restaurant and other sales or 2.4% of the increase in 2019 compared to 2018. Store weeks and comparable restaurant
sales increased 7.2% and 4.7%, respectively, at company restaurants in 2019.
Restaurant margin increased $50.1 million or 11.8% to $474.2 million in 2019 from $424.2 million in 2018 while
restaurant margin, as a percentage of restaurant and other sales, remained relatively unchanged at 17.3% in 2019
compared to 17.4% in 2018. The decrease in restaurant margin, as a percentage of restaurant and other sales, was
primarily due to higher labor costs as a result of higher average wage rates and prior staffing initiatives intended to
increase sales. These decreases were partially offset by lower cost of sales due to the benefit of higher average check.
Net income increased $16.2 million or 10.3% to $174.5 million in 2019 compared to $158.2 million in 2018
primarily due to higher restaurant margin dollars partially offset by higher depreciation and amortization expense,
general and administration expense, and income tax expense. Diluted earnings per share increased 11.9% to $2.46 from
$2.20 in the prior year. In addition, diluted earnings per share were positively impacted by $0.10 to $0.11 as a result of
the 53rd week.
Results of Operations
Fiscal Year
2019 2018 2017
$ % $ % $ %
(In thousands)
Consolidated Statements of Income:
Revenue:
Restaurant and other sales .................. 2,734,177 99.2 2,437,115 99.2 2,203, 017 99.3
Franchise royalties and fees... .............. 21,986 0.8 20,334 0.8 16,514 0.7
Total revenue ............................... 2,756,163 100.0 2,457,449 100.0 2,219,531 100.0
Costs and expenses:
(As a percentage of restaurant and other sales)
Restaurant operating costs (excluding
depreciation and amortization shown
separately below):
Cost of sales ............................ 883,357 32.3 795,300 32.6 721, 550 32.8
Labor .................................. 905,614 33.1 793,384 32.6 687, 545 31.2
Rent ................................... 52,531 1.9 48,791 2.0 44,807 2.0
Other operating ......................... 418,448 15.3 375,477 15.4 342, 702 15.6
(As a percentage of total revenue)
Pre-opening .............................. 20,156 0.7 19,051 0.8 19,274 0.9
Depreciation and amortization .............. 115,544 4.2 101,216 4.1 93,499 4.2
Impairment and closure, net ................ (899) NM 278 NM 654 NM
General and administrative ................. 149,389 5.4 136,163 5.5 123, 294 5.6
Total costs and expenses ...................... 2,544,140 92.3 2,269,660 92.4 2,033, 325 91.6
Income from operations ...................... 212,023 7.7 187,789 7.6 186, 206 8.4
Interest income (expense), net ................. 1,514 0.1 (591) (0.0) (1,577) (0.1)
Equity income from investments in
unconsolidated affiliates ...................... 378 0.0 1,353 0.1 1,488 0.1
Income before taxes ......................... 213,915 7.8 188,551 7.7 186, 117 8.4
Provision for income taxes .................... 32,397 1.2 24,257 1.0 48,581 2.2
Net income including noncontrolling interests.... 181,518 6.6 164,294 6.7 137,536 6.2
Net income attributable to noncontrolling
interests ................................... 7,066 0.3 6,069 0.2 6,010 0.3
Net income attributable to Texas Roadhouse,
Inc. and subsidiaries ......................... 174,452 6.3 158,225 6.4 131, 526 5.9
NM – Not meaningful