Texas Roadhouse, Inc.

Good evening and welcome to the Texas Roadhouse First Quarter Earnings Conference Call. Today's call is being recorded. All participants are now in a listen-only mode. After the speaker's remarks, there will be a question and answer session. At that time, if you'd like to ask a question, please press star, then the number one on your telephone keypad. Should anyone need assistance at any time during the conference, please press star zero and an operator will assist you. I would now like to introduce Michael Balin, Head of Investor Relations for Texas Roadhouse. You may begin your conference.

Thank you, Kayla, and good evening. By now, you should have access to our earnings release for the first quarter ended April 1st, 2025. It may also be found on our website at TexasRoadhouse.com in the investor section. I would like to remind everyone that part of our discussion today will include forward-looking statements. These statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer all of you to our earnings release and our recent filings with the SEC. These documents provide a more detailed discussion of the relevant factors that could cause actual results to differ materially from those forward-looking statements. In addition, we may refer to non-GAAP measures. If applicable, reconciliations of the non-GAAP measures to the GAAP information can be found in our earnings release. On the call with me today is Jerry Morgan, Chief Executive Officer of Texas Roadhouse, and Chris Monroe, our Chief Financial Officer. Following the prepared remarks, we will be available to answer your questions. In order to accommodate everyone that would like to ask a question, Could everyone please limit yourself to one question? Now, I would like to turn the call over to Jerry.

Thanks, Michael, and good evening, everyone. We recently returned from our annual Managing Partner Conference, where we celebrated the performance of our restaurants and recognized the success of our top operators. Spending time surrounded by our partners leaves me inspired and energized by the passion and enthusiasm they have for operating great restaurants. Moving to our results, we remain pleased with the direction of our overall business and the demand for our brands is as strong as ever. For the first quarter, we generated over $1.4 billion of revenue and same store sales increased 3.5%, including positive traffic growth. After a somewhat mixed start to the year, Our top-line trends have returned to more normalized levels in March, April, and May. In fact, our average weekly sales for March hit all-time highs at all three brands. While we can't control the broader economic landscape, including potential tariffs, consumer sentiment, and other macro conditions, we see the current environment as an opportunity to double down on what we do best. We will stay true to our mission, values, and purpose, and continue to focus on what we can control, which is delivering legendary food and legendary service. It is our belief that despite any external factors, our recipe right food, high level hospitality, and everyday value will continue to resonate with our guests and drive long-term growth. On the development front, During the first quarter, we opened eight company-owned restaurants, including one Bubba's 33 location. With an additional 15 restaurants already open or under construction, we remain on track to open approximately 30 company-owned restaurants this year. This includes as many as seven Bubba's 33 openings, as well as one Jagger's. Our current outlook for franchise openings this year includes five international Texas roadhouses into domestic jaggers. In addition to the 13 franchise restaurants that were acquired at the beginning of the year we purchased one additional restaurant later in the first quarter and we expect to acquire another three restaurants in the second quarter. We also opened our 50th Bubba's 33 during the first quarter and have already opened two additional locations in the second quarter. We just completed our guest attitude and usage study for Bubba's 33, and it is providing us with a lot of good insight into the brand. It has reinforced our belief that Bubba's 33 is a family-friendly, sports-themed restaurant that appeals to consumers of all ages. Our guests expressed love for the brand and appreciation for the consistency, quality, and taste of our food. We also received high praise for our fun and energetic atmosphere. From a technology standpoint, our current initiatives are progressing as planned. 65% of our restaurants are currently using a digital kitchen. And the remainder of our restaurants are scheduled to convert by the end of this year. As we have said before, we believe these conversions are creating a more efficient kitchen and a less stressful environment for our roadies. Additionally, the upgrade of our guest management system is moving quickly. 70% of our restaurants have the new system with the rest on track to receive it by the end of year. This upgrade is allowing our operators to quote more accurate wait times and better manage their floor plan. This week, we are in the process of rolling out new beverage menus for our Texas Roadhouse restaurants. We are excited that for the first time we will be using regional beverage menus that are tailored to specific geographic preferences. These menus will also include our mocktails, as well as our $5 all day, every day beer and margarita offerings. Finally, I want to recognize or want to congratulate Ron Marcus from Concordville, Pennsylvania, as he was named our Texas Roadhouse Managing Partner of the Year. On the Bubba's 33 side, congratulations to Kyle Morris from Glen Burnie, Maryland, for being named the brand's Managing Partner of the Year. Additionally, I want to recognize Daniel Rivera of Covington, Louisiana for being named for the third time, our national meat cutter champion and Katie Vincent for being our support center roadie of the year. And lastly, I would like to congratulate and to thank all of our award finalists for their contributions, accomplishments, and passion for Texas Roadhouse. Now, Chris will provide some thoughts.