Texas Roadhouse Inc. said new locations, improved margins and higher same-store sales drove a 13-percent profit increase in the third quarter.
For the quarter ended Sept. 27, Texas Roadhouse recorded net income of $15.8 million, compared with $13.95 million in the same quarter a year ago. Earnings per share rose 15 percent to 22 cents per share, from 19 cents per share a year earlier.
Revenue rose 10 percent to $269.3 million, compared with $245.6 million in the third quarter of 2010, reflecting 10 new corporate restaurants and one franchised location opened during the past 12 months.
Third-quarter same-store sales increased 4 percent at corporate restaurants and 3.7 percent at franchised locations.
“Despite ongoing commodity inflation, we were pleased with our third quarter,” said chief executive Kent Taylor. “Comparable-restaurant sales remained strong at 4 percent, driven by traffic gains and pricing flow-through, while our newest units continued to generate very strong volumes … We remain on track with our 2011 and 2012 development plans and are particularly pleased that our cash flow generation remains healthy. This allows us to self-fund our new-unit expansion and allocate excess capital for the benefit of shareholders.”
Texas Roadhouse’s operating margin increased 0.9 percent to 18 percent during the quarter.
The Louisville, Ky.-based brand operates 284 casual-dining restaurants and franchises another 72 locations in 46 states.
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