Texas Roadhouse Inc. said increased traffic and sales drove a 30-percent jump in net income for the third quarter.
For the quarter ended Sept. 28, Texas Roadhouse recorded net income of $14 million, or 19 cents per share, compared with $10.7 million, or 15 cents per share, in the year-earlier third quarter.
Revenue rose 8 percent to $245.6 million in the third quarter, reflecting the opening of three corporate stores and a same-store sales increase of 4.3 percent at corporate locations and 4.4 percent at franchised units. The company also said its restaurant margins increased 79 basis points to 17.9 percent.
G.J. Hart, the Louisville, Ky.-based company's president and chief executive, said traffic gains drove the improvements in same-store sales, margins and net income, positioning Texas Roadhouse to close out 2010 at the high end of its previously stated guidance of earnings growth between 16 percent and 20 percent.
“Our strong performance was achieved without compromising our commitment to legendary food and service, as our adherence to these core values continues to benefit our business in a tough economy,” Hart said. “Looking ahead, we are excited to increase our development plans for 2011. Along with continued execution at the store level, we believe this reacceleration of our expansion efforts will position Texas Roadhouse to continue to driving long-term value for shareholders.”
The company added that it would look to grow earnings per share between 5 percent and 15 percent in 2011, based on same-store sales expansion between 2 percent and 3 percent and a target of 20 new corporate restaurants. Projected capital expenditures next year would be between $50 million and $60 million, the company said.
Texas Roadhouse operates 267 restaurants and franchises another 71 locations in 46 states.
Contact Mark Brandau at [email protected].