• Wed. Sep 22nd, 2021

Hot Stock in Focus: Texas Roadhouse, Inc. (NASDAQ: TXRH)

On 05 June 2020, Texas Roadhouse, Inc. (NASDAQ: TXRH) spotted trading -14.72% off 52-week high price. On the other end, the stock has been noted 145.81% away from the low price over the last 52-weeks. The stock changed 5.53% to recent value of $61.82. The stock transacted 559480 shares during most recent day however it has an average volume of 1935.87K shares. The company has 69.42M of outstanding shares and 64.94M shares were floated in the market.

Texas Roadhouse, Inc. (TXRH) recently provided a statement from Kent Taylor, Founder of Texas Roadhouse, reported financial results for the 13-week period ended March 31, 2020 and provided a business update in response to the COVID-19 pandemic.

Results for the first quarter included the following:

  • For the January, February and March periods, comparable restaurant sales at company restaurants increased 8.0%, increased 4.2% and reduced 29.7%, respectively.  The March period was negatively influenced by the onset of the COVID-19 pandemic.  For the quarter, comparable restaurant sales reduced 8.4% at company restaurants and 8.5% at domestic franchise restaurants;
  • Five company restaurants, including one Bubba’s 33, and one domestic franchise restaurant were opened.  One company restaurant and 22 international franchise locations were temporarily closed;
  • Restaurant margin, as a percentage of restaurant and other sales, was 12.1% and restaurant margin dollars were $78.6M.  Restaurant margin was negatively influenced by the decrease in comparable restaurant sales and included $10.7M of costs incurred for relief pay and benefits for hourly restaurant employees, including those who experienced a reduction in hours.  Benefits to front-line employees included sick pay, early access to vacation pay and coverage of their portion of insurance benefits;
  • The Company repurchased 252,409 shares of ordinary stock for $12.6M.  These repurchases continued through mid-March.  The Company ended the quarter with $230.6M of cash on hand and debt of $190.0M.  No proceeds from its revolving credit facility were used to repurchase shares;
  • The Company contributed about $400,000 to Andy’s Outreach Fund (named for its mascot, Andy Armadillo), started years ago by Dee Shaughnessy, the Company’s long time Director of Care and Concern, to assist Roadies in times of need (medical expenses, fires, funerals, etc.).  This amount plus the Founder’s recent personal donation of $5.0M dollars will provide assistance to many Roadies during this time of great need; and,
  • The Company and its Board of Directors implemented the following measures during the quarter to enhance financial flexibility:
    • Reduced capital expenditures by only continuing construction on nine restaurants, including one relocation site, that were substantially complete;
    • Suspended all quarterly cash dividends occurring after March 27, 2020;
    • Suspended all share repurchase activity;
    • Increased the borrowings under the revolving credit facility by $190M; and,
    • Reduced salaries including voluntary reductions of salary and bonus for the executive and leadership teams to make relief grants accessible for restaurant employees.  Each non-employee member of the Board of Directors has also volunteered to forgo their director and committee fees together with any cash retainers effective immediately and continuing throughout fiscal 2020.

Kent Taylor, Chief Executive Officer and Founder of Texas Roadhouse, Inc., commented, “Our concern has always been for our employees, our guests, and the communities we serve.  I am very proud of the entire Texas Roadhouse family and our vendor partners who have risen to the challenge to help feed America during these unprecedented times.  I have no doubt we will emerge even stronger than before.”

Its earnings per share (EPS) expected to touch remained 11.90% for this year while earning per share for the next 5-years is expected to reach at 3.50%. TXRH has a gross margin of 68.00% and an operating margin of 6.20% while its profit margin remained 5.20% for the last 12 months. According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of 23.38% from the mean of 20 days, 33.26% from mean of 50 days SMA and performed 17.15% from mean of 200 days price. Company’s performance for the week was 12.63%, 34.17% for month and YTD performance remained 4.01%.

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