Texas Roadhouse, Inc. Announces Second Quarter 2009 Results

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 week periods ended June 30, 2009.

Results for the quarter included:

• Comparable restaurant sales decreased 3.7% at company-owned restaurants and decreased 3.5% at franchise restaurants;
• Two company restaurants and one franchise restaurant opened, while one franchise restaurant closed;
• Restaurant margins increased 10 basis points;
• Diluted earnings per share increased 40% to $0.19 from $0.14 in the prior year period.

Results year-to-date included:

• Comparable restaurant sales decreased 2.4% at company-owned restaurants and decreased 2.7% at franchise restaurants;
• Eleven company restaurants and one franchise restaurant opened, while one franchise restaurant closed;
• Restaurant margins decreased 57 basis points;
• Diluted earnings per share increased 29% to $0.40 from $0.31 in the prior year period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, "We are pleased with our financial performance for the period, and while the consumer environment remained challenging from a sales perspective, we continue to benefit from a favorable commodities market. This allowed us to generate slightly better year-over-year restaurant margins after seven consecutive quarters of decline. Looking to the remainder of 2009 and into next year, we remain optimistic about our market position and believe that a focus on legendary food and service is the best path to market share gains and brand integrity. Underlying these efforts is an ongoing commitment to operational intensity and prudent capital allocation policies.”

Outlook for 2009

The Company reported that comparable restaurant sales for the first four weeks of the third quarter of fiscal 2009 decreased approximately 5.5% to 6.0% compared to the same period of the prior year.

While the economic outlook for 2009 remains uncertain, the Company announced it is now estimating 2009 diluted earnings per share to be up 5% to 10% as compared to its 53 week 2008 year. The Company’s target is based, in part, on the following assumptions for 2009:

• Approximately 15 company and two franchise restaurant openings;
• Total capital expenditures of $50-60 million; and
• Food cost deflation of 2.0% to 3.0%.

In addition, the Company noted that, as a result of the timing of prior year share repurchases, both second quarter and year-to-date fiscal 2009 diluted earnings per share growth benefitted from a much lower year-over-year share count. The Company anticipates this benefit will be substantially diminished for the remainder of the 2009 fiscal year. Also, the Company reminds investors that its fourth quarter of fiscal 2008 was a 14 week quarter as compared to a 13 week quarter in fiscal 2009 due to fiscal 2008 being a 53 week year. The Company estimates the extra week in the fourth quarter of 2008 accounted for $0.03 in diluted earnings per share.

Conference Call

The Company is hosting a conference call today, August 3, 2009, at 5:00 p.m. Eastern Time to discuss these results. The dial-in number is (888) 600-4862 or (913) 312-1397 for international calls. A replay of the call will be available for one week following the conference call. To access the replay, please dial (888) 203-1112 or (719) 457-0820 for international calls, and use 5414435 as the pass code.

There will be a simultaneous Web cast conducted at www.texasroadhouse.com.

About the Company

Texas Roadhouse is a casual dining concept that first opened in 1993 and today operates over 325 restaurants system-wide in 46 states. For more information, please visit the Company’s Web site at www.texasroadhouse.com.

Forward-looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties. Such statements are based upon the current beliefs and expectations of the management of the Company. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurants opening, the sales at these and our other company and franchise restaurants, changes in restaurant operating costs, our ability to acquire franchise restaurants, our ability to integrate the franchise restaurants we acquire or other concepts we develop, strength of consumer spending, conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customers or food supplies, acts of war or terrorism and other factors disclosed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Investors should take such risks into account when making investment decisions. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statements.