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Texas Roadhouse Operating Income

: $66 Mil (TTM As of Jun. 2020)
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Texas Roadhouse's Operating Income for the three months ended in Jun. 2020 was $-48 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $66 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Texas Roadhouse's Operating Income for the three months ended in Jun. 2020 was $-48 Mil. Texas Roadhouse's Revenue for the three months ended in Jun. 2020 was $476 Mil. Therefore, Texas Roadhouse's Operating Margin % for the quarter that ended in Jun. 2020 was -10.02%.

Warning Sign:

Texas Roadhouse Inc operating margin has been in 5-year decline. The average rate of decline per year is -1.6%.

Texas Roadhouse's 5-Year average Growth Rate for Operating Margin % was -1.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Texas Roadhouse's annualized ROC % for the quarter that ended in Jun. 2020 was -6.71%. Texas Roadhouse's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 was -12.05%.


Texas Roadhouse Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Texas Roadhouse Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 145.54 172.08 186.86 188.07 211.12

Texas Roadhouse Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 53.60 44.95 52.12 16.39 -47.76

Texas Roadhouse Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was 44.945 (Sep. 2019 ) + 52.118 (Dec. 2019 ) + 16.385 (Mar. 2020 ) + -47.758 (Jun. 2020 ) = $66 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Texas Roadhouse  (NAS:TXRH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Texas Roadhouse's annualized ROC % for the quarter that ended in Jun. 2020 is calculated as:

ROC % (Q: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2020 ) + Invested Capital (Q: Jun. 2020 ))/ count )
=-191.032 * ( 1 - 31.24% )/( (1922.316 + 1995.382)/ 2 )
=-131.3536032/1958.849
=-6.71 %

where

Invested Capital(Q: Mar. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2054.704 - 140.675 - ( 230.606 - max(0, 310.861 - 302.574+230.606))
=1922.316

Invested Capital(Q: Jun. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2130.484 - 177.967 - ( 282.493 - max(0, 402.242 - 359.377+282.493))
=1995.382

Note: The Operating Income data used here is four times the quarterly (Jun. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

Texas Roadhouse's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2020  Q: Jun. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-191.032/( ( (1581.275 + max(-220.968, 0)) + (1589.433 + max(-257.445, 0)) )/ 2 )
=-191.032/( ( 1581.275 + 1589.433 )/ 2 )
=-191.032/1585.354
=-12.05 %

where Working Capital is:

Working Capital(Q: Mar. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(25.441 + 20.321 + 26.206) - (140.675 + 152.261 + 0)
=-220.968

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(30.285 + 23.102 + 23.497) - (177.967 + 156.362 + 5.6843418860808E-14)
=-257.445

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Texas Roadhouse's Operating Margin % for the quarter that ended in Jun. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2020 )/Revenue (Q: Jun. 2020 )
=-47.758/476.425
=-10.02 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Texas Roadhouse Operating Income Related Terms


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