Increases in store counts, traffic and same-store sales drove double-digit gains in net income for the fourth quarter and full 2011 fiscal year at Texas Roadhouse Inc., the casual dining company reported.
For the Dec. 27, 2011-ended fourth quarter, Louisville, Ky.-based Texas Roadhouse reported net income of $12.3 million, or 17 cents per share, up 22 percent from $10.06 million, or 14 cents per share, a year earlier.
Revenue in the quarter increased 13 percent to $276.6 million, from $244.6 million a year earlier, reflecting the opening of 10 company-owned restaurants and same-store sales gains of 5.6 percent at corporate locations and 5.7 percent at franchised restaurants.
Texas Roadhouse reported full-year net income of $64 million, or 88 cents per share, up 10 percent from $58.3 million, or 80 cents per share, in 2010.
Revenue for fiscal 2011 was $1.1 billion, up 10 percent from $1 billion a year earlier, reflecting the opening of 20 company-owned restaurants and one international franchised unit in Saudi Arabia. For the full year, same-store sales rose 4.7 percent at corporate restaurants and 4.3 percent at franchised units.
“We are very pleased with our 2011 results and are particularly encouraged that our strong sales trends were driven largely by increased traffic,” said Kent Taylor, founder and chief executive of Texas Roadhouse. “Despite a challenging consumer environment and continued commodity cost pressures, we reported double-digit revenue and earnings per share growth in 2011.”
Taylor said the chain plans to open 25 corporate restaurants in 2012, with total capital expenditures between $80 million and $85 million. The company projects food cost inflation to run 8 percent in 2012, and the brand already has taken a 2.2-percent menu price increase in late January to offset some of that increase.
Texas Roadhouse operates or franchises more than 360 restaurants in 47 states and one foreign market.