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 of focusing on the fundamentals has

helped drive revenue.

On the new store opening front, we opened

19 T exas R oadhouse c ompany r estaurants

and nine f ranchi se r estaurants, primaril 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 restaurants, includi ng

28 i nternational r estaurants.

Heading into 2020, we intend to open a

restaurant on Joint Base Lewis-McChord in

the state of Washington later i n the 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 s elected because of demand from the

soldiers.

Speaking of high demand, as a result of our

traffic growth, we continue to expand our

restaurants through bumpouts and in some

cases relocating existing restaurants, so we

can serve more guests. We relocated four

restaurants i n 2019 and have five relocations

scheduled for 2020. With most relocations,

we gain additional parking, more seats, and

often better lease 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 best 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 r ole 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.

The future is bright for Texas Roadhouse.

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 t he 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.

Dear

Partners,

AS A FORMER TRACK

ATHLETE, I STILL HAVE

DREAMS (OR MAYBE THEY

ARE NIGHTMARES?) OF MY

COACH YELLING, “ FINISH

STRONG, T AYLOR, FINISH

STRONG!” IN T RACK,

FINISHING S TRONG WAS

ALL ABOUT YOUR TRAINING,

FOCUS, AND C OMMITMENT.

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.

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 39-7623

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 -5548

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) 638-5457

ST OCK L IST ING

Texas Roadhouse, Inc. Common Stock is listed on the

NASDAQ Stock Exchange under the symbol TXRH

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