Texas Roadhouse Inc. (Nasdaq: TXRH ) is a casual dining concept that first opened in 1993 and today operates over 520 restaurants system-wide in 49 states and 6 foreign countries.

By Texas Roadhouse Inc.

Results for the fourth quarter included the following highlights:

• Comparable restaurant sales growth of 1.2%
• Restaurant margin, as a percentage of restaurant sales, decreased 44 basis points to 17.1%
• Diluted earnings per share decreased 10.3% primarily due to restaurant margin performance, higher general and administrative expenses and higher depreciation costs

Kent Taylor, Chief Executive Officer of Texas Roadhouse, Inc., commented, "We are pleased to deliver another strong year of results including a 19% increase in diluted earnings per share driven by double-digit revenue growth and restaurant margin expansion. We also delivered impressive comparable restaurant sales growth during 2016 with an increase of 3.5%, and we extended our streak of consecutive quarters of comparable restaurant sales growth to 28 with our fourth quarter increase. Lastly, our strong balance sheet and healthy cash flows allowed us to return $56.2 million of excess capital to shareholders through quarterly dividend payments and share repurchases during 2016."

Taylor continued, "In 2017, we expect to open approximately 30 company restaurants and seven franchise restaurants this year, which is over 7% growth system-wide. Going forward, the strength of our brand continues to be our people and our operational focus on delivering legendary food and legendary service."

Management updated the following expectations for 2017:

• Approximately 30 company restaurant openings, including approximately six Bubba's 33 restaurants;
• Food cost deflation of approximately 1.0% to 2.0% compared to previous guidance of low-single digit food cost deflation; and
• An income tax rate of 29.0% to 30.0% compared to previous guidance of 30.0% to 31.0%.

Management reiterated the following expectations for 2017:

• Positive comparable restaurant sales growth;
• Mid-single digit labor inflation; and
• Total capital expenditures of approximately $170.0 million, excluding any cash used for franchise acquisitions.

Cash Dividend Payment:

On February 16, 2017, our Board of Directors authorized the payment of a quarterly cash dividend of $0.21 per share of common stock. This payment, which will be distributed on March 31, 2017 to shareholders of record at the close of business on March 15, 2017, represents a 10.5% increase from the cash dividend of $0.19 per share of common stock declared during each quarter of 2016. Since the inception of our dividend program in 2011, our cash dividend per share of common stock has increased an average of 17.5% per year.