Texas Roadhouse (TXRH) Misses Q4 EPS by 21c, Revenues Miss

February 18, 2021 4:03 PM EST

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Texas Roadhouse (NASDAQ: TXRH) reported Q4 EPS of $0.28, $0.21 worse than the analyst estimate of $0.49. Revenue for the quarter came in at $637.99 million versus the consensus estimate of $679 million.

Results for the fourth quarter included the following:

  • Total revenue was negatively impacted by lapping the $59.5 million benefit of the 14th week in 2019, which represented 7.9% of the decrease in total revenue for the quarter. Diluted earnings per share in the prior year quarter benefitted by $0.10 to $0.11 as a result of the 14th week;
  • For the October, November, and December periods, comparable restaurant sales at domestic company restaurants increased 0.8%, decreased 6.3%, and decreased 18.2%, respectively. Sales during the period were negatively impacted by dining room closures and capacity restrictions throughout the country. For the quarter, comparable restaurant sales decreased 8.9% at domestic company restaurants and decreased 11.2% at domestic franchise restaurants;
  • Nine company restaurants, including one Jaggers restaurant, our fast-casual concept, were opened and two franchise restaurants were opened;
  • Restaurant margin, as a percentage of restaurant and other sales, was 13.3% and restaurant margin dollars were $84.1 million. Restaurant margin was impacted by a decrease in comparable restaurant sales and higher costs related to the pandemic. These costs included $0.5 million of costs incurred for relief pay and enhanced benefits for hourly restaurant employees, net of employee retention payroll tax credits of $2.5 million; and,
  • The Company ended the quarter with debt of $240.0 million and $363.2 million of cash on hand.

As previously announced, due to the uncertainty surrounding the pandemic, the Company had not yet provided a financial outlook for the fiscal year ending December 28, 2021. However, based on improved cashflow and stabilizing operations at company restaurants, the Company is providing the following expectations for 2021:

  • 25 to 30 company restaurant openings across all concepts;
  • Store week growth of 4.0% to 5.0%;
  • Commodity cost inflation of approximately 3.0%; and
  • Total capital expenditures of $210 million to $220 million.

To the extent that state and local guidelines begin to significantly reduce capacity and/or re-close dining rooms, the Company could pull back on development and reduce capital spend accordingly.

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

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