Financial Results
Financial results for the 13 and 26 weeks ended
Second Quarter | Year to Date | |||||||||||||||||
( | ||||||||||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | |||||||||||||
Total revenue | $ | 1,171,203 | $ | 1,024,606 | 14.3 | % | $ | 2,345,559 | $ | 2,012,092 | 16.6 | % | ||||||
Income from operations | 95,412 | 85,918 | 11.1 | % | 196,357 | 176,056 | 11.5 | % | ||||||||||
Net income | 82,271 | 72,419 | 13.6 | % | 168,658 | 147,621 | 14.3 | % | ||||||||||
Diluted earnings per share | $ | 1.22 | $ | 1.07 | 14.7 | % | $ | 2.51 | $ | 2.15 | 16.6 | % |
Results for the second quarter, as compared to the prior year as applicable, included the following:
- Comparable restaurant sales increased 9.1% at company restaurants and increased 9.2% at domestic franchise restaurants;
- Average weekly sales at company restaurants were
$146,727 of which$18,496 were to-go sales as compared to average weekly sales of$135,552 of which$17,794 were to-go sales in the prior year; - Restaurant margin dollars increased 8.3% to
$182.8 million from$168.7 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 88 basis points to 15.7% as commodity inflation of 6.0% and wage and other labor inflation of 7.0% were partially offset by higher sales; - Diluted earnings per share increased 14.7% primarily driven by higher restaurant margin dollars partially offset by higher depreciation and amortization and higher general and administrative expenses;
- Three company restaurants and three franchise restaurants were opened; and,
- The Company repurchased 213,975 shares of common stock for
$23.4 million .
Results for the year-to-date period, as compared to the prior year as applicable, included the following:
- Comparable restaurant sales increased 11.0% at company restaurants and increased 11.2% at domestic franchise restaurants;
- Average weekly sales at company restaurants were
$147,579 of which$18,762 were to-go sales as compared to average weekly sales of$133,917 of which$18,671 were to-go sales in the prior year; - Restaurant margin dollars increased 11.7% to
$368.5 million from$329.9 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 70 basis points to 15.8% as commodity inflation of 7.4% and wage and other labor inflation of 7.4% were partially offset by higher sales; - Diluted earnings per share increased 16.6% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expense;
- Nine company restaurants and four franchise restaurants were opened; and,
- The Company repurchased 306,726 shares of common stock for
$33.1 million .
Morgan continued, “On the development front, we have a significant number of company and franchise locations that will open in the second half of the year. This includes the first franchise location for Jaggers, our fast-casual concept, that opened in
2023 Outlook
Comparable restaurant sales at company restaurants for the first four weeks of our third quarter of fiscal 2023 increased 10.7% compared to 2022.
Management reiterated the following expectations for 2023:
- Positive comparable restaurant sales growth including the benefit of menu pricing actions; and,
- Commodity cost inflation of 5% to 6%.
Management updated the following expectations for 2023:
- Store week growth of approximately 6% including the impact of franchise locations acquired;
- As many as 28
Texas Roadhouse and Bubba’s 33 company restaurant openings; - Wage and other labor inflation of 6% to 7%;
- An effective income tax rate of 13% to 14% excluding the impact of any legislative changes enacted; and,
- Total capital expenditures of approximately
$300 million .
