# EDGAR Filing Document

**Accession Number:** 0001289460
**File Stem:** 0001104659-23-022796
**Filing Date:** 2023-2
**Character Count:** 29554
**Document Hash:** 383d8141dec40e6eb1e3dcd3f21954dc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-022796.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001104659-23-022796

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Texas Roadhouse, Inc.
- **CENTRAL INDEX KEY:** 0001289460
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1227

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-50972
- **FILM NUMBER:** 23638526

**BUSINESS ADDRESS:**
- **STREET 1:** 6040 DUTCHMANS LANE
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40205
- **BUSINESS PHONE:** 5024269984

**MAIL ADDRESS:**
- **STREET 1:** 6040 DUTCHMANS LANE
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40205

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) **February 14, 2023**

**TEXAS ROADHOUSE, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **000-50972** | **20-1083890** |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

---

| | |
|:---|:---|
| **6040 Dutchmans Lane** **, Louisville, KY** | **40205** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code **(502) 426-9984**

**N/A**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<u>see</u> General Instruction A.2. below):

◻&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

◻&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

◻&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

◻&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each Class | Trading<br> Symbol(s) | Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, par value $0.001 per share | &nbsp;&nbsp;TXRH | &nbsp;&nbsp;Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b,2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ◻

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 16, 2023, Texas Roadhouse, Inc., a Delaware corporation (the "Company"), issued a press release announcing its financial results for the quarter and year ended December 27, 2022, along with the first quarter 2023 cash dividend. Attached to this Current Report on Form 8-K as Exhibit 99.1 is a copy of the press release.

ITEM 8.01. OTHER EVENTS.

On February 14, 2023, the Company's Board of Directors approved the first quarter 2023 cash dividend.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EXHIBITS

[99.1](tm237068d1_ex99-1.htm) [Press Release issued by the Company on February 16, 2023.](tm237068d1_ex99-1.htm)

104 Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document)

The information in this Current Report on Form 8-K at Item 2.02 and the Exhibit attached hereto shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | TEXAS ROADHOUSE, INC. | TEXAS ROADHOUSE, INC. |
| Date: February 16, 2023 | By: | /s/ Keith V. Humpich |
|  |  | Keith V. Humpich |
|  |  | Interim Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm237068d1_ex99-1img01.jpg)

**Texas Roadhouse, Inc. Announces Fourth Quarter 2022 Results**

**Increases Quarterly Dividend by 20% to $0.55 per Share**

**LOUISVILLE, KY. (February 16, 2023)** – Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 52 weeks ended December 27, 2022.

**Financial Results**

Financial results for the 13 and 52 weeks ended December 27, 2022 and December 28, 2021 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Fourth Quarter** | **Fourth Quarter** | **Year to Date** | **Year to Date** | **Year to Date** |
| ($000's) |  |  |  |  |  |  |
|  | **2022** | **2021** | **% change** | **2022** | **2021** | **% change** |
| Total revenue | $1009529 | $895586 | 12.7% | $4014919 | $3463946 | 15.9% |
| Income from operations | 68853 | 64839 | 6.2% | 320197 | 297192 | 7.7% |
| Net income | 59869 | 53058 | 12.8% | 269818 | 245294 | 10.0% |
| Diluted earnings per share | $0.89 | $0.76 | 17.4% | $3.97 | $3.50 | 13.5% |

---

Results for the fourth quarter, as compared to the prior year as applicable, included the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Comparable restaurant sales increased 7.3% at company restaurants and increased 7.2% at domestic franchise
restaurants;

&nbsp;&nbsp;&nbsp;&nbsp;· Average weekly sales at company restaurants were $130,176 of which 12.6% were to-go sales as compared
to average weekly sales of $121,976 of which 14.4% were to-go sales in the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;· Restaurant margin, as a percentage of restaurant and other sales, decreased 132 basis points to 14.5%
as commodity inflation of 6.6% and wage and other labor inflation of 7.8% were partially offset by higher sales. Restaurant margin dollars
increased 3.4% to $145.6 million from $140.8 million in the prior year primarily due to higher sales;

&nbsp;&nbsp;&nbsp;&nbsp;· Diluted earnings per share increased 17.4% primarily driven by higher restaurant margin dollars and lower
general and administrative expenses. Diluted earnings per share also benefitted from increased share repurchases that occurred in the
first half of 2022; and,

&nbsp;&nbsp;&nbsp;&nbsp;· 10 company restaurants and two international franchise restaurants were opened.

