So what: The steakhouse chain's adjusted earnings per share came in at $0.55, up from $0.54 a year ago and a penny better than estimates, while revenue rose 12% to $515.6 million, matching expectations. Same-store sales increased 4.6%, and the company benefited from lower beef prices as restaurant-level operating margin improved 116 basis points to 20.1%.
CEO Kent Taylor said he was pleased with the company's performance across the board as sales momentum continued to be strong. During the quarter, the company opened its first restaurant in the Philippines and added seven company-owned locations.
Now what: Looking ahead, the company sees positive comparable sales growth for the year after a strong start to the current quarter, and expects to add 30 company-owned restaurants.
Texas Roadhouse has been a consistently strong performer in the restaurant industry, and still carries a reasonable valuation despite its strong track record. The Bubba 33 family friendly sports restaurant should extend the company's growth path, and overall spending growth on restaurants continues to be in the high single digits. With strong momentum, declining commodity prices, and solid execution, I'd expect Texas Roadhouse share to keep moving higher.