Restaurant Rent Expense
Restaurant rent expense, as a percentage of restaurant and other sales, remained relatively unchanged at 2.0% in
2018 and 2017 and 2.1% in 2016. In all periods presented, higher rent expense, as a percentage of restaurant and other
sales, at our newer restaurants was offset by the benefit from an increase in average unit volume.
Restaurant Other Operating Expenses
Restaurant other operating expense, as a percentage of restaurant and other sales, decreased to 15.4% in 2018
from 15.6% in 2017. The decrease was primarily attributed to reclassifications of $4.7 million in 2018 made in
conjunction with the implementation of the new revenue recognition accounting guidance along with lower incentive
compensation expense and the benefit from an increase in average unit volume. The decrease was partially offset by
higher credit card fees.
Restaurant other operating expense, as a percentage of restaurant and other sales, increased to 15.6% in 2017
from 15.5% in 2016. The increase was primarily attributed to higher costs associated with credit card charges, general
liability insurance and disaster claims as well as higher gift card fees net of breakage. These increases were partially
offset by lower costs related to incentive compensation along with an increase in average unit volume. General liability
insurance increased due to the reduction of costs recorded in the prior year from changes in our claims development
history included in our quarterly actuarial reserve estimate. Disaster claims increased due to hurricane related damage
and costs related to other uninsured events.
Restaurant Pre - opening Expenses
Pre-opening expenses decreased to $19.1 million in 2018 from $19.3 million in 2017 and from $19.5 million in- These changes are primarily due to the number of restaurant openings in a given year and the timing of restaurant
openings. Pre - opening costs will fluctuate from period to period based on the specific pre - opening costs incurred for
each restaurant, the number and timing of restaurant openings and the number and timing of restaurant managers hired.
Depreciation and Amortization Expenses ("D&A")
D&A, as a percentage of revenue, decreased to 4.1% in 2018 compared to 4.2% in 2017 and 2016. In all periods
presented, the decrease in D&A is primarily due to the benefit from an increase in average unit volume partially offset
by increased investment in short-lived assets, such as equipment at existing restaurants, and higher depreciation at new
restaurants.
Impairment and Closure Costs
Impairment and closure costs were $0.3 million, $0.7 million and $0.2 million in 2018, 2017 and 2016,
respectively. In all periods presented, the amounts recorded were closure costs primarily related to the relocations of
Texas Roadhouse restaurants. See note 16 in the Consolidated Financial Statements for further discussion regarding
closures and impairments recorded in 2018, 2017 and 2016.