 1 | 1 | 2 | 1 | 1 | |||||||||||||||||||
| Franchise | (2 | ) | (1 | ) | (1 | ) | (2 | ) | (1 | ) | (1 | ) | |||||||||||||
| Total | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
| Restaurant closures | |||||||||||||||||||||||||
| Company - Texas Roadhouse | 0 | 0 | 0 | (1 | ) | 0 | (1 | ) | |||||||||||||||||
| Company - Bubba's 33 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
| Company - Jaggers | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
| Franchise - Texas Roadhouse - International | 0 | 0 | 0 | (2 | ) | (2 | ) | 0 | |||||||||||||||||
| Total | 0 | 0 | 0 | (3 | ) | (2 | ) | (1 | ) | ||||||||||||||||
| Restaurants open at the end of the quarter | |||||||||||||||||||||||||
| Company - Texas Roadhouse | 503 | 484 | 19 | ||||||||||||||||||||||
| Company - Bubba's 33 | 31 | 28 | 3 | ||||||||||||||||||||||
| Company - Jaggers | 3 | 2 | 1 | ||||||||||||||||||||||
| Franchise - Texas Roadhouse - U.S. | 69 | 69 | 0 | ||||||||||||||||||||||
| Franchise - Texas Roadhouse - International | 28 | 28 | 0 | ||||||||||||||||||||||
| Total | 634 | 611 | 23 | ||||||||||||||||||||||
| Company restaurants | |||||||||||||||||||||||||
| Restaurant and other sales | $ | 633,032 | $ | 719,457 | (12.0 | )% | $ | 2,380,177 | $ | 2,734,177 | (12.9 | )% | |||||||||||||
| Store weeks | 6,908 | 7,118 | (3.0 | )% | 27,181 | 26,473 | 2.7 | % | |||||||||||||||||
| Comparable restaurant sales (1) | (8.9 | )% | 4.4 | % | (14.2 | )% | 4.7 | % | |||||||||||||||||
| Texas Roadhouse restaurants only: | |||||||||||||||||||||||||
| Comparable restaurant sales (1) | (9.0 | )% | 4.3 | % | (14.1 | )% | 4.6 | % | |||||||||||||||||
| Average unit volume (2) | $ | 1,208 | $ | 1,435 | (15.8 | )% | $ | 4,649 | $ | 5,555 | (16.3 | )% | |||||||||||||
| Average unit volume, as adjusted (3) | $ | 1,208 | $ | 1,336 | (9.5 | )% | $ | 4,649 | $ | 5,427 | (14.3 | )% | |||||||||||||
| Weekly sales by group: | |||||||||||||||||||||||||
| Comparable restaurants (470 units) | $ | 93,530 | |||||||||||||||||||||||
| Average unit volume restaurants (19 units) (4) | $ | 78,402 | |||||||||||||||||||||||
| Restaurants less than 6 months old (14 units) | $ | 90,994 | |||||||||||||||||||||||
| Restaurant operating costs (as a % of restaurant and other sales) | |||||||||||||||||||||||||
| Food and beverage costs | 32.4 | % | 32.4 | % | (1 | )bps | 32.8 | % | 32.3 | % | 49 | bps | |||||||||||||
| Labor | 35.2 | % | 33.1 | % | 213 | bps | 36.8 | % | 33.1 | % | 367 | bps | |||||||||||||
| Rent | 2.2 | % | 1.9 | % | 35 | bps | 2.3 | % | 1.9 | % | 36 | bps | |||||||||||||
| Other operating | 16.9 | % | 15.6 | % | 134 | bps | 17.0 | % | 15.3 | % | 166 | bps | |||||||||||||
| Total | 86.7 | % | 82.9 | % | 380 | bps | 88.8 | % | 82.7 | % | 618 | bps | |||||||||||||
| Restaurant margin | 13.3 | % | 17.1 | % | (380 | )bps | 11.2 | % | 17.3 | % | (618 | )bps | |||||||||||||
| Restaurant margin ($ in thousands) | $ | 84,060 | $ | 122,883 | (31.6 | )% | $ | 265,640 | $ | 474,227 | (44.0 | )% | |||||||||||||
| Restaurant margin $/Store week | $ | 12,169 | $ | 17,264 | (29.5 | )% | $ | 9,773 | $ | 17,914 | (45.4 | )% | |||||||||||||
| Franchise restaurants | |||||||||||||||||||||||||
| Franchise royalties and fees | $ | 4,957 | $ | 5,781 | (14.3 | )% | $ | 17,946 | $ | 21,986 | (18.4 | )% | |||||||||||||
| Store weeks | 1,260 | 1,330 | (5.2 | )% | 5,048 | 4,953 | 1.9 | % | |||||||||||||||||
| Comparable restaurant sales (1) | (10.7 | )% | 3.0 | % | (17.3 | )% | 3.0 | % | |||||||||||||||||
| U.S. franchise restaurants only: | |||||||||||||||||||||||||
| Comparable restaurant sales (1) | (11.2 | )% | 3.4 | % | (15.5 | )% | 3.8 | % | |||||||||||||||||
| Average unit volume (2) | $ | 1,242 | $ | 1,491 | (16.7 | )% | $ | 4,779 | $ | 5,749 | (16.9 | )% | |||||||||||||
| Average unit volume, as adjusted (3) | $ | 1,242 | $ | 1,387 | (10.5 | )% | $ | 4,779 | $ | 5,617 | (14.9 | )% | |||||||||||||
| Pre-opening expense | $ | 5,803 | $ | 7,355 | (21.1 | )% | $ | 20,099 | $ | 20,156 | (0.3 | )% | |||||||||||||
| Depreciation and amortization | $ | 30,443 | $ | 30,970 | (1.7 | )% | $ | 117,877 | $ | 115,544 | 2.0 | % | |||||||||||||
| As a % of revenue | 4.8 | % | 4.3 | % | 50 | bps | 4.9 | % | 4.2 | % | 72 | bps | |||||||||||||
| General and administrative expenses | $ | 30,983 | $ | 38,221 | (18.9 | )% | $ | 119,503 | $ | 149,389 | (20.0 | )% | |||||||||||||
| As a % of revenue | 4.9 | % | 5.3 | % | (41 | )bps | 5.0 | % | 5.4 | % | (44 | )bps | |||||||||||||
(1) Comparable restaurant sales reflects the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period measured, excluding sales from restaurants permanently closed during the period.
(2) Average unit volume includes sales from Texas Roadhouse restaurants open for a full six months before the beginning of the period measured, excluding sales from restaurants permanently closed during the period. Q4 2020 and 2020 YTD include 13 and 52 weeks, respectively, while Q4 2019 and 2019 YTD include 14 and 53 weeks, respectively.
(3) For comparative purposes, Q4 2019 and 2019 YTD were adjusted to include 13 and 52 weeks, respectively.
(4) Average unit volume restaurants include restaurants open a full six and up to 18 months before the beginning of the period measured.
Amounts may not foot due to rounding.