Texas Roadhouse Inc. said Monday that same-store sales increased 4.6 percent at company-owned restaurants in the first quarter ended March 29.
At the same time, Texas Roadhouse said that restaurant margins as a percent of sales increased 116 basis points in the period, to 20.1 percent, due to lower food costs, especially for beef.
That drove earnings higher. Net income in the quarter increased 10 percent, to $35.6 million, or 50 cents per share, from $32.3 million, or 46 cents per share the previous year.
“We are pleased that our top-line momentum continued in the first quarter, driven by solid traffic growth,” Texas Roadhouse CEO Kent Taylor said in a statement.
Revenues in the quarter increased 12 percent, to $515.6 million, from $460.2 million the previous year.
Texas Roadhouse expects food costs to fall 1 percent to 2 percent this year. The company also expects “positive comparable restaurant sales growth,” and the opening of 30 new restaurants. Those openings will include seven Bubba’s 33 locations.
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