Texas Roadhouse Inc. said its first-quarter profit increased 34 percent on improved same-store sales and favorable commodity costs.
The operator or franchisor of 325 casual-dining restaurants in 46 states said its net income rose to $19.2 million, or 27 cents per share, in the March 30-ended first quarter, compared with year-ago earnings of $14.3 million, or 20 cents a share.
Revenue for the first quarter rose 5.5 percent to $259.6 million. Same-store sales rose 0.4 percent at company-owned restaurants and 0.9 percent at franchised locations.
"We were very pleased with our first-quarter results," said G.J. Hart, president and chief executive of Texas Roadhouse. He added that the company anticipates a continued favorable commodities environment for the balance of 2010.
Hart said the company also remains "committed to investing in new restaurant growth that generates a solid return on invested capital and allows us to maintain a conservative capital structure."
Texas Roadhouse opened three company-owned locations in the first quarter, and restaurant margins increased 218 basis points to 20.1 percent.
The company expects earnings per share to grow between 14 percent and 18 percent for the year, compared with fiscal 2009, based on projections for 14 to 15 new corporate restaurants and same-store sales remaining flat or increasing by 1 percent. The company also said it likely would spend about $50 million in capital expenditures and expects food cost deflation of about 2.5 percent to 3 percent.
Contact Mark Brandau at [email protected].
