Texas Roadhouse, Inc. (NASDAQ:TXRH) Q4 2023 Earnings Conference Call February 15, 2024 5:00 PM ET Company Participants Michael Bailen – Head-Investor Relations Jerry Morgan – Chief Executive Officer Chris Monroe – Chief Financial Officer Conference Call Participants Jeffrey Bernstein – Barclays Peter Saleh – BTIG David Tarantino – Baird Dennis Geiger – UBS Sara Senatore – Bank of America David Palmer – Evercore ISI Jeff Farmer – Gordon Haskett Lauren Silberman – Deutsche Bank Andy Barish – Jefferies Chris O ...

Table of Contents ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 26, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-50972 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 6040 Dutchmans Lane, Suite 200 Louisville, Kentucky 40205 (Address of principal executive offices) (Zip Code) ( ...

Financial Data and Key Metrics Changes - For Q3 2023, comparable sales increased by 8.2%, driven by a 4.1% growth in traffic and a 4.1% increase in average check [11] - EPS growth for the quarter was 2.6%, significantly impacted by several adjustments [39] - Restaurant margin dollars increased to over $20,000 per store week, while restaurant margin as a percentage of total sales decreased by 80 basis points to 14.6% [40] Business Line Data and Key Metrics Changes - The company opened nine new stores in Q3, including two Bubba's 33 locations, contributing to overall growth [22] - Average weekly sales for Q3 were approximately $139,000, with to-go sales representing about 12.3% of total weekly sales [67] - The company expects to open approximately 30 company-owned Texas Roadhouse and Bubba's 33 locations in 2024, along with three Jaggers [33] Market Data and Key Metrics Changes - Labor costs for store week increased by 8.5%, primarily due to wage inflation of 5.6% and growth in hours of 3.3% [4] - The effective tax rate for Q3 was 11.9%, with a projected full-year 2023 income tax rate of approximately 13% [43] Company Strategy and Development Direction - The company plans to maintain a balanced and disciplined long-term capital allocation approach, with an initial 2024 capital expenditure guidance of $340 million to $350 million [3][12] - The company is focused on organic growth and returning capital through dividends and share repurchases to deliver strong shareholder returns [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers dining out, despite external economic pressures [61] - The company anticipates a more normalized and manageable rate of wage increases in 2024, with a forecast of 4% to 5% for wage inflation [42][26] - Management noted that beef remains the primary driver of inflation, with expectations of 5% to 6% commodity inflation for 2024 [41][76] Other Important Information - The company has seen a stabilization in wage increases and is optimistic about achieving efficiencies in labor management [26][80] - The company is committed to the growth of Bubba's 33 and has made significant investments in its operational leadership [91] Q&A Session Summary Question: Thoughts on pricing in the current environment - Management indicated that they will be cautious about pricing, focusing on core wage pressures and beef inflation [6][48] Question: Clarification on menu pricing for Q1 and Q2 - Management confirmed a 5.5% menu pricing for Q4 and discussed the potential for pricing in early 2024 [57][134] Question: Update on commodity inflation outlook for 2024 - Management stated that beef is the primary driver of the expected 5% to 6% inflation, while other commodities are flat to deflationary [76] Question: Discussion on labor efficiency and staffing levels - Management expressed optimism about achieving better labor efficiency as turnover rates have returned to pre-pandemic levels [167] Question: Insights on consumer demand and traffic growth - Management noted consistent traffic growth across various regions and demographics, indicating strong consumer demand [153]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2023 OR Securities registered pursuant to Section 12(b) of the Act: For the transition period from to Commission File Number 000-50972 Texas Roadhouse, Inc. (Exact name of registrant specifie ...

Texas Roadhouse, Inc. (NASDAQ:TXRH) Q2 2023 Earnings Conference Call July 27, 2023 5:00 PM ET Company Participants Michael Bailen - Head, IR Jerry Morgan - CEO Chris Monroe - CFO Conference Call Participants Brian Bittner - Oppenheimer David Tarantino - Baird Peter Saleh - BTIG Chris O’Cull - Stifel Jeff Farmer - Gordon Haskett Jake Bartlett - Truist Securities Brian Harbor - Morgan Stanley Sara Senatore - Bank of America Andy Barish - Jefferies Brian Vaccaro - Raymond James Gregory Francfort - Guggenheim D ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-50972 Texas Roadhouse, Inc. (Exact name of registrant specified in its charter) Delaware 20-1083890 (State or other juris ...

Texas Roadhouse, Inc. (NASDAQ:TXRH) Q1 2023 Earnings Conference Call May 4, 2023 2:00 PM ET Company Participants Michael Bailen - Head, Investor Relations Jerry Morgan - Chief Executive Officer Conference Call Participants Joshua Long - Stephens David Palmer - Evercore ISI Brian Towsen - Morgan Stanley Peter Saleh - BTIG Jeffrey Bernstein - Barclays David Tarantino - Baird Sara Senatore - Bank of America Dennis Geiger - UBS Jeff farmer - Gordon Haskett Jon Tower - Citi Lauren Silberman - Credit Suisse Brian ...

