Texas Roadhouse, Inc 10-Q for FY2022 Q1

Texas Roadhouse, Inc. (TXRH)

10-Q 2022-05-06 For: 2022-03-29

Added on April 10, 2026

About this 10-Q

Texas Roadhouse, Inc filed this 10-Q on May 6, 2022, covering the quarter ended March 29, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 29, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $987.49M; up 23.3% from $800.63M a year earlier
Net income: $75.2M; up 17.2% from net income of $64.15M a year earlier
Diluted EPS: $1.08; up 18.7% from $0.91 a year earlier

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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 — March 29, 2022 and December 28, 2021		3
Condensed Consolidated Statements of Income and Comprehensive Income — For the 13 Weeks Ended March 29, 2022 and March 30, 2021		4
Condensed Consolidated Statement of Stockholders’ Equity — For the 13 Weeks Ended March 29, 2022 and March 30, 2021		5
Condensed Consolidated Statements of Cash Flows — For the 13 Weeks Ended March 29, 2022 and March 30, 2021		6
Notes to Condensed Consolidated Financial Statements		7
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3 — Quantitative and Qualitative Disclosures About Market Risk		28
Item 4 — Controls and Procedures		29

PART II. OTHER INFORMATION

Item 1 — Legal Proceedings		30
Item 1A — Risk Factors		30
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 3 — Defaults Upon Senior Securities		30
Item 4 — Mine Safety Disclosures		30
Item 5 — Other Information		31
Item 6 — Exhibits		31

Signatures		32


	March 29, 2022		December 28, 2021
Assets
Current assets:
Cash and cash equivalents	$	325,723	$	335,645
Receivables, net of allowance for doubtful accounts of $29 at March 29, 2022 and $17 at December 28, 2021		45,152		161,358
Inventories, net		30,043		31,595
Prepaid income taxes		2,668		10,701
Prepaid expenses and other current assets		22,401		24,226
Total current assets		425,987		563,525
Property and equipment, net of accumulated depreciation of $896,035 at March 29, 2022 and $869,375 at December 28, 2021		1,181,707		1,162,441
Operating lease right-of-use assets, net		605,146		578,413
Goodwill		144,334		127,001
Intangible assets, net of accumulated amortization of $15,764 at March 29, 2022 and $15,092 at December 28, 2021		6,848		1,520
Other assets		73,298		79,052
Total assets	$	2,437,320	$	2,511,952
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of operating lease liabilities	$	23,845	$	21,952
Accounts payable		100,093		95,234
Deferred revenue-gift cards		221,479		300,657
Accrued wages and payroll taxes		79,834		64,716
Income taxes payable		3,500		85
Accrued taxes and licenses		33,690		33,375
Other accrued liabilities		79,333		86,125
Total current liabilities		541,774		602,144
Operating lease liabilities, net of current portion		649,069		622,892
Long-term debt		100,000		100,000
Restricted stock and other deposits		8,167		8,027
Deferred tax liabilities, net		14,154		11,734
Other liabilities		88,897		93,671
Total liabilities		1,402,061		1,438,468
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, 68,459,769 and 69,382,418 shares issued and outstanding at March 29, 2022 and December 28, 2021, respectively)		68		69
Additional paid-in-capital		32,754		114,504
Retained earnings		986,958		943,551
Total Texas Roadhouse, Inc. and subsidiaries stockholders’ equity		1,019,780		1,058,124
Noncontrolling interests		15,479		15,360
Total equity		1,035,259		1,073,484
Total liabilities and equity	$	2,437,320	$	2,511,952



