On October 26, 2023, Texas Roadhouse Inc (TXRH, Financial) announced its financial results for the 13 and 39 weeks ended September 26, 2023. The company reported a 12.9% increase in total revenue for Q3 2023, amounting to $1,121,752, compared to $993,298 in Q3 2022. Net income for the quarter slightly increased by 2.3% to $63,788 from $62,328 in the same period last year. Diluted earnings per share for Q3 2023 were $0.95, a 2.6% increase from $0.93 in Q3 2022.
Financial Highlights
For the 39 weeks ended September 26, 2023, total revenue increased by 15.4% to $3,467,311 from $3,005,390 in the same period in 2022. Income from operations for the period was $270,216, a 7.5% increase from $251,344 in 2022. Net income for the period increased by 10.7% to $232,446 from $209,949 in 2022. Diluted earnings per share for the period were $3.46, a 12.3% increase from $3.08 in 2022.
CEO Commentary
“We are pleased to report another quarter of double-digit sales growth, highlighted by increased guest counts, which has continued through the October period. Our operators are clearly providing a legendary experience that is resonating with our guests,” said Jerry Morgan, Chief Executive Officer of Texas Roadhouse Inc. He further added, “On the development front, we are on track to open a record number of systemwide locations this year across all of our brands. In addition, we have been able to accelerate our 2024 development pipeline and as of the end of the quarter already had 11 of our planned new company locations under construction. Our significant investment in organic growth, along with continued sales momentum, has us well positioned to continue driving legendary value and returns for our roadies, guests and shareholders.”
2023 and 2024 Outlook
For the first four weeks of Q4 2023, comparable restaurant sales at company restaurants increased by 9.2% compared to 2022. The company also implemented a menu price increase of approximately 2.7% in early Q4 2023. The management provided initial expectations for 2024 but did not disclose specific figures.
Financial Statements Summary
The company's consolidated balance sheet as of September 26, 2023, showed total assets of $2,546,337, an increase from $2,525,665 as of December 27, 2022. The cash and cash equivalents at the end of the period were $69,324, a decrease from $173,861 at the beginning of the period. The company's total liabilities and equity were $2,546,337, slightly higher than $2,525,665 at the end of 2022.
The company's condensed consolidated statements of cash flows for the 39 weeks ended September 26, 2023, showed net cash provided by operating activities of $390,739, a slight decrease from $395,057 in the same period in 2022. The net cash used in investing activities was $273,519, an increase from $195,607 in 2022. The net cash used in financing activities was $221,757, a decrease from $349,780 in 2022.
Explore the complete 8-K earnings release (here) from Texas Roadhouse Inc for further details.
