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What changed in Texas Roadhouse, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Texas Roadhouse, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+336 added−301 removedSource: 10-K (2025-02-28) vs 10-K (2024-02-23)

Top changes in Texas Roadhouse, Inc.'s 2024 10-K

336 paragraphs added · 301 removed · 271 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

91 edited+32 added−7 removed60 unchanged
Biggest changeWe expect our average capital investment for restaurants to be opened in 2024 to be approximately $8.5 million. 7 Table of Contents Existing Restaurant Locations As of December 26, 2023, we had 635 company restaurants and 106 franchise restaurants in 49 states and ten foreign countries as shown in the chart below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restaurants ​ Company Franchise Total Alabama 10 — 10 ​ Alaska 2 — 2 ​ Arizona 20 — 20 ​ Arkansas 9 — 9 ​ California 8 ​ 11 19 ​ Colorado 17 1 18 ​ Connecticut 5 — 5 ​ Delaware 5 — 5 ​ Florida 44 — 44 ​ Georgia 16 3 19 ​ Idaho 6 — 6 ​ Illinois 19 — 19 ​ Indiana 28 8 36 ​ Iowa 11 — 11 ​ Kansas 7 1 8 ​ Kentucky 19 3 22 ​ Louisiana 10 1 11 ​ Maine 3 — 3 ​ Maryland 14 — 14 ​ Massachusetts 10 1 11 ​ Michigan 21 3 24 ​ Minnesota 7 — 7 ​ Mississippi 3 — 3 ​ Missouri 18 — 18 ​ Montana 2 1 3 ​ Nebraska 4 — 4 ​ Nevada 4 — 4 ​ New Hampshire 3 — 3 ​ New Jersey 10 — 10 ​ New Mexico 9 — 9 ​ New York 22 — 22 ​ North Carolina 21 1 22 ​ North Dakota 2 1 3 ​ Ohio 36 1 37 ​ Oklahoma 10 — 10 ​ Oregon 2 — 2 ​ Pennsylvania 27 6 33 ​ Rhode Island 3 — 3 ​ South Carolina 9 — 9 ​ South Dakota 2 — 2 ​ Tennessee 18 1 19 ​ Texas 87 ​ 6 93 ​ Utah 10 1 11 ​ Vermont 1 — 1 ​ Virginia 22 — 22 ​ Washington 2 1 3 ​ West Virginia 4 3 7 ​ Wisconsin 11 4 15 ​ Wyoming 2 — 2 ​ Total domestic restaurants 635 58 693 ​ Bahrain ​ — ​ 1 ​ 1 ​ China ​ — ​ 1 ​ 1 ​ South Korea ​ — ​ 8 ​ 8 ​ Kuwait — 3 3 ​ Mexico ​ — ​ 3 ​ 3 ​ Philippines — 16 16 ​ Qatar — 1 1 ​ Saudi Arabia — 5 5 ​ Taiwan ​ — ​ 5 ​ 5 ​ United Arab Emirates ​ — ​ 5 ​ 5 ​ Total international restaurants — 48 48 ​ Total system-wide restaurants 635 106 741 ​ ​ 8 Table of Contents Food Menu.
Biggest changeWe expect our average capital investment for restaurants to be opened in 2025 to be approximately $8.6 million. 7 Table of Contents Existing Restaurant Locations As of December 31, 2024, we had 666 company restaurants and 118 franchise restaurants in 49 states, one U.S. territory, and ten foreign countries as shown in the chart below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Restaurants ​ Company Franchise Total Alabama 12 — 12 ​ Alaska 2 — 2 ​ Arizona 22 — 22 ​ Arkansas 9 — 9 ​ California 8 ​ 11 19 ​ Colorado 17 1 18 ​ Connecticut 6 — 6 ​ Delaware 5 — 5 ​ Florida 48 — 48 ​ Georgia 17 3 20 ​ Idaho 6 — 6 ​ Illinois 19 — 19 ​ Indiana 30 8 38 ​ Iowa 11 — 11 ​ Kansas 7 1 8 ​ Kentucky 20 3 23 ​ Louisiana 10 1 11 ​ Maine 3 — 3 ​ Maryland 14 — 14 ​ Massachusetts 10 1 11 ​ Michigan 22 3 25 ​ Minnesota 7 — 7 ​ Mississippi 3 — 3 ​ Missouri 18 — 18 ​ Montana 2 1 3 ​ Nebraska 4 — 4 ​ Nevada 4 — 4 ​ New Hampshire 4 — 4 ​ New Jersey 10 — 10 ​ New Mexico 9 — 9 ​ New York 22 — 22 ​ North Carolina 22 3 25 ​ North Dakota 2 1 3 ​ Ohio 38 1 39 ​ Oklahoma 10 — 10 ​ Oregon 2 — 2 ​ Pennsylvania 29 6 35 ​ Rhode Island 3 — 3 ​ South Carolina 9 — 9 ​ South Dakota 2 — 2 ​ Tennessee 19 1 20 ​ Texas 93 ​ 6 99 ​ Utah 10 1 11 ​ Vermont 1 — 1 ​ Virginia 24 — 24 ​ Washington 4 1 5 ​ West Virginia 4 3 7 ​ Wisconsin 11 4 15 ​ Wyoming 2 — 2 ​ Total domestic restaurants 666 60 726 ​ Puerto Rico ​ — ​ 1 ​ 1 ​ Bahrain ​ — ​ 1 ​ 1 ​ China ​ — ​ 1 ​ 1 ​ South Korea ​ — ​ 8 ​ 8 ​ Kuwait — 3 3 ​ Mexico ​ — ​ 4 ​ 4 ​ Philippines — 24 24 ​ Qatar — 1 1 ​ Saudi Arabia — 4 4 ​ Taiwan ​ — ​ 6 ​ 6 ​ United Arab Emirates ​ — ​ 5 ​ 5 ​ Total international restaurants, including a U.S. territory — 58 58 ​ Total system-wide restaurants 666 118 784 ​ 8 Table of Contents ​ Food Menu.
Any of our area development or franchise agreements, whether domestic or international, may be terminated if the franchisee defaults in the performance of any of its obligations under the development or franchise agreement, including its obligations to develop the territory or operate its restaurants in accordance with our standards and specifications.
Our area development or franchise agreements, whether domestic or international, may be terminated if the franchisee defaults in the performance of any of its obligations under the development or franchise agreement, including its obligations to develop the territory or operate its restaurants in accordance with our standards and specifications.
Website Access to Reports We make our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, available, free of charge on or through our website, www.texasroadhouse.com, as soon as reasonably practical after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").
Website Access to Reports We make our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, available, free of charge on or through our website, www.texasroadhouse.com, as soon as reasonably practical after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").
In addition to steaks, we also offer our guests a selection of ribs, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches. The majority of our entrées include two made-from-scratch side items, and we offer all our dine-in guests free roasted in-shell peanuts and fresh baked yeast rolls.
In addition to steaks, we also offer our guests a selection of ribs, seafood, chicken, pork chops, pulled pork, and vegetable plates, and an assortment of hamburgers, salads, and sandwiches. The majority of our entrées include two made-from-scratch side items, and we offer all our dine-in guests free, unlimited roasted in-shell peanuts and fresh baked yeast rolls.
Maintaining our Culture and Core Values. In our restaurants and at our Support Center, we are committed to our shared "Core Values of Passion, Partnership, Integrity, and Fun…all with Purpose". These Core Values form the foundation of who we are as a company and how we interact with respect, appreciation, and fairness towards one another every day.
Maintaining our Culture and Core Values. In our restaurants and at our Support Center, we are committed to our shared "Core Values of Passion, Partnership, Integrity, and Fun with Purpose". These Core Values form the foundation of who we are as a company and how we interact with respect, appreciation, and fairness towards one another every day.
We work with a third-party vendor to manage an online tool to provide nutritional information as well as help customers identify known allergens in each of our menu items. This information is available for all concepts. Food Quality and Safety. We are committed to serving a varied menu of high quality, great tasting food items with an emphasis on freshness.
We work with a third-party vendor to manage an online tool to provide nutritional information as well as help guests identify known allergens in each of our menu items. This information is available for all concepts. Food Quality and Safety. We are committed to serving a varied menu of high quality, great tasting food items with an emphasis on freshness.
At Bubba’s 33 restaurants, we offer a broad assortment of burgers, pizza and wings as well as a wide variety of appetizers, sandwiches and dinner entrées. Our Bubba’s 33 restaurants also offer an extensive selection of draft beer and signature cocktails. We provide a "12 & Under" menu for children that includes a selection of items, including a beverage.
At Bubba’s 33 restaurants, we offer a broad assortment of burgers, pizza, and wings as well as a wide variety of appetizers, sandwiches, and dinner entrées. Our Bubba’s 33 restaurants also offer an extensive selection of ice-cold draft beer and signature cocktails. We provide a "12 & Under" menu for children that includes a selection of items, including a beverage.
In addition to salaries, these programs (which vary by employee level) include, among other items, bonuses, stock awards, retirement savings plans with employer matching contributions, healthcare and insurance benefits, health savings and flexible spending accounts, tuition reimbursement, paid time off, paid parental leave and various employee assistance programs.
In addition to salaries, these programs (which vary by employee level) include, among other items, bonuses, stock awards, retirement savings plans with employer matching contributions, healthcare and insurance benefits, health savings and flexible spending accounts, tuition reimbursement, paid time off, paid parental leave, and various employee assistance programs. Personal Development.
We employ a team of product coaches whose function is to provide continual, hands- on training and education to the kitchen staff in all of our restaurants for the purpose of reinforcing food quality, recipe consistency, food preparation procedures, food safety and sanitation standards, food appearance, freshness and portion size.
We employ a team of product coaches whose function is to provide continual, hands- on training and education to the kitchen staff in all of our restaurants for the purpose of reinforcing food quality, recipe consistency, food preparation procedures, food safety and sanitation standards, food appearance, freshness, portion size, and crisis management.
Executive officers are appointed by our Board of Directors (the "Board") and serve until their successors are appointed or until resignation or removal, in accordance with their employment agreements. There are no family relationships among any of our executive officers. ​ ​ ​ ​ ​ Name Age Position Gerald L. Morgan ​ 63 ​ Chief Executive Officer Regina A.
Executive officers are appointed by our Board of Directors (the "Board") and serve until their successors are appointed or until resignation or removal, in accordance with their employment agreements. There are no family relationships among any of our executive officers. ​ ​ ​ ​ ​ Name Age Position Gerald L. Morgan ​ 64 ​ Chief Executive Officer Regina A.
Through the use of guest surveys, our various websites including "texasroadhouse.com," "bubbas33.com" or "eatjaggers.com," a toll- free guest response telephone line, emails, letters, social media and personal interaction in the restaurant, we receive valuable feedback from guests.
We receive valuable feedback from our guests through the use of guest surveys, our various websites including "texasroadhouse.com," "bubbas33.com" or "eatjaggers.com," a toll- free guest response telephone line, tabletop kiosks in the restaurant, emails, letters, social media, and personal interaction in the restaurant.
We also offer a performance- based compensation program to our managing partners and market partners. Each of these positions earn a base salary plus a performance bonus, which represents a percentage of each of their respective restaurant’s pre- tax income.
Performance-based Compensation and Benefits . We offer a performance- based compensation program to our managing partners and market partners. Each of these positions earn a base salary plus a performance bonus, which represents a percentage of each of their respective restaurant’s pre- tax income.
In addition, we employ a team of product coaches whose function is to provide continual, hands-on training and education to our kitchen staff for the purpose of promoting consistent adherence to recipes, food preparation procedures, food safety standards and overall food quality. 5 Table of Contents ● Creating a fun and comfortable atmosphere with a focus on high quality service.
In addition, we employ a team of product coaches whose function is to provide continual, hands-on training and education to our kitchen staff for the purpose of promoting consistent adherence to recipes, food preparation procedures, food safety standards, and overall food quality. ● Creating a fun and comfortable atmosphere with a focus on high quality service.
We have made several digital enhancements to improve the guest experience and better support increased volumes at our restaurants. These enhancements include a new, fully customized digital experience that allows our guests to get on the waitlist or place an order for pickup or curbside service. The new digital experience also has added gift card and payment functionality.
We have made several digital enhancements to improve the guest experience and better support increased volumes at our restaurants. These enhancements include a fully customized digital experience that allows our guests to get on the waitlist or place an order for pickup or curbside service and has gift card and payment functionality.
In addition, we have identified Texas Roadhouse and Bubba's 33 as reportable segments. Operating Strategy The operating strategy that underlies the growth of our restaurants is built on the following key components: ● Offering high quality, freshly prepared food. We place a great deal of emphasis on providing our guests with high quality, freshly prepared food.
In addition, we have identified Texas Roadhouse and Bubba's 33 as reportable segments. 5 Table of Contents Operating Strategy The operating strategy that underlies the growth of our restaurants is built on the following key components: ● Offering high quality, freshly prepared food. We place a great deal of emphasis on providing our guests with high quality, freshly prepared food.
For the existing international agreements, the franchisee is generally required to pay us a development fee for our grant of development rights in the named countries, a franchise fee for each restaurant to be opened and royalties on the sales of each restaurant. We have also entered into area development agreements for Jaggers, our fast-casual concept.
For the existing international agreements, the franchisee is generally required to pay us a development fee for our grant of development rights in the named countries, a franchise fee for each restaurant to be opened, and royalties based on a percentage of gross sales. We have also entered into area development and franchise agreements for Jaggers, our fast-casual concept.
Each of our restaurants is subject to permitting and licensing requirements and regulations by a number of government authorities, which may include, among others, alcoholic beverage control, health and safety, sanitation, labor, zoning and public safety agencies in the state and/or municipality in which each restaurant is located.
Each of our restaurants is subject to permitting and licensing requirements and regulations by a number of government authorities, which may include, among others, alcoholic beverage control, health and safety, sanitation, labor, use of packaging and materials, zoning, and public safety agencies in the state and/or municipality in which each restaurant is located.
Service Service Quality. We believe that guest satisfaction and our ability to continually evaluate and improve the guest experience at each of our restaurants is important to our success. We employ a team of service coaches whose function is to provide consistent, hands- on training and education to our managers and service staff in our domestic restaurants.
We believe that guest satisfaction and our ability to continually evaluate and improve the guest experience at each of our restaurants is important to our success. We employ a team of service coaches whose function is to provide consistent, hands- on training and education to our managers and service staff in all of our full-service domestic restaurants.
Marketing Our marketing strategy aims to promote our brands while retaining a localized focus. We strive to increase comparable restaurant sales by increasing the frequency of visits by our current guests and attracting new guests to our restaurants and also by communicating and promoting our concepts’ food quality, the guest experience and value.
Marketing Our marketing strategy aims to promote our brands while retaining a localized focus. We strive to increase comparable restaurant sales by increasing the frequency of visits by our current guests and attracting new guests to our restaurants and also by communicating and promoting our concepts’ food quality, the guest experience, and community support.
Founded in 2005, Andy’s Outreach is a non-profit, tax-exempt organization whose mission is to provide financial support to employees of Texas Roadhouse and their families in times of severe hardship or crisis and in 15 Table of Contents cases of tragic or catastrophic need.
Founded in 2005, Andy’s Outreach is a non-profit, tax-exempt organization whose mission is to provide financial support to employees of Texas Roadhouse and their families in times of severe hardship or crisis and in cases of tragic or catastrophic need.
To further facilitate adherence to our standards of quality and to maximize uniform execution 10 Table of Contents throughout the system, we employ product coaches and service coaches who regularly visit the restaurants to assist in training of both new and existing employees and to grade food and service quality.
To further facilitate adherence to our standards of quality and to maximize uniform execution throughout the system, we employ product coaches and service coaches who regularly visit the restaurants to assist in training of both new and existing employees and to grade food and service quality.
Our current prototypical Texas Roadhouse restaurant consists of a freestanding building with approximately 7,600 to 8,400 square feet with seating for approximately 270 to 325 guests and parking for approximately 180 vehicles either on-site or in combination with some form of off-site cross parking arrangement.
Our current prototypical Texas Roadhouse restaurant consists of a freestanding building with approximately 8,000 square feet with seating for approximately 270 to 325 guests and parking for approximately 180 vehicles either on-site or in combination with some form of off-site cross parking arrangement.
The SEC maintains an internet site at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Information about our Executive Officers Set forth below are the name, age, position and a brief account of the business experience of each of our executive officers.
The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Information about our Executive Officers Set forth below are the name, age, position, and a brief account of the business experience of each of our executive officers.
We accomplish these objectives through three major initiatives. Local Restaurant Marketing. Given our strategy to be a neighborhood destination, local restaurant marketing is integral in developing brand awareness in each market. Managing partners are encouraged to participate in creative community- based marketing.
We accomplish these objectives through three major initiatives. 11 Table of Contents Local Restaurant Marketing. Given our strategy to be a neighborhood destination, local restaurant marketing is integral in developing brand awareness in each market. Managing partners are encouraged to participate in creative, community- based marketing.
At Jaggers restaurants, we offer fresh, authentic, scratch-made food including double stacked burgers, hand-breaded chicken sandwiches and chicken tenders, made-to-order fresh salads and hand-spun milkshakes. We also provide a “12 & Under” menu for children that includes a selection of smaller-sized entrées, a side, a drink and a cookie.
At Jaggers restaurants, we offer fresh, scratch-made food including double-stacked burgers, hand-breaded chicken sandwiches and chicken tenders, made-to-order fresh salads, and hand-spun milkshakes. We also provide a "12 & Under" menu for children that includes a selection of smaller-sized entrées, a side, a drink, and a cookie.
As a requirement of our quality assurance process, primary food items are purchased from qualified vendors who are regularly audited by reputable, outside inspection services confirming that the vendor is compliant with United States Food and Drug Administration and United States Department of Agriculture guidelines, the results of which are reviewed by our food safety team.
As a requirement of our quality assurance process, primary food items are purchased from qualified vendors who are regularly audited by reputable, outside inspection services confirming compliance with United States Food and Drug Administration and United States Department of Agriculture guidelines, the results of which are reviewed by our food safety team.
A franchise agreement may also be terminated if a franchisee becomes insolvent, fails to make its required payments, creates a threat to the public health or safety, ceases to operate the restaurant, or misuses our trademarks. Franchise Compliance Assurance.
A franchise agreement may also be terminated if a franchisee becomes insolvent, fails to make its required payments, creates a threat to the public health or safety, ceases to operate the restaurant, or misuses our trademarks. 12 Table of Contents Franchise Compliance Assurance.
Our Bubba’s 33 restaurants feature walls lined with televisions playing a variety of sports events and music videos and are decorated with sports jerseys, neon signs and other local flair. Our fast-casual concept, Jaggers, offers both drive-thru and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room. People Management Personnel.
Our Bubba’s 33 restaurants feature walls lined with televisions playing a variety of sports events and music videos and are decorated with sports jerseys, neon signs, and other local flair. Our fast-casual concept, Jaggers, offers both drive-thru 10 Table of Contents and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room.
