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Texas Roadhouse posts 11% jump in 1Q profit

LOUISVILLE Ky. Texas Roadhouse Inc. on Monday reported an 11-percent rise in first-quarter net income as a higher restaurant count helped compensate for a dip in same-store sales.

For the first quarter ended March 31, Texas Roadhouse reported net income of $14.3 million, or 20 cents a share, compared with net income of $12.9 million, or 17 cents a share, in the year-ago quarter. The company's results surpassed the average analyst forecast of earnings of 17 cents a share, according to Thomson Financial.

First-quarter revenue rose 16.5 percent, to $246 million, said Texas Roadhouse, which operates or franchises 323 casual restaurants.

Same-store sales slid 1.3 percent at corporate stores and 1.7 percent at franchised locations, the company said.

G.J. Hart, president and chief executive of Texas Roadhouse, described the company's sales performance as "better than expected," and the company raised its outlook for the full year.

Texas Roadhouse said it now expects full-year per-share earnings to range from flat to up 5 percent, which compares with an earlier forecast of flat year-to-year earnings. In 2008, Texas Roadhouse earned 52 cents a share.

"With the economic environment far from certain, we are as focused as ever on doing the right things for the business," Hart said. "Specifically, we are maintaining a four-wall operational focus, taking a conservative approach to menu pricing, generating returns on invested capital on new projects; and, of course, maintaining a conservative balance sheet."

The company said it raised average menu prices 1.4 percent last month, after the first quarter ended. In the first four weeks of the current second quarter, same-store sales were down 3.1 percent, which the company blamed, in part, to an unfavorable calendar shift of the Easter holiday.

Texas Roadhouse opened nine corporate restaurants in the first quarter and said it plans to open a total of 15 locations for the year. In addition, franchisees are expected to open two restaurants this year, the company said.

Contact Molly Gise at [email protected].

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