Non-GAAP Measures
The Company prepares the consolidated financial statements in accordance with
Conference Call
About the Company
Forward-looking Statements
Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act 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
Contacts:
Investor Relations | Media |
(502) 515-7298 | (502) 638-5457 |
Consolidated Statements of Income | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||||
Revenue: | |||||||||||||||||||
Restaurant and other sales | $ | 1,164,385 | $ | 1,018,057 | $ | 2,331,968 | $ | 1,999,029 | |||||||||||
Franchise royalties and fees | 6,818 | 6,549 | 13,591 | 13,063 | |||||||||||||||
Total revenue | 1,171,203 | 1,024,606 | 2,345,559 | 2,012,092 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Restaurant operating costs (excluding depreciation and amortization shown separately below): | |||||||||||||||||||
Food and beverage | 401,204 | 347,041 | 811,915 | 684,437 | |||||||||||||||
Labor | 391,337 | 333,042 | 777,156 | 654,913 | |||||||||||||||
Rent | 17,996 | 16,714 | 35,824 | 33,082 | |||||||||||||||
Other operating | 171,092 | 152,524 | 338,621 | 296,678 | |||||||||||||||
Pre-opening | 5,671 | 5,323 | 11,048 | 9,614 | |||||||||||||||
Depreciation and amortization | 37,413 | 34,420 | 73,640 | 68,040 | |||||||||||||||
Impairment and closure, net | 78 | 411 | 133 | (235 | ) | ||||||||||||||
General and administrative | 51,000 | 49,213 | 100,865 | 89,507 | |||||||||||||||
Total costs and expenses | 1,075,791 | 938,688 | 2,149,202 | 1,836,036 | |||||||||||||||
Income from operations | 95,412 | 85,918 | 196,357 | 176,056 | |||||||||||||||
Interest income (expense), net | 996 | (395 | ) | 2,234 | (792 | ) | |||||||||||||
Equity income from investments in unconsolidated affiliates | 287 | 545 | 1,042 | 879 | |||||||||||||||
Income before taxes | 96,695 | 86,068 | 199,633 | 176,143 | |||||||||||||||
Income tax expense | 12,270 | 11,531 | 26,604 | 24,278 | |||||||||||||||
Net income including noncontrolling interests | 84,425 | 74,537 | 173,029 | 151,865 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 2,154 | 2,118 | 4,371 | 4,244 | |||||||||||||||
Net income attributable to | $ | 82,271 | $ | 72,419 | $ | 168,658 | $ | 147,621 | |||||||||||
Net income per common share attributable to | |||||||||||||||||||
and subsidiaries: | |||||||||||||||||||
Basic | $ | 1.23 | $ | 1.07 | $ | 2.52 | $ | 2.16 | |||||||||||
Diluted | $ | 1.22 | $ | 1.07 | $ | 2.51 | $ | 2.15 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 66,974 | 67,654 | 66,995 | 68,370 | |||||||||||||||
Diluted | 67,229 | 67,890 | 67,261 | 68,631 | |||||||||||||||
Cash dividends declared per share | $ | 0.55 | $ | 0.46 | $ | 1.10 | $ | 0.92 | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||
(in thousands) | |||||||||
(unaudited) | |||||||||
Cash and cash equivalents | $ | 107,324 | $ | 173,861 | |||||
Other current assets, net | 125,961 | 222,980 | |||||||
Property and equipment, net | 1,360,132 | 1,270,349 | |||||||
Operating lease right-of-use assets, net | 662,730 | 630,258 | |||||||
169,684 | 148,732 | ||||||||
Intangible assets, net | 4,986 | 5,607 | |||||||
Other assets | 84,174 | 73,878 | |||||||
Total assets | $ | 2,514,991 | $ | 2,525,665 | |||||
Other current liabilities | 571,983 | 652,010 | |||||||
Operating lease liabilities, net of current portion | 712,800 | 677,874 | |||||||
Long-term debt | - | 50,000 | |||||||
Other liabilities | 131,958 | 118,119 | |||||||
1,082,982 | 1,012,638 | ||||||||
Noncontrolling interests | 15,268 | 15,024 | |||||||