Each of our restaurants is generally staffed with one managing partner and a combination of operations, kitchen and service managers as well as assistant managers. Managing partners are single restaurant operators who have primary responsibility for the day-to- day operations of the entire restaurant.
People Management Personnel. Each of our restaurants is generally staffed with one managing partner and a combination of operations managers, kitchen managers, service managers, and assistant managers. Managing partners are single restaurant operators who have primary responsibility for the day-to- day operations of the entire restaurant.
We also engage in a variety of promotional activities, such as contributing time, money and complimentary meals to charitable, civic and cultural programs. We employ marketing coordinators at the restaurant and market level to develop and execute the majority of the local marketing strategies. In-restaurant Marketing.
We also engage in a variety of promotional activities, such as contributing time, money, and complimentary meals to charitable, civic, and community events. We employ marketing coordinators at the restaurant level and marketing coaches at the market level to develop and execute the majority of the local marketing strategies. In-restaurant Marketing.
As part of these agreements, the franchisees are required to pay us a development fee for our grant of development rights in the named territories, a franchise fee for each restaurant to be opened and royalties based on a percentage of gross sales. We opened our first two Jaggers franchise restaurants in 2023.
As part of these agreements, the franchisees are required to pay us a development fee for our grant of development rights in the named territories, a franchise fee for each restaurant to be opened, and royalties based on a percentage of gross sales.
Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. Since then, we have grown to three concepts with 741 restaurants in 49 states and ten foreign countries.
Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. Since then, we have grown to three concepts with 784 restaurants in 49 states, one U.S. territory, and ten foreign countries.
In 2023, alcoholic beverages at all company restaurants accounted for 10.3% of restaurant sales. We always strive to maintain a consistent menu at our restaurants. We continually review our menu to consider enhancements to existing menu items or the introduction of new items.
In 2024, alcoholic beverages at all company restaurants accounted for 9.6% of restaurant sales. We always strive to maintain a consistent menu at our restaurants. We continually review our menu to consider enhancements to existing menu items or the introduction of new items.
During the restaurant development phase, we consent to the selection of restaurant sites and make available copies of our prototype building plans to franchisees. In addition, we ensure that the building design is in compliance with our standards. We provide training to the managing partner and up to three other managers of a franchisee’s first restaurant.
During the restaurant development phase, we consent to the selection of restaurant sites and make available copies of our prototype building plans to franchisees. In addition, we ensure that the building design is in compliance with our standards. We provide training to a certain number of managers of a franchisee’s first restaurant.
In order to serve alcoholic beverages in our restaurants, we must comply with alcoholic beverage control regulations which require each of our restaurants to apply to a state authority, and, in certain locations, county or municipal authorities, for a license or permit to sell alcoholic beverages on the premises.
In order to serve alcoholic beverages in our restaurants, we must comply with alcoholic beverage control regulations which require each of our restaurants to apply to a state authority, and, in certain locations, county or 14 Table of Contents municipal authorities, for a license or permit to sell alcoholic beverages at our restaurants.
The table below shows the gender and racial and ethnic diversity of our employees as of December 26, 2023: ​ ​ ​ ​ ​ ​ ​ December 26, 2023 ​ ​ ​ Women ​ People of Color (1) ​ Support Center ​ 54 % 11 % Restaurant Managers ​ 39 % 24 % Hourly Restaurant Employees 57 % 40 % (1) Denotes employees at company restaurants and our Support Center that identify as American Indian/Alaskan Native, Asian, Black/African American, Hispanic/Latino, Native Hawaiian/Pacific Islander or two or more races.
The table below shows the gender and racial and ethnic diversity of our employees as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Women ​ People of Color (1) Support Center ​ 53 % ​ 12 % Restaurant Managers ​ 40 % ​ 24 % Hourly Restaurant Employees 57 % ​ 44 % (1) Denotes employees at company restaurants and our Support Center that identify as American Indian/Alaskan Native, Asian, Black/African American, Hispanic/Latino, Native Hawaiian/Pacific Islander, or two or more races.
The product coach team supports all of our full-service domestic restaurants. Food safety and sanitation is of utmost importance to us. We currently utilize several additional programs to help facilitate adherence to proper food preparation procedures and food safety standards including our daily taste and temperature procedures.
The product coach team supports all of our full-service domestic restaurants. Food safety and sanitation is of utmost importance to us. We currently utilize several additional programs to help facilitate adherence to proper food preparation procedures and food safety standards including temperature monitoring at vendor distribution centers and our daily taste and temperature procedures within each restaurant.
By providing our partners with a significant stake in the success of our restaurants, we believe that we are able to attract and retain talented, experienced and highly motivated managing and market partners. ● Offering attractive price points.
By providing our partners with a significant stake in the success of our restaurants, we believe that we are able to attract and retain talented, experienced, and highly motivated managing and market partners. ● Offering everyday value. Our everyday value includes attractive price points, generous portions, and heaping sides.
Service managers have primary responsibility for managing sections of the front of house staff and certain dining room, bar and to-go operations including service quality and the guest experience. Assistant managers support our managing partners, operations managers and kitchen and service managers. All managers are responsible for maintaining our standards of quality and performance.
Service managers have primary responsibility for managing sections of the front of house staff and certain dining room, bar, and to-go operations including service quality and the guest experience. Assistant managers support our managing partners, operations managers, kitchen managers, and service managers in helping maintain our standards of quality and performance.
Bubba’s 33 is a moderately priced, full-service, casual dining restaurant concept featuring scratch-made food for all with a little rock 'n' roll, ice-cold beer and signature drinks. Our menu features burgers, pizza and wings as well as a wide variety of appetizers, sandwiches and dinner entrées. Our first Bubba’s 33 restaurant opened in May 2013 in Fayetteville, North Carolina.
Bubba’s 33 is a moderately priced, full-service, casual dining restaurant concept featuring scratch-made food for all with a little rock 'n' roll, ice-cold beer, and signature cocktails. Our menu features burgers, pizza, and wings as well as a wide variety of appetizers, sandwiches, and dinner entrées.
Within each menu category, we offer a choice of several price points with the goal of fulfilling each guest’s budget and value expectations. Based on the results of our pricing evaluations, we will continue to take pricing actions we feel are needed. ● Focusing on dinner.
Within each menu category, we offer a choice of several price points with the goal of fulfilling each guest’s budget and value expectations. Based on the results of our pricing evaluations, we will continue to take pricing actions we feel are needed while striving to maintain our value proposition. ● Serving our communities.
Our mission statement is "Legendary Food, Legendary Service ® ." Our operating strategy is designed to position each of our casual dining restaurants as the local hometown favorite for a broad segment of consumers seeking high quality, affordable meals served with friendly, attentive service.
Our mission statement is "Legendary Food, Legendary Service ® " and our core values are "Passion, Partnership, Integrity, and Fun with Purpose." Our operating strategy is designed to position each of our casual dining restaurants as the local hometown favorite for a broad segment of consumers seeking high quality, affordable meals served with friendly, attentive service.
This focus on dinner allows our restaurant teams to prepare for and manage only one shift per day during the week and to prepare for the significant volumes of sales our restaurants generate. Restaurant Development and Unit Economics We consistently evaluate opportunities to develop restaurants in new and existing markets. Our site selection process is critical to our growth strategy.
This focus on dinner allows our restaurant teams to prepare for and manage only one shift per day during the week and to prepare for the significant volumes of sales our restaurants generate. 6 Table of Contents Restaurant Development and Unit Economics We consistently evaluate opportunities to develop restaurants in new and existing markets.
Accordingly, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year and comparable restaurant sales for any particular future period may fluctuate. 14 Table of Contents Human Capital Management At Texas Roadhouse, we take pride in being a people-first company.
Accordingly, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year and comparable restaurant sales for any particular future period may fluctuate. Human Capital Management At Texas Roadhouse, we take pride in being a People-First company. As of December 31, 2024, we employed approximately 95,000 people.
Our approach to media aligns with our focus on local store marketing and community involvement. Additionally, we continue to look for ways through various strategic initiatives to drive awareness and guest engagement with our brands. This includes the introduction of branded food and retail products that are available for purchase online or in select retailers.
Additionally, we continue to look for ways through various strategic initiatives to drive awareness and guest engagement with our brands. This includes the introduction of branded food and retail products that are available for purchase online or in select retailers.
Trademarks Our registered trademarks and service marks include, among others, our trade names and logos and proprietary rights related to certain core menu offerings. We have registered all of our significant marks for our restaurants with the United States Patent and Trademark Office.
Accordingly, we have implemented processes to monitor our registrations and identify any infringement of our intellectual property rights. Our registered trademarks and service marks include, among others, our trade names and logos related to certain core menu offerings. We have registered all of our significant domestic marks for our restaurants with the United States Patent and Trademark Office.
These factors include, but are not limited to: the concept, square footage, layout, scope of required site work, geographical location, supply chain costs, type of construction labor (union or non-union), local permitting requirements, our ability to negotiate with landowners and/or landlords, cost of liquor and other licenses and pre-opening expense. 6 Table of Contents For 2023 and 2022, our average capital investment for Texas Roadhouse restaurants was $7.9 million and $6.9 million, respectively.
These factors include, but are not limited to: the concept, square footage, layout, scope of required site work, geographical location, supply chain costs, type of construction labor (union or non-union), local permitting requirements, our ability to negotiate with landowners and/or landlords, cost of liquor and other licenses, and pre-opening expense.
Our fast-casual concept, Jaggers, offers both drive-thru and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room. ● Offering performance- based manager compensation.
Our fast-casual concept, Jaggers, offers both drive-thru and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room. ● Owner-operator partnership model.
For a discussion of the risks and potential impact on our business of a failure by us to comply with applicable laws and regulations, see Item 1A, Risk Factors.
Government Regulation We are subject to a variety of federal, state, local, and international laws affecting our business. For a discussion of the risks and potential impact on our business of a failure by us to comply with applicable laws and regulations, see Item 1A, Risk Factors.
Most food products used in the operation of our restaurants are distributed to individual restaurants through an independent national distribution company. We strive to qualify more than one supplier for all key food items and believe that beef of comparable quality as well as all other essential food and beverage products are available, upon short notice, from alternative qualified suppliers.
We strive to qualify more than one supplier for all key food items and believe that beef of comparable quality as well as all other essential food and beverage products are available, upon short notice, from alternative qualified suppliers.
In addition, when constructing or undertaking remodeling of our restaurants, we must make those facilities accessible. We are subject to laws relating to information security, privacy, cashless payments and consumer credit protection and fraud.
In addition, when constructing or undertaking remodeling of our restaurants, we must comply with the applicable ADA Standards for Accessible Design. We are subject to laws relating to information security, data privacy, cashless payments, and consumer credit protection and fraud.
Andy’s Outreach is mainly funded by the support of Texas Roadhouse employees through payroll contributions, a domestic franchise store that is owned by Andy’s Outreach and other fundraising efforts. Since its inception, Andy’s Outreach has assisted over 20,000 employees and distributed over $26 million.
Andy’s Outreach is mainly funded by the support of Texas Roadhouse employees through payroll contributions, a domestic franchise store that is owned by Andy’s Outreach, and other fundraising efforts.
Consistent with industry standards, we focus on responsible alcohol service training and carry liquor liability coverage as part of our existing comprehensive general liability insurance as well as excess umbrella coverage.
Consistent with industry standards, we focus on responsible alcohol service training and carry liquor liability coverage as part of our existing comprehensive general liability insurance as well as excess umbrella coverage. Additionally, and as part of our enterprise risk management program, we have a cross-functional risk subcommittee focused solely on responsible alcohol service.
Additionally, we guard against business interruption by maintaining a disaster recovery plan, which includes, among other things, storing critical business information off-site, maintaining a redundant data center, testing the disaster recovery plan and providing on-site power backup. In addition to cash, we accept credit cards, debit cards and gift cards as payment at our restaurants.
We guard against business interruption by maintaining a disaster recovery plan, which includes, among other things, storing critical business information off-site, maintaining a redundant data center, testing the disaster recovery plan, and providing on- site power backup.
Tobin was appointed President in January 2023. Ms. Tobin joined Texas Roadhouse in 1996, during which time she has held the positions of Managing Partner, Market Partner, Vice President of Training and served as Chief Learning and Culture Officer from June 2021 through her appointment as President. Ms. Tobin has more than 30 years of restaurant management experience. Christopher C.
Tobin previously served as the Company’s Chief Learning and Culture Officer, a position she held from June 2021 through her appointment to President. Ms. Tobin joined the Company in 1996, during which time she has held the positions of Managing Partner, Market Partner, and Vice President of Training. Ms. Tobin has nearly 40 years of restaurant industry experience. Christopher C.
Doster held a senior management position at FSA Public Relations where he provided services for national clients including Jimmy John’s, Qdoba and Cameron Mitchell Restaurants. Mr. Doster has over 30 years of media, public relations and industry experience.
Doster was a Vice President at FSA Public Relations, where he and his staff provided a number of services, including public relations, crisis management, and issues management, for national clients, including, Jimmy John’s Gourmet Sandwich Shops, Qdoba Mexican Grill, and Cameron Mitchell Restaurants. Mr. Doster has over 30 years of media, public relations, and industry experience.
In addition, domestic Texas Roadhouse franchisees are required to pay a percentage of gross sales to a national marketing fund for system-wide promotions and related efforts. We have entered into area development and franchise agreements for the development and operation of Texas Roadhouse restaurants in several foreign countries and one U.S. territory.
In addition, domestic Texas Roadhouse franchisees are required to pay a percentage of gross sales to a national marketing fund for system-wide promotions and related efforts. Domestically, franchise rights for our Texas Roadhouse restaurants are granted for specific restaurants only, as we have not entered into area development agreements with domestic Texas Roadhouse franchisees.
By providing our partners with a significant stake in the success of our restaurants, we believe that we are able to attract and retain talented, experienced and highly motivated managing and market partners. Personal Development. We motivate and develop our employees by providing them with opportunities for increased responsibilities and advancement.
By providing our partners with a significant stake in the success of our restaurants, we believe that we are able to attract and retain talented, experienced, and highly motivated managing and market partners. We also support our employees by offering competitive wages and benefits for eligible employees.
The development and operation of restaurants depends on selecting and acquiring suitable sites that satisfy our financial targets, which are subject to zoning, land use, environmental, traffic and other regulations.
The development and operation of restaurants depends on selecting and acquiring suitable sites that satisfy our financial targets, which are subject to zoning, land use, environmental, traffic, and other regulations. We are also subject to laws and regulations relating to the preparation and sale of food, including regulations regarding product safety, nutritional content, and menu labeling.
As of December 26, 2023, we employed approximately 91,000 people. This included 845 executive and administrative personnel and 3,507 restaurant management personnel, while the remainder were full and part-time hourly restaurant personnel. None of our employees are covered by a collective bargaining agreement and we consider our employee relations to be good.
This included 895 executive and administrative personnel and 3,736 restaurant management personnel, while the remainder were full and part-time hourly restaurant personnel. None of our employees are covered by a collective bargaining agreement and we consider our employee relations to be good. Our business relies on our ability to attract and retain talented employees.
In nearly all of our Texas Roadhouse restaurants, we limit our operating hours to dinner only during the weekdays with approximately one half of our restaurants offering lunch on Friday.
Additionally, we employ marketing coordinators at the restaurant and market level to develop and execute the majority of the local marketing strategies. ● Focusing on dinner. In nearly all of our Texas Roadhouse restaurants, we limit our operating hours to dinner only during the weekdays with approximately one half of our restaurants offering lunch on Friday.
Additionally, we believe that diversity and inclusion are vital parts of our culture and what truly makes us legendary. We value and welcome employees of all walks of life to share their talents, gifts and strengths while working in our restaurants and the Support Center, as we strive to reflect the communities we are proud to serve.
We value and welcome employees of all walks of life to share their gifts, strengths, voices, talents, and inspiration with us while working in our restaurants and Support Center, as we strive to reflect the communities we are 15 Table of Contents proud to serve.
We have registered or have registrations pending for our most significant 13 Table of Contents trademarks and service marks in multiple foreign jurisdictions. To better protect our brands, we have also registered various Internet domain names.
We have registered or have registrations pending for our most significant trademarks and service marks in multiple foreign jurisdictions and have registered or have registrations pending on certain trademarks and service marks for different classifications relating to our retail initiatives. We have also registered various Internet domain names.
Tobin ​ 60 ​ President Christopher C. Colson ​ 47 ​ Chief Legal and Administrative Officer Hernan E. Mujica ​ 62 ​ Chief Technology Officer D. Christopher Monroe ​ 57 ​ Chief Financial Officer Travis C. Doster ​ 57 ​ Chief Communications Officer ​ Gerald L. Morgan. Mr. Morgan was appointed Chief Executive Officer in March 2021. Mr.
Tobin ​ 61 ​ President Christopher C. Colson ​ 48 ​ Chief Legal and Administrative Officer Hernan E. Mujica ​ 63 ​ Chief Technology Officer D. Christopher Monroe ​ 58 ​ Chief Financial Officer Travis C. Doster ​ 58 ​ Chief Communications Officer ​ Gerald L. Morgan. Mr.
Information Technology All of our company restaurants utilize computerized management information systems, which are designed to improve operating efficiencies, provide restaurant and Support Center management with timely access to financial and 12 Table of Contents operating data and reduce administrative time and expense.
We also make available to these restaurants certain restaurant employees and employee benefits on a pass-through cost basis. Information Technology All of our company restaurants utilize management information systems, which are designed to improve operating efficiencies, provide restaurant and Support Center management with timely access to financial and operating data, and reduce administrative time and expense.
These products include non-royalty based food and accessories as well as licensing arrangements for certain non-alcoholic beverages. 11 Table of Contents Restaurant Franchise Arrangements Franchise Restaurants. As of December 26, 2023, we had 21 franchisees that operated 106 Texas Roadhouse and Jaggers restaurants in 20 states and ten foreign countries.
These products include non-royalty based food and accessories as well as licensing arrangements for frozen rolls, honey cinnamon butter, steak sauces, steak seasonings, and certain non-alcoholic beverages. Restaurant Franchise Arrangements Franchise Restaurants. As of December 31, 2024, we had 22 franchisees that operated 118 Texas Roadhouse and Jaggers restaurants in 20 states, one U.S. territory, and ten foreign countries.
Our restaurants do not rely on national television or print advertising to promote our brands. Earned local media is a critical part of our strategy that features our products and people. Our restaurants use a permission- based email loyalty program, as well as social media and digital marketing, to promote the brand and engage with our guests.
Our restaurants do not rely on national television or print advertising to promote our brands. Earned local media is a critical part of our strategy that features our products and people in local television, print, and radio.
Our business relies on our ability to attract and retain talented employees. To attract and retain talent, we strive to maintain our people-first culture through shared core values, a performance-based compensation program supported by competitive benefits and health programs with opportunities for our employees to grow and develop in their careers.
To attract and retain talent, we cast a wide net, sourcing qualified candidates through multiple channels, and maintain our People-First culture through shared core values and a performance-based compensation program supported by competitive benefits and health programs. Further, our training and development programs are designed to provide our employees with ample opportunities to grow and develop in their careers.
