Texas Roadhouse Inc. (NASDAQ: TXRH) announced the fourth quarter financial results on Monday, stock price jumped up 11.96% to $41.37 during Tuesday trading. The company offers an assortment of seasoned and aged steaks. In addition to steaks, it also offers fish, seafood, ribs, pork chops, chicken, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches.
According to the fourth quarter announcement, comparable restaurant sales increased 4.0% at franchise restaurants and 4.5% at company restaurants respectively. Diluted earnings per share increased 22.7% to $0.32 compared with $0.26 last year. Seven company-owned Texas Roadhouse restaurants were opened. Texas Roadhouse also repurchased 189,700 shares of its common stock for $6.7 million.
The company outlook for 2016 that opening around 30 company restaurants, including about seven Bubba’s 33 restaurants, expected 1.0% to 2.0% food cost deflation, an income tax rate of around 30.0%, and total capital expenditures of $165.0 million to $175.0 million. Moreover, the company’s board of directors authorized the quarterly cash dividend of $0.19 per share of common stock. This dividend will be distributed on April 1, 2016 to shareholders of record at March 16, 2016.
Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We ended the year on a strong note, with double digit revenue and diluted earnings per share growth for both the fourth quarter and the full year. This represents our 24th consecutive quarter of positive comparable restaurant sales growth, which is a testament to our Managing Partners. In addition, our solid balance sheet and healthy cash flow allowed us to open 29 restaurants, while returning $58 million of excess capital to shareholders through quarterly dividend payments and share repurchases throughout the year."