Total liabilities and equity | $ | 2,514,991 | $ | 2,525,665 | |||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
(in thousands) | |||||||||||
(unaudited) | |||||||||||
26 Weeks Ended | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income including noncontrolling interests | $ | 173,029 | $ | 151,865 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 73,640 | 68,040 | |||||||||
Share-based compensation expense | 16,744 | 18,612 | |||||||||
Deferred income taxes | 1,767 | 3,906 | |||||||||
Other noncash adjustments, net | 2,831 | 2,144 | |||||||||
Change in working capital, net of acquisitions | 20,222 | 54,136 | |||||||||
Net cash provided by operating activities | 288,233 | 298,703 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures - property and equipment | (154,580 | ) | (108,567 | ) | |||||||
Acquisition of franchise restaurants, net of cash acquired | (39,153 | ) | (33,069 | ) | |||||||
Proceeds from sale of investments in unconsolidated affiliates | 632 | 316 | |||||||||
Proceeds from the sale of property and equipment | - | 2,188 | |||||||||
Proceeds from sale leaseback transactions | 7,097 | - | |||||||||
Net cash used in investing activities | (186,004 | ) | (139,132 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Payments on revolving credit facility | (50,000 | ) | (25,000 | ) | |||||||
Repurchase of shares of common stock | (33,058 | ) | (212,859 | ) | |||||||
Dividends paid | (73,698 | ) | (62,547 | ) | |||||||
Other financing activities, net | (12,010 | ) | (14,399 | ) | |||||||
Net cash used in financing activities | (168,766 | ) | (314,805 | ) | |||||||
Net decrease in cash and cash equivalents | (66,537 | ) | (155,234 | ) | |||||||
Cash and cash equivalents - beginning of period | 173,861 | 335,645 | |||||||||
Cash and cash equivalents - end of period | $ | 107,324 | $ | 180,411 | |||||||
Reconciliation of Income from Operations to Restaurant Margin | |||||||||||||||||
(in thousands) | |||||||||||||||||
(unaudited) | |||||||||||||||||
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||||
Income from operations | $ | 95,412 | $ | 85,918 | $ | 196,357 | $ | 176,056 | |||||||||
Less: | |||||||||||||||||
Franchise royalties and fees | 6,818 | 6,549 | 13,591 | 13,063 | |||||||||||||
Add: | |||||||||||||||||
Pre-opening | 5,671 | 5,323 | 11,048 | 9,614 | |||||||||||||
Depreciation and amortization | 37,413 | 34,420 | 73,640 | 68,040 | |||||||||||||
Impairment and closure, net | 78 | 411 | 133 | (235 | ) | ||||||||||||
General and administrative | 51,000 | 49,213 | 100,865 | 89,507 | |||||||||||||
Restaurant margin | $ | 182,756 | $ | 168,736 | $ | 368,452 | $ | 329,919 | |||||||||
Restaurant margin(as a percentage of restaurant and other sales) | 15.7 | % | 16.6 | % | 15.8 | % | 16.5 | % | |||||||||
Supplemental Financial and Operating Information | ||||||||||||||||||||||
($ amounts in thousands, except weekly sales by group) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Second Quarter | Year to Date | |||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||
Restaurant openings | ||||||||||||||||||||||
Company - | 2 | 4 | (2) | 6 | 7 | (1) | ||||||||||||||||
Company - Bubba's 33 | 1 | 1 | 0 | 1 | 1 | 0 | ||||||||||||||||
Company - Jaggers | 0 | 0 | 0 | 2 | 0 | 2 | ||||||||||||||||
Franchise - | 1 | 0 | 1 | 1 | 0 | 1 | ||||||||||||||||
Franchise - | 2 | 1 | 1 | 3 | 3 | 0 | ||||||||||||||||
Total | 6 | 6 | 0 | 13 | 11 | 2 | ||||||||||||||||
Restaurant acquisitions/dispositions | ||||||||||||||||||||||
Company - | 0 | 1 | (1) | 8 | 8 | 0 | ||||||||||||||||