Results for the year-to-date period, as compared to the prior year as applicable, included the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Comparable restaurant sales increased 9.7% at company restaurants and increased 9.4% at domestic franchise
restaurants;

&nbsp;&nbsp;&nbsp;&nbsp;· Average weekly sales at company restaurants were $131,802 of which 13.3% were to-go sales as compared
to average weekly sales of $120,706 of which 17.1% were to-go sales in the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;· Restaurant margin, as a percentage of restaurant and other sales, decreased 118 basis points to 15.7%
as commodity inflation of 10.8% and wage and other labor inflation of 8.3% were partially offset by higher sales. Restaurant margin dollars
increased 7.9% to $627.5 million from $581.7 million in the prior year primarily due to higher sales;

&nbsp;&nbsp;&nbsp;&nbsp;· Diluted earnings per share increased 13.5% primarily driven by higher restaurant margin dollars partially
offset by higher general and administrative expenses and depreciation and amortization expense. Diluted earnings per share also benefitted
from increased share repurchases in the first half of 2022;

&nbsp;&nbsp;&nbsp;&nbsp;· 23 company restaurants and seven international franchise restaurants were opened. In addition, the Company
acquired eight domestic franchise restaurants; and,

&nbsp;&nbsp;&nbsp;&nbsp;· The Company repurchased 2,734,005 shares of common stock for $212.9 million.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, "We had another record year in 2022, highlighted by over $4 billion in revenue and double-digit bottom line growth in spite of significant cost pressures. I am extremely proud of our operators who continue to drive sales and consistently deliver on our legendary promise."

Morgan continued, "As we celebrate our 30<sup>th</sup> anniversary this month, our focus will be on what got us here—providing our guests a legendary experience in all 700 of our restaurants each and every shift. We are excited about our continued growth in 2023, which includes the potential to open a record number of systemwide locations across all of our brands. We are confident this growth, along with our ability to allocate capital for the benefit of our shareholders, will continue to create long term value."

**Franchise acquisitions**

On December 28, 2022, the first day of the 2023 fiscal year, the Company completed the acquisition of eight domestic franchise restaurants for an aggregate purchase price of approximately $39.0 million.

**2023 Outlook**

Comparable restaurant sales at company restaurants for the first seven weeks of our first quarter of fiscal 2023 increased 15.8% compared to 2022. In addition, the Company plans to implement a menu price increase of approximately 2.2% in late March.

Management updated the following expectations for 2023:

&nbsp;&nbsp;&nbsp;&nbsp;· Store week growth of at least 6% including the impact of the franchise locations acquired;

&nbsp;&nbsp;&nbsp;&nbsp;· 25 to 30 Texas Roadhouse and Bubba's 33 company restaurant openings; and,

&nbsp;&nbsp;&nbsp;&nbsp;· An effective income tax rate of approximately 14% excluding the impact of any legislative changes enacted.

Management reiterated the following expectations for 2023:

· Positive comparable restaurant sales growth including the benefit of 2022 menu pricing actions;

· Commodity cost inflation of 5% to 6%;

· Wage and other labor inflation of 5% to 6%; and,

· Total capital expenditures of approximately $265 million.

**Cash Dividend Payment**

On February 14, 2023, the Company's Board of Directors authorized the payment of a quarterly cash dividend of $0.55 per share of common stock. This payment, which represents a 20% increase from the quarterly cash dividend authorized in 2022, will be distributed on March 24, 2023, to shareholders of record at the close of business on March 8, 2023.