	13 Weeks Ended
	March 29, 2022		March 30, 2021
Revenue:
Restaurant and other sales	$	980,972	$	794,923
Franchise royalties and fees		6,514		5,706
Total revenue		987,486		800,629
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Food and beverage		337,396		251,482
Labor		321,871		258,036
Rent		16,368		14,452
Other operating		144,154		123,379
Pre-opening		4,291		4,268
Depreciation and amortization		33,620		30,869
Impairment and closure, net		(646)		504
General and administrative		40,294		36,712
Total costs and expenses		897,348		719,702
Income from operations		90,138		80,927
Interest expense, net		397		1,460
Equity income (loss) from investments in unconsolidated affiliates		334		(217)
Income before taxes	$	90,075	$	79,250
Income tax expense		12,747		12,820
Net income including noncontrolling interests		77,328		66,430
Less: Net income attributable to noncontrolling interests		2,126		2,280
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$	75,202	$	64,150
Other comprehensive loss, net of tax:
Foreign currency translation adjustment, net of tax of $- and $4, respectively		—		(12)
Total comprehensive income	$	75,202	$	64,138
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic	$	1.09	$	0.92
Diluted	$	1.08	$	0.91
Weighted average shares outstanding:
Basic		69,086		69,637
Diluted		69,373		70,137
Cash dividends declared per share	$	0.46	$	—


	For the 13 Weeks Ended March 29, 2022
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 28, 2021	69,382,418	$	69	$	114,504	$	943,551	$	—	$	1,058,124	$	15,360	$	1,073,484
Net income	—		—		—		75,202		—		75,202		2,126		77,328
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(2,007)		(2,007)
Dividends declared ($0.46 per share)	—		—		—		(31,795)		—		(31,795)		—		(31,795)
Shares issued under share-based compensation plans including tax effects	204,968		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(66,999)		—		(6,166)		—		—		(6,166)		—		(6,166)
Repurchase of shares of common stock	(1,060,618)		(1)		(84,704)		—		—		(84,705)		—		(84,705)
Share-based compensation	—		—		9,120		—		—		9,120		—		9,120
Balance, March 29, 2022	68,459,769	$	68	$	32,754	$	986,958	$	—	$	1,019,780	$	15,479	$	1,035,259


	For the 13 Weeks Ended March 30, 2021
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 29, 2020	69,561,861	$	70	$	145,626	$	781,915	$	(106)	$	927,505	$	15,546	$	943,051
Net income	—		—		—		64,150		—		64,150		2,280		66,430
Other comprehensive loss, net of tax	—		—		—		—		(12)		(12)		—		(12)
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(1,429)		(1,429)
Shares issued under share-based compensation plans including tax effects	269,918		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(89,259)		—		(7,930)		—		—		(7,930)		—		(7,930)
Share-based compensation	—		—		9,908		—		—		9,908		—		9,908
Balance, March 30, 2021	69,742,520	$	70	$	147,604	$	846,065	$	(118)	$	993,621	$	16,397	$	1,010,018


Inventory	$	268
Other assets		211
Property and equipment		3,456
Goodwill		17,333
Intangible assets		6,000
Current liabilities		(831)
	$	26,437


	Fair Value Measurements
	Level	March 29, 2022		December 28, 2021
Deferred compensation plan—assets	1	$	61,996	$	67,512
Deferred compensation plan—liabilities	1	$	(61,839)	$	(67,431)


	Fair Value Measurements					Total gain (loss)
						13 Weeks Ended
		March 29,		December 28,		March 29,		March 30,
	Level	2022		2021		2022		2021
Long-lived assets held for sale	3	$	—	$	1,175	$	690	$	(470)
Investments in unconsolidated affiliates	3	$	—	$	—	$	—	$	(531)


	13 Weeks Ended March 29, 2022
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	926,729	$	51,225	$	3,018	$	980,972
Restaurant operating costs (excluding depreciation and amortization)		773,261		43,431		3,097		819,789
Restaurant margin	$	153,468	$	7,794	$	(79)	$	161,183

Depreciation and amortization	$	27,541	$	3,190	$	2,889	$	33,620
Capital expenditures		39,677		7,377		1,975		49,029

