* Q4 EPS $0.12 vs est $0.10
* Revenue $227.4 mln vs est $221.8 mln
* Sees FY 2010 EPS growth of 5-10 pct
(Adds conference call details and analyst's comments; updates
By Renju Jose
BANGALORE, Feb 22 Texas Roadhouse Inc's
(TXRH.O) quarterly results beat Wall Street expectations on
lower commodity costs, and the casual dining chain raised the
lower end of its earnings outlook for fiscal 2010.
The company, which specializes in steaks and promotes a
western theme at its restaurants, expects earnings to rise 5 to
10 percent for fiscal 2010, up from its prior view of flat to
10 percent growth.
The outlook seem to be "somewhat conservative," given that
they may see better same-store sales in 2010, Oppenheimer
analyst Matthew DiFrisco said over phone.
The company had completed 2009 with 30 percent earnings
growth, but has only projected a 5 percent to 10 percent growth
rate this year, DiFrisco said.
"While it has been challenging to get a good read on sales
here at the beginning of 2010, particularly with weather
related issues, it certainly does not seem like things are
getting any worse," Chief Executive G.J. Hart said on a call
Hart said bad weather led to more closure days and
definitely impacted the company. "We did not quantify it, but
we know it had an impact on us."
Analyst DiFrisco said the weather impact has already been
embedded in the company's forecast.
"Take away weather, fundamental trends are strong and
improving," he said.
For the first seven weeks of fiscal 2010, same-store
restaurant sales fell about 1.2 percent. It sees same-store
sales to range between a fall of 2 percent to flat for 2010.
Texas Roadhouse also said it extended the term of its key
executives, including its chief executive and chief financial
officer, till January 2012, with no changes to annual base
salary and target bonuses.
For the fourth quarter, Texas Roadhouse earned $8.7
million, or 12 cents a share, compared with $6.1 million, or 9
cents a share, a year ago.
Revenue fell 3 percent to $227.4 million for the quarter.
Analysts were expecting earnings of 10 cents a share on
revenue of $221.8 million.
Shares of the Louisville, Kentucky-based restaurant chain
closed at $13.00 Monday on Nasdaq.
(Editing by Anil D'Silva)