Texas Roadhouse Inc. reported Monday a 22-percent increase in net income during the first quarter ended March 31, amid rising same-store sales and new restaurant development.
Same-store sales in the quarter rose 8.9 percent at company restaurants. The momentum continued in April, when same-store sales rose 8.4 percent, the company said. Same-store sales rose 8 percent at franchisee-owned locations.
“We are off to a strong start for the year with another quarter of solid revenue growth driven by increasing guest counts and new restaurant development,” CEO Kent Taylor said in a statement. “We credit our success to our value proposition with consumers and our ability to execute at the restaurant level even in the face of continued commodity inflation.”
Net income was $32.3 million, or 46 cents per share, rising from $26.5 million, or 37 cents per share in the same period a year ago.
Restaurant margins, however, decreased 20 basis points, to 19 percent of sales. Commodity inflation of 5.2 percent, especially for beef, offset higher average unit volumes. Food cost inflation for the year is expected to be 3 percent to 4 percent.
Total revenue at the Louisville, Ky.-based operator increased 16 percent, to $460.2 million, from $397 million in the same period a year ago.
The company expects to open 25 to 30 company restaurants this year. The company currently has 455 restaurants in 49 states.
Contact Jonathan Maze at [email protected].
Follow him on Twitter: @jonathanmaze