Texas Roadhouse, Inc. all began on February 17, 1993, when Mr. Wayne Kent Taylor (Founder, Chairman, and Chief Executive Officer) opened the first Texas Roadhouse in Clarksville, Indiana. Operating in the “casual dining” segment, the Company now has more than 510 restaurants system-wide in 49 states and five foreign nations. In Q3 of 2016, the Company opened seven company-owned restaurants, including two Bubba’s 33 restaurants. Texas Roadhouse is headquartered in Louisville, Kentucky.
The Company’s menu includes Starters, such as Fried Pickles, Cheese Fries, and Tater Skins, and Salads, including Chicken Critter® Salad, and Grilled Chicken Salad. The menu also includes Hand-Cut Steaks (Ft. Worth Ribeye, Dallas Filet, New York Strip, and more); Texas Size Combos; Chicken Specialities; and Country Dinners (such as Beef Tips and Country Fried Sirloin).
Moreover, the menu includes Fall-Off-The-Bone Ribs; Texas Red Chili; Dockside Favorites (such as Fried Catfish and Grilled Salmon); Legendary Sides; Burgers & Sandwiches; Kids & Ranger Meals, and Desserts, including Granny’s Apple Classic and Big Ol’ Brownie. The Company’s slow-cooked Fall-Off-The-Bone Ribs and Homemade Texas Red Chili have won awards across the United States.
In November, Texas Roadhouse announced financial results for the 13 and 39 week periods ended September 27, 2016. For Q3, it had comparable restaurant sales growth of 3.4 percent at company restaurants and 3.3 percent at domestic franchise restaurants. For year-to-date, it had comparable restaurant sales growth of 4.2 percent at company restaurants and 3.9 percent at domestic franchise restaurants. For year-to-date, the Company opened 21 company-owned restaurants, including five Bubba’s 33 restaurants.
For Q3, net income rose 24.9 percent over the 2015 period to $25.7 million ($0.36 per diluted share). Texas Roadhouse ended Q3 with $82 million in cash. The Company produced $46 million in cash flow from operations in the quarter.
Recently, Texas Roadhouse’s Board authorized the payment of a cash dividend of $0.19 per share of common stock. The Company’s dividend is $0.76 and its dividend yield is 1.60 percent.
For 2017, Texas Roadhouse said that its development pipeline is progressing positively. Twenty-four of its thirty expected company openings are either in permitting or under construction. Texas Roadhouse said that its growth in 2017 will continue to be centered on Texas Roadhouse restaurants. It does, at present, expect to open seven to eight Bubba’s 33 restaurants next year, as well.
Texas Roadhouse will concentrate its capex on new restaurant openings, dividends, share repurchases, and potential franchise acquisitions. Regarding technology, the Company is working on its new mobile application.
Texas Roadhouse noted that it is experiencing positive restaurant traffic. It also said that its margins are up in 2016. For Q3, restaurant margin, as a percentage of restaurant sales, rose 155 basis points to 18.1 percent. For year-to-date, restaurant margin, as a percentage of restaurant sales, rose 192 basis points to 19.2 percent.
New restaurant locations for the Company are opening soon in Flagstaff, Arizona; Doha (Mall of Qatar) Al Rayyan, Qatar; Quezon City (Trinoma Mall) North Avenue, Quezon City; Mt. Pleasant, Michigan; Murfreesboro, Tennessee; Teterboro, New Jersey; and Charlottesville, Virginia.