Texas Roadhouse(US:TXRH)2021-08-06 13:02Restaurant Operations - As of June 29, 2021, the company operates 647 restaurants across 49 states and ten foreign countries, including 548 company restaurants and 99 franchise restaurants[68]. - In 2021 YTD, the company opened 11 new company restaurants and plans to open 26 to 29 more across all concepts by the end of the year[74]. - The company has signed franchise and/or development agreements in nine countries, with a total of 30 restaurants operating internationally as of June 29, 2021[77]. - The company opened 11 new restaurants in 2021, including three Bubba's 33 locations, with plans to open 26 to 29 restaurants across all concepts by the end of the year[125]. Financial Performance - Total revenue increased by $422.4 million to $898.8 million in Q2 2021 compared to $476.4 million in Q2 2020, primarily due to an increase in average unit volumes and comparable restaurant sales[106]. - Net income increased by $109.0 million to $75.5 million in Q2 2021, compared to a net loss of $33.6 million in Q2 2020[108]. - Total revenue for Q2 2021 was $898.8 million, an increase of 88.6% compared to $476.4 million in Q2 2020[119]. - Restaurant and other sales increased by 50.6% year-to-date (YTD) 2021 compared to YTD 2020, reaching $1.7 billion[119]. - Net income attributable to Texas Roadhouse, Inc. was $75.5 million in Q2 2021, compared to a net loss of $33.6 million in Q2 2020[119]. Cost Management - The average capital investment for new Texas Roadhouse restaurants opened in 2021 is expected to be approximately $5.4 million, down from $6.3 million in 2020[75]. - Total costs and expenses for Q2 2021 were $809.1 million, which is 90.0% of total revenue, compared to 109.9% in Q2 2020[119]. - Food and beverage costs decreased to 33.1% of sales in Q2 2021 from 34.7% in Q2 2020, despite commodity inflation of approximately 6.5% in Q2 2021[128]. - Restaurant labor expenses decreased to 32.3% of sales in Q2 2021 from 41.1% in Q2 2020, aided by a higher guest check amount and employee retention payroll tax credits totaling $0.2 million for Q2 2021[130]. Shareholder Returns - The company suspended its quarterly cash dividend in March 2020 but reinstated it at $0.40 per share on April 28, 2021[84]. - As of June 29, 2021, $147.8 million remains authorized for stock repurchases, with the company expecting to resume repurchase activity in the second half of 2021[85]. - The company reinstated a quarterly cash dividend of $0.40 per share, totaling $27.9 million, marking the first dividend payment since the onset of the pandemic[152]. Employee Management - The company continues to face challenges in attracting and retaining restaurant-level employees due to a competitive job market, which may lead to increased labor costs[64]. - The company recorded $1.2 million related to the Employee Retention Credit in 2021, which is included in labor expenses[67]. Capital Expenditures - Capital expenditures totaled $85.1 million in 2021 YTD, with $48.3 million allocated for new company restaurants, compared to $31.5 million in 2020 YTD[147]. - The company expects capital expenditures to be approximately $200.0 million in 2021, planning to open 26 to 29 restaurants across all concepts[147]. Debt and Financing - The amended revolving credit facility has a borrowing capacity of up to $300.0 million, with an option to increase by an additional $200.0 million, extending the maturity date to May 1, 2026[154]. - As of June 29, 2021, the company had $190.0 million outstanding on the amended revolving credit facility with a weighted-average interest rate of 0.98%[161]. - The company was in compliance with all financial covenants as of June 29, 2021[161]. Market Conditions - The company has developed a hybrid operating model to enhance To-Go sales, which have increased over pre-pandemic levels, offsetting declines in dining room traffic[63]. - Comparable restaurant sales increased by 80.2% in Q2 2021, driven by a 58.6% growth in guest traffic and a 21.6% increase in average check[121]. - As of June 29, 2021, nearly all company restaurants were operating without restrictions, compared to limited capacity restrictions in the prior year[123]. Commodity and Supply Chain - The company employs various purchasing and pricing contract techniques to secure high-quality, low-cost ingredients, but is exposed to commodity price volatility[166]. - The beef supply is highly dependent on three vendors, and any inability of these vendors to fulfill obligations could lead to supply shortages or higher costs[170].