Texas Roadhouse, Inc. Announces First Quarter 2009 Results

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 week period ended March 31, 2009.



Results for the quarter included:

- Comparable restaurant sales decreased 1.3% at company-owned restaurants and decreased 1.7% at franchise restaurants,

- Nine company restaurants opened,

- Restaurant operating costs, as a percentage of restaurant sales, increased 126 basis points,

- Diluted earnings per share increased 20% to $0.20 from $0.17 in the prior year period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, “We are pleased with our first quarter results which were largely driven by better than expected sales. In addition, our 2009 development plan remains on track having already opened nine of our 15 scheduled restaurant locations during the period." Hart continued, "With the economic environment far from certain, we are as focused as ever on doing the right things for the business. Specifically, we are maintaining a four-wall operational focus, taking a conservative approach to menu pricing, generating returns on invested capital on new projects, and, of course, maintaining a conservative balance sheet. We believe this approach is the basis for the continued success of Texas Roadhouse and the foundation of our ability to create value.”

Outlook for 2009

The Company reported that comparable restaurant sales for the first four weeks of the second quarter of fiscal 2009 decreased approximately 3.1% compared to the same period of the prior year. Additionally, the Company noted that these results were negatively impacted by an estimated 1.25% due to the calendar shift of Easter weekend to this four week April period as compared to the Company's first quarter of the prior year.

The Company also announced that effective April 1, 2009, it implemented an average menu price increase of 1.4% throughout its restaurants.

While the economic outlook for 2009 remains uncertain, the Company announced it is now estimating 2009 diluted earnings per share to be flat to up 5% as compared to its 53-week 2008 year. The Company’s target is based, in part, on the following assumptions for 2009:

- Approximately 15 company and two franchise restaurant openings,

- Total capital expenditures of $50-60 million, and

- Food cost deflation of 2.0% to 3.0%.

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