As a result, we are committed to attracting, retaining, engaging and developing a workforce that mirrors the diversity of our guests and is committed to upholding our shared values.
We are passionate about treating everyone with respect, appreciation, and fairness every day to ensure that we remain a legendary place to work. As a result, we are committed to attracting, retaining, engaging, recognizing, and developing a workforce that mirrors the diversity of our guests and is committed to upholding our shared values.
We have a food team whose function, in conjunction with our product coaches, is to develop, enforce and maintain programs designed to promote compliance with food safety guidelines.
We have a food team whose function, in conjunction with our product coaches, is to develop, enforce, and maintain programs designed to promote compliance with food safety guidelines. This includes the routine performance of a gap analysis through various tabletop exercises to identify areas of need or improvement.
Throughout this report, we use the term "restaurants" to include Texas Roadhouse and Bubba’s 33, unless otherwise noted. Segment Information We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers and retail initiatives (including our online store and royalty-based licensing arrangements) as separate operating segments.
Segment Information We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers, and retail initiatives as separate operating segments.
The increase in our 2023 average capital investment was primarily due to an increase in building and site work costs and an increase in liquor license costs. We expect our average capital investment for restaurants to be opened in 2024 to remain flat at approximately $7.9 million.
We expect our average capital investment for restaurants to be opened in 2025 to increase to approximately $8.6 million primarily due to increased site work costs and increased rent. In 2024 and 2023, our average capital investment for Bubba’s 33 restaurants was $8.6 million and $8.2 million, respectively.
Our procurement philosophy is designed to supply fresh, quality products to the restaurants at competitive prices while maximizing operating efficiencies. We negotiate directly with suppliers for substantially all food and beverage products to maximize quality and freshness and obtain competitive prices. Food and supplies are ordered by and shipped directly to our domestic restaurants.
We negotiate directly with suppliers for substantially all food and beverage products to maximize quality and freshness and obtain competitive prices. Food and supplies are ordered by and shipped directly to our domestic restaurants. Most food products used in the operation of our restaurants are distributed to individual restaurants through a national distribution company.
Our restaurant operations are also subject to federal and state labor laws governing such matters as minimum and tipped wage requirements, overtime pay, health benefits, unemployment taxes, workers’ compensation, work eligibility requirements, working conditions, safety standards and hiring and employment practices.
Our restaurants are also subject to other federal and state labor laws and regulations governing such matters as health benefits, leaves of absence, unemployment taxes, workers’ compensation, work authorization and eligibility requirements, working conditions, safety standards, equal employment opportunities, anti-discrimination and harassment, reasonable accommodation, and other similar legal requirements.
Mujica has over 30 years of experience in both industry and consulting roles. D. Christopher Monroe. Mr. Monroe was appointed Chief Financial Officer in June 2023 when he joined Texas Roadhouse. Prior to joining Texas Roadhouse, Mr. Monroe held various senior level financial positions, most recently as Senior Vice President of Finance and Treasurer, at Southwest Airlines. Mr.
Mujica joined the Company in 2012 as Vice President of Information Technology and was subsequently promoted to Chief Information Officer. Prior to joining the Company, Mr. Mujica held senior management positions at The Home Depot and Arthur Andersen. Mr. Mujica has over 30 years of experience in both industry and consulting roles. D. Christopher Monroe. Mr.
All restaurant managers are required to complete the American National Standards Institute Certified Food Manager training. In addition, product coaches and certain food team members are required to obtain their Certified Professional-Food Safety designation from the National Environmental Health Association. Procurement.
In addition, product coaches and certain food team members are required to obtain their Certified Professional-Food Safety designation from the National Environmental Health Association. Procurement. Our procurement philosophy is designed to supply fresh, quality products to our restaurants at competitive prices while maximizing operating efficiencies.
Colson joined Texas Roadhouse in 2005, during which time he has held the positions of Senior Counsel, Associate General Counsel, Executive Director of the Global Development Group, and General Counsel, a position he held from March 2021 through his appointment as Chief Legal and Administrative Officer. Mr.
Colson joined the Company in 2005, during which time he has held the positions of Senior Counsel, Associate General Counsel, and Executive Director of the Global Development Group. Mr. Colson has over 20 years of restaurant industry experience with Texas Roadhouse, Frost Brown Todd (serving as outside counsel to the Company), YUM!
We provide numerous training opportunities for our employees, with a focus on continuous learning and development. With thousands of leadership positions across our restaurants, we provide a pathway and training for thousands of individuals across the country to advance from entry-level jobs into management roles.
With thousands of leadership positions across our restaurants, we provide a pathway and training for thousands of individuals across the country to advance from entry-level jobs into management roles. In addition, our geographic footprint often allows us to offer our restaurant team members relocation options at similar roles due to personal circumstances. Employee Engagement.
Morgan joined Texas Roadhouse in 1997, during which time he has held the positions of Managing Partner, Market Partner and Regional Market Partner. Mr. Morgan also served as President from December 2020 to January 2023. Mr. Morgan has more than 35 years of restaurant management experience with Texas Roadhouse, Bennigan’s Restaurants and Burger King. Regina A. Tobin. Ms.
Morgan is Chief Executive Officer of the Company, having been appointed to this position in March 2021. Mr. Morgan joined the Company in 1997, during which time he has held the positions of Managing Partner, Market Partner, and Regional Market Partner. Mr. Morgan also previously served as President from December 2020 until Ms. Tobin’s appointment to President in January 2023.
We base our FICA tax reporting on the disclosures provided to us by our tipped employees. Our facilities must comply with the applicable requirements of the Americans with Disabilities Act of 1990 ("ADA") and related state accessibility statutes. Under the ADA and related state laws, we must provide equivalent service to disabled persons and make reasonable accommodation for their employment.
Our restaurants must comply with the applicable requirements of the Americans with Disabilities Act of 1990 ("ADA") and related state accessibility statutes. Under the ADA and related state laws, we must provide equal access to our goods and services to disabled guests.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur ability to open new restaurants that are profitable will also depend on numerous other factors, many of which are beyond our control, including, but not limited to, the following: ● our ability to hire, train and retain qualified operating personnel, especially market partners, managing partners, and/or other restaurant management personnel who can execute our business strategy and maintain our culture and brand standards; ● our ability to negotiate suitable purchase or lease terms to execute our business strategy; ● the availability and cost of construction materials, equipment and labor; 17 Table of Contents ● our ability to control construction and development costs of new restaurants (including increased site, supply chain and distribution costs); ● our ability to secure required governmental approvals and permits in a timely manner, or at all; ● road construction and other factors limiting access to the restaurant; ● delays by our landlord or other developers in constructing other parts of a development adjacent to our premises in a timely manner; ● redevelopment of other parts of a development adjacent to our premises that affect the parking available for our restaurant; ● our ability to secure liquor licenses; ● competitive and economic conditions, consumer tastes and discretionary spending patterns that are different from and more difficult to predict or satisfy than in our existing markets; ● changes in federal, state and/or local tax laws; ● the cost and availability of capital to fund construction costs and pre-opening expenses; and ● the impact of inclement weather, natural disasters and other calamities.
Biggest changeAdditionally, the opening of a new restaurant could negatively impact sales at one or more of our existing nearby restaurants, which could adversely affect our results of operations. 18 Table of Contents Our ability to open new restaurants that are profitable will also depend on numerous other factors, many of which are beyond our control, including, but not limited to, the following: ● our ability to hire, train, and retain qualified operating personnel, especially market partners, managing partners, and/or other restaurant management personnel who can execute our business strategy and maintain our culture and brand standards; ● our ability to negotiate suitable purchase or lease terms to execute our business strategy; ● the availability and cost of construction materials, equipment and labor; ● our ability to control construction and development costs of new restaurants (including increased site, supply chain, and distribution costs); ● the potential impact of tariffs on U.S. imports, specifically building materials and restaurant equipment; ● our ability to secure required governmental approvals and permits in a timely manner, or at all; ● road construction and other factors limiting access to the restaurant; ● delays by our landlord or other developers in constructing other parts of a development adjacent to our premises in a timely manner; ● redevelopment of other parts of a development adjacent to our premises that affect the parking available for our restaurant; ● our ability to secure liquor licenses; ● competitive and economic conditions, consumer tastes and discretionary spending patterns that are different from and more difficult to predict or satisfy than in our existing markets; ● changes in federal, state, and/or local tax laws; ● the cost and availability of capital to fund construction costs and pre-opening expenses; and ● the impact of inclement weather, natural disasters, and other calamities.
Regardless of whether any claims against us are valid or whether we are liable, claims may be expensive to defend and may divert time, attention and money away from our operations and hurt our performance. A judgment significantly in excess of any applicable insurance coverage could have significant adverse effect on our financial condition or results of operations.
Regardless of whether any claims against us are valid or whether we are liable, claims may be expensive to defend and may divert time, attention, and money away from our operations and hurt our performance. A judgment significantly in excess of any applicable insurance coverage could have a significant adverse effect on our financial condition or results of operations.
A number of factors have historically affected, and will continue to affect, our average unit volume and comparable restaurant sales, including, among other factors: ● consumer awareness and understanding of our concepts; ● our ability to execute our business strategy effectively; ● our ability to maintain higher levels of to-go sales at our restaurants; ● competition, from our competitors in the restaurant industry, our own restaurants, and/or other food service providers (such as delivery services and grocery stores); ● the impact of permanent changes in weather patterns that can cause inclement weather, natural disasters and other calamities which impact guest traffic or product availability at our restaurants; ● consumer trends and seasonality; ● our ability to increase menu prices without adversely impacting guest traffic counts or per person average check growth; ● introduction of new menu items; ● loss of parking and/or access rights due to government action (such as eminent domain actions) or through private transactions; ● closures and/or dining rooms operating at limited capacity due to government mandated restaurant closures and/or limited availability of staff to meet our business standards; ● negative publicity regarding food safety, health concerns, quality of service, and other food or beverage related matters, including the integrity of our or our suppliers’ food processing; 18 Table of Contents ● general economic conditions, including an economic recession, which can affect restaurant traffic, local labor costs and prices we pay for the food and beverage products and other supplies we use; ● legislation that impacts our suppliers’ ability to maintain compliance with laws and regulations and impacts our ability to source product; and ● effects of actual or threatened terrorist attacks (including cyber and/or ransomware attacks).
A number of factors have historically affected, and will continue to affect, our average unit volume and comparable restaurant sales, including, among other factors: ● consumer awareness and understanding of our concepts; ● our ability to execute our business strategy effectively; ● our ability to maintain higher levels of to-go sales at our restaurants; ● competition, from our competitors in the restaurant industry, our own restaurants, and/or other food service providers (such as delivery services and grocery stores); ● the impact of permanent changes in weather patterns that can cause inclement weather, natural disasters, and other calamities which impact guest traffic or product availability at our restaurants; ● consumer trends and seasonality; ● our ability to increase menu prices without adversely impacting guest traffic counts or per person average check growth; 19 Table of Contents ● introduction of new menu items; ● loss of parking and/or access rights due to government action (such as eminent domain actions) or through private transactions; ● closures and/or dining rooms operating at limited capacity due to government mandated restaurant closures and/or limited availability of staff to meet our business standards; ● negative publicity regarding food safety, health concerns, quality of service, and other food or beverage related matters, including the integrity of our or our suppliers’ food processing; ● general economic conditions, including an economic recession, which can affect restaurant traffic, local labor costs, and prices we pay for the food and beverage products and other supplies we use; ● legislation that impacts our suppliers’ ability to maintain compliance with laws and regulations and impacts our ability to source product; and ● effects of actual or threatened terrorist attacks (including cyber and/or ransomware attacks).
In addition to the risks that we face in the United States, our international operations involve risks that could adversely affect our business, including: ● the need to adapt our concepts for specific cultural and language differences; ● new and different sources of competition; ● the ability to identify appropriate business partners; ● difficulties and costs associated with staffing and managing foreign operations; ● difficulties in adapting and sourcing product specifications for international restaurant locations; ● fluctuations in currency exchange rates, which could impact royalties, revenue and expenses of our international operations and expose us to foreign currency exchange rate risk; ● difficulties in complying with local laws, regulations and customs in foreign jurisdictions; ● unexpected changes in regulatory requirements or tariffs on goods needed to construct and/or operate our restaurants; 19 Table of Contents ● political or social unrest, economic instability and destabilization of a region; ● effects of actual or threatened terrorist attacks; ● health concerns from global pandemics; ● compliance with U.S. laws such as the Foreign Corrupt Practices Act, and similar laws in foreign jurisdictions; ● differences in the registration and/or enforceability of intellectual property and contract rights; ● adverse tax consequences; ● profit repatriation and other restrictions on the transfer of funds; and ● different and more stringent user protection, data protection, privacy and other laws.
In addition to the risks that we face in the United States, our international operations involve risks that could adversely affect our business, including: ● the need to adapt our concepts for specific cultural and language differences; ● new and different sources of competition; ● the ability to identify appropriate business partners; ● difficulties and costs associated with staffing and managing foreign operations; 20 Table of Contents ● difficulties in adapting and sourcing product specifications for international restaurant locations; ● fluctuations in currency exchange rates, which could impact royalties, revenue and expenses of our international operations, and expose us to foreign currency exchange rate risk; ● difficulties in complying with local laws, regulations, and customs in foreign jurisdictions; ● unexpected changes in regulatory requirements or tariffs on goods needed to construct and/or operate our restaurants; ● political or social unrest, economic instability, and destabilization of a region; ● effects of actual or threatened terrorist attacks; ● health concerns from global pandemics; ● compliance with U.S. laws such as the Foreign Corrupt Practices Act, and similar laws in foreign jurisdictions; ● differences in the registration and/or enforceability of intellectual property and contract rights; ● adverse tax consequences; ● profit repatriation and other restrictions on the transfer of funds; and ● different and more stringent user protection, data protection, privacy, and other laws.
A significant accounting error correction, financial reporting failure or material weakness in internal control over financial reporting could cause results in our consolidated financial statements that do not accurately reflect our financial condition, a loss of investor confidence and subsequent decline in the market price of our common stock, increase our costs and regulatory scrutiny, and lead to litigation or result in negative publicity that could damage our reputation.
A significant accounting error, financial reporting failure, or material weakness in internal control over financial reporting could cause results in our consolidated financial statements that do not accurately reflect our financial condition, a loss of investor confidence, and subsequent decline in the market price of our common stock, increase our costs and regulatory scrutiny, and lead to litigation or result in negative publicity that could damage our reputation.
The inappropriate use of social media vehicles by our guests or employees could increase our costs, lead to litigation or result in negative publicity that could damage our reputation and adversely affect our results of operations. Given the marked increase in the use of social media platforms, individuals have access to a broad audience of consumers and other interested persons.
The inappropriate use of social media platforms by our guests or employees could increase our costs, lead to litigation, or result in negative publicity that could damage our reputation and adversely affect our results of operations. Given the marked increase in the use of social media platforms, individuals have access to a broad audience of consumers and other interested persons.
The estimates of fair value are based upon the best information available as of the date of the assessment and incorporate management assumptions about expected future cash flows and contemplate other valuation measurements and techniques. The estimates of fair value used in these analyses require the use of judgment, certain assumptions and estimates of future operating results.
Estimates of fair value are based upon the best information available as of the date of the assessment and incorporate management assumptions about expected future cash flows and contemplate other valuation measurements and techniques. The estimates of fair value used in these analyses require the use of judgment regarding certain assumptions and estimates of future operating results.
If actual results differ from our estimates or assumptions, additional impairment charges may be required in the future. If impairment charges are significant, our results of operations could be adversely affected. Risks Related to Consumer Discretionary Spending and Macroeconomic Conditions Changes in consumer preferences and discretionary spending could adversely affect our business.
If actual results differ from our estimates or assumptions, impairment charges may be required in the future. If impairment charges are significant, our results of operations could be adversely affected. Risks Related to Consumer Discretionary Spending and Macroeconomic Conditions Changes in consumer preferences and discretionary spending could adversely affect our business.
Any increases in minimum and/or tipped wages or increases in employee benefits costs will result in sustained higher labor costs. Our operating margin will be adversely affected to the extent that we are unable or are unwilling to offset any increase in these labor costs through higher prices on our products.
Any increases in minimum and/or tipped wages or increases in employee benefits costs could result in sustained higher labor costs. Our operating margin will be adversely affected to the extent that we are unable or are unwilling to offset any increase in these labor costs through higher prices on our products.
As a result, we may be required to relocate or close a restaurant, which could subject us to construction and other costs and risks and may have an adverse effect on our results of operations. We may be required to record additional impairment charges in the future.
As a result, we may be required to relocate or close a restaurant, which could subject us to construction and other costs and risks and may have an adverse effect on our results of operations. We may be required to record impairment charges in the future.
Evolving consumer and investor interest and preferences as well as governmental regulation may result in additional disclosure, due diligence, reporting and specific target-setting with regard to our business and supply chain that could result in additional costs to comply with such demands.
Evolving consumer and investor interest and preferences as well as governmental regulation and scrutiny may result in additional disclosure, due diligence, reporting, and specific target-setting with regard to our business and supply chain that could result in additional costs to comply with such demands.
Hardware, software or other applications we develop and procure from third parties or vendor’s third-party applications could be subject to vulnerabilities or cybersecurity incidents or may contain defects in design or manufacture or other problems that could unexpectedly compromise information security.
Hardware, software, or other applications we develop and procure from third parties or vendor’s third-party applications could be subject to vulnerabilities or cybersecurity incidents or may contain unknown defects in design or manufacture or other problems that could unexpectedly compromise information security.
Any acquisition or future development that we pursue, including the on-going development of new concepts or retail initiatives utilizing our intellectual property, whether or not successfully completed, may involve risks, including: ● material adverse effects on our operating results, particularly in the fiscal quarters immediately following the acquisition or development as the restaurants are integrated into our operations; ● risks associated with entering into new domestic markets or conducting operations where we have no or limited prior experience; ● risks associated with successfully integrating new employees, processes and systems while also maintaining our culture and brand standards; ● risks inherent in accurately assessing the value, future growth potential, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates, and our ability to achieve projected economic and operating synergies, without impacting our underlying business; and ● the diversion of management’s attention from other business concerns.
Any acquisition or future development that we pursue, including the on-going development of new concepts or retail initiatives utilizing our intellectual property, whether or not successfully completed, may involve risks, including: ● material adverse effects on our operating results, particularly in the fiscal quarters immediately following the acquisition or development as the restaurants are integrated into our operations; ● risks associated with entering into new domestic markets or conducting operations where we have no or limited prior experience; ● risks associated with successfully integrating new employees, processes, and systems while also maintaining our culture and brand standards; 21 Table of Contents ● risks inherent in accurately assessing the value, future growth potential, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates, and our ability to achieve projected economic and operating synergies, without impacting our underlying business; and ● the diversion of management’s attention from other business concerns.
However, if we are unable to fully implement our disaster recovery plans, we may experience delays in recovery of data, inability to perform vital corporate functions, tardiness in required reporting and compliance, failures to adequately support field operations and other breakdowns in normal communication and operating procedures that could have a material adverse effect on our financial condition, results of operations and exposure to administrative and other legal claims.
