Texas Roadhouse, Inc. (TXRH) Tops Q3 EPS by 3c; Comments on FY Outlook
Texas Roadhouse, Inc. (NASDAQ: TXRH) reported Q3 EPS of $0.22, $0.03 better than the analyst estimate of $0.19. Revenue for the quarter came in at $269.25 million versus the consensus estimate of $268.68 million.
Outlook for 2011
The Company reported that comparable restaurant sales at company restaurants for the first four weeks of the fourth quarter of fiscal 2011 increased approximately 4.2% compared to the prior year period.
With better than expected third quarter results, driven by lower than anticipated workers compensation expense, property tax expense and income tax rate, the Company is increasing its diluted earnings per share expectation for 2011. Diluted earnings per share growth is now expected to be up 7.0% to 8.0%.
Outlook for 2012
With regard to 2012, management provides the following expectations:
Positive comparable restaurant sales growth; 25 restaurant openings; Food cost inflation of 7.0% to 9.0%, up from approximately 4.0% in 2011; Higher labor costs due to an increase in minimum and tip wages in 6 states, which impacts approximately 50 company-owned restaurants or approximately 20% of our total company-owned restaurants; Income tax rate of approximately 32.5%, an increase of 270 basis points over the expected 2011 rate based on the scheduled expiration of certain federal tax credits at the end of 2011; and Total capital expenditures of approximately $80.0 million
Outlook for 2011
The Company reported that comparable restaurant sales at company restaurants for the first four weeks of the fourth quarter of fiscal 2011 increased approximately 4.2% compared to the prior year period.
With better than expected third quarter results, driven by lower than anticipated workers compensation expense, property tax expense and income tax rate, the Company is increasing its diluted earnings per share expectation for 2011. Diluted earnings per share growth is now expected to be up 7.0% to 8.0%.
Outlook for 2012
With regard to 2012, management provides the following expectations:
Positive comparable restaurant sales growth; 25 restaurant openings; Food cost inflation of 7.0% to 9.0%, up from approximately 4.0% in 2011; Higher labor costs due to an increase in minimum and tip wages in 6 states, which impacts approximately 50 company-owned restaurants or approximately 20% of our total company-owned restaurants; Income tax rate of approximately 32.5%, an increase of 270 basis points over the expected 2011 rate based on the scheduled expiration of certain federal tax credits at the end of 2011; and Total capital expenditures of approximately $80.0 million