Texas Roadhouse, Inc. (TXRH) Falls on Lower Than Expected 2nd Quarter Results
Shares of Louisville, Kentucky, based Texas Roadhouse, Inc. (TXRH) fell on Tuesday, against the backdrop of a generally lower day in stocks overall. Texas Roadhouse's stock was down 12.37%, falling $5.90 per share, to close at $41.80, on volume of 7,271,705 shares. The company reported second-quarter revenues that were below analysts expectations.
Texas Roadhouse announced its second quarter and year-to-date results as of June 28, 2016. Net income for the second quarter came in at $33.6 million, representing a 59.2% increase over the $21.1 million net income for the second quarter of 2015. Diluted earnings per share were reported at $0.47, a 58.5% increase over diluted earnings per share for the second quarter 2015.
Total revenue for the quarter was reported at $508.8 million. Though it represented a 12% increase over the second quarter, 2015, revenue of $454.7 million, it came in slightly below analysts expectations of $509.9 million, leading to the sell-off of the company's stock.
Year-to-date results showed similar improvement. Net income of $69.2 million was reported for the second quarter of 2016, 30% better than a $53.4 million reported for the same quarter one year earlier. Diluted earnings per share were reported at $0.98, representing a 29% increase over the 2015 year-to-date diluted earnings per share of $0.76. Year-to-date revenue came in at $1.024 billion, representing a 12% increase over the 2015 year-to-date revenue figure of $915 million.
The company also reported that comparable restaurant sales grew at a rate of 4.5% at company-owned restaurants during the second quarter. This matched the 4.5% increase in comparable restaurant sales on a year-to-date basis. In addition, seven new company owned restaurants were opened in the second quarter, while 14 company-owned stores were opened year-to-date. It was also announced that the company repurchased 114,700 shares of its common stock for $4.1 million during the quarter.
"Our operators continued to deliver strong operational and financial results with solid comparable restaurant sales growth and an increase in restaurant margin," reported Texas Roadhouse, Inc.Chief Executive Officer Kent Taylor. "Positive guest counts primarily drove the increase in comparable restaurant sales, marking our 26th consecutive quarter of growth, while lower commodity costs continued to pave the way for margin expansion. On the development front, we are on track to open approximately 30 company restaurants this year and we continue to fill our new restaurant pipeline for next year and beyond."
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Company is expensive based on historical levels.
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