However, if we are unable to fully implement our disaster recovery and business continuity plans, we may experience delays in recovery of data, inability to perform vital corporate functions, tardiness in required reporting and compliance, failures to adequately support field operations, and other breakdowns in normal communication and operating procedures that could have a material adverse effect on our financial condition, results of operations, and exposure to administrative and other legal claims.
These decisions could limit or delay our overall long-term growth. Additionally, expansion and/or acquisition of new restaurant concepts might divert our management’s attention from other business concerns or initiatives and could have an adverse impact on our core Texas Roadhouse business. Our expansion into international markets presents increased economic, political, regulatory and other risks.
These decisions could limit or delay our overall long-term growth. Additionally, expansion and/or acquisition of additional restaurant concepts might divert our management’s attention from other business concerns or initiatives and could have an adverse impact on our core Texas Roadhouse business. Our expansion into international markets presents increased economic, political, regulatory, and other risks.
We can provide no assurance that new units will be accepted in the markets targeted for expansion and/or that we or our franchisees will be able to achieve our targeted returns when opening new locations. In the future, we may determine not to move forward with any further expansion and/or acquisition of new restaurant concepts.
We can provide no assurance that these units will be accepted in the markets targeted for expansion and/or that we or our franchisees will be able to achieve our targeted returns when opening new locations. In the future, we may determine not to move forward with any further expansion and/or acquisition of additional restaurant concepts.
The development of new restaurant concepts, including Bubba’s 33 and Jaggers, created internally or acquired as a part of our other strategic initiatives may not be as successful as our experience in the development of the Texas Roadhouse concept. These concepts may have lower brand awareness and less operating experience than most Texas Roadhouse restaurants.
The development of additional restaurant concepts, including Bubba’s 33 and Jaggers, created internally or acquired as a part of our other strategic initiatives may not be as successful as our experience in the development of the Texas Roadhouse concept. These concepts may have lower brand awareness and less operating experience than most Texas Roadhouse restaurants.
In addition, they may have a higher initial investment cost and/or a lower per person average check amount. As a result, the development and/or acquisition of new restaurant concepts may not contribute to our average unit volume growth and/or profitability in an incremental way.
In addition, they may have a higher initial investment cost and/or a lower per person average check amount. As a result, the development and/or acquisition of additional restaurant concepts may not contribute to our average unit volume growth and/or profitability in an incremental way.
In the future, operating results may fall below the expectations of securities analysts and investors. In that event, the price of our common stock could decrease. The development and/or acquisition of new restaurant concepts may not contribute to our growth.
In the future, operating results may fall below the expectations of securities analysts and investors. In that event, the price of our common stock could decrease. The development and/or acquisition of additional restaurant concepts may not contribute to our growth.
Additionally, following a franchise acquisition, we may be required to incur substantial capital improvement costs to meet company standards, which could impact our return on such acquisition. 20 Table of Contents Additionally, we may evaluate other means to leverage our competitive strengths, including the expansion of our products across other strategic initiatives or business opportunities (including retail initiatives utilizing our intellectual property).
Additionally, following a franchise acquisition, we may be required to incur substantial capital improvement costs to meet company standards, which could impact our return on such acquisition. Additionally, we may evaluate other means to leverage our competitive strengths, including the expansion of our products across other strategic initiatives or business opportunities (including retail initiatives utilizing our intellectual property).
All of these factors could have a material adverse impact on our business, results of operations, financial condition or liquidity. 22 Table of Contents Risks Related to Government Regulation and Litigation We may not be able to obtain and maintain licenses and permits necessary to operate our restaurants and compliance with governmental laws and regulations could adversely affect our operating results.
All of these factors could have a material adverse impact on our business, results of operations, financial condition, or liquidity. Risks Related to Government Regulation and Litigation We may not be able to obtain and maintain licenses and permits necessary to operate our restaurants and compliance with governmental laws and regulations could adversely affect our operating results.
We receive and maintain certain personal, financial or other information about our guests, vendors and employees. In 2023, approximately 88% of our transactions were by credit or debit cards. In addition, certain of our vendors receive and/or maintain certain personal, financial and other information about our employees and guests on our behalf.
We receive and maintain certain personal, financial, or other information about our guests, vendors, and employees. In 2024, approximately 88% of our transactions were by credit or debit cards. In addition, certain of our vendors receive and/or maintain certain personal, financial, and other information about our employees and guests on our behalf.
The food service industry is affected by litigation and publicity concerning food quality, health and other issues, which can cause guests to avoid our restaurants and result in significant liabilities or litigation costs.
The food service industry is affected by litigation and publicity concerning food quality, health, and other issues, which could cause guests to avoid our restaurants and could result in significant liabilities or litigation costs.
Payment of cash dividends on our common stock or repurchases of our common stock are subject to compliance with applicable laws and depends on, among other things, our results of operations, financial condition, level of 29 Table of Contents indebtedness, capital requirements, business prospects, macro-economic conditions and other factors that our Board may deem relevant.
Payment of cash dividends on our common stock or repurchases of our common stock are subject to compliance with applicable laws and depends on, among other things, our results of operations, financial condition, level of indebtedness, capital requirements, business prospects, macro-economic conditions, and other factors that our Board may deem relevant.
In connection with the relocation, other operational changes or closure of any restaurant, we may nonetheless be committed to perform on our obligations under the applicable lease 21 Table of Contents including, among other things, paying the base rent and real estate taxes for the balance of the lease term.
In connection with the relocation, other operational changes or closure of any restaurant, we may nonetheless be committed to perform on our obligations under the applicable lease including, among other things, paying the base rent and real estate taxes for the balance of the lease term.
The availability of information on social media platforms is virtually immediate as is its impact. Many social media platforms immediately publish the content their subscribers and participants post, often without filters or checks on the accuracy of the content posted. Information concerning our Company may be posted on such platforms at any time.
The availability of information on social media platforms is virtually immediate, as is its impact. Many social media platforms immediately publish the content their subscribers and 30 Table of Contents participants post, often without filters or checks on the accuracy of the content posted. Information concerning our Company may be posted on such platforms at any time.
We could be subject to legal proceedings that may adversely affect our business, including class actions, administrative proceedings, government investigations, employment and personal injury claims, claims alleging violations of federal and state laws regarding consumer, workplace and employment matters, wage and hour claims, discrimination and similar matters, landlord/tenant disputes, disputes with current and former suppliers, claims by current and former franchisees, data privacy claims and intellectual property claims (including claims that we infringed upon another party’s trademarks, copyrights or patents).
We could be subject to legal proceedings and enforcement actions that may adversely affect our business, including class actions, administrative 24 Table of Contents proceedings, government investigations, employment and personal injury claims, claims alleging violations of federal and state laws regarding consumer, workplace, and employment matters, immigration matters, wage and hour claims, discrimination and similar matters, landlord/tenant disputes, disputes with current and former suppliers, claims by current and former franchisees, data privacy claims, and intellectual property claims (including claims that we infringed upon another party’s trademarks, copyrights or patents).
The use and handling, including security, of this information is regulated by privacy and data protection laws and regulations in 26 Table of Contents various jurisdictions, as well as by certain third-party contracts, frameworks and industry standards, such as the Payment Card Industry Data Security Standard.
The use and handling, including security, of this information is regulated by privacy and data protection laws and regulations in various jurisdictions, as well as by certain third-party contracts, frameworks, and industry standards, such as the Payment Card Industry Data Security Standard.
If our guests become ill from food-borne illnesses, we could be forced to 28 Table of Contents temporarily close some restaurants. Furthermore, any instances of food contamination, whether or not at our restaurants, could subject us or our suppliers to a food recall.
If our guests become ill from food- borne illnesses, we could be forced to temporarily close some restaurants. Furthermore, any instances of food contamination, whether or not at our restaurants, could subject us or our suppliers to a food recall.
Recessionary economic cycles, higher interest rates, higher fuel and other energy costs, sustained labor inflation, increases in commodity prices, higher levels of unemployment, higher consumer debt levels, higher tax rates and other changes in tax laws, financial market volatility, social unrest, government spending, a low or stagnant pace of economic recovery and growth, or other economic factors that may affect consumer spending or buying habits could adversely affect the demand for our products.
Recessionary economic cycles, higher interest rates, higher fuel and other energy costs, sustained labor inflation, increases in commodity prices, higher levels of unemployment, higher consumer debt levels, higher tax rates and other changes in tax laws, imposition of tariffs, financial market volatility, political or military conflicts, social unrest, government spending, a low or stagnant pace of economic recovery and growth, or other economic factors that may affect consumer spending or buying habits could adversely affect the demand for our products.
Some business processes are currently outsourced to third parties, including such processes as information technology, gift card tracking, credit and debit card authorization and processing, insurance claims processing, unemployment claims processing, payroll tax filings, vendor payment processing and other accounting processes.
Some business processes are currently outsourced to third parties, including such processes as information technology, credit, debit, and gift card authorization and processing, insurance claims processing, unemployment claims processing, property, sales, and payroll tax filings, vendor payment processing, and other accounting processes.
Our effective income tax rate and other taxes in the future could be affected by a number of factors, including changes in the valuation of deferred tax assets and liabilities, changes in tax laws or other legislative changes and the outcome of income tax audits.
Our effective income tax rate and other taxes in the future could be affected by a number of factors, including changes in the valuation of deferred tax assets and liabilities, changes in tax laws or other legislative changes, and the outcome of income tax 25 Table of Contents audits.
If we are unable to do so, our results of operations may also be adversely affected. Risks Related to Technology, Privacy and Intellectual Property We rely heavily on information technology, and any material failure, weakness, ransomware or interruption could prevent us from effectively operating our business.
If we are unable to do so, our results of operations may also be adversely affected. Risks Related to Technology, Privacy and Intellectual Property We rely heavily on information technology, and any material failure, weakness, cybersecurity breach, or other interruption could prevent us from effectively operating our business.
However, the protective actions that we take may not be enough to prevent unauthorized usage or imitation by others, which could harm our image, brand or competitive position and, if we commence litigation to enforce our rights, cause us to incur significant legal fees.
However, the protective actions that we take may not be enough to prevent unauthorized usage or imitation by others, which could harm our image, brand, or competitive position and, if we commence litigation to enforce our rights, cause 28 Table of Contents us to incur significant legal fees.
We compete with many well-established food service companies on the basis of taste, quality and price of products offered, guest service, atmosphere, location, take-out and delivery 27 Table of Contents options and overall guest experience.
We compete with many well- established food service companies on the basis of taste, quality, and price of products offered, guest service, atmosphere, location, take-out and delivery options, and overall guest experience.
We anticipate that additional legislation increasing minimum and/or tipped wage standards will be enacted in future periods either federally or in state and local jurisdictions. In addition, regulatory actions which result in changes to healthcare eligibility, design and cost structure could occur.
We anticipate that additional legislation increasing minimum and/or tipped 26 Table of Contents wage standards will be enacted in future periods either federally or in state and local jurisdictions. In addition, regulatory actions which result in changes to healthcare eligibility, design, and cost structure could occur.
A number of factors could adversely affect our operating results, including: ● additional government-imposed increases in minimum and/or tipped wages, hourly and overtime pay, paid leaves of absence, sick leave, and mandated health benefits; ● increased tax reporting and tax payment requirements for employees who receive gratuities; ● any failure of our employees to comply with laws and regulations governing work authorization or residency requirements resulting in disruption of our work force and adverse publicity; ● a reduction in the number of states that allow gratuities to be credited toward minimum wage requirements, or a federal mandate prohibiting such credits; and ● increased litigation including claims under federal and/or state wage and hour laws.
A number of factors could adversely affect our operating results, including: ● additional government-imposed increases in minimum and/or tipped wages, hourly and overtime pay, paid leaves of absence, sick leave, and mandated health benefits; ● increased tax reporting and tax payment requirements for employees who receive gratuities; ● any failure of our employees to comply with laws and regulations governing work authorization and eligibility requirements resulting in disruption of our work force and adverse publicity; ● a reduction in the number of states that allow gratuities to be credited toward minimum wage requirements, or a federal mandate prohibiting such credits; and ● increased government enforcement and/or litigation relating to federal and state employment laws, regulations, and requirements.
Additionally, we are subject to Securities and Exchange Commission ("SEC") and NASDAQ reporting and disclosure requirements. Inconsistent standards imposed by governmental authorities can adversely affect our business and increase our exposure to litigation which could result in significant judgments, including punitive and liquidated damages, and injunctive relief.
Additionally, we are subject to Securities and Exchange Commission ("SEC") and NASDAQ reporting and disclosure requirements. Inconsistent standards imposed by state and federal governmental authorities can adversely affect our business and increase our cost of compliance and exposure to litigation which could result in significant judgments, including punitive and liquidated damages, and injunctive relief.
Our ability to expand and update our information technology infrastructure in response to our growing and changing needs would be inhibited in the event of a cybersecurity incident.
Additionally, our ability to expand and update our information technology infrastructure in response to our growing and changing needs could be inhibited in the event of a cybersecurity incident.
Unanticipated changes in our claims experience and/or the actuarial assumptions and management estimates underlying our reserves for these losses could result in significantly different amounts of expense under these programs, which could have a material adverse effect on our financial condition, results of operations and liquidity.
Unanticipated changes in our claims experience and/or the actuarial assumptions and management estimates underlying our reserves for these losses could result in significant increases in expense under these programs, which could have a material adverse effect on our financial condition, results of operations, and liquidity.
If franchisees do not successfully operate restaurants in a manner consistent with our standards, our image and reputation could be harmed, which in turn could adversely affect our business and operating results.
If franchisees or their employees do not successfully operate restaurants or act in a manner consistent with our standards, our image and reputation could be harmed, which in turn could adversely affect our business and operating results.
This reliance has significantly increased in recent years as we have had to rely to a greater extent on systems such as online ordering, contactless payments, online waitlists, and systems supporting a more remote workforce as our guests are increasingly using our website and digital applications to place and pay for their orders.
This reliance has significantly increased in recent years as we have had to depend to a greater extent on systems such as online ordering, contactless payments, and online waitlists as our guests are increasingly using our website and digital applications to place and pay for their orders.
The entrance into international markets may not be as successful as our experience in the development of the Texas Roadhouse concept domestically or any success we have had with the Texas Roadhouse concept in other international markets.
The entrance into international markets may not be as successful as our experience in the development of our concepts domestically or any success we have had with our concepts in other international markets.
In addition, we are susceptible to increases in food costs as a result of factors beyond our control, such as food supply constrictions, weather conditions, food safety concerns, global pandemics, product recalls, global market and trade conditions, and government regulations.
In addition, we are susceptible to increases in food costs as a result of factors beyond our control, such as food supply constrictions, inflationary cycles, weather conditions, food safety concerns, global pandemics, product recalls, global market and trade conditions, and government regulations including the imposition of tariffs.
If we are unable to maintain these covenants, we would be unable to obtain additional financing under this credit facility.
If we are unable to maintain these covenants, we would be unable to obtain additional financing under this 22 Table of Contents credit facility.
We have disaster recovery procedures and business continuity plans in place to address events of a crisis nature, including tornadoes and other natural disasters, and back up off-site locations for recovery of electronic and other forms of data information.
We have disaster recovery procedures and business continuity plans in place to address physical and technological crises, including tornadoes and other natural disasters, and back-up off-site locations for recovery of electronic and other forms of data information.
The failure of these systems to operate effectively, maintenance problems, upgrading or transitioning to new platforms or a material breach in the security of these systems could result in delays or errors to guest service and reduce efficiency in our operations.
Additionally, the increased use of remote work has increased the susceptibility of our infrastructure to disruption. The failure of these systems to operate effectively, maintenance problems, upgrading or transitioning to new platforms, or a material breach in the security of these systems could result in delays or errors to guest service and reduce efficiency in our operations.
Any material decline in the amount of discretionary spending could have a material adverse effect on our business, results of operations, financial condition or liquidity. Our objective to increase sales and profits at existing restaurants could be adversely affected by macroeconomic conditions. In future periods, the U.S. and global economies could further suffer from a downturn in economic activity.
Any material decline in the amount of discretionary spending could have a material adverse effect on our business, results of operations, financial condition, or liquidity. 23 Table of Contents Our objective to increase sales and profits at existing restaurants could be adversely affected by macroeconomic conditions.
Responding to actions by activist shareholders can be costly and time-consuming, disrupting our operations and diverting the attention of management and our employees. Such activities could interfere with our ability to execute our strategic plan. The perceived uncertainties as to our future direction also resulting from activist strategies could also affect the market price and volatility of our common stock.
Responding to actions by activist shareholders can be costly and time-consuming, disrupting our operations, and diverting the attention of management and our employees. Such activities could interfere with our ability to execute our strategic plan.
Establishing targets or making other public commitments due to these demands, without a full or complete understanding of the cost or operational impact of changes in our supply chain or operating model, could also adversely affect our business and financial condition. 24 Table of Contents Risks Related to Human Capital Failure to retain the services of our key management personnel, or to successfully execute succession planning and attract additional qualified personnel could harm our business.
Establishing targets or making other public commitments due to these demands, without a full or complete understanding of the cost or operational impact of changes in our supply chain or operating model, could also adversely affect our business and financial condition.
This could lead to a delayed implementation of new service offerings, disruptions to guest experiences including via our website and applications and the diversion of resources that would otherwise be invested in expanding our business and operations. Additionally, we could be subject to litigation and government enforcement actions as a result of any such failure.
This could lead to a delayed implementation of new service offerings, disruptions to guest experiences including via our website and applications, and the diversion of resources that would otherwise be invested in expanding our business and operations. 27 Table of Contents We outsource certain business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs.
Additionally, as we become 25 Table of Contents increasingly reliant on digital ordering and payment as a sales channel, our business could be negatively impacted if we are unable to successfully implement, execute or maintain our consumer-facing digital initiatives.
As our business needs continue to evolve, these systems will require upgrading and maintenance over time, consequently requiring significant future commitments of resources and capital. As we become increasingly reliant on digital ordering and payment as a sales channel, our business could be negatively impacted if we are unable to successfully implement, execute, or maintain our consumer-facing digital initiatives.
In addition to our having to comply with these licensing requirements, various federal and state labor laws govern our relationship with our employees and affect operating costs. These laws include minimum and tipped wage requirements, overtime pay, health benefits, unemployment taxes, workers’ compensation, work eligibility requirements and working conditions.
In addition to having to comply with these licensing requirements, various federal and state labor laws govern our relationship with our employees and affect operating costs.
Additionally, our success depends to a significant extent on discretionary consumer spending, which is influenced by general economic conditions, including high inflationary periods, and the availability of discretionary income. Accordingly, we may experience declines in sales during economic downturns, pandemics or other periods of uncertainty.
Additionally, current and new medical treatments may cause consumers to avoid or consume less of our products. Our success also depends to a significant extent on discretionary consumer spending, which is influenced by general economic conditions, including high inflationary periods, and the availability of discretionary income.
