Texas Roadhouse Inc. (TXRH) Monday reported a better-than-expected jump in first-quarter profit as the restaurant chain benefited from strong same-store sales growth at company and franchise-owned outlets. Following the results, shares of the company gained about seven percent in after-hours trade on the Nasdaq.
Texas Roadhouse operates as casual dining concept.
The Louisville, Kentucky-based company reported first quarter net income of $26 million or $0.37 per share. This compares with $19 million or $0.27 per share reported last year, which includes legal settlement charges of $0.04 per share.
On average, 21 analysts polled by Thomson Reuters estimated earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter climbed 11 percent to $359.7 million from $324.9 million in the prior year. Analysts on consensus estimated revenues of $357.90 million for the quarter.
On a same-store basis, sales grew 3.5 percent at company-owned restaurants and was up 4.5 percent at franchise restaurants.
Restaurant margin for the quarter dropped 17 basis points to 18.9 percent on higher commodity costs.
During the quarter, Texas Roadhouse opened five outlets, to end the period with 397 restaurants, and plans to open 28 outlets in 2013.
The company noted that that same-store sales at company restaurants for the first four weeks of its second quarter grew about 5.7 percent compared to a year ago.
Texas Roadhouse continues to anticipate positive same-store sales growth for the year.
The company's stock closed Monday at $21.32, up 1.23%, on a volume of 1.8 million shares. In after-hours trade, the stock gained $1.48 or 6.94%.
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