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.

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