Adverse publicity about these allegations may negatively affect us, regardless of whether the allegations are true, by discouraging guests from eating at our restaurants. We could also incur significant liabilities if a lawsuit or claim results in a decision against us or litigation costs regardless of the result.
Adverse publicity about these allegations may negatively affect us, regardless of whether the allegations are true, by discouraging guests from eating at our restaurants.
Failure to achieve and maintain effective internal control over financial reporting may negatively impact our business and our financial results. The Company is responsible for establishing and maintaining effective internal control over financial reporting. This includes establishing controls around the adoption of new, or changes in existing, accounting policies and practices.
The Company is responsible for establishing and maintaining effective internal control over financial reporting. This includes establishing controls around the adoption of new, or changes in existing, accounting policies and practices. Despite its inherent limitations, effective internal control over financial reporting helps provide reasonable assurance regarding the reliability of financial reporting for external purposes.
Health, social and environmental concerns relating to the consumption or sourcing of beef or other food products could affect consumer preferences and could negatively impact our results of operations.
We could also incur significant liabilities if a lawsuit or claim results in a decision against us or litigation costs regardless of the result. 29 Table of Contents Health, social and environmental concerns relating to the consumption or sourcing of beef or other food products could affect consumer preferences and could negatively impact our results of operations.
Because a plaintiff may seek punitive damages, which may not be covered by insurance, this type of action could have an adverse impact on our financial condition and results of operations. 23 Table of Contents Litigation involving our relationship with franchisees and the legal distinction between our franchisees and us for employment law purposes, if determined adversely, could increase costs, negatively impact the business prospects of our franchisees and subject us to incremental liability for their actions.
Litigation involving our relationship with franchisees and the legal distinction between our franchisees and us for employment law purposes, if determined adversely, could increase costs, negatively impact the business prospects of our franchisees, and subject us to incremental liability for their actions.
Failure to adequately address environmental, social and/or governance ( " ESG " ) matters could adversely affect our brand, business, results of operations and financial condition. Entities across all industries are facing increased interest related to ESG matters including packaging and waste, animal health and welfare, human rights, climate change, greenhouse gases and land, energy and water use.
Entities across all industries are facing increased attention related to ESG matters including packaging and waste, animal health and welfare, human rights, reproductive rights, diversity and inclusion efforts, climate change, greenhouse gases, and land, energy, and water use.
Approximately 21% of our company restaurants are located in Texas and Florida and, as a result, we are sensitive to economic and other trends and developments in those states. As of December 26, 2023, we operated a total of 87 company restaurants in Texas and 44 company restaurants in Florida.
In addition, we may experience dilution of the goodwill associated with our concepts as they become more common and increasingly accessible. Approximately 21% of our company restaurants are located in Texas and Florida and, as a result, we are sensitive to economic and other trends and developments in those states.
Failure to comply with the increased demands could result in consumer or investor scrutiny and/or litigation and could have an adverse effect on our business.
However, our ESG-related programs and initiatives and disclosures relating to the same may also result in brand and/or reputational risks and demands. Failure to balance these competing demands could result in consumer or investor scrutiny and/or litigation and could have an adverse effect on our business.
The expansion of our products may damage our reputation if products bearing our brands are not of the same quality or value that guests associate with our concepts. In addition, we may experience dilution of the goodwill associated with our concepts as they become more common and increasingly accessible.
The expansion of our products may damage our reputation if products bearing our brands are not of the same quality or value that guests associate with our concepts or if our partners are accused of any actual or alleged misconduct.
In addition, we have faced enhanced pressure to provide expanded disclosures around ESG matters and establish goals or targets with respect to ESG matters. In response to the heightened level of expectation for expanded ESG disclosure, we have published a Corporate Sustainability Report detailing our ESG efforts and which we update regularly.
In addition, we have faced enhanced pressure to not only provide expanded disclosures around ESG matters and establish goals or targets with respect to ESG matters but also pressure to scale back our programs and/or initiatives relating to the same.
Such damages could have a material adverse effect on our business, results of operations and/or liquidity. In addition, we self- insure a significant portion of expected losses under our health, workers’ compensation, general liability, employment practices liability, cybersecurity and property insurance programs.
Such damages could have a material adverse effect on our business, results of operations, and/or liquidity.
Any such claim or proceeding could cause us to incur significant unplanned expenses in excess of our insurance coverage, which could have a material impact on our financial condition and results of operations. In addition, if there are malfunctions or other problems with our processing vendors, billing software or payment processing systems, it may cause interruption of normal business performance.
Additionally, we could be subject to litigation and government enforcement actions as a result of any such failure. Any such event could cause us to incur significant unplanned expenses in excess of our insurance coverage, which could have a material impact on our financial condition and results of operations.
Further, adverse publicity resulting from these claims may hurt our business. Our current insurance may not provide adequate levels of coverage against claims. We currently maintain insurance customary for businesses of our size and type. However, there are types of losses we may incur that cannot be insured against or that we believe are not economically reasonable to insure.
Further, adverse publicity resulting from these claims may hurt our business. Our current insurance may not provide adequate levels of coverage against claims. We self- insure a significant portion of expected losses related to employee health, workers’ compensation, general liability, employment practices liability, cybersecurity, and property insurance programs.
Additionally, our competitors may generate or better implement business strategies that improve the value and the relevance of their brands and reputation, relative to ours. This could include the testing of delivery via internal or third-party methods or better execution around guests’ to-go experience.
Our competitors may generate or more effectively implement business strategies that improve the value and the relevance of their brands and reputation, relative to ours. This includes our competitors’ ability to adapt and respond to new technological developments, including artificial intelligence, to develop new customer insights that allows them to better respond to changing guest expectations.
We continually evaluate our other business processes to determine if additional outsourcing is a viable, and the most appropriate, option to accomplish our goals.
We continually evaluate our other business processes to determine if additional outsourcing is an appropriate option to accomplish our goals. These third-party vendors may be subject to cybersecurity risks and any interruptions or malfunctions in their operations may cause interruptions of our normal business operations for which we may have limited or no control.
Our localized marketing strategy may not result in brand awareness and guest engagement. Additionally, the opening of a new restaurant could negatively impact sales at one or more of our existing nearby restaurants, which could adversely affect our results of operations.
Our localized marketing strategy may not result in brand awareness and guest engagement.
Removed
As of December 26, 2023, our operations include 48 Texas Roadhouse franchise restaurants in ten countries outside the United States, and we expect to have further international expansion in the future with one or more of our concepts.
Added
As of December 31, 2024, we operated a total of 93 company restaurants in Texas and 48 company restaurants in Florida.
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As our business needs continue to evolve, these systems will require upgrading and maintenance over time, consequently requiring significant future commitments of resources and capital.
Added
Accordingly, we may experience declines in sales during economic downturns, pandemics, or other periods of uncertainty.
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These vendors may also experience interruptions to their information technology systems that could adversely affect us and which we may have limited or no control. We outsource certain business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs.
Added
In future periods, the U.S. and global economies could further suffer from a downturn in economic activity.
Removed
Despite its inherent limitations, effective internal control over financial reporting helps provide reasonable assurance regarding the reliability of financial reporting for external purposes.
Added
These laws include minimum and tipped wage requirements, overtime pay, meal and rest breaks, exempt classifications, health benefits, unemployment taxes, workers’ compensation, work authorization and eligibility requirements, equal employment opportunities, anti-discrimination and harassment requirements, and working conditions.
Added
Because a plaintiff may seek punitive damages, which may not be covered by insurance, this type of action could have an adverse impact on our financial condition and results of operations.
Added
This includes our wholly-owned captive insurance company which covers certain lines of coverage. We use third-party insurance with varying retention levels to limit our exposure to significant losses. However, there are types of losses we may incur that cannot be insured against or that we believe are not economically reasonable to insure.
Added
Failure to properly address environmental, social, and/or governance ( " ESG " ) matters could adversely affect our brand, business, results of operations, and financial condition.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeTogether, these individuals have over 50 years of experience involving information technology, including security, auditing, compliance, systems and programming.
Biggest changeThe Company’s Head of Information Security manages the Company’s cybersecurity efforts and leads the cybersecurity team under the direct oversight of our Chief Technology Officer. These individuals, including all members of the cybersecurity team, have an average of over 16 years of experience involving information technology, including security, auditing, compliance, systems, and programming.
This delegation includes maintaining responsibility for overseeing the Company’s enterprise risk management program. As a part of this oversight role, the audit committee receives regular updates from management on cybersecurity and privacy risks impacting the Company, which includes benchmarking these risks versus our industry.
This delegation includes maintaining responsibility for overseeing the Company’s enterprise risk management program. As a part of this oversight role, the audit committee receives regular updates from management on cybersecurity threats and privacy risks impacting the Company , which includes benchmarking these risks versus our industry.
This committee comprises members of management of the Company’s information technology, human resources, marketing, accounting, risk, procurement, training, finance and legal functions, and is focused on performing risk assessments to identify areas of concern and implement appropriate changes to enhance its 30 Table of Contents cybersecurity and privacy policies and procedures.
This committee comprises members of management of the Company’s information technology, human resources, marketing, accounting, risk, procurement, training, finance, and legal functions, and is focused on performing risk assessments to identify areas of concern and implement appropriate changes to enhance its cybersecurity and privacy policies and procedures.
Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events, receive training specific to cybersecurity risks and threats and regularly discuss any updates to our cybersecurity risk management and strategy programs. ​ 31 Table of Contents
Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events, receive training specific to cybersecurity risks and threats and regularly discuss any updates to our cybersecurity risk management and strategy programs. ​
The Company’s Head of Information Security is responsible for developing and implementing these controls and training exercises with support from our information technology department. ​ The Company’s enterprise risk management program has established an internal risk committee to evaluate information governance risks.
The Company’s Head of Information Security is responsible for developing and implementing these controls and training exercises with support from our information technology department. ​ The Company’s enterprise risk management program has established an internal risk committee to evaluate information governance risks including risks associated with the Company’s use of artificial intelligence.
Although our risk factors include further detail about the material cybersecurity risks we face and how a cybersecurity incident may affect our business strategy, results of operations or financial condition, we believe that risks from prior cybersecurity threats, including as a result of any previous cybersecurity incident, have not materially affected our business to date.
Although our risk factors include 32 Table of Contents further detail about the material cybersecurity risks we face and how a cybersecurity incident may affect our business strategy, results of operations, or financial condition, we believe that risks from prior cybersecurity threats, including as a result of any prior cybersecurity incident, have not materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition to date .
Additionally, the Company has implemented trainings designed to provide best practices for protecting our network and systems, and also routinely leads exercises for employees to reinforce the risk and proper handling of targeted emails.
Additionally, the Company has implemented companywide security awareness training programs designed to provide best practices for protecting our network and systems, and routinely leads exercises for employees to reinforce the risk and proper handling of targeted emails.
T o address cybersecurity threats to this information, the Company uses a risk-based approach to create and implement a detailed set of information security policies and procedures based on frameworks established by the National Institute of Standards and Technology. The Company’s Head of Information Security leads the Company’s cybersecurity efforts under the direct oversight of our Chief Technology Officer.
T o address cybersecurity threats to this information, the Company uses a risk-based approach to create and implement a detailed set of information security policies and procedures based on frameworks established by the National Institute of Standards and Technology.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES Properties Our Support Center is located in Louisville, Kentucky. We occupy this facility under a master lease with Paragon Centre Holdings, LLC, a limited liability company in which we have a minority ownership position. As of December 26, 2023, we leased 133,023 square feet. Our lease expires on October 31, 2048, including all applicable extensions.
Biggest changeITEM 2. PROPERTIES Properties Our Support Center is located in Louisville, Kentucky. We occupy this facility under a master lease with Paragon Centre Holdings, LLC, a limited liability company in which we have a minority ownership position. As of December 31, 2024, we leased 133,023 square feet. Our lease expires on October 31, 2048, including all applicable extensions.
Removed
Of the 635 company restaurants in operation as of December 26, 2023, we owned 155 locations and leased 480 locations, as shown in the following table. ​ ​ ​ ​ ​ ​ ​ ​ State Owned Leased Total Alabama 3 7 10 ​ Alaska — 2 2 ​ Arizona 6 14 20 ​ Arkansas 2 7 9 ​ California 1 7 8 ​ Colorado 7 10 17 ​ Connecticut — 5 5 ​ Delaware 1 4 5 ​ Florida 7 37 44 ​ Georgia 4 12 16 ​ Idaho 1 5 6 ​ Illinois 3 16 19 ​ Indiana 13 15 28 ​ Iowa 2 9 11 ​ Kansas 2 5 7 ​ Kentucky 4 15 19 ​ Louisiana 2 8 10 ​ Maine — 3 3 ​ Maryland 4 10 14 ​ Massachusetts 1 9 10 ​ Michigan 5 16 21 ​ Minnesota 1 6 7 ​ Mississippi 1 2 3 ​ Missouri 2 16 18 ​ Montana ​ — ​ 2 ​ 2 ​ Nebraska 1 3 4 ​ Nevada — 4 4 ​ New Hampshire 2 1 3 ​ New Jersey — 10 10 ​ New Mexico 1 8 9 ​ New York 3 19 22 ​ North Carolina 4 17 21 ​ North Dakota — 2 2 ​ Ohio 12 24 36 ​ Oklahoma 3 7 10 ​ Oregon — 2 2 ​ Pennsylvania 3 24 27 ​ Rhode Island — 3 3 ​ South Carolina — 9 9 ​ South Dakota 1 1 2 ​ Tennessee — 18 18 ​ Texas 39 48 87 ​ Utah 1 9 10 ​ Vermont — 1 1 ​ Virginia 6 16 22 ​ Washington — 2 2 ​ West Virginia 1 3 4 ​ Wisconsin 4 7 11 ​ Wyoming 2 — 2 ​ Total 155 480 635 ​ ​ Additional information concerning our properties and leasing arrangements is included in Note 2 and Note 8 to the Consolidated Financial Statements appearing in Part II, Item 8 of this Annual Report on Form 10-K. 32 Table of Contents
Added
As of December 31, 2024, we owned and operated 666 company restaurants. Of the 666 company-owned restaurants, 153 restaurants were on owned sites and 513 restaurants were on leased sites.
Added
These leased sites are classified as either land leases (where we lease the land and construct the building and leasehold improvements) or land and building or in-line space leases (where we lease the land, building, or in-line space and construct leasehold improvements as necessary).
Added
The breakdown of these leases is as follows: ​ ​ Land leases 452 Land and building or in-line space leases 61 Total 513 ​ Additional information concerning our properties and leasing arrangements is included in Note 2 and Note 8 to the Consolidated Financial Statements appearing in Part II, Item 8 of this Annual Report on Form 10-K.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table includes information regarding purchases of our common stock made by us during the quarter ended December 26, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number Maximum Number ​ ​ ​ ​ ​ ​ ​ of Shares ​ (or Approximate ​ ​ ​ ​ ​ ​ ​ Purchased as ​ Dollar Value) of ​ ​ ​ ​ ​ ​ ​ Part of Publicly ​ Shares that May ​ ​ Total Number ​ Average ​ Announced ​ Yet Be Purchased ​ ​ of Shares ​ Price Paid ​ Plans or ​ Under the Plans Period ​ Purchased ​ per Share ​ Programs ​ or Programs September 27 to October 24 — ​ $ — — ​ $ 121,683,492 ​ October 25 to November 21 — ​ $ — — ​ $ 121,683,492 ​ November 22 to December 26 40,707 ​ $ 117.92 ​ 40,707 ​ $ 116,883,508 ​ Total 40,707 ​ ​ ​ 40,707 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 34 Table of Contents Stock Performance Graph The following graph sets forth the cumulative total shareholder return experienced by holders of the Company’s common stock compared to the cumulative total return of the S&P 500 Index as well as the industry specific S&P Composite 1500 Restaurant Sub-Index for the five year period ended December 26, 2023, the last trading day of our fiscal year.
Biggest changeThis stock repurchase program has no expiration date and replaces the previous stock repurchase program which was approved in 2022. ​ ​ 34 Table of Contents Stock Performance Graph The following graph sets forth the cumulative total shareholder return experienced by holders of the Company’s common stock compared to the cumulative total return of the S&P 500 Index as well as the industry specific S&P Composite 1500 Restaurant Sub-Index for the five year period ended December 31, 2024, the last trading day of our fiscal year.
The graph assumes the values of the investment in our common stock and each index was $100 on December 26, 2018 and the reinvestment of all dividends paid during the period of the securities comprising the indices. Note: The stock price performance shown on the graph below does not indicate future performance.
The graph assumes the values of the investment in our common stock and each index was $100 on January 1, 2020 and the reinvestment of all dividends paid during the period of the securities comprising the indices. Note: The stock price performance shown on the graph below does not indicate future performance.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the Nasdaq Global Select Market under the symbol TXRH. The number of holders of record of our common stock as of February 14, 2024 was 158.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the Nasdaq Global Select Market under the symbol TXRH. The number of holders of record of our common stock as of February 19, 2025 was 157.
On February 14, 2024, our Board declared a quarterly dividend of $0.61 per share of common stock which will be distributed on March 26, 2024 to shareholders of record at the close of business on March 13, 2024.
On February 19, 2025, our Board declared a quarterly dividend of $0.68 per share of common stock which will be distributed on April 1, 2025 to shareholders of record at the close of business on March 18, 2025.
From inception through December 26, 2023, we have paid $683.5 million through our authorized stock repurchase programs to repurchase 21,496,468 shares of our common stock at an average price per share of $31.80. On March 17, 2022, the Board approved a stock repurchase program under which we may repurchase up to $300.0 million of our common stock.
From inception through December 31, 2024, we have paid $763.3 million through our authorized stock repurchase programs to repurchase 21,958,130 shares of our common stock at an average price per share of $34.76. On March 17, 2022, the Board approved a stock repurchase program for the repurchase of up to $300.0 million of our common stock.
This stock repurchase program has no expiration date. All repurchases to date have been made through open market transactions. In 2023, we paid $50.0 million to repurchase 455,026 shares of our common stock. For the 13 weeks ended December 26, 2023, we paid $4.8 million to repurchase 40,707 shares of our common stock.
This stock repurchase program has no expiration date. All repurchases to date have been made through open market transactions.
Comparison of Cumulative Total Return Since December 26, 2018 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/26/2018 12/31/2019 12/29/2020 12/28/2021 12/27/2022 12/26/2023 Texas Roadhouse, Inc. ​ $ 100.00 ​ $ 101.28 ​ $ 143.02 ​ $ 164.44 ​ $ 176.61 ​ $ 235.74 ​ S&P 500 ​ $ 100.00 ​ $ 140.25 ​ $ 164.74 ​ $ 214.60 ​ $ 174.52 ​ $ 221.20 ​ S&P Composite 1500 Restaurant Sub-Index ​ $ 100.00 ​ $ 129.15 ​ $ 153.58 ​ $ 187.65 ​ $ 173.39 ​ $ 198.08 ​ ​ ​ ITEM 6 .
