[PDF] Texas Roadhouse, Inc - Annual Reports

Opening 29 Company and one franchise restaurants, resulting in a year-end restaurant count of 314 Texas Roadhouse locations in 46 states; • The acquisition 



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Texas Roadhouse, Inc - Annual Reports

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© 200

9

Texas Roadhouse, Inc. All Rights reserved

5 8 9 4 _ C o v i n d d

13/24/09 8:54:22 PM

Support Center

(Corporate Office)

6040 Dutchmans Lane

Louisville, KY 40205

(800) TEX-ROAD (839-7623) A n n u al Meeting

Thursday, May 21, 2009

9: 00 A M E DT

Seelbach Hilton

Hotel M edallion B allr oom A 5

00 S. 4th Street

Lou isville, K

Y 40202

Stock Listing

Texas Roadhouse, Inc. Class A

Common Stock is listed on

the NASDAQ Stock Exchange und er the s ymbo l TXRH. Fin ancial Inquiries

For additional financial

do cume nt s and information, please visit our Web site at w ww.texa s roadhou s e.com.

Please contact us by

p ho ne at (50

2) 515-7300

or by sending an e-mail to investment@ texasroadhou s e.com.

Media Inquiries

For all requests from media

sources, please contact Travis Doster at (502) 638-5457.

Independent Auditors

KPMG L

LP

400 W. Market Street, Suite 2600

L ouisv ille, KY 4 0202

Phone (502) 587-0535

Transfer Agent

National City Bank

6

29 Euclid Avenue, Suite 635

Cleveland, OH 44114

Phone (800) 622-6757

G.J. Hart

President, Chief Executive Officer

T exas R oadhouse, Inc. Mart in T Hart

Private

Inve s to r G re gory N. Moor e

Former Senior Vice President,

Controll

er

Yum! Brands,

Inc.

James F. Parker

Former Chief Executive Officer,

Vice-Chairman of the Board

Southwest Airlines Co.

James R. Ramsey

President

University of Louisville

W. Kent Taylor

Chairman of the Company,

Chairman of the Board

Texas Roadhouse, Inc.

James R. Zarley

E xecutive Chairman of the Board

ValueClick, Inc.

I nformation S to c k h o ld e r s

Board of

D irectors 5 8 9 4 _ C o v i n d d

23/24/09 9:35:07 PM

$ in thousands 2008 200

7 % Change

Revenue:

Restaurant sales $871,556 $724,372 20%

Franchise royalties and fees 8,905 10,717 <17%>

Total revenue $880,461 $735,089 20%

Income from operations $62,027 $63,213 <2%>

Total assets $622,663 $546,029 14%

Total debt, including capital leases $132,710 $66,784 99% Total stockholders' equity $359,990 $367,381 <2%> i n t h o u s a n d s

2008 200

7 % Change

C o m p a n y restaurants:

Number open at end of period 245 204 20%

Average unit volume(1) $3,824 $3,974 <4%>

Comparable restaurant sales growth(2) <2.3%> 1.4% NM System-wide restaurants open at end of period(3) 314 285 10% 3 105
2131
31
3 3 31
6 6 1 6 1

496137

39
13 9 4 858

192010111952

2 1 3 6 22
17 11

Selected

Selected

Financial Data

Operating Data

SUPPORT CENTER

Louisville, KY

Locations as of December 30, 2008

Locations

Restaurant

1

Average unit volume represents the average annual restaurant sales for all company restaurants opened for a full six months before the beginning of the period measured. For

c o m p a r a t i

ve purposes, average unit volume for 2007 was adjusted to re�ect the restaurant sales of franchise stores acquired during 2008. Although 2008 contained 53 weeks,

for comparative purposes, 2008 average unit volumes were adjusted to a 52-week basis.s 2

Comparable restaurant sales growth re�ects the change in year-over-year sales for the comparable restaurant base. We de�ne the comparable restaurant base to include those

restaurants open for a full 18 months before the beginning of the later �scal period. 3 System-wide restaurants include company and franchise locations. N M N o t m e a n i n gful 5 8 9 4 _ B d y i n d d

13/24/09 9:34:11 PM

We are clearly in unprecedented times, and Texas

Road house, like other restaurant companies, is not i mmune from the continued slowdown in consumer s pending. However, during 2008 we saw both revenue and e arnings per share increases. Our 2008 results include:

EVENIASING20% from $735 million to

$880 m illion; $LUTEDEARNINGSPSAREINCG1%;

OMPARABLERESTAURATSALDECREASING2.3% - marking

o ur first 12-month period of comparable restaurant s ales decrease in nine years;

MSDECREASING168 basis points from

2

007, due to increased labor and occupancy costs and

l ower sales per restaurant;

29#OMPAAOFRNCHISERESTAURANTS

resulti ng in a year-end restaurant count of 314 Texas R oadhouse locations in 46 states;

AISITIOF13 restaurants from franchisees; and

RCHASO$56.8MILLIOF#ASS!CMNSTOCK

reflecting the first time in our public company history t hat we have repurchased shares of our common stock.The growth in revenue for 2008 was driven b y an increase in operating weeks, resulti ng from a combination of new ESTA

ANTOPENINTACQUISITIONOFRESTAURANTS

fro m franchisees, as well as the additional 53rd week in ou r fiscal year. These benefits were partially offset by negative comparable restaurant sales growth, which was the re sult of lower guest counts, along with guests t rading from higher cost entrées to lower cost items, despite higher pricing over all.

ESPITEECONOMICHEADWIND

WERFUSED

on doing right by our guests an d maintaining the

UALITYANDOVERALLVALUEOFTHE

4EXAS2OADHOUSEDINING

experience. We believe that challenging times like these afford us the opportunity to not only ensure the loyalty of our core g uests, but also take market share from competitors through our relentless devotion to

Legendary Food and Legendary S

ervice.

From a margin/cost perspectiv

e, as anticipated, we experienced inflationary pressure on our l abor costs, d riven by increases in minimum hourly wage rates at both the federal and state leve ls, along with continued state- mandated tip wag e increases. We do expect continued la bor pressures going forward, as we operate in several states that have mandated annual wage rate increases, in addition to ano ther round of federal minimum wage NC

SESIN*ULY!LSOIMPACTINGOURMARGINSIN2008

was pressure from operating costs, in particular, utili ties, which were up during the latter part of the year in conjunction with elevated natur al gas prices. Fortunately, much of the utility pressure has since subsided.

WELOAHEADWREMIEXCIEDABOUTTHEPOTENTIAL

fo r Texas Roadhouse. We believe we are making the right d ecisions for the long-term success of the business - both ope rationally and financially. Operationally, we are intensely focused on both maintaini ng and expanding our current guest base through in-store execution and loca l store marketing campaigns. In addition, while wquotesdbs_dbs17.pdfusesText_23