28

Bubba’s 33

553

28

Domestic

INTERNATIONAL

Restaurant

Locations

as of December 31, 2019

BOARD OF

Direct ors

CURTIS A. W ARFIELD

CEO a nd P resi dent

Win dham Advisors L LC

GRE GORY N. M OORE

Former Senior Vice President and Controller

Yum! B rands, Inc.

JAMES R. Z ARLEY

Former Chairman a nd C EO

Conversant, Inc.

KATHL EEN M. W IDMER

Group Chairman, C onsumer North A merica

Jo hnson & Johnson

W. K ENT TAYLOR

Founder, Chairman, C EO, a nd P resident

Texas Roadhouse, Inc.

Shareholder

Inf ormation

SUPP ORT C ENT ER

(Corporate Office)

6040 Dutchmans Lane, Louisville, KY 4 0205

(8 00) T EX-ROAD o r (800) 8 39-

ANNUAL MEETING

Thursday, May 14, 2 020

9:00 am E DT

Texas R oadhouse Support C enter

6040 Dutchmans L ane

Louisville, KY 4 0205

TRANSFER AGENT

Computershare

P.O. Box 505000, Louisville, KY 4 0233

Phone (877) 5 81 -

FINANCIA L I NQUIRIES

For a dditional fi nancial d ocuments and i nformation,

please visit our website at texasroadhouse.com. Please

contact us by phone at (502) 515-7300 or by sending us

an emai l t o [email protected]

INDEP ENDEN T A UDITORS

KPMG LLP

40 0 W. Market Street, Suite 2600, Louisville, KY 4 0202

Phone (502) 587-053 5

MEDI A I NQUIRIES

For all media requests, please contact

Travis Doster at (502) 638-

ST OCK L IST ING

Texas Roadhouse, Inc. Common Stock is listed on the

NASDAQ Stock Exchange under the symbol TXRH

Dear

Partners,

AS A FORMER TRACK ATHLETE,

I STILL HAVE DREAMS OF MY

HIGH S CHOOL T RACK C OACH,

DICK BELMEAR, YELLING,

“FINISH STRONG, T AYLOR,

FINISH STRONG!” I N TRACK,

FINISHING S TRONG WAS

ALL ABOUT YOUR TRAINING,

FOCUS, C OMMITMENT,

AND S TAMINA.

Those qualities are also what

it takes to finish strong in

the restaurant industry year

after year. I am proud to say

that, thanks to our operators

and support teams, 2019 was

another strong year. The fourth

quarter of 2019 represented

our 40th consecutive quarter of

positive comparable restaurant

sal es growth. To consistently

grow sal es and traffic for a

decade is truly amazing, and

it speaks to the quality of our

people and their commitment

to Texas Roadhouse.

We fi ni shed 2 019 wit h c omparable r estaurant

sales up 4.7% for company restaurants. As a

result , our average unit volumes increased

to $5.6 million. A decade earlier, our average

unit volumes were $3.7 million, so over a

10-year period our operators drove nearly

$2 million more per unit on average, which

is p henomenal.

Our revenue increased 12.2% to $2.8 billion

and diluted e arni ngs p er s har e i ncreased

11.9% to $2.46. Ten years ago, our revenue

was just $900 million, which shows our

strategy o f focusing on the fundamentals has

helped d rive r evenue.

On the new store opening front, we opened

19 T exas R oadhouse c ompany r estaurants

and nine f ranchi se r estaurants, p rimaril y i n

international markets. We also opened three

Bubba’s 3 3 r estaurants.

We ended the year with a total of 611 stores –

484 T exas R oadhouse c ompany r estaurants,

28 Bubba’s 33 company restaurants, t wo

Jaggers company restaurants, and 97 Texas

Roadhouse f ranchi se r estaurants, includi ng

28 i nternational r estaurants.

We intend to open a restaurant on Joint Base

Lewis-McChord in the state of Washington

later this year. This represents our third

location on a military base, along with Camp

Humphrey’s in South Korea and Fort Bliss

in Texas. We are proud to be one of the only

full-service restaurants on these bases and

even prouder that we were selected because

of requests from the soldiers.

As a result of our traffic growth, we continue

to e xpand o ur r estaurants t hrough b umpouts

and in some cases relocating existing

restaurants, so we can serve more guests. We

relocated four restaurants in 2 01 9 and have

up to five relocations scheduled for 2020.

With most relocations, we gain additional

parking, more seats, and often better l ease

terms. We also see about a 20% increase in

sales with the newer unit.

We c ontinue t o r emain c ommitted t o d rivin g

shar eholder v al ue. Our s trong b al ance

sheet and healt hy cash flow enabled us to

repurchase over 2.6 million shares in 2019,

and we also increased our dividend by double

digits for the seventh straight year.

Another l esson I learned from my coach that

I have applied to business is the importance

of recognizing great performance. At Texas

Roadhouse, we do that i n many ways. From

our Managing Partner model t o offering

stock g rants and annual r ecognition o f s trong

performers, such as Managing Partner of the

Year, Roadie of the Year, Meat Cutter of the

Year, and many other awards, we believe it’s

important to spotlight high performers, such

as Dwight Szabo and Bonnie Hubrich.

Dwight was named Managing Partner of the

Year at our 2019 annual conference. He and

his team grew sales 9.2% (nearly $650,0 00)

and grew traffic by 6.8% with incredible

efficiency. Dwight, who is a two-time finalist,

grew profits by keeping a tight eye on costs

and producing some of the b est turnover

numbers in the company. Dwight also earned

the Legendary Service, Legendary Profits,

and Legendary People awards at our

annual c onference.

Bonnie Hubrich was named our Roadie of

the Year. She has been a true partner for the

entir e Support C enter in h er role a s E xecutive

Assistant to our Vice President of People

and the People Department. She earned this

honor because of her willingness to go above

and beyond to support everyone who passes

by her desk. Bonnie is a true role model of our

core v al ues and o ur culture.

Over the past 10 years, we have added over

220 Texas Roadhouse domestic stores,

created two new concepts, and expanded our

footprint to 10 foreign countries. We have

done this because of our people. I have said

it many times before, but we are first and

foremost a p eople c ompany t hat h appens

to serve steak. I t’s the people who make it

happen every day, and it’s the people who

help us cross the finish line strong time and

time a gain!

Kent Taylor

Founder, Chairman, C EO, a nd P resident

Texas Roadhouse, Inc.

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