Texas Roadhouse, Inc. Announces First Quarter 2013 Results

Texas Roadhouse, Inc. Announces First Quarter 2013 Results

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 26, 2013.

Results for the first quarter included:

• Excluding the impact of a prior year charge, diluted earnings per share increased 19.8% to $0.37 from $0.31 in the prior year period. The first quarter 2012 results included a pre-tax charge of $5.0 million ($3.1 million after-tax) which had a negative $0.04 impact on diluted earnings per share;

• Comparable restaurant sales increased 3.5% at company restaurants and 4.5% at franchise restaurants;

• Three company and two franchise restaurants were opened;

• Restaurant margin, as a percentage of restaurant sales, decreased 17 basis points to 18.9% primarily due to higher commodity costs.

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "Our operating momentum continued during the first quarter with double-digit revenue and diluted earnings per share growth. Additionally, we are encouraged by positive comparable restaurant sales and traffic growth in the first quarter, which continued through the first four weeks of our second quarter. Our success is a direct result of our team's ongoing commitment to providing legendary food and service to our guests. Texas Roadhouse remains well-positioned through the combination of our continued focus on operations, new restaurant growth and our commitment to returning capital to shareholders, which we believe will drive shareholder value over the long-term."

2013 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its second quarter of fiscal 2013 increased approximately 5.7% compared to the prior year period.

Management reiterated the following expectations for 2013:

• Positive comparable restaurant sales growth;

• Approximately 28 company restaurant openings;

• Food cost inflation of 6.0% to 7.0%;

• An income tax rate of approximately 31.0%; and

• Total capital expenditures of $100.0 to $105.0 million.

Conference Call

The Company is hosting a conference call today, April 29, 2013, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 637-7734 or (913) 312-0970 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (877) 870 -5176 or (858) 384-5517 for international calls, and use 7306796 as the pass code. There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 395 restaurants system-wide in 47 states and two foreign countries. For more information, please visit the Company's Web site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurants opening; the sales at these and our other company and franchise restaurants; changes in restaurant development or operating costs, such as food and labor; our ability to acquire franchise restaurants; our ability to integrate the franchise restaurants we acquire or other concepts we develop; our ability to continue to generate the necessary cash flows to fund our new restaurant growth, continue our share repurchase program and pay a quarterly cash dividend; strength of consumer spending; pending or future legal claims; conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; acts of war or terrorism and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.

(1) Results for the 13 weeks ended March 27, 2012 include a $5.0 million charge, before the statutory income tax rate, relating to the settlement of a legal matter. The settlement is included in general and administrative costs.