Texas Roadhouse Inc., owner of the 345-unit casual-dining chain, reported Tuesday a 16-percent increase in fourth-quarter net income, driven by positive sales, guest traffic and new restaurant openings.
For the Dec. 28-ended fourth quarter, Texas Roadhouse booked net income of $10.1 million, or 14 cents per share, a 16-percent increase from earnings of $8.7 million, or 12 cents per share, in the same quarter a year earlier.
Latest-quarter revenue rose 8 percent to $244.6 million, reflecting seven new corporate restaurants and same-store sales increases of 3.1 percent at corporate locations and 2.9 percent at franchised units.
“2010 ended on a very strong note, with sales growth continuing through the fourth quarter,” G.J. Hart, Texas Roadhouse president and chief executive, said in a statement. “Despite severe weather in early 2011, our momentum has continued and we are pleased to have seen continued traffic growth. While we do anticipate inflation this year, we believe we are in a good position to manage through this pressure with limited pricing actions. Consequently, we expect solid profitability in 2011.”
Same-store sales have increased about 3.8 percent across the system through the first seven weeks of fiscal 2011, the company added.
For fiscal 2010, the company’s net income totaled $58.3 million, or 80 cents per share, a 23-percent increase from 2009 earnings of $47.5 million, or 67 cents per share.
Full-year revenue rose 7 percent to $1 billion in 2010, compared with $942.3 million in fiscal 2009. For the year, Texas Roadhouse opened a net of 13 corporate restaurants and a net of one franchised unit. Same-store sales increased 2.4 percent at corporate locations and 2.5 percent at franchised units.
The company projected 10-percent earnings growth for 2011, based on assumptions of opening 20 new corporate restaurants, same-store sales growth of about 3.5 percent, and food cost inflation of about 3 percent. Texas Roadhouse said it would offset food cost inflation with a menu price increase of about 1 percent taken across the system.
Louisville, Ky.-based Texas Roadhouse operates or franchises restaurants in 46 states.
Contact Mark Brandau at [email protected].