**Non-GAAP Measures**

The Company prepares the consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). Within the press release, the Company makes reference to restaurant margin (in dollars and as a percentage of restaurant and other sales). Restaurant margin represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent and other operating costs. Restaurant margin also includes sales and operating costs related to the Company's non-royalty based retail initiatives. Restaurant margin should not be considered in isolation, or as an alternative, to income from operations. This non-GAAP measure is not indicative of overall company performance and profitability in that this measure does not accrue directly to the benefit of shareholders due to the nature of the costs excluded. Restaurant margin is widely regarded as a useful metric by which to evaluate core restaurant-level operating efficiency and performance over various reporting periods on a consistent basis. In calculating restaurant margin, the Company excludes certain non-restaurant-level costs that support operations, including general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. The Company also excludes pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results. The Company also excludes depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in restaurants. The Company also excludes impairment and closure expense as it believes this provides a clearer perspective of ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in the industry. A reconciliation of income from operations to restaurant margin is included in the accompanying financial tables.

**Conference Call**

Texas Roadhouse, Inc. is hosting a conference call today, February 16, 2023, at 5:00 p.m. Eastern Time to discuss these results. The call will be webcast live from the investor relations portion of the Company's website at <u>www.texasroadhouse.com</u>. Listeners may also access the call by dialing (888) 440-5667 or (646) 960-0476 for international calls and referencing the Texas Roadhouse, Inc. Fourth Quarter 2022 Earnings. A replay of the call will be available until February 23, 2023, by dialing (800) 770-2030 or (647) 362-9199 for international calls.

**About the Company**

Texas Roadhouse, Inc. is a growing restaurant company operating predominantly in the casual dining segment that first opened in 1993 and today has grown to over 700 restaurants system-wide in 49 states and ten foreign countries. For more information, please visit the Company's Web site at <u>www.texasroadhouse.com</u>.

**Forward-looking Statements**

Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon the current beliefs and expectations of the management of Texas Roadhouse. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, conditions beyond its control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting customers or food supplies; labor or supply chain shortages or limited availability of staff or product needed to meet our business standards; food safety and food-borne illness concerns; and other factors disclosed from time to time in its filings with the U.S. Securities and Exchange Commission. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to those described under "Part I—Item 1A. Risk Factors" of the Annual Report on Form 10-K for the fiscal year ended December 28, 2021. These factors should not be construed as exhaustive and should be read in conjunction with other filings with the Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.

\# \# \#

Contacts:

Investor Relations Media

Michael Bailen Travis Doster

(502) 515-7298 (502) 638-5457

---

| |
|:---|
| **Texas Roadhouse, Inc. and Subsidiaries** |
| **Consolidated Statements of Income** |
| **(in thousands, except per share data)** |
| **(unaudited)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended |
|  | December 27, 2022 | December 28, 2021 | December 27, 2022 | December 28, 2021 |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant and other sales | $1002763 | $889052 | $3988791 | $3439176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise royalties and fees | 6766 | 6534 | 26128 | 24770 |
| Total revenue | 1009529 | 895586 | 4014919 | 3463946 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant operating costs (excluding depreciation and amortization shown separately below): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage | 351723 | 311478 | 1378192 | 1156628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor | 334827 | 290227 | 1319959 | 1123003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rent | 17049 | 15508 | 66834 | 60005 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating | 153591 | 131054 | 596305 | 517808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-opening | 6568 | 7008 | 21883 | 24335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 35462 | 32615 | 137237 | 126761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment and closure, net | 1063 | 184 | 1600 | 734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 40393 | 42673 | 172712 | 157480 |
| Total costs and expenses | 940676 | 830747 | 3694722 | 3166754 |
| Income from operations | 68853 | 64839 | 320197 | 297192 |
| Interest (income)/expense, net | (753) | 624 | 124 | 3663 |
| Equity income (loss) from investments in unconsolidated affiliates | 170 | (925) | 1239 | (637) |
| Income before taxes | 69776 | 63290 | 321312 | 292892 |
| Income tax expense | 8007 | 8547 | 43715 | 39578 |
| Net income including noncontrolling interests | 61769 | 54743 | 277597 | 253314 |
| Less: Net income attributable to noncontrolling interests | 1900 | 1685 | 7779 | 8020 |
| Net income attributable to Texas Roadhouse, Inc. and subsidiaries | $59869 | $53058 | $269818 | $245294 |
| Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.89 | $0.76 | $3.99 | $3.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.89 | $0.76 | $3.97 | $3.50 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 66946 | 69601 | 67643 | 69709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 67270 | 69969 | 67920 | 70098 |
| Cash dividends declared per share | $0.46 | $0.40 | $1.84 | $1.20 |

