Texas Roadhouse(US:TXRH)2021-05-07 12:54Restaurant Operations - As of March 30, 2021, the company operates 637 restaurants across 49 states and ten foreign countries[72]. - In Q1 2021, the company opened three new restaurants and plans to open 25 to 30 company restaurants in 2021[79]. - The company has signed franchise agreements in nine countries in the Middle East and other regions, with 28 international restaurants currently operating[82]. - The company is evaluating opportunities for market expansion and has plans to open as many as six Texas Roadhouse restaurants internationally in 2021[79]. - The company opened 3 new restaurants in Q1 2021, bringing the total to 637 restaurants by March 30, 2021[122]. - As of March 30, 2021, the company plans to open 25 to 30 new restaurants across all concepts in 2021, with 15 additional restaurants under construction[129]. Financial Performance - Total revenue increased by $148.1 million to $800.6 million in Q1 2021 compared to $652.5 million in Q1 2020, primarily due to an increase in average unit volumes and the opening of new restaurants[111]. - Comparable restaurant sales increased by 18.5% in Q1 2021, while store weeks increased by 4.1%[111]. - Net income increased by $48.1 million to $64.2 million in Q1 2021, with diluted earnings per share rising to $0.91 from $0.23 in Q1 2020[115]. - Restaurant and other sales increased by 22.7% in Q1 2021 compared to Q1 2020[123]. - In Q1 2021, total restaurant sales increased by 22.6% compared to Q1 2020, driven by a 17.5% increase in average unit volume and a 4.1% increase in store weeks[124]. - Comparable restaurant sales rose by 18.5% in Q1 2021, with guest traffic count growth of 13.0% and per person average check growth of 5.5%[125]. Cost Management - The average capital investment for Texas Roadhouse restaurants opened in 2021 is expected to be approximately $5.5 million, down from $6.2 million in 2020[80]. - Restaurant labor expenses accounted for 32.5% of restaurant and other sales in Q1 2021, down from 37.2% in Q1 2020[116]. - Food and beverage costs as a percentage of restaurant and other sales decreased to 31.6% in Q1 2021 from 32.5% in Q1 2020, despite commodity inflation of 1.8%[131]. - Restaurant labor expenses decreased to 32.5% of restaurant and other sales in Q1 2021, down from 37.2% in Q1 2020, due to increased average unit volume and employee retention payroll tax credits of $1.0 million[132]. - General and administrative expenses were 4.6% of total revenue in Q1 2021, compared to 5.1% in Q1 2020[116]. Capital and Investments - Capital expenditures totaled $38.7 million in Q1 2021, down from $46.7 million in Q1 2020, with expectations for 2021 capital expenditures between $210.0 million and $220.0 million[148]. - From inception through March 30, 2021, the company has repurchased 17,722,505 shares for a total of $369.0 million at an average price of $20.82 per share[90]. Tax and Credit Facilities - The effective tax rate increased to 16.2% in Q1 2021 compared to a benefit of 12.7% in Q1 2020, primarily due to a significant increase in pre-tax income[142]. - Interest expense, net, rose to $1.5 million in Q1 2021 from $0.1 million in Q1 2020, mainly due to additional borrowings on the credit facility[140]. - The company has a revolving credit facility of up to $200.0 million, with an option to increase by an additional $200.0 million, amended to $300.0 million on May 4, 2021[158]. - As of March 30, 2021, the company had $190.0 million outstanding on the original revolving credit facility and $50.0 million on the incremental revolving credit facility[155][164]. - The maturity date for the original revolving credit facility is August 5, 2022, while the amended facility extends to May 1, 2026[158]. Employee and Payroll Management - The company deferred $47.3 million in payroll taxes due to the CARES Act, with repayments scheduled for 2021 and 2022[68]. - The company recorded $1.0 million related to the Employee Retention Credit in Q1 2021, included in labor expense[71]. - Pre-opening costs incurred per restaurant opening average over 70% related to hiring and training employees[104]. Sales Initiatives - The company continues to focus on increasing sales through various initiatives, including the launch of the Texas Roadhouse Butcher Shop in Q4 2020[86]. - Franchise royalties and fees increased by $0.8 million, or 16.5%, in Q1 2021, driven by a 15.2% increase in comparable restaurant sales at domestic franchise stores[130]. Supply Chain Management - The company employs various purchasing techniques to secure low-cost ingredients, facing potential price volatility in commodities[170]. - The company relies on three vendors for beef supply, with no significant pandemic impact reported on sourcing capabilities[171].