Franchise - | 0 | (1) | 1 | (8) | (8) | 0 | ||||||||||||||||
Restaurant closures | ||||||||||||||||||||||
Company - | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Franchise - | (1) | 0 | (1) | (1) | 0 | (1) | ||||||||||||||||
Total | (1) | 0 | (1) | (1) | 0 | (1) | ||||||||||||||||
Restaurants open at the end of the quarter | ||||||||||||||||||||||
Company - | 566 | 541 | 25 | |||||||||||||||||||
Company - Bubba's 33 | 41 | 37 | 4 | |||||||||||||||||||
Company - Jaggers | 7 | 4 | 3 | |||||||||||||||||||
Franchise - | 54 | 62 | (8) | |||||||||||||||||||
Franchise - | 41 | 34 | 7 | |||||||||||||||||||
Total | 709 | 678 | 31 | |||||||||||||||||||
Second Quarter | ||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||
Company restaurants (all concepts) | ||||||||||||||||||||||
Restaurant and other sales | $ | 1,164,385 | $ | 1,018,057 | 14.4 | % | ||||||||||||||||
Store weeks | 7,960 | 7,536 | 5.6 | % | ||||||||||||||||||
Comparable restaurant sales (1) | 9.1 | % | 7.6 | % | ||||||||||||||||||
Restaurant operating costs (as a % of restaurant and other sales) | ||||||||||||||||||||||
Food and beverage costs | 34.5 | % | 34.1 | % | 37 | bps | ||||||||||||||||
Labor | 33.6 | % | 32.7 | % | 90 | bps | ||||||||||||||||
Rent | 1.5 | % | 1.6 | % | (10 | ) | bps | |||||||||||||||
Other operating | 14.7 | % | 15.0 | % | (29 | ) | bps | |||||||||||||||
Total | 84.3 | % | 83.4 | % | 88 | bps | ||||||||||||||||
Restaurant margin | 15.7 | % | 16.6 | % | (88 | ) | bps | |||||||||||||||
Restaurant margin ($ in thousands) | $ | 182,756 | $ | 168,736 | 8.3 | % | ||||||||||||||||
Restaurant margin $/Store week | $ | 22,961 | $ | 22,390 | 2.5 | % | ||||||||||||||||
Store weeks | 7,343 | 7,006 | 4.8 | % | ||||||||||||||||||
Comparable restaurant sales (1) | 9.4 | % | 7.6 | % | ||||||||||||||||||
Average unit volume (2) | $ | 1,946 | $ | 1,781 | 9.2 | % | ||||||||||||||||
Weekly sales by group: | ||||||||||||||||||||||
Comparable restaurants (533 and 503 units) | $ | 149,847 | $ | 137,599 | ||||||||||||||||||
Average unit volume restaurants (20 and 22 units) | $ | 144,554 | $ | 132,222 | ||||||||||||||||||
Restaurants less than 6 months old (13 and 16 units) | $ | 158,608 | $ | 145,756 | ||||||||||||||||||
Bubba's 33 restaurants only: | ||||||||||||||||||||||
Store weeks | 526 | 478 | 10.0 | % | ||||||||||||||||||
Comparable restaurant sales (1) | 3.9 | % | 8.1 | % | ||||||||||||||||||
Average unit volume (2) | $ | 1,514 | $ | 1,475 | 2.6 | % | ||||||||||||||||
Weekly sales by group: | ||||||||||||||||||||||
Comparable restaurants (35 and 31 units) | $ | 117,906 | $ | 110,740 | ||||||||||||||||||
Average unit volume restaurants (3 and 4 units) | $ | 99,324 | $ | 134,386 | ||||||||||||||||||
Restaurants less than 6 months old (3 and 2 units) | $ | 123,594 | $ | 128,134 | ||||||||||||||||||
Franchise restaurants | ||||||||||||||||||||||
Franchise royalties and fees | $ | 6,818 | $ | 6,549 | 4.1 | % | ||||||||||||||||
Store weeks | 1,220 | 1,238 | (1.5 | ) | % | |||||||||||||||||
Comparable restaurant sales | 10.8 | % | 8.7 | % | ||||||||||||||||||
Comparable restaurant sales | 9.2 | % | 6.2 | % | ||||||||||||||||||
Average unit volume | $ | 2,129 | $ | 1,932 | 10.2 | % | ||||||||||||||||
(1) Comparable restaurant sales reflect the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period. | ||||||||||||||||||||||
(2) Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period. | ||||||||||||||||||||||
Amounts may not foot due to rounding. | ||||||||||||||||||||||
Source:
2023 GlobeNewswire, Inc., source