Texas Roadhouse (TXRH) Misses Q3 EPS by 1c, Offers Outlook

Texas Roadhouse (NASDAQ: TXRH) reported Q3 EPS of $0.29, $0.01 worse than the analyst estimate of $0.30. Revenue for the quarter came in at $438.1 million versus the consensus estimate of $438.04 million.

Comparable restaurant sales increased 6.9% at company restaurants and 7.7% at franchise restaurants.

2015 Outlook

The Company reported that comparable restaurant sales at company restaurants for the first four weeks of its fourth quarter of fiscal 2015 increased approximately 5.0% compared to the prior year period.

Management updated the following expectations for 2015:

Approximately 30 company restaurant openings, including four Bubba’s 33 restaurants (from as many as five Bubba’s 33 restaurants previously);
Food cost inflation of approximately 5.0% (from 4.0% to 4.5% previously);
An income tax rate of approximately 30.0% to 30.5%, depending on the reinstatement of certain federal tax credits (from 30.0% to 31.0% previously); and,
Total capital expenditures of approximately $160.0 million (from $145.0 million to $155.0 million previously).

Management reiterated the following expectation for 2015:

Mid-single digit comparable restaurant sales growth.

2016 Outlook

Management provided the following expectations for 2016:

Positive comparable restaurant sales growth;
25 to 30 company restaurant openings, including at least five Bubba’s 33 restaurants;
Low-single digit food cost deflation;
An income tax rate of 30.0% to 31.0%, depending on the reinstatement of certain federal tax credits; and,
Total capital expenditures of $155.0 million to $165.0 million.

For earnings history and earnings-related data on Texas Roadhouse (TXRH) click here.

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