Texas Roadhouse 1Q profit rises 5 percent on revenue boost

LOUISVILLE, Ky.—Steakhouse Texas Roadhouse Inc. said Monday its first-quarter profit climbed 5 percent as revenue from newer locations helped offset higher costs for food and labor.

For the quarter ended March 25, net income rose to $12.9 million, or 17 cents per share, from $12.3 million, or 16 cents per share, in the prior-year quarter.

Analysts polled by Thomson Financial expected earnings of 15 cents per share.

Revenue jumped 18 percent to $211.2 million from $178.3 million in the first quarter of 2007. Analysts predicted revenue of $216.3 million.

The revenue boost was due to higher sales at newer locations. Same-store sales, or sales at locations open at least 18 months, fell 1.2 percent at company-owned restaurants and dipped 2.8 percent at franchise-operated locations.

Same-store sales is a key indicator of restaurant performance since it measures growth at existing stores rather than newly-opened ones.

Even though same-store sales fell, the revenue rise helped offset a 20 percent boost in cost of sales, which was largely due to higher food costs. Labor expenses also rose 21 percent because of a hike in the minimum wage.

Shares of Texas Roadhouse shed 3 cents to close at $10.43.