Texas Roadhouse, Inc. (TXRH) has reported a 3.60 percent fall in profit for the quarter ended Mar. 28, 2017. The company has earned $34.31 million, or $0.48 a share in the quarter, compared with $35.59 million, or $0.50 a share for the same period last year.
Revenue during the quarter grew 10.11 percent to $567.69 million from $515.56 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 37.55 percent. Total expenses were 91.36 percent of quarterly revenues, up from 89.76 percent for the same period last year. That has resulted in a contraction of 161 basis points in operating margin to 8.64 percent.
Operating income for the quarter was $49.02 million, compared with $52.81 million in the previous year period.
Kent Taylor, chief executive officer of Texas Roadhouse, Inc., commented, "We are pleased with our top-line momentum and operating performance in the first quarter of 2017 with positive comparable restaurant sales and traffic growth, which continued through the first four weeks of the second quarter. We credit our success to our operators' ability to execute on our mission of Legendary Food and Legendary Service every single shift. In addition, we remain committed to investing in new restaurant growth that generates solid returns and allows us to maintain a conservative capital structure."
Operating cash flow improves significantly
Texas Roadhouse, Inc. has generated cash of $94.34 million from operating activities during the quarter, up 45.38 percent or $29.45 million, when compared with the last year period.
The company has spent $52.59 million cash to meet investing activities during the quarter as against cash outgo of $34.18 million in the last year period.
The company has spent $17.18 million cash to carry out financing activities during the quarter as against cash inflow of $5.95 million in the last year period.
Cash and cash equivalents stood at $137.51 million as on Mar. 28, 2017, up 43.25 percent or $41.52 million from $95.99 million on Mar. 29, 2016.
Debt moves up marginally
Texas Roadhouse, Inc. has witnessed an increase in total debt over the last one year. It stood at $52.51 million as on Mar. 28, 2017, up 3.65 percent or $1.85 million from $50.66 million on Mar. 29, 2016. Total debt was 4.38 percent of total assets as on Mar. 28, 2017, compared with 4.77 percent on Mar. 29, 2016. Debt to equity ratio was almost stable at 0.07 as on Mar. 28, 2017, when compared with the last year. Interest coverage ratio deteriorated to 147.66 for the quarter from 173.15 for the same period last year.
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