---

---

| |
|:---|
| **Texas Roadhouse, Inc. and Subsidiaries** |
| **Condensed Consolidated Balance Sheets** |
| **(in thousands)** |
| **(unaudited)** |

---

---

| | | |
|:---|:---|:---|
|  | December 27, 2022 | December 28, 2021 |
| Cash and cash equivalents | $173861 | $335645 |
| Other current assets, net | 222980 | 227880 |
| Property and equipment, net | 1270349 | 1162441 |
| Operating lease right-of-use assets, net | 630258 | 578413 |
| Goodwill | 148732 | 127001 |
| Intangible assets, net | 5607 | 1520 |
| Other assets | 73878 | 79052 |
| Total assets | $2525665 | $2511952 |
| Other current liabilities | 652010 | 602144 |
| Operating lease liabilities, net of current portion | 677874 | 622892 |
| Long-term debt | 50000 | 100000 |
| Other liabilities | 118119 | 113432 |
| Texas Roadhouse, Inc. and subsidiaries stockholders' equity | 1012638 | 1058124 |
| Noncontrolling interests | 15024 | 15360 |
| Total liabilities and equity | $2525665 | $2511952 |

---

---

| |
|:---|
| **Texas Roadhouse, Inc. and Subsidiaries** |
| **Condensed Consolidated Statements of Cash Flows** |
| **(in thousands)** |
| **(unaudited)** |

---

---

| | | |
|:---|:---|:---|
|  | 52 Weeks Ended | 52 Weeks Ended |
|  | December 27, 2022 | December 28, 2021 |
| **Cash flows from operating activities:** |  |  |
| Net income including noncontrolling interests | $277597 | $253314 |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 137237 | 126761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 36663 | 38139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 9456 | 8896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncash adjustments, net | 6792 | 5555 |
| Change in working capital | 43980 | 36161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 511725 | 468826 |
| **Cash flows from investing activities:** |  |  |
| Capital expenditures - property and equipment | (246121) | (200692) |
| Acquistion of franchise restaurants, net of cash acquired | (33069) |  |
| Proceeds from sale of investment in unconsolidated affiliate | 316 |  |
| Proceeds from sale of property and equipment | 2269 |  |
| Proceeds from sale leaseback transactions | 12871 | 5588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (263734) | (195104) |
| **Cash flows from financing activities:** |  |  |
| Payments on revolving credit facility, net | (50000) | (140000) |
| Repurchase of shares of common stock | (212859) | (51634) |
| Dividends paid | (124137) | (83658) |
| Other financing activities, net | (22779) | (25940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (409775) | (301232) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in cash and cash equivalents | (161784) | (27510) |
| Cash and cash equivalents - beginning of period | 335645 | 363155 |
| Cash and cash equivalents - end of period | $173861 | $335645 |

---

---

| |
|:---|
| **Texas Roadhouse, Inc. and Subsidiaries** |
| **Reconciliation of Income from Operations to Restaurant Margin** |
| **(in thousands)** |
| **(unaudited)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 13 Weeks Ended | 13 Weeks Ended | 52 Weeks Ended | 52 Weeks Ended |
|  | December 27, 2022 | December 28, 2021 | December 27, 2022 | December 28, 2021 |
| Income from operations | $68853 | $64839 | $320197 | $297192 |
| Less: |  |  |  |  |
| Franchise royalties and fees | 6766 | 6534 | 26128 | 24770 |
| Add: |  |  |  |  |
| Pre-opening | 6568 | 7008 | 21883 | 24335 |
| Depreciation and amortization | 35462 | 32615 | 137237 | 126761 |
| Impairment and closure, net | 1063 | 184 | 1600 | 734 |
| General and administrative | 40393 | 42673 | 172712 | 157480 |
| Restaurant margin | $145573 | $140785 | $627501 | $581732 |
| Restaurant margin *(as a percentage of restaurant and other sales)* | 14.5% | 15.8% | 15.7% | 16.9% |