Comparison of Cumulative Total Return Since January 1, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/2019 12/29/2020 12/28/2021 12/27/2022 12/26/2023 12/31/2024 Texas Roadhouse, Inc. ​ $ 100.00 ​ $ 141.22 ​ $ 162.36 ​ $ 174.38 ​ $ 232.77 ​ $ 345.95 ​ S&P 500 ​ $ 100.00 ​ $ 117.46 ​ $ 153.01 ​ $ 124.43 ​ $ 157.72 ​ $ 197.02 ​ S&P Composite 1500 Restaurant Sub-Index ​ $ 100.00 ​ $ 118.92 ​ $ 145.30 ​ $ 134.26 ​ $ 153.38 ​ $ 164.08 ​ ​ ​ ITEM 6 —RESERVED ​ ​ 35 Table of Contents ​ ​ ​ ​
Removed
As of December 26, 2023, $116.9 million remains authorized for stock repurchases.
Added
The timing and amount of any repurchases through this program are determined by management under parameters approved by the Board, based on an evaluation of our stock price, market conditions, and other corporate considerations, including complying with Rule 10b5-1 trading arrangements under the Exchange Act.
Added
In 2024, we paid $79.8 million, excluding excise taxes, to repurchase 461,662 shares of our common stock. For the fourth quarter ended December 31, 2024, we paid $35.1 million, excluding excise taxes, to repurchase 182,748 shares of our common stock. As of December 31, 2024, $37.1 million remained authorized for stock repurchases.
Added
The following table includes information regarding purchases of our common stock, excluding the impact of excise taxes, made by us during the quarter ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number Maximum Number ​ ​ ​ ​ ​ ​ ​ of Shares ​ (or Approximate ​ ​ ​ ​ ​ ​ ​ Purchased as ​ Dollar Value) of ​ ​ ​ ​ ​ ​ ​ Part of Publicly ​ Shares that May ​ ​ Total Number ​ Average ​ Announced ​ Yet Be Purchased ​ ​ of Shares ​ Price Paid ​ Plans or ​ Under the Plans Period ​ Purchased ​ per Share ​ Programs ​ or Programs September 25 to October 22 — ​ $ — — ​ $ 72,194,874 October 23 to November 19 53,780 ​ $ 195.22 53,780 ​ $ 61,696,192 November 20 to December 31 128,968 ​ $ 190.74 ​ 128,968 ​ $ 37,096,422 Total 182,748 ​ ​ ​ 182,748 ​ ​ ​ ​ On February 19, 2025, our Board approved a stock repurchase program for the repurchase of up to $500.0 million of our common stock.
Added
Any repurchases under this plan will be made by the Company through open market transactions.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

94 edited+13 added−17 removed41 unchanged
Biggest changeWe also paid a quarterly dividend of $0.55 per share of common stock, which totaled $147.2 million. ​ ​ ​ ​ ​ ​ ​ ​ ​ 40 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Results of Operations ​ ​ Fiscal Year Ended ​ ​ 2023 ​ 2022 ​ $ % ​ $ % ​ ​ (In thousands) Consolidated Statements of Income: ​ ​ ​ Revenue: ​ ​ ​ ​ ​ ​ ​ ​ Restaurant and other sales ​ 4,604,554 ​ 99.4 ​ 3,988,791 ​ 99.3 Franchise royalties and fees ​ 27,118 ​ 0.6 ​ 26,128 ​ 0.7 Total revenue ​ 4,631,672 ​ 100.0 ​ 4,014,919 ​ 100.0 Costs and expenses: ​ ​ ​ ​ ​ ​ ​ ​ (As a percentage of restaurant and other sales) ​ ​ ​ ​ ​ ​ ​ ​ Restaurant operating costs (excluding depreciation and amortization shown separately below): ​ ​ ​ ​ ​ ​ ​ ​ Food and beverage ​ 1,593,852 ​ 34.6 ​ 1,378,192 ​ 34.6 Labor ​ 1,539,124 ​ 33.4 ​ 1,319,959 ​ 33.1 Rent ​ 72,766 ​ 1.6 ​ 66,834 ​ 1.7 Other operating ​ 690,848 ​ 15.0 ​ 596,305 ​ 14.9 (As a percentage of total revenue) ​ ​ ​ ​ ​ ​ ​ ​ Pre-opening ​ 29,234 ​ 0.6 ​ 21,883 ​ 0.5 Depreciation and amortization ​ 153,202 ​ 3.3 ​ 137,237 ​ 3.4 Impairment and closure, net ​ 275 ​ NM ​ 1,600 ​ NM General and administrative ​ 198,382 ​ 4.3 ​ 172,712 ​ 4.3 Total costs and expenses ​ 4,277,683 ​ 92.4 ​ 3,694,722 ​ 92.0 Income from operations ​ 353,989 ​ 7.6 ​ 320,197 ​ 8.0 Interest income (expense), net ​ 2,984 ​ 0.1 ​ (124) ​ NM Equity income from investments in unconsolidated affiliates ​ 1,351 ​ NM ​ 1,239 ​ NM Income before taxes ​ 358,324 ​ 7.7 ​ 321,312 ​ 8.0 Income tax expense ​ 44,649 ​ 1.0 ​ 43,715 ​ 1.1 Net income including noncontrolling interests ​ 313,675 ​ 6.8 ​ 277,597 ​ 6.9 Net income attributable to noncontrolling interests ​ 8,799 ​ 0.2 ​ 7,779 ​ 0.2 Net income attributable to Texas Roadhouse, Inc. and subsidiaries ​ 304,876 ​ 6.6 ​ 269,818 ​ 6.7 NM – Not meaningful 41 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income from Operations to Restaurant Margin ​ ​ Fiscal Year Ended ​ ​ 2023 ​ 2022 ​ ​ (In thousands, except per store week) ​ ​ ​ ​ ​ Income from operations ​ $ 353,989 ​ $ 320,197 ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ Franchise royalties and fees ​ 27,118 ​ 26,128 ​ ​ ​ ​ ​ Add: ​ ​ ​ ​ Pre-opening ​ 29,234 ​ 21,883 Depreciation and amortization ​ 153,202 ​ 137,237 Impairment and closure, net ​ 275 ​ 1,600 General and administrative ​ 198,382 ​ 172,712 Restaurant margin ​ $ 707,964 ​ $ 627,501 ​ ​ ​ ​ ​ Restaurant margin $/store week ​ $ 22,090 ​ $ 20,721 Restaurant margin (as a percentage of restaurant and other sales) ​ 15.4% ​ 15.7% Restaurant Unit Activity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Texas Roadhouse ​ Bubba's 33 Jaggers Balance at December 27, 2022 697 ​ 652 ​ 40 5 Company openings 30 ​ 22 ​ 5 ​ 3 Franchise openings - Domestic ​ 5 ​ 3 ​ — ​ 2 Franchise openings - International 10 ​ 10 ​ — ​ — Franchise closings ​ (1) ​ (1) ​ — ​ — Balance at December 26, 2023 741 ​ 686 ​ 45 10 ​ ​ ​ ​ ​ ​ ​ December 26, 2023 December 27, 2022 Company - Texas Roadhouse 582 ​ 552 Company - Bubba's 33 45 ​ 40 Company - Jaggers 8 ​ 5 Total company ​ 635 ​ 597 ​ ​ ​ ​ ​ Franchise - Texas Roadhouse - Domestic 56 ​ 62 Franchise - Jaggers - Domestic ​ 2 ​ — Franchise - Texas Roadhouse - International 48 ​ 38 Total franchise ​ 106 ​ 100 ​ ​ ​ ​ ​ Total 741 697 ​ 42 Table of Contents Restaurant and Other Sales Restaurant and other sales increased 15.4% in 2023 compared to 2022.
Biggest changeIn addition, capital allocation spend in 2024 included capital expenditures of $354.3 million, dividends of $162.9 million, and repurchases of common stock of $79.8 million. ​ 40 Table of Contents Results of Operations (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ December 31, 2024 ​ December 26, 2023 ​ $ % ​ $ % ​ ​ ​ (In thousands) Consolidated Statements of Income: ​ ​ ​ ​ Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ Restaurant and other sales ​ ​ 5,341,853 ​ 99.4 ​ 4,604,554 ​ 99.4 Franchise royalties and fees ​ ​ 31,479 ​ 0.6 ​ 27,118 ​ 0.6 Total revenue ​ ​ 5,373,332 ​ 100.0 ​ 4,631,672 ​ 100.0 Costs and expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ (As a percentage of restaurant and other sales) ​ ​ ​ ​ ​ ​ ​ ​ ​ Restaurant operating costs (excluding depreciation and amortization shown separately below): ​ ​ ​ ​ ​ ​ ​ ​ ​ Food and beverage ​ ​ 1,785,119 ​ 33.4 ​ 1,593,852 ​ 34.6 Labor ​ ​ 1,764,740 ​ 33.1 ​ 1,539,124 ​ 33.4 Rent ​ ​ 80,560 ​ 1.5 ​ 72,766 ​ 1.6 Other operating ​ ​ 795,657 ​ 14.9 ​ 690,848 ​ 15.0 (As a percentage of total revenue) ​ ​ ​ ​ ​ ​ ​ ​ ​ Pre-opening ​ ​ 28,090 ​ 0.5 ​ 29,234 ​ 0.6 Depreciation and amortization ​ ​ 178,157 ​ 3.3 ​ 153,202 ​ 3.3 Impairment and closure, net ​ ​ 1,226 ​ NM ​ 275 ​ NM General and administrative ​ ​ 223,264 ​ 4.2 ​ 198,382 ​ 4.3 Total costs and expenses ​ ​ 4,856,813 ​ 90.4 ​ 4,277,683 ​ 92.4 Income from operations ​ ​ 516,519 ​ 9.6 ​ 353,989 ​ 7.6 Interest income, net ​ ​ 6,774 ​ 0.1 ​ 2,984 ​ 0.1 Equity income from investments in unconsolidated affiliates ​ ​ 1,197 ​ NM ​ 1,351 ​ NM Income before taxes ​ ​ 524,490 ​ 9.8 ​ 358,324 ​ 7.7 Income tax expense ​ ​ 80,145 ​ 1.5 ​ 44,649 ​ 1.0 Net income including noncontrolling interests ​ ​ 444,345 ​ 8.3 ​ 313,675 ​ 6.8 Net income attributable to noncontrolling interests ​ ​ 10,753 ​ 0.2 ​ 8,799 ​ 0.2 Net income attributable to Texas Roadhouse, Inc. and subsidiaries ​ ​ 433,592 ​ 8.1 ​ 304,876 ​ 6.6 NM – Not meaningful 41 Table of Contents ​ ​ ​ ​ ​ ​ ​ Reconciliation of Income from Operations to Restaurant Margin ($ In thousands, except restaurant margin $ per store week) ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ December 31, 2024 ​ December 26, 2023 Income from operations ​ $ 516,519 ​ $ 353,989 ​ ​ ​ ​ ​ Less: ​ ​ ​ ​ Franchise royalties and fees ​ 31,479 ​ 27,118 ​ ​ ​ ​ ​ Add: ​ ​ ​ ​ Pre-opening ​ 28,090 ​ 29,234 Depreciation and amortization ​ 178,157 ​ 153,202 Impairment and closure, net ​ 1,226 ​ 275 General and administrative ​ 223,264 ​ 198,382 Restaurant margin ​ $ 915,777 ​ $ 707,964 ​ ​ ​ ​ ​ Restaurant margin $/store week ​ $ 26,572 ​ $ 22,090 Restaurant margin (as a percentage of restaurant and other sales) ​ 17.1% ​ 15.4% Restaurant Unit Activity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ Texas Roadhouse ​ Bubba's 33 Jaggers Balance at December 26, 2023 741 ​ 686 ​ 45 10 Company openings 31 ​ 26 ​ 4 ​ 1 Franchise openings - Domestic ​ 2 ​ — ​ — ​ 2 Franchise openings - International (1) 12 ​ 11 ​ — ​ 1 Franchise closings - International ​ (2) ​ (2) ​ — ​ — Balance at December 31, 2024 784 ​ 721 ​ 49 14 ​ ​ ​ ​ ​ ​ ​ December 31, 2024 December 26, 2023 Company - Texas Roadhouse 608 ​ 582 Company - Bubba's 33 49 ​ 45 Company - Jaggers 9 ​ 8 Total company ​ 666 ​ 635 ​ ​ ​ ​ ​ Franchise - Texas Roadhouse - Domestic 56 ​ 56 Franchise - Jaggers - Domestic ​ 4 ​ 2 Franchise - Texas Roadhouse - International (1) 57 ​ 48 Franchise - Jaggers - International ​ 1 ​ - Total franchise ​ 118 ​ 106 ​ ​ ​ ​ ​ Total 784 741 (1) Includes a U.S. territory. ​ ​ ​ 42 Table of Contents Restaurant and Other Sales Restaurant and other sales increased 16.0% in 2024 compared to 2023.
To attract new guests and increase the frequency of visits of our existing guests, we continue to drive various localized marketing programs, focus on speed of service and kitchen efficiency, increase throughput by adding seats and parking at certain restaurants and continue to enhance the guest digital experience.
To attract new guests and increase the frequency of visits of our existing guests, we continue to drive various localized marketing programs, focus on speed of service and kitchen efficiency, increase throughput by adding seats and parking at certain restaurants, and enhance the guest digital experience.
Restaurant other operating expenses consist of all other restaurant- level operating costs, the major components of which are credit card fees, profit sharing incentive compensation for our restaurant managing partners and market partners, utilities, supplies, general liability insurance, advertising, repairs and maintenance, property taxes and outside services. Pre-opening Expenses.
Restaurant other operating expenses consist of all other restaurant- level operating costs, the major components of which are supplies, profit sharing incentive compensation for our restaurant managing partners and market partners, utilities, credit card fees, general liability insurance, advertising, repairs and maintenance, property taxes, and outside services. Pre-opening Expenses.
This includes salary, incentive-based and share-based compensation expense related to executive officers and Support Center employees, salary and share-based compensation expense related to market partners, software hosting fees, professional fees, group insurance, advertising expense and the realized and unrealized holding gains and losses related to the investments in our deferred compensation plan. Interest Income (Expense), Net.
This includes salary, incentive-based and share-based compensation expense related to executive officers and Support Center employees, salary and share-based compensation expense related to market partners, software hosting fees, professional fees, group insurance, and the realized and unrealized holding gains and losses related to the investments in our deferred compensation plan. Interest Income, Net.
Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in our consolidated statements of income and comprehensive income.
Restaurant sales include gross food and beverage sales, net of promotions and discounts, for all company restaurants. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from restaurant sales in our consolidated statements of income.
We evaluate long- lived assets related to each restaurant to be held and used in the business, such as property and equipment, operating lease right-of-use assets and intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying amount of a restaurant may not be recoverable.
We evaluate long- lived assets to be held and used in the business, such as property and equipment, operating lease right-of-use assets, and intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying amount of a restaurant may not be recoverable.
Refer to Note 17 in the consolidated financial statements for further discussion regarding impairment and closure costs recorded in 2023, 2022 and 2021. Goodwill. Goodwill is tested annually for impairment and is tested more frequently if events and circumstances indicate that the asset might be impaired.
Refer to Note 17 in the consolidated financial statements for further discussion regarding impairment and closure costs recorded in 2024, 2023, and 2022. Goodwill. Goodwill is tested annually for impairment and is tested more frequently if events and circumstances indicate that the asset might be impaired.
Interest income (expense), net includes earnings on cash and cash equivalents and is reduced by interest expense, net of capitalized interest, on our debt or financing obligations including the amortization of loan fees. Equity Income from Investments in Unconsolidated Affiliates.
Interest income, net includes earnings on cash and cash equivalents and is reduced by interest expense, net of capitalized interest, on our debt or financing obligations including the amortization of loan fees, as applicable. Equity Income from Investments in Unconsolidated Affiliates.
Average unit volume represents the average annual restaurant sales for Texas Roadhouse and Bubba’s 33 restaurants open for a full six months before the beginning of the period measured excluding sales of restaurants permanently closed during the period.
Average unit volume represents the average annual restaurant sales for Texas Roadhouse and Bubba’s 33 restaurants open for a full six months before the beginning of the period measured excluding sales of restaurants permanently closed during the period, if applicable.
This increase was due to an increase in net income, an increase in depreciation and amortization expense and a favorable change in working capital. Our operations have not required significant working capital and, like many restaurant companies, we have been able to operate with negative working capital, if necessary.
The increase was primarily due to an increase in net income, an increase in depreciation and amortization expense, and a favorable change in working capital. Our operations have not required significant working capital and, like many restaurant companies, we have been able to operate with negative working capital, if necessary.
The change was driven primarily by increased third-party gift card fee amortization from increased gift card sales and a decrease in our breakage adjustment recorded in 2023 of $3.7 million compared to $6.6 million recorded in 2022.
The change was driven primarily by increased third-party gift card fee amortization from increased gift card sales and a decrease in our breakage adjustment recorded in 2024 of $0.6 million compared to $3.7 million recorded in 2023.
Whether we are able to leverage our infrastructure in future years by growing our general and administrative costs at a slower rate than our revenue will depend, in part, on our new restaurant openings, our comparable restaurant sales growth rate going forward and the level of investment we continue to make in our infrastructure. ● Returning Capital to Shareholders.
Our ability to leverage our infrastructure in future years by growing our general and administrative costs at a slower rate than our revenue will depend, in part, on our new restaurant openings, our comparable restaurant sales growth rate going forward, and the level of investment we continue to make in our infrastructure. ● Returning Capital to Shareholders.
Whether we are able and/or choose to continue to offset the effects of inflation will determine to what extent, if any, inflation affects our restaurant profitability in future periods.
Whether we are able and/or choose to continue to offset the effects of inflation will determine to what extent, if any, inflation affects our restaurant profitability in future periods. ​ 49 Table of Contents
We continue to evaluate opportunities to return capital to our shareholders, including the payment of dividends and repurchase of common stock. In 2011, our Board declared our first quarterly dividend of $0.08 per share of common stock which has consistently grown over time. In 2023, the Board declared a quarterly cash dividend of $0.55 per share of common stock.
We continue to evaluate opportunities to return capital to our shareholders, including the payment of dividends and the repurchase of common stock. In 2011, our Board declared our first quarterly dividend of $0.08 per share of common stock which has consistently grown over time.
In the estimation of future cash flows, we consider the period of time the restaurant has been open, the trend of operations over such period and future periods and expectations for future sales growth.
In the estimation of future cash flows, we consider the 48 Table of Contents period of time the restaurant has been open, the trend of operations over such period, and future periods and expectations for future sales growth.
We define the comparable restaurant base to include those restaurants open for a full 18 months before the beginning of the period measured excluding restaurants permanently closed during the period. Comparable restaurant sales can be impacted by changes in guest traffic counts or by changes in the 37 Table of Contents per person average check amount.
We define the comparable restaurant base to include those restaurants open for a full 18 months before the beginning of the period measured excluding restaurants permanently closed during the period, if applicable. Comparable restaurant sales can be impacted by changes in guest traffic counts or by changes in the per person average check amount.
In calculating restaurant margin, we exclude 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. We exclude pre-opening expense as it occurs at irregular intervals and would impact comparability to prior period results.
