Texas Roadhouse, Inc. Announces Fourth Quarter 2024 Results

Increases Quarterly Dividend 11% to $0.68 per Share and Approves Stock Repurchase Program of $500 Million

LOUISVILLE, Ky., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the fourth quarter and fiscal year ended December 31, 2024.

Financial Results

Financial results for the fourth quarter and fiscal year ended December 31, 2024 and December 26, 2023 were as follows:

Results for the fourth quarter ended December 31, 2024, as compared to the prior year as applicable, included the following:

• Comparable restaurant sales increased 7.7% at company restaurants and increased 6.3% at domestic franchise restaurants;
• Average weekly sales at company restaurants were $153,867 of which $20,067 were to-go sales as compared to average weekly sales of $141,653 of which $17,793 were to-go sales in the prior year;
• Restaurant margin dollars increased 37.3% to $242.6 million from $176.7 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased to 17.0% from 15.3% in the prior year driven primarily by higher sales. The benefit of a higher average guest check, the benefit of the additional week, and improved labor productivity more than offset wage and other labor inflation of 5.0% and commodity inflation of 0.3%;
• Diluted earnings per share increased 60.1% primarily driven by higher restaurant margin dollars partially offset by higher depreciation and amortization expenses and higher general and administrative expenses. Diluted earnings per share growth was positively impacted by approximately 20% as a result of the additional week;
• Nine company restaurants and five franchise restaurants were opened; and
• Capital allocation spend included capital expenditures of $107.8 million, dividends of $40.7 million, and repurchases of common stock of $35.1 million.

• Comparable restaurant sales increased 8.5% at company restaurants and increased 7.4% at domestic franchise restaurants;
• Average weekly sales at company restaurants were $155,285 of which $19,940 were to-go sales as compared to average weekly sales of $143,837 of which $18,088 were to-go sales in the prior year;
• Restaurant margin dollars increased 29.4% to $915.8 million from $708.0 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased to 17.1% from 15.4% in the prior year driven primarily by higher sales. The benefit of a higher average guest check and improved labor productivity more than offset wage and other labor inflation of 4.6% and commodity inflation of 0.7%;
• Diluted earnings per share increased 42.5% primarily driven by higher restaurant margin dollars partially offset by higher depreciation and amortization expenses and higher general and administrative expenses. Diluted earnings per share growth was positively impacted by approximately 5% as a result of the additional week;
• 31 company restaurants and 14 franchise restaurants were opened; and
• Capital allocation spend included capital expenditures of $354.3 million, dividends of $162.9 million, and repurchases of common stock of $79.8 million.

Morgan continued, "We are off to a strong start in 2025 with the completion of the previously announced acquisition of 13 franchise restaurants. In addition, due to the continued growth across our portfolio, our 800^th restaurant is under construction and will open later this year. As we have consistently done, we will leverage the strength of our balance sheet to continue to fund our development growth while also returning capital to our shareholders.”

Franchise Acquisition

On the first day of the 2025 fiscal year, the Company completed the acquisition of 13 domestic franchise restaurants for an aggregate purchase price of approximately $78 million.

2025 Outlook

Comparable restaurant sales at company restaurants for the first seven weeks of our first quarter of fiscal 2025 increased 2.9% compared to 2024. In addition, the Company plans to implement a menu price increase of approximately 1.4% in early April.

Management updated the following expectation for 2025:

• Commodity cost inflation of 3% to 4%.

• Positive comparable restaurant sales growth including the benefit of 2024 menu pricing actions;
• Store week growth of approximately 5%, including a benefit of 2% from the franchise acquisition;
• Wage and other labor inflation of 4% to 5%;
• An effective income tax rate of 15% to 16%; and
• Total capital expenditures of approximately $400 million.

On February 19, 2025, the Company's Board of Directors approved the payment of a quarterly cash dividend of $0.68 per share of common stock.  This payment, which represents an 11% increase from the quarterly cash dividend in 2024, will be distributed on April 1, 2025, to shareholders of record at the close of business on March 18, 2025.

Stock Repurchase Authorization

On February 19, 2025, the Company's Board of Directors approved a stock repurchase program under which they authorized the Company to repurchase up to $500 million of its common stock. This new stock repurchase program will commence on February 24, 2025 and any repurchases made under such plan will be made by the Company through open market transactions. This stock repurchase program has no expiration date and replaces the previous stock repurchase program of $300 million which was approved on March 17, 2022.

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, as a percentage of restaurant and other sales, and per store week). 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 core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, but do not have a direct impact on restaurant-level operational efficiency and performance, including general and administrative expenses. The Company excludes pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results. The Company excludes depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in restaurants. The Company excludes impairment and closure expenses 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, Inc. is hosting a conference call today, February 20, 2025, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company's website at www.texasroadhouse.com. Listeners may also access the call by dialing (888) 440‑5667 or (646) 960‑0476 for international calls and referencing the Texas Roadhouse, Inc. Fourth Quarter 2024 Earnings. A replay of the call will be available until February 27, 2025, by dialing (800) 770‑2030 or (609) 800‑9909 for international calls and using conference ID 7714420.

About the Company

Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 780 restaurants system-wide in 49 states, one U.S. territory, 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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of Texas Roadhouse, Inc. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond management's control such as weather, natural disasters, disease outbreaks, epidemics, or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet its business standards; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures; 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 26, 2023. 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.