Texas Roadhouse 3Q profit rises as sales improve

posted: 22 DAYS 12 HOURS AGO

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LOUISVILLE, Ky. -Texas Roadhouse Inc. said that its third-quarter profit rose on favorable commodity costs, lower pre-opening costs and higher revenue.

The casual dining operator said late Monday that its earnings climbed 24 percent to $10.7 million, or 15 cents per share, from $8.6 million, or 12 cents per share, a year ago.

Revenue for the period ended Sept. 29 rose to $226.5 million from $217.7 million on higher restaurant sales and increased revenue from franchise royalties and fees.

Analysts polled by Thomson Reuters, whose estimates generally exclude one-time items, forecast a profit of 12 cents per share on revenue of $226.7 million.

Sales at company-run restaurants open at least a year fell 4.6 percent, while sales at franchise restaurants open at least a year dropped 3.6 percent.

This figure is a key indicator of a restaurant operator's performance since it measures growth at existing restaurants rather than newly opened ones.

Pre-opening costs for its restaurants declined to $1.2 million from $2.9 million during the quarter.

Texas Roadhouse expects its 2009 earnings per share to climb 20 percent from a year earlier. The restaurant operator reported a profit of 52 cents per share in 2008, which implies earnings of approximately 62 cents per share. The company noted that 2008 included one extra week. It predicts 2010 earnings per share will be flat to up 10 percent if sales at restaurants open at least a year were flat to down 2 percent for the year.

Analysts anticipate a 2009 profit of 62 cents per share.

2009-11-03 07:33:50