In calculating restaurant margin, we exclude certain non-restaurant-level costs that support operations, but do not have a direct impact on restaurant-level operational efficiency and performance, including general and administrative expenses. We exclude pre-opening expenses as they occur at irregular intervals and would impact comparability to prior period results.
We consider the following policies to be the most critical in understanding the judgments that are involved in preparing the consolidated financial statements. 48 Table of Contents Impairment of Long-lived Assets.
We consider the following policies to be the most critical in understanding the judgments that are involved in preparing the consolidated financial statements. Impairment of Long-lived Assets.
No material liabilities have been recorded as of December 26, 2023 or December 27, 2022, as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant.
No material liabilities have been recorded as of December 31, 2024 or December 26, 2023, as the likelihood of default was deemed to be less than probable and the fair value of the guarantees is not considered significant.
Equity income includes our percentage share of net income earned by unconsolidated affiliates and our share of any gain on the acquisition of these affiliates. As of December 26, 2023 and December 27, 2022, we owned a 5.0% to 10.0% equity interest in 20 and 23 domestic franchise restaurants, respectively. Net Income Attributable to Noncontrolling Interests.
Equity income includes our percentage share of net income earned by unconsolidated affiliates and our share of any gain on the acquisition of these affiliates. As of December 31, 2024 and December 26, 2023, we owned a 5.0% to 10.0% equity interest in 20 domestic franchise restaurants. Net Income Attributable to Noncontrolling Interests.
These requirements will include costs directly related to new restaurants or relocating existing restaurants and may also include costs necessary to ensure that our infrastructure is able to support a larger restaurant base.
These requirements will include costs directly related to opening, maintaining, or relocating restaurants and may also include costs necessary to ensure that our infrastructure is able to support a larger restaurant base.
The credit facility is an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders.
The credit facility is an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. The credit facility has a maturity date of May 1, 2026.
Other sales include the net impact of the amortization of third-party gift card fees and gift card breakage income, sales related to our non-royalty based retail products and content revenue related to our tabletop kiosk devices. Franchise Royalties and Fees. Franchise royalties consist of royalties, as defined in our franchise agreement, paid to us by our domestic and international franchisees.
Other sales primarily include the net impact of the amortization of third-party gift card fees and gift card breakage income and content revenue related to our tabletop kiosk devices. Franchise Royalties and Fees. Franchise royalties consist of royalties, as defined in our franchise agreement, paid to us by our domestic and international franchisees.
On February 14, 2024, the Board declared a quarterly cash dividend of $0.61 per share of common stock, representing an 11% increase compared to the quarterly dividend declared in the prior year period. In 2008, the Board approved our first stock repurchase program.
On February 19, 2025, the Board declared a quarterly cash dividend of $0.68 per share of common stock, representing an 11% increase compared to the quarterly dividend declared in the prior year period. In 2008, the Board approved our first stock repurchase program.
We exclude depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in our restaurants. We exclude impairment and closure expense as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results.
We exclude depreciation and amortization expenses, substantially all of which relate to restaurant-level assets, as they represent a non-cash charge for the investment in our restaurants. We exclude impairment and closure expenses as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results.
The results of operations of company restaurants are included in our consolidated statements of income and comprehensive income. The portion of income attributable to noncontrolling interests in company restaurants that are majority-owned is reflected in the line item net income attributable to noncontrolling interests in our consolidated statements of income and comprehensive income.
The portion of income attributable to noncontrolling interests in company restaurants that are majority-owned is reflected in the line item net income attributable to noncontrolling interests in our consolidated statements of income.
We have contractual arrangements that grant us the right to acquire at pre-determined formulas the remaining interests in 18 of the 20 majority-owned company restaurants and 53 of the 58 domestic franchise restaurants. Throughout this report, we use the term "restaurants" to include Texas Roadhouse and Bubba’s 33, unless otherwise noted.
We have contractual arrangements that grant us the right to acquire at pre-determined formulas the remaining equity interests in 17 of the 19 majority-owned company restaurants and 55 of the 60 domestic franchise restaurants. Throughout this report, we use the term "restaurants" to include Texas Roadhouse and Bubba’s 33, unless otherwise noted.
For 2024, we currently expect commodity cost inflation of approximately 5% for the year with prices locked for approximately 40% of our forecasted costs and the remainder subject to floating market prices. Restaurant Labor Expenses Restaurant labor expense, as a percentage of restaurant and other sales, increased to 33.4% in 2023 compared to 33.1% in 2022.
In 2025, we expect commodity inflation of 3% to 4% for the year with prices locked for approximately 40% of our forecasted costs and the remainder subject to floating market prices. Restaurant Labor Expenses Restaurant labor expenses, as a percentage of restaurant and other sales, decreased to 33.1% in 2024 compared to 33.4% in 2023.
Guarantees As of December 26, 2023 and December 27, 2022, we were contingently liable for $10.4 million and $11.3 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees.
Guarantees As of December 31, 2024 and December 26, 2023, we were contingently liable for $9.4 million and $10.4 million, respectively, for seven lease guarantees. These amounts represent the maximum potential liability of future payments under the guarantees.
The decrease was primarily due to an increase in average unit volume and was partially offset by higher rent expense, as a percentage of restaurant and other sales, at our newer restaurants. Restaurant Other Operating Expenses Restaurant other operating expenses, as a percentage of restaurant and other sales, increased to 15.0% in 2023 compared to 14.9% in 2022.
The decrease was driven by the increase in average unit volume partially offset by higher rent expense at our newer restaurants. 44 Table of Contents Restaurant Other Operating Expenses Restaurant other operating expenses, as a percentage of restaurant and other sales, decreased to 14.9% in 2024 compared to 15.0% in 2023.
Comparable restaurant sales and store weeks increased 10.1% and 5.8%, respectively, at company restaurants in 2023. The increase in comparable restaurant sales was due to an increase in guest traffic along with an increase in per person average check. The increase in store weeks was due to new store openings and the acquisition of franchise restaurants.
Comparable restaurant sales and store weeks increased 8.5% and 7.5%, respectively, at company restaurants in 2024. The increase in comparable restaurant sales was due to an increase in guest traffic along with an increase in per person average check. The increase in store weeks was due to new store openings and the benefit of the additional week in 2024.
Domestically, we remain focused primarily on markets where we believe a significant demand for our restaurants exists because of population size, income levels, the presence of shopping and entertainment centers and a significant employment base. In addition, we continue to pursue opportunities to acquire domestic franchise locations to expand our company restaurant base.
We continue to evaluate opportunities to develop restaurants in existing markets and in new domestic and international markets. Domestically, we remain focused primarily on markets where we believe a significant demand for our restaurants exists because of population size, income levels, the presence of shopping and entertainment centers, and a significant employment base.
The increase was primarily driven by increased earnings on our cash and cash equivalents and decreased borrowings on our credit facility. Equity Income from Unconsolidated Affiliates Equity income was $1.4 million in 2023 compared to $1.2 million in 2022.
Interest Income, Net Interest income, net was $6.8 million in 2024 compared to $3.0 million in 2023. The increase was driven by increased earnings on our cash and cash equivalents and decreased borrowings on our revolving credit facility in 2024. Equity Income from Investments in Unconsolidated Affiliates Equity income was $1.2 million in 2024 compared to $1.4 million in 2023.
Of the 635 company restaurants, we operated 582 as Texas Roadhouse restaurants, 45 as Bubba’s 33 restaurants and eight as Jaggers restaurants. ● 106 franchise restaurants, of which 20 we have a 5.0% to 10.0% ownership interest.
Of the 666 company restaurants, we operated 608 as Texas Roadhouse restaurants, 49 as Bubba’s 33 restaurants, and nine as Jaggers restaurants. ● 118 franchise restaurants, of which 20 we have a 5.0% to 10.0% ownership interest.
Restaurant labor expenses also include share-based compensation expense related to restaurant-level employees. Restaurant Rent Expense. Restaurant rent expense includes all rent, except pre-opening rent, associated with the leasing of real estate and includes base, percentage and straight-line rent expense. Restaurant Other Operating Expenses.
Restaurant rent expense includes all rent, except pre-opening rent, associated with the leasing of real estate and includes base, percentage, and straight-line rent expense. Restaurant Other Operating Expenses.
(the "Company," "we," "our" and/or "us") should be read in conjunction with the consolidated financial statements and the notes to such financial statements (pages F-1 to F-29), "Forward-looking Statements" (page 3) and Risk Factors set forth in Item 1A.
(the "Company," "we," "our," and/or "us") should be read in conjunction with the consolidated financial statements and the notes to such financial statements (pages F-1 to F-27), "Forward-looking Statements" (page 3), and Risk Factors set forth in Item 1A. Further, the discussion and analysis below generally discusses 2024 items and year-to-year comparisons between 2024 and 2023.
We intend to satisfy our capital requirements over the next 12 months with cash on hand, net cash provided by operating activities, and if needed, funds available under our revolving credit facility. In 2024, we expect our capital expenditures to be $340 million to $350 million.
We intend to satisfy our capital requirements over the next 12 months with cash on hand, net cash provided by operating activities, and if needed, funds available under our revolving credit facility. In 2025, we expect capital expenditures of approximately $400 million. Net cash used in financing activities was $275.7 million in 2024 compared to $267.4 million in 2023.
If these assumptions change in the future, we may be required to record impairment charges for these assets. In 2023, we recorded impairment and closure costs, net of $0.3 million related to ongoing closure costs of relocated stores.
If these assumptions change in the future, we may be required to record impairment charges for these assets. In 2024, we recorded impairment and closure costs, net of $1.2 million which related to the impairment of a building at a previously relocated store and ongoing closure costs for stores which have relocated.
Other sales include the net impact of the amortization of third-party gift card fees and gift card breakage income, sales related to our non-royalty based retail products and content revenue related to our tabletop kiosk devices. The net impact of these amounts was $(12.7) million and $(6.4) million for 2023 and 2022, respectively.
Other sales primarily include the net impact of the amortization of third-party gift card fees and gift card breakage income and content revenue related to our tabletop kiosk devices. The net impact of these items was $(9.8) million and $(5.4) million for 2024 and 2023, respectively.
This increase was primarily due to wage and other labor inflation of 6.6% in 2023. Wage and other labor inflation was primarily due to higher wage and benefit expense driven by labor market pressures along with increases in state-mandated minimum and tipped wage rates and increased investment in our people.
Wage and other labor inflation was driven by higher wage and benefit expense due to labor market pressures along with increases in state-mandated minimum and tipped wage rates and increased investment in our people. In 2025, we anticipate our labor costs will continue to be pressured by wage and other labor inflation of 4% to 5%.
The increase in comparable restaurant sales growth was driven by an increase in guest traffic count along with an increase in our per person average check as shown in the table below. ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 ​ Guest traffic counts 5.4 % ​ 1.9 % Per person average check 4.7 % ​ 7.8 % Comparable restaurant sales growth 10.1 % ​ 9.7 % ​ 43 Table of Contents The increase in 2023 guest traffic counts was driven by an increase in dining room traffic.
The increase in comparable restaurant sales growth was driven by an increase in guest traffic count along with an increase in our per person average check as shown in the table below. ​ ​ ​ ​ ​ ​ ​ 2024 2023 Guest traffic counts 4.4 % ​ 5.4 % Per person average check 4.1 % ​ 4.7 % Comparable restaurant sales growth 8.5 % ​ 10.1 % ​ 43 Table of Contents To-go sales as a percentage of restaurant sales were 12.8% in 2024 compared to 12.6% in 2023 and average weekly to-go sales were $19,940 in 2024 compared to $18,088 in 2023.
On February 14, 2024, our Board declared a quarterly cash dividend of $0.61 per share of common stock. We paid distributions of $8.0 million and $7.8 million in 2023 and 2022, respectively, to equity holders of our majority-owned company restaurants.
The payment of quarterly dividends totaled $162.9 million and $147.2 million in 2024 and 2023, respectively. On February 19, 2025, our Board declared a quarterly cash dividend of $0.68 per share of common stock. We paid distributions of $10.4 million and $8.0 million in 2024 and 2023, respectively, to equity holders of our majority-owned company restaurants.
We either lease our restaurant site locations under operating leases for periods generally of five to 30 years (including renewal periods) or purchase the land when appropriate. As of December 26, 2023, 155 of the 635 company restaurants have been developed on land which we own.
We either lease our restaurant site locations under operating leases for periods generally of five to 30 years (including renewal periods) or purchase the land when appropriate.
Liquidity and Capital Resources The following table presents a summary of our net cash provided by (used in) operating, investing and financing activities (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ 2023 ​ 2022 Net cash provided by operating activities ​ $ 564,984 $ 511,725 Net cash used in investing activities ​ (367,167) ​ (263,734) Net cash used in financing activities ​ (267,432) ​ (409,775) Net decrease in cash and cash equivalents ​ $ (69,615) ​ $ (161,784) ​ Net cash provided by operating activities was $565.0 million in 2023 compared to $511.7 million in 2022.
Liquidity and Capital Resources The following table presents a summary of our net cash provided by (used in) operating, investing, and financing activities (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ December 31, 2024 December 26, 2023 Net cash provided by operating activities ​ $ 753,629 ​ $ 564,984 Net cash used in investing activities ​ (336,901) ​ (367,167) Net cash used in financing activities ​ (275,749) ​ (267,432) Net increase (decrease) in cash and cash equivalents ​ $ 140,979 ​ $ (69,615) ​ Net cash provided by operating activities was $753.6 million in 2024 compared to $565.0 million in 2023.
The following table presents a summary of restaurant margin by segment (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ December 26, 2023 ​ December 27, 2022 Texas Roadhouse $ 671,158 ​ 15.5 % ​ $ 600,197 ​ 16.0 % Bubba's 33 33,942 ​ 13.7 ​ ​ 26,934 ​ 12.7 ​ Other 2,864 ​ 11.2 ​ ​ 370 ​ 2.6 ​ Total $ 707,964 ​ 15.4 % ​ $ 627,501 ​ 15.7 % ​ In our Texas Roadhouse reportable segment, restaurant margin dollars increased $71.0 million or 11.8% in 2023.
The following table presents a summary of restaurant margin by segment (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ December 31, 2024 ​ December 26, 2023 Texas Roadhouse $ 864,999 ​ 17.3 % ​ $ 671,158 ​ 15.5 % Bubba's 33 46,422 ​ 15.6 ​ ​ 33,942 ​ 13.7 ​ Other 4,356 ​ 13.8 ​ ​ 2,864 ​ 11.2 ​ Total $ 915,777 ​ 17.1 % ​ $ 707,964 ​ 15.4 % ​ In our Texas Roadhouse reportable segment, restaurant margin dollars increased $193.8 million or 28.9% in 2024.
The income derived from our minority interests in these franchise restaurants is reported in the line item equity income (loss) from investments in unconsolidated affiliates in our consolidated statements of income and comprehensive income. Of the 106 franchise restaurants, 56 were domestic Texas Roadhouse restaurants, two were domestic Jaggers restaurants and 48 were international Texas Roadhouse restaurants.
The income derived from our minority interests in these franchise restaurants is reported in the line item equity income from investments in unconsolidated affiliates in our consolidated statements of income.
Approximately half of our food and beverage costs relate to beef. Restaurant Labor Expenses. Restaurant labor expenses include all direct and indirect labor costs incurred in operations except for profit sharing incentive compensation expenses earned by our restaurant managing partners and 38 Table of Contents market partners. These profit sharing expenses are reflected in restaurant other operating expenses.
Restaurant labor expenses include all direct and indirect labor costs incurred in operations except for profit sharing incentive compensation expenses earned by our restaurant managing partners and market partners. These profit sharing expenses are reflected in restaurant other operating expenses. Restaurant labor expenses also include share-based compensation expense related to restaurant-level employees. Restaurant Rent Expense.
The following table presents a summary of capital expenditures (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ ​ ​ 2023 2022 New company restaurants ​ ​ $ 201,234 ​ $ 139,210 ​ Refurbishment or expansion of existing restaurants ​ ​ 119,785 ​ 84,414 ​ Relocation of existing restaurants ​ ​ ​ 20,629 ​ ​ 18,478 ​ Capital expenditures related to Support Center office ​ ​ ​ 5,386 ​ ​ 4,019 ​ Total capital expenditures ​ ​ $ 347,034 ​ $ 246,121 ​ ​ Our future capital requirements will primarily depend on the number and mix of new restaurants we open, the timing of those openings and the restaurant prototype developed in a given fiscal year.
As of December 31, 2024, 153 of the 666 company restaurants have been developed on land which we own. 46 Table of Contents The following table presents a summary of capital expenditures (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended ​ December 31, 2024 December 26, 2023 New company restaurants ​ $ 198,367 ​ $ 201,234 Refurbishment or expansion of existing restaurants ​ 122,905 ​ 119,785 Relocation of existing restaurants ​ ​ 25,633 ​ ​ 20,629 Capital expenditures related to Support Center office ​ ​ 7,436 ​ ​ 5,386 Total capital expenditures ​ $ 354,341 ​ $ 347,034 ​ Our future capital requirements will primarily depend on the number and mix of new restaurants we open, the timing of those openings, and the restaurant prototype developed in a given fiscal year.
Our consolidated subsidiaries include 20 majority-owned restaurants for all periods presented. 2023 Financial Highlights Total revenue increased $616.8 million or 15.4% to $4.6 billion in 2023 compared to $4.0 billion in 2022 primarily due to an increase in comparable restaurant sales and an increase in store weeks.
Our consolidated subsidiaries include 19 and 20 majority-owned restaurants as of December 31, 2024 and December 26, 2023, respectively. 2024 Financial Highlights Total revenue increased $741.7 million or 16.0% to $5.4 billion in 2024 compared to $4.6 billion in 2023 primarily due to an increase in comparable restaurant sales and an increase in store weeks.
In addition, we receive trade credit for the purchase of food, beverages and supplies, thereby reducing the need for incremental working capital to support growth. 46 Table of Contents Net cash used in investing activities was $367.2 million in 2023 compared to $263.7 million in 2022.
Sales are primarily for cash, and restaurant operations do not require significant inventories or receivables. In addition, we receive trade credit for the purchase of food, beverages, and supplies, thereby reducing the need for incremental working capital to support growth. Net cash used in investing activities was $336.9 million in 2024 compared to $367.2 million in 2023.
Food and Beverage Costs Food and beverage costs, as a percentage of restaurant and other sales, remained flat at 34.6% in both periods presented as the benefit of a higher guest check was offset by commodity inflation. Commodity inflation was 5.6% in 2023 primarily due to higher beef costs.
Food and Beverage Costs Food and beverage costs, as a percentage of restaurant and other sales, decreased to 33.4% in 2024 compared to 34.6% in 2023. The decrease was primarily driven by the benefit of a higher average guest check partially offset by commodity inflation of 0.7% in 2024 primarily due to higher beef costs.
Pre-opening costs will fluctuate from period to period based on the specific pre-opening costs incurred for each restaurant, the number and timing of restaurant openings and the number and timing of restaurant managers hired. Depreciation and Amortization Expenses Depreciation and amortization expenses, as a percentage of revenue, decreased to 3.3% in 2023 compared to 3.4% in 2022.