Restaurant Operations - As of December 27, 2022, Texas Roadhouse operated 697 restaurants across 49 states and ten foreign countries, including 597 company restaurants and 100 franchise restaurants[228]. - In 2022, the company opened 23 company restaurants and franchise partners opened seven restaurants internationally, with plans to open approximately 25 to 30 company restaurants and up to nine franchise openings in 2023[237]. - The company completed the acquisition of eight domestic franchise Texas Roadhouse restaurants for $33.1 million in 2022 and another eight for approximately $39.0 million at the start of fiscal year 2023[238]. - The company has entered into area development agreements for Texas Roadhouse restaurants in various foreign countries and one U.S. territory, with plans for the first Jaggers franchise restaurant to open in 2023[236]. - The company opened 23 new restaurants in 2022, including 18 Texas Roadhouse, 4 Bubba's 33, and 1 Jaggers, and acquired 8 franchise restaurants[270]. - For 2023, the company plans to open approximately 25 to 30 Texas Roadhouse and Bubba's 33 restaurants and three Jaggers restaurants, expecting at least 6% store week growth[271]. Financial Performance - Total revenue increased by $551.0 million or 15.9% to $4.0 billion in 2022 compared to $3.5 billion in 2021, driven by a 6.1% increase in store weeks and a 9.7% increase in comparable restaurant sales[258]. - Net income rose by $24.5 million or 10.0% to $269.8 million in 2022, with diluted earnings per share increasing by 13.5% to $3.97 from $3.50 in the prior year[259]. - Restaurant margin dollars increased by $45.8 million or 7.9% to $627.5 million in 2022, although the restaurant margin percentage decreased to 15.7% from 16.9% due to commodity and labor inflation[260]. - Restaurant and other sales increased by 16.0% in 2022, with comparable restaurant sales growth of 9.7%[266]. - Franchise royalties and fees increased by $1.4 million or 5.5% in 2022, with franchise comparable restaurant sales growing by 10.3%[273]. - Net cash provided by operating activities was $511.7 million in 2022, up from $468.8 million in 2021, attributed to increased net income and favorable working capital[292]. Cost and Expenses - Food and beverage costs as a percentage of sales increased to 34.6% in 2022 from 33.6% in 2021, with commodity inflation at 10.8%[275]. - Restaurant labor expense as a percentage of sales increased to 33.1% in 2022, driven by wage inflation of 8.3%[276]. - General and administrative expenses decreased to 4.3% of total revenue in 2022 from 4.5% in 2021, driven by increased average unit volume and lower legal settlement expenses[284]. - Interest expense significantly decreased to $0.1 million in 2022 from $3.7 million in 2021, primarily due to increased earnings on cash and cash equivalents[285]. Shareholder Returns - The Board declared a quarterly cash dividend of $0.55 per share in February 2023, a 20% increase compared to the previous year[240]. - The company continues to evaluate opportunities for capital return to shareholders, including dividends and stock repurchases, with $166.9 million remaining authorized for stock repurchases as of December 27, 2022[241]. - The company repurchased 2,734,005 shares for $212.9 million in 2022, compared to $51.6 million for 584,932 shares in 2021[299]. - A quarterly dividend of $0.46 per share was paid in 2022, totaling $124.1 million, with an increase to $0.55 per share declared for 2023[300]. Debt and Financial Instruments - As of December 27, 2022, the company had $50.0 million outstanding on its amended revolving credit facility, with an interest rate of 5.21%[304][305]. - The interest rate for the $50.0 million outstanding on the amended revolving credit facility was 5.21% as of December 27, 2022, with a potential increase in annual interest expense of $0.5 million if rates rise by one percentage point[319]. - The company has $50.0 million outstanding on its amended credit agreement, which is classified as long-term debt on the consolidated balance sheets[318]. - The company does not currently use financial instruments to hedge commodity prices but is evaluating their effectiveness due to potential price volatility in the market[320]. Risks and Challenges - The company is currently facing high inflation, primarily driven by commodity costs and wage inflation, which may impact future restaurant profitability[317]. - The company is subject to business risk as its beef supply is highly dependent on four vendors, which could lead to supply shortages or increased costs if any vendor fails to meet obligations[322]. - The company may experience unpredictable price volatility for commodities due to market conditions, which could adversely affect future results[321]. - The company performed a goodwill impairment analysis at the concept level in 2022, with no indicators of impairment identified[316]. - In 2022, the company recorded impairment and closure costs of $1.6 million, including $1.7 million for impairment of assets at three restaurants and $0.6 million for ongoing closure costs[311]. Future Outlook - The company expects commodity cost inflation of 5% to 6% for 2023, with prices locked for approximately 40% of forecasted costs[275]. - The effective tax rate increased slightly to 13.6% in 2022 from 13.5% in 2021, with an expected rate of approximately 14% for 2023[286]. - Texas Roadhouse segment restaurant margin increased by $48.2 million or 8.7% in 2022, while the margin percentage decreased to 16.0% from 16.9% in 2021[290]. - Bubba's 33 segment restaurant margin dollars decreased by $1.9 million or 6.7% in 2022, with the margin percentage dropping to 12.7% from 16.6% in 2021[291]. - The company has implemented menu price increases to offset some impacts of inflation, but future decisions on pricing will affect profitability[317].

Texas Roadhouse, Inc. (NASDAQ:TXRH) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Keith Humpich - Interim Chief Financial Officer Jerry Morgan - Chief Executive Officer Regina Tobin - President Michael Bailen - Investor Relations Conference Call Participants Chris Carril - RBC Capital Markets Brian Harbour - Morgan Stanley Brian Bittner - Oppenheimer David Palmer - Evercore ISI David Tarantino - Baird Jeffrey Bernstein - Barclays Peter Saleh - BTIG Sara Senatore - Bank o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-50972 Texas Roadhouse, Inc. (Exact name of registrant specified in its charter) Delaware 20-1083890 (State or other j ...