Texas Roadhouse, Inc. (TXRH) has reported a 25.35 percent rise in profit for the quarter ended Sep. 27, 2016. The company has earned $25.68 million, or $0.36 a share in the quarter, compared with $20.48 million, or $0.29 a share for the same period last year.
Revenue during the quarter grew 9.94 percent to $481.64 million from $438.09 million in the previous year period. Total expenses were 92.01 percent of quarterly revenues, down from 93.03 percent for the same period last year. This has led to an improvement of 101 basis points in operating margin to 7.99 percent.
Operating income for the quarter was $38.47 million, compared with $30.56 million in the previous year period.
Kent Taylor, chief executive officer of Texas Roadhouse, Inc., commented, "We are pleased to report another quarter of restaurant margin expansion and double-digit diluted earnings per share growth. Our results were driven by the opening of new restaurants, positive comparable restaurant sales and continued commodity deflation. As we move into the fourth quarter, our sales momentum continues with October comparable restaurant sales up 3.8%, including positive traffic growth." Taylor continued, "Looking ahead to 2017, we will stay focused on protecting our long-term brand position by enhancing our ongoing commitment to our value proposition with consumers and to legendary food and legendary service. This commitment has served us well with 26 consecutive quarters of positive traffic growth. In addition, our strong balance sheet and healthy cash flow allow us to continue to internally fund our growth, while returning excess capital to our shareholders through dividend payments and ongoing share repurchases."
Operating cash flow improves
Texas Roadhouse, Inc. has generated cash of $159.78 million from operating activities during the nine month period, up 21.50 percent or $28.27 million, when compared with the last year period. The company has spent $113.22 million cash to meet investing activities during the nine month period as against cash outgo of $124.83 million in the last year period.
The company has spent $24.18 million cash to carry out financing activities during the nine month period as against cash outgo of $20.19 million in the last year period.
Cash and cash equivalents stood at $81.71 million as on Sep. 27, 2016, up 12.53 percent or $9.10 million from $72.62 million on Sep. 29, 2015.
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