Restaurant Pre-opening Expenses Pre-opening expenses were $28.1 million in 2024 compared to $29.2 million in 2023. Pre-opening costs will fluctuate from period to period based on the specific pre-opening costs incurred for each restaurant, the number and timing of restaurant openings, and the number and timing of restaurant managers hired.
The increase was primarily due to a $0.6 million gain on the acquisition of four of these affiliates in 2023 as compared to a $0.3 million gain on the acquisition of one of these affiliates in 2022. Income Tax Expense Our effective tax rate decreased to 12.5% in 2023 compared to 13.6% in 2022.
The decrease in 2024 was primarily driven by a $0.6 million gain on the acquisition of four of these affiliates in 2023 partially offset by increased earnings on these remaining affiliates. Income Tax Expense Our effective tax rate increased to 15.3% in 2024 compared to 12.5% in 2023.
Presentation of Financial and Operating Data We operate on a fiscal year that ends on the last Tuesday in December. Fiscal year 2023 and fiscal year 2022 were both 52 weeks in length, and the fourth quarters were both 13 weeks in length.
Presentation of Financial and Operating Data We operate on a fiscal year that ends on the last Tuesday in December. Fiscal year 2024 was 53 weeks in length and, as such, the fourth quarter of fiscal 2024 was 14 weeks in length.
Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for the comparable restaurant base.
Key Measures We Use To Evaluate Our Company Key measures we use to evaluate and assess our business include the following: ● Comparable Restaurant Sales. Comparable restaurant sales reflect the change in sales for all company restaurants across all concepts, unless otherwise noted, over the same period of the prior year for the 37 Table of Contents comparable restaurant base.
For 2024, we expect an effective tax rate of approximately 14% based on forecasted operating results. 45 Table of Contents Segment Information We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba's 33, Jaggers and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba's 33.
Segment Information We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba's 33, Jaggers, and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba's 33. The Texas Roadhouse reportable segment includes the results of our company and franchise Texas Roadhouse restaurants.
The decrease was primarily due to the increase in average unit volume partially offset by higher depreciation expense at our newer restaurants. Impairment and Closure Costs, Net Impairment and closure costs, net were $0.3 million and $1.6 million in 2023 and 2022, respectively. In 2023, impairment and closure costs, net primarily related to ongoing closure costs of relocated stores.
Depreciation and Amortization Expenses Depreciation and amortization expenses, as a percentage of revenue, were 3.3% in both 2024 and in 2023. The increase in average unit volume was offset by higher depreciation expense at our newer restaurants. Impairment and Closure Costs, Net Impairment and closure costs, net were $1.2 million and $0.3 million in 2024 and 2023, respectively.
The breakage adjustment relates to a change in our estimate of breakage due to a shift in our historic redemption pattern which indicated that the percentage of gift cards sold that are not expected to be redeemed had increased.
The breakage adjustments relate to changes in our estimate of gift card breakage due to a shift in our historic redemption pattern which indicated that the percentage of gift cards sold that are not expected to be redeemed had increased. Franchise Royalties and Fees Franchise royalties and fees increased by $4.4 million or 16.1% compared to 2023.
Net income increased $35.1 million or 13.0% to $304.9 million in 2023 compared to $269.8 million in 2022 primarily due to higher restaurant margin dollars, as described below, partially offset by higher general and 39 Table of Contents administrative expenses and higher depreciation and amortization expenses.
The additional week added $114.7 million in revenue and a 2% benefit to store week growth. 39 Table of Contents Net income increased $128.7 million or 42.2% to $433.6 million in 2024 compared to $304.9 million in 2023 primarily due to higher restaurant margin dollars, as described below, partially offset by higher depreciation and amortization expenses and higher general and administrative expenses.
The credit facility has a maturity date of May 1, 2026. 47 Table of Contents As of December 26, 2023, we had no outstanding balance on the credit facility and had $295.3 million of availability, net of $4.7 million of outstanding letters of credit.
As of December 31, 2024, we had no outstanding borrowings under the credit facility and had $296.8 million of availability, net of $3.2 million of outstanding letters of credit. As of December 26, 2023, we had no outstanding balance on the credit facility and had $295.3 million of availability, net of $4.7 million of outstanding letters of credit.
Restaurant margin (in dollars and as a percentage of restaurant and other sales) 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 our non-royalty based retail initiatives that is included in Other.
Restaurant margin (in dollars and as a percentage of restaurant and other sales) represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent, and other operating costs. Restaurant margin is used by our chief operating decision maker to evaluate restaurant-level operating efficiency and performance.
Restaurant margin is used by our chief operating decision maker to evaluate restaurant-level operating efficiency and performance. A reconciliation of income from operations to restaurant margin is included in the Results of Operations section above.
A reconciliation of income from operations to restaurant margin is included in the Results of Operations section above.
The increase was primarily due to higher general liability insurance expense partially offset by an increase in average unit volume and lower supplies expense.
The decrease was driven by the increase in average unit volume partially offset by higher incentive compensation expense and higher general liability insurance expense. The increase in incentive compensation expense was due to favorable operating results and the increase in general liability insurance expense was due to unfavorable claims experience and an increase in retention levels.
Company restaurant count activity is shown in the restaurant unit activity table above. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 Company Restaurants: ​ ​ ​ ​ ​ ​ ​ Increase in store weeks ​ ​ 5.8 % ​ 6.1 % Increase in average unit volume ​ ​ 9.7 % ​ 9.4 % Other(1) ​ ​ — % ​ 0.4 % Total increase in restaurant sales ​ ​ 15.5 % ​ 15.9 % Other sales ​ ​ (0.1) % ​ 0.1 % Total increase in restaurant and other sales ​ ​ 15.4 % ​ 16.0 % ​ ​ ​ ​ ​ ​ ​ ​ Store weeks ​ ​ 32,050 ​ ​ 30,284 ​ Comparable restaurant sales ​ ​ 10.1 % ​ 9.7 % ​ ​ ​ ​ ​ ​ ​ ​ Texas Roadhouse restaurants: ​ ​ ​ ​ ​ ​ ​ Store weeks ​ ​ 29,528 ​ ​ 28,127 ​ Comparable restaurant sales ​ ​ 10.3 % ​ 9.7 % Average unit volume (in thousands) ​ $ 7,642 ​ $ 6,943 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weekly sales by group: ​ ​ ​ ​ ​ ​ ​ Comparable restaurants (527 and 499 units) ​ $ 147,274 ​ $ 134,085 ​ Average unit volume restaurants (22 and 20 units)(2) ​ $ 139,688 ​ $ 128,665 ​ Restaurants less than six months old (33 and 33 units) ​ $ 146,614 ​ $ 135,401 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bubba's 33 restaurants: ​ ​ ​ ​ ​ ​ ​ Store weeks ​ ​ 2,167 ​ ​ 1,936 ​ Comparable restaurant sales ​ ​ 5.5 % ​ 10.5 % Average unit volume (in thousands) ​ $ 5,921 ​ $ 5,620 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weekly sales by group: ​ ​ ​ ​ ​ ​ ​ Comparable restaurants (34 and 30 units) ​ $ 113,972 ​ $ 108,132 ​ Average unit volume restaurants (3 and 4 units)(2) ​ $ 112,698 ​ $ 107,636 ​ Restaurants less than six months old (8 and 6 units) ​ $ 114,312 ​ $ 121,791 ​ (1) Includes the impact of the year-over-year change in sales volume of all Jaggers restaurants, along with Texas Roadhouse and Bubba’s 33 restaurants open less than six months before the beginning of the period measured and, if applicable, the impact of restaurants permanently closed or acquired during the period.
Company restaurant count activity is shown in the restaurant unit activity table above. ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 Company Restaurants: ​ ​ ​ ​ ​ ​ ​ Increase in store weeks ​ 7.5 % ​ ​ 5.8 % Increase in average unit volume (1) ​ 7.8 % ​ ​ 9.7 % Other (2) ​ 0.8 % ​ ​ — % Total increase in restaurant sales ​ 16.1 % ​ ​ 15.5 % Other sales ​ (0.1) % ​ ​ (0.1) % Total increase in restaurant and other sales ​ 16.0 % ​ ​ 15.4 % ​ ​ ​ ​ ​ ​ ​ ​ Store weeks ​ 34,464 ​ ​ ​ 32,050 ​ Comparable restaurant sales ​ 8.5 % ​ ​ 10.1 % ​ ​ ​ ​ ​ ​ ​ ​ Texas Roadhouse restaurants: ​ ​ ​ ​ ​ ​ ​ Store weeks ​ 31,548 ​ ​ ​ 29,528 ​ Comparable restaurant sales ​ 8.6 % ​ ​ 10.3 % Average unit volume (in thousands) (1) $ 8,488 ​ ​ $ 7,642 ​ Average unit volume, 2023 adjusted (in thousands) (3) $ 8,488 ​ ​ $ 7,824 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weekly sales by group: ​ ​ ​ ​ ​ ​ ​ Comparable restaurants (549 and 527 units) $ 160,365 ​ ​ $ 147,274 ​ Average unit volume restaurants (17 and 22 units) $ 153,321 ​ ​ $ 139,688 ​ Restaurants less than six months old (42 and 33 units) $ 142,067 ​ ​ $ 146,614 ​ ​ ​ ​ ​ ​ ​ ​ ​ Bubba's 33 restaurants: ​ ​ ​ ​ ​ ​ ​ Store weeks ​ 2,485 ​ ​ ​ 2,167 ​ Comparable restaurant sales ​ 5.5 % ​ ​ 5.5 % Average unit volume (in thousands) (1) $ 6,276 ​ ​ $ 5,921 ​ Average unit volume, 2023 adjusted (in thousands) (3) $ 6,276 ​ ​ $ 6,048 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weekly sales by group: ​ ​ ​ ​ ​ ​ ​ Comparable restaurants (37 and 34 units) $ 120,354 ​ ​ $ 113,972 ​ Average unit volume restaurants (4 and 3 units) $ 100,477 ​ ​ $ 112,698 ​ Restaurants less than six months old (8 and 8 units) $ 125,511 ​ ​ $ 114,312 ​ (1) Average unit volume restaurants include restaurants open a full six to 18 months before the beginning of the period measured, excluding sales from restaurants permanently closed during the period, if applicable.
Our remaining operating segments, which include the results of our domestic company and franchise Jaggers restaurants and the results of our retail initiatives, are included in Other. Management uses restaurant margin as the primary measure for assessing performance of our segments.
The Bubba's 33 reportable segment includes the results of our company Bubba's 33 restaurants. Our remaining operating segments, which include the results of our company and franchise Jaggers restaurants and our retail initiatives, are included in Other.
Per person average check includes the benefit of menu price increases of approximately 2.2% and 2.7% implemented in Q2 2023 and Q4 2023, respectively, as well as increases of 3.2% and 2.9% implemented in Q2 2022 and Q4 2022, respectively.
Per person average check for 2024 includes the benefit of menu price increases of approximately 2.2% and 0.9% implemented in Q2 2024 and Q4 2024, respectively. We implemented menu price increases of approximately 2.2% and 2.7% in Q2 2023 and Q4 2023, respectively. In addition, we plan to implement a menu price increase of approximately 1.4% in early April.
The credit facility permits us to incur additional secured or unsecured indebtedness, except for the incurrence of secured indebtedness that in the aggregate is equal to or greater than $125.0 million and 20% of our consolidated tangible net worth. We were in compliance with all financial covenants as of December 26, 2023.
The lenders’ obligation to extend credit pursuant to the credit facility depends on us maintaining certain financial covenants, including a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. 47 Table of Contents The credit facility permits us to incur additional secured or unsecured indebtedness, except for the incurrence of secured indebtedness that in the aggregate is equal to or greater than $125.0 million and 20% of our consolidated tangible net worth.
Long-term Strategies to Grow Earnings Per Share and Create Shareholder Value Our long-term strategies with respect to increasing net income and earnings per share, along with creating shareholder value, include the following: ● Expanding Our Restaurant Base. We continue to evaluate opportunities to develop restaurants in existing markets and in new domestic and international markets.
Fiscal years 2023 and 2022 were both 52 weeks in length, and the fourth quarters were both 13 weeks in length. Long-term Strategies to Grow Earnings Per Share and Create Shareholder Value Our long-term strategies with respect to increasing net income and earnings per share, along with creating shareholder value, include the following: ● Expanding Our Restaurant Base.
In 2023, we opened 30 company restaurants, which included 22 Texas Roadhouse restaurants, five Bubba’s 33 restaurants and three Jaggers restaurants. We also completed the acquisition of eight domestic Texas Roadhouse franchise restaurants. In 2024, we expect store week growth of approximately 8% across all concepts, including a benefit of 2% from the 53 rd week.
In 2024, we opened 31 company restaurants, which included 26 Texas Roadhouse restaurants, four Bubba’s 33 restaurants, and one Jaggers restaurant. In 2024, we had store week growth of approximately 7.5% across all concepts, including a benefit of 2% from the additional week.
On February 14, 2023, our Board authorized the payment of a quarterly dividend of $0.55 per share of common stock compared to the quarterly dividend of $0.46 per share of common stock declared in 2022. The payment of quarterly dividends totaled $147.2 million and $124.1 million in 2023 and 2022, respectively.
This stock repurchase program has no expiration date and replaces the previous stock repurchase program which was approved in 2022. On February 14, 2024, our Board authorized the payment of a quarterly dividend of $0.61 per share of common stock compared to the quarterly dividend of $0.55 per share of common stock declared in 2023.
The increase in the refurbishment of existing restaurants is primarily due to increased maintenance needs driven by the high sales volumes at our restaurants. We require capital principally for the development of new company restaurants, the refurbishment or relocation of existing restaurants and the acquisition of franchise restaurants, if any.
The decrease was primarily due to the acquisition of franchise stores in 2023 partially offset by an increase in capital expenditures in 2024. We require capital principally for the development of new company restaurants, the refurbishment or relocation of existing restaurants, and the acquisition of franchise restaurants, as applicable.
We have entered into area development and franchise agreements for the development and operation of Texas Roadhouse restaurants in numerous foreign countries and one U.S. territory. We have also entered into area development agreements for Jaggers, our fast-casual concept. We opened our first two Jaggers franchise restaurants in 2023.
In addition, we continue to pursue opportunities to acquire domestic franchise locations to expand our company restaurant base. 36 Table of Contents We have entered into area development and franchise agreements for the development and operation of Texas Roadhouse restaurants in numerous foreign countries and one U.S. territory.
Domestic and international franchisees also typically pay an initial franchise fee and/or development fee for each new restaurant or territory. Food and Beverage Costs. Food and beverage costs consists of the costs of raw materials and ingredients used in the preparation of food and beverage products sold in our company restaurants.
Domestic and international franchisees also typically pay an initial franchise fee and/or development fee for each new restaurant or territory. Revenues related to our royalty-based retail products are also included within franchise royalties and fees. Food and Beverage Costs.
On March 17, 2022, our Board approved a stock repurchase program under which we may repurchase up to $300.0 million of our common stock. This stock repurchase program has no expiration date. All repurchases to date under our stock repurchase programs have been made through open market transactions.
This stock repurchase program has no expiration date. All repurchases to date under our stock repurchase programs have been made through open market transactions. In 2024, we paid $79.8 million, excluding excise taxes, to repurchase 461,662 shares of our common stock. In 2023, we paid $50.0 million, excluding excise taxes, to repurchase 455,026 shares of our common stock.
The increase was primarily due to higher sales which were partially offset by commodity and wage and other labor inflation. In addition, restaurant margin, as a percentage of restaurant and other sales, decreased to 15.5% in 2023 from 16.0% in 2022.
The increase in restaurant margin, as a percentage of restaurant and other sales, was primarily driven by higher sales. The benefit of a higher average guest check and labor productivity more than offset wage and other labor inflation of 4.6% and commodity inflation of 0.7%.
In 2023, we also completed the acquisition of eight domestic franchise Texas Roadhouse restaurants for an aggregate purchase price of $39.1 million. ● Maintaining and/or Improving Restaurant Level Profitability. We continue to focus on driving comparable restaurant sales to maintain or improve restaurant level profitability.
The franchise restaurants included 11 international Texas Roadhouse restaurants, including one restaurant in a U.S. territory, two domestic Jaggers restaurants, and our first international Jaggers restaurant. ● Maintaining and/or Improving Restaurant Level Profitability. We continue to focus on driving comparable restaurant sales to maintain or improve restaurant level profitability.
A separation payout, net of restricted stock forfeitures, of $2.6 million related to the retirement of an executive officer in the first quarter of 2023, and increased software hosting fees were offset by an increase in average unit volume. Interest Income (Expense), Net Interest income (expense), net was $3.0 million in 2023 compared to $(0.1) million in 2022.
The decrease was driven by the increase in average unit volume and a separation payout of $2.6 million in Q1 2023, related to the retirement of an executive officer, partially offset by higher restricted stock expense and incentive compensation expense. The increase in restricted stock expense was primarily due to shifting our restricted stock grants from quarterly to annually.
Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana. Since then, we have grown to three concepts with 741 restaurants in 49 states and ten foreign countries. As of December 26, 2023, our 741 restaurants included: ● 635 company restaurants, of which 615 were wholly-owned and 20 were majority- owned.
Since then, we have grown to three concepts with 784 restaurants in 49 states, one U.S. territory, and ten foreign countries. As of December 31, 2024, our 784 restaurants included: ● 666 company restaurants, of which 647 were wholly-owned and 19 were majority- owned. The results of operations of company restaurants are included in our consolidated statements of income.
Restaurant margin was negatively impacted by commodity inflation, driven by beef, and wage and other labor inflation which was partially offset by the benefit of higher sales. In our Bubba’s 33 reportable segment, restaurant margin dollars increased $7.0 million or 26.0% in 2023.
The increase was primarily due to higher sales and improved labor productivity partially offset by wage and other labor inflation as well as higher general liability insurance expense. In our Bubba’s 33 reportable segment, restaurant margin dollars increased $12.5 million or 36.8% in 2024.
If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the fair value of the reporting unit. At December 26, 2023, our Texas Roadhouse reporting unit had allocated goodwill of $169.7 million. No other reporting units had goodwill balances.
At December 31, 2024, our Texas Roadhouse reporting unit had allocated goodwill of $169.7 million. No other reporting units had goodwill balances.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

1 edited+0 added−0 removed7 unchanged
Biggest changeThe terms of the credit facility require us to pay interest on outstanding borrowings at SOFR, plus a fixed adjustment of 0.10%, plus a variable adjustment of 0.875% to 1.875% depending on our leverage ratio. As of December 26, 2023, we had no outstanding borrowings on our credit facility.
Biggest changeThe terms of the credit facility require us to pay interest on outstanding borrowings at the Term Secured Overnight Financing Rate ("SOFR"), plus a fixed adjustment of 0.10% and a variable adjustment of 0.875% to 1.875% depending on our leverage ratio. As of December 31, 2024, we had no outstanding borrowings on our credit facility.

Other TXRH 10-K year-over-year comparisons