	13 Weeks Ended March 30, 2021
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	756,597	$	35,685	$	2,641	$	794,923
Restaurant operating costs (excluding depreciation and amortization)		615,485		29,682		2,182		647,349
Restaurant margin	$	141,112	$	6,003	$	459	$	147,574

Depreciation and amortization	$	25,663	$	3,013	$	2,193	$	30,869
Capital expenditures		31,154		5,580		1,932		38,666


	Reconciliation of Income from Operations to Restaurant Margin
	(in thousands)
	13 Weeks Ended
	March 29, 2022		March 30, 2021


Income from operations	$	90,138	$	80,927

Less:
Franchise royalties and fees		6,514		5,706

Add:
Pre-opening		4,291		4,268
Depreciation and amortization		33,620		30,869
Impairment and closure, net		(646)		504
General and administrative		40,294		36,712
Restaurant margin	$	161,183	$	147,574

Restaurant margin $/store week	$	21,618	$	21,097
Restaurant margin (as a percentage of restaurant and other sales)		16.4%		18.6%


	March 29, 2022	March 30, 2021
Company - Texas Roadhouse	536	505
Company - Bubba's 33	36	32
Company - Jaggers	4	3
Franchise - Texas Roadhouse - U.S.	63	69
Franchise - Texas Roadhouse - International	33	28
Total	672	637


	Q1 2022			Q1 2021
Company Restaurants:
Increase in store weeks		6.6	%		4.1	%
Increase in average unit volume(1)		15.7	%		17.5	%
Other(2)		1.1	%		1.0	%
Total increase in restaurant sales		23.4	%		22.6	%
Other sales		—	%		0.1	%
Total increase in restaurant and other sales		23.4	%		22.7	%

Store weeks		7,456			6,995
Comparable restaurant sales		16.0	%		18.5	%

Texas Roadhouse restaurants:
Store weeks		6,936			6,551
Comparable restaurant sales		15.8	%		18.3	%
Average unit volume (in thousands)	$	1,745		$	1,509

Weekly sales by group:
Comparable restaurants (498 and 473 units, respectively)	$	134,422		$	116,816
Average unit volume restaurants (20 and 18 units, respectively)	$	129,143		$	96,780
Restaurants less than six months old (18 and 14 units, respectively)	$	140,535		$	117,833

Bubba's 33 restaurants:
Store weeks		468			405
Comparable restaurant sales		21.3	%		24.1	%
Average unit volume (in thousands)	$	1,398		$	1,151

Weekly sales by group:
Comparable restaurants (30 and 25 units, respectively)	$	107,387		$	91,663
Average unit volume restaurants (4 and 5 units, respectively)	$	108,771		$	72,742
Restaurants less than six months old (2 units, respectively)	$	140,855		$	75,610


	Q1 2022		Q1 2021
Guest traffic counts	7.0	%	13.0	%
Per person average check	9.0	%	5.5	%
Comparable restaurant sales growth	16.0	%	18.5	%


	13 Weeks Ended
	March 29, 2022		March 30, 2021
New company restaurants	$	26,326	$	22,975
Refurbishment or expansion of existing restaurants		18,160		13,742
Relocation of existing restaurants		3,666		705
Capital expenditures related to Support Center office		877		1,244
Total capital expenditures	$	49,029	$	38,666


					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
December 29 to January 25	177,420	$	85.26	177,420	$	80,997,439
January 26 to February 22	123,198	$	85.18	123,198	$	70,503,193
February 23 to March 29	760,000	$	77.74	760,000	$	295,030,590

Total	1,060,618			1,060,618

Exhibit No.		Description

31.1		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		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		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		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: May 6, 2022	By:	/s/ GERALD L. MORGAN
		Gerald L. Morgan
		Chief Executive Officer and President (principal executive officer)


Date: May 6, 2022	By:	/s/ TONYA R. ROBINSON
		Tonya R. Robinson
		Chief Financial Officer
		(principal financial officer)
		(principal accounting officer)