Texas Roadhouse Inc. reported gains in revenue, same-store sales and net income during the first quarter, despite commodity cost pressures contracting restaurant margins 1.7 percent.
During the March 26-ended quarter, the Louisville, Ky.-based company’s net income soared 39 percent to $26.2 million, or 37 cents per share, compared with $18.9 million, or 27 cents per share, a year earlier.
The results from the first quarter of 2012 included a pretax charge of $5 million, which had a negative-4-cent impact on earnings per share. Excluding that prior-year impact, Texas Roadhouse’s earnings per share grew 20 percent from 31 cents in the first quarter of 2012 to 37 cents this quarter.
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Revenue rose 11 percent to $359.7 million, reflecting same-store sales gains of 3.5 percent at company-operated restaurants and 4.5 percent at franchised locations.
Restaurant-level margins decreased to 18.9 percent, due primarily to higher costs for commodities, especially beef. Texas Roadhouse projects food cost inflation for 2013 between 6 percent and 7 percent.
Founder and chief executive Kent Taylor said in a statement that Texas Roadhouse was “encouraged” by further sales momentum to begin the second quarter. Through the first four weeks of the quarter, same-store sales at company-owned restaurants increased 5.7 percent, compared with the same period of the second quarter of fiscal 2012.
The company’s 2013 outlook includes projections for positive same-store sales growth and the opening of approximately 28 corporate restaurants.
Texas Roadhouse operates 323 company-owned restaurants and franchises another 74 locations in 47 states and two foreign countries.
Contact Mark Brandau at [email protected].
Follow him on Twitter: @Mark_from_NRN
