Texas Roadhouse, Inc. Announces Fourth Quarter 2009 Results

Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 52 week periods ended December 29, 2009.

Results for the fourth quarter:

* ;

* Five company restaurants opened and one franchise restaurant was acquired;

* Restaurant margins increased 237 basis points to 17.4%;

* Diluted earnings per share increased 40% to $0.12 from $0.09 in the prior year period.

Results for the full year:

* Comparable restaurant sales decreased 2.8% at company restaurants and 2.5% at franchise restaurants;

* 17 company restaurants and 3 franchise restaurants opened and one franchise restaurant was acquired;

* Restaurant margins increased 71 basis points to 17.7%;

* Diluted earnings per share increased 29% to $0.67 from $0.52 in the prior year period.

G.J. Hart, President and Chief Executive Officer of Texas Roadhouse, commented, 'Sales trends continued to improve throughout the fourth quarter and, combined with a favorable commodities environment, we were able to generate our third consecutive quarter of year-over-year restaurant margin improvement. This drove profitability for the period and capped off a year where earnings per diluted share increased 29%, solidly exceeding our expectations. Looking to 2010 and beyond, we continue to believe Texas Roadhouse is well-positioned to gain market share based on our ongoing commitment to the basics of providing Legendary Food and Legendary Service. In addition, we remain committed to maintaining a conservative balance sheet.'

Outlook for 2010

The Company reported that comparable restaurant sales for the first seven weeks of fiscal 2010 decreased approximately 1.2% compared to the same period a year ago.

The Company estimates 2010 diluted earnings per share growth will be 5% to 10% compared to 2009. This estimate is based, in part, on the following assumptions:

* Comparable restaurant sales of negative 2% to flat;

* Approximately 15 company restaurant openings;

* Food cost deflation of approximately 2.5% to 3.0%; and

* Total capital expenditures of between $50-55 million.

Extension of Executive Officer Employment Contracts

On February 18, 2010, the Company amended the employment agreements of W. Kent Taylor, Chairman; G.J. Hart, President and Chief Executive Officer; Steven L. Ortiz, Chief Operating Officer; Scott M. Colosi, Chief Financial Officer; and Sheila C. Brown, General Counsel and Corporate Secretary. The amendments extended the term of each officer