---

---

| |
|:---|
| **Texas Roadhouse, Inc. and Subsidiaries** |
| **Supplemental Financial and Operating Information** |
| **($ amounts in thousands, except weekly sales by group)** |
| **(unaudited)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Fourth Quarter | Fourth Quarter | | Year to Date | Year to Date | |
|  | 2022 | 2021 |<br>Change | 2022 | 2021 |<br>Change |
| Restaurant openings |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Texas Roadhouse | 7 | 9 | (2) | 18 | 23 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Bubba's 33 | 2 | 1 | 1 | 4 | 5 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Jaggers | 1 | 1 | 0 | 1 | 1 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise - Texas Roadhouse - U.S. | 0 | 1 | (1) | 0 | 1 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise - Texas Roadhouse - International | 2 | 1 | 1 | 7 | 3 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 12 | 13 | (1) | 30 | 33 | (3) |
| Restaurant acquisitions/dispositions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Texas Roadhouse | 0 | 0 | 0 | 8 | 0 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise - Texas Roadhouse - U.S. | 0 | 0 | 0 | (8) | 0 | (8) |
| Restaurants open at the end of the quarter |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Texas Roadhouse | 552 | 526 | 26 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Bubba's 33 | 40 | 36 | 4 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company - Jaggers | 5 | 4 | 1 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise - Texas Roadhouse - U.S. | 62 | 70 | (8) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise - Texas Roadhouse - International | 38 | 31 | 7 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 697 | 667 | 30 |  |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Fourth Quarter | Fourth Quarter | Fourth Quarter |
|  | 2022 | 2021 | Change |
| Company restaurants (all concepts) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant and other sales | $1002763 | $889052 | 12.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Store weeks | 7691 | 7288 | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurant sales (1) | 7.3% | 33.1% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant operating costs (as a % of restaurant and other sales) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Food and beverage costs | 35.1% | 35.0% | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor | 33.4% | 32.6% | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rent | 1.7% | 1.7% | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating | 15.3% | 14.7% | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 85.5% | 84.2% | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant margin | 14.5% | 15.8% | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant margin ($ in thousands) | $145573 | $140785 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurant margin $/Store week | $18927 | $19318 | (2.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas Roadhouse restaurants only: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Store weeks | 7123 | 6779 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurant sales (1) | 7.3% | 33.3% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average unit volume (2) | $1720 | $1604 | 7.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weekly sales by group: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurants (513 and 489 units) | $132430 | $123860 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average unit volume restaurants (24 and 16 units) | $129117 | $113657 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurants less than 6 months old (15 and 21 units) | $141991 | $130295 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bubba's 33 restaurants only: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Store weeks | 504 | 463 | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurant sales (1) | 6.6% | 30.8% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average unit volume (2) | $1391 | $1279 | 8.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weekly sales by group: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurants (32 and 29 units) | $104880 | $99465 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average unit volume restaurants (4 and 3 units) | $124063 | $87844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restaurants less than 6 months old (4 and 4 units) | $104110 | $136579 |  |
| Franchise restaurants |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Franchise royalties and fees | $6766 | $6534 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Store weeks | 1287 | 1301 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurant sales | 6.1% | 30.6% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. franchise restaurants only: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comparable restaurant sales | 7.2% | 34.8% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average unit volume | $1818 | $1684 | 8.0 |

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(1) Comparable restaurant sales reflect the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period, excluding sales from restaurants permanently closed during the period.

(2) Average unit volume includes sales from restaurants open for a full six months before the beginning of the period, excluding sales from restaurants permanently closed during the period.

Amounts may not foot due to rounding.