Texas Roadhouse (NASDAQ: TXRH) reported Q3 EPS of $0.43, in-line with the analyst estimate of $0.43. Revenue for the quarter came in at $540.51 million versus the consensus estimate of $538.25 million.

2017 Outlook

Comparable restaurant sales at company restaurants for the first four weeks of our fourth quarter of fiscal 2017 increased approximately 5.3% compared to the prior year period.

Management updated the following expectations for 2017:

• 26 or 27 company restaurant openings (compared to previous guidance of 27 to 29 company restaurant openings), including four Bubba’s 33 restaurants;
• Food cost deflation of approximately 2.0%, compared to previous guidance of approximately 1.0% to 2.0%; and
• Labor inflation of approximately 7.0% to 8.0%, compared to previous guidance of mid-single digit inflation.

Management reiterated the following expectations for 2017:

• Positive comparable restaurant sales growth;
• An income tax rate of approximately 28.0%; and
• Total capital expenditures of approximately $170.0 million, excluding any cash used for franchise acquisitions.

2018 Outlook

Management provided the following initial expectations for 2018:

• Positive comparable restaurant sales growth;
• Approximately 30 company restaurant openings, including up to seven Bubba’s 33 restaurants;
• Relatively flat food costs;
• Mid-single digit labor inflation;
• An income tax rate of between 28.0% and 29.0%; and
• Total capital expenditures of approximately $175.0 million, excluding any cash used for franchise acquisitions.

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