Research Desk Line-up: Wendy's Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Texas Roadhouse, Inc. (NASDAQ: TXRH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TXRH, following the Company's release of its financial results on July 31, 2017, for the second quarter fiscal 2017. The Company's revenue increased 11.3% on a y-o-y basis, exceeding market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected The Wendy's Company (NASDAQ: WEN) for due-diligence and potential coverage as the Company reported on August 09, 2017, its unaudited financial results for Q2 2017 which ended on July 02, 2017. Register for a free membership today, and be among the early birds that get access to our report on Wendy's when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TXRH; also brushing on WEN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=TXRH

http://protraderdaily.com/optin/?symbol=WEN

Earnings Reviewed

For three months ended June 27, 2017, Texas Roadhouse's revenue increased 11.3% to $566.26 million on a y-o-y basis from $508.81 million in Q2 FY16. The Company's restaurant sales increased 11.4% to $562.16 million from $504.63 million in Q2 FY16. The revenue surpassed analysts' expectations of $564.5 million.

For the reported quarter, Texas Roadhouse's global comparable restaurant sales growth was 4% compared to 4.5% increase in Q2 FY16, while domestic franchise restaurants grew 3.6% on a y-o-y basis. During Q2 FY17, the Company's restaurant margin decreased 28 basis points to 18.9% of restaurant sales from 19.2% of restaurant sales in Q2 FY16, primarily driven by wage rate inflation, partially offset by the benefit of lower food costs.

During Q2 FY17, Texas Roadhouse's D&A expenses increased 10 basis points to 4.1% of revenue from 4% of revenue in Q2 FY16. For the reported quarter, the Company's G&A expenses decreased 27 basis points to 5% of revenue from 5.27% of revenue in Q2 FY16. The decrease was mainly due to a decrease in cost related to conference.

During Q2 FY17, Texas Roadhouse's EBIT increased 9% to $54.21 million from $49.78 million in same quarter last year. For the reported quarter, the Company's tax rate was 27.9% compared to 30.2% in Q2 FY16. The decrease was due to the impact of new accounting guidance related to share-based compensation, effective from the beginning of 2017.

For the reported quarter, Texas Roadhouse's net income increased 12% on a y-o-y basis to $37.58 million from $33.61 million in Q2 FY16. The increase was mainly attributable to lower income tax rate. During Q2 FY17, the Company's diluted EPS increased 11% on a y-o-y basis to $0.53 from $0.47 in Q2 FY16. The diluted EPS for the reported quarter was in-line with analysts' expectations.

The Company's year-to-date net income increased 4% to $71.89 million in 2017 from $69.20 million in the same period last year. The year-to-date diluted EPS was $1.01 for 2017 compared to $0.98 for 2016.

During Q2 FY17, seven Company-owned restaurants were opened, including two Bubba's 33 restaurants.

Balance Sheet

As on June 27, 2017, Texas Roadhouse's cash and cash equivalents increased 3.2% to $116.51 million from $112.94 million in Q4 FY16. For the reported quarter, the Company's long-term debt decreased 17 basis points to $52.29 million from $52.38 million in Q4 FY16.

During H1 FY17, Texas Roadhouse's cash provided by operating activities increased 12.5% to $128.31 million from $114.07 million in H1 FY16.

Outlook

For Q3 FY17, Texas Roadhouse is expecting comparable restaurant sales growth at Company restaurants to be 4.6%. For fiscal 2017, Texas Roadhouse estimates to open 27-29 restaurants. The Company expects income tax rate to be 28% for fiscal 2017.

Stock Performance

On Monday, August 14, 2017, the stock closed the trading session at $49.43, marginally rising 0.37% from its previous closing price of $49.25. A total volume of 349.96 thousand shares have exchanged hands. Texas Roadhouse's stock price advanced 3.26% in the last three months, 3.17% in the past six months, and 7.25% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 2.47%. The stock is trading at a PE ratio of 29.80 and has a dividend yield of 1.70%. At Monday's closing price, the stock's net capitalization stands at $3.49 billion.

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SOURCE: Pro-Trader Daily