Texas Roadhouse, Inc.

Good evening and welcome to the Texas Roadhouse Third 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 would 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 Human Beginner Conference.

Thank you, Julianne, and good evening. By now, you should have access to our earnings release for the third quarter ended September 30th, 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 Keith Humpik, our Interim 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'd like to turn the call over to Jerry.

Thanks, Michael, and good evening, everyone. Before we begin our formal remarks, I want to take a moment to recognize Michael Bailyn on his promotion to Vice President of Investor Relations. As many of you know, he has played a pivotal role in shaping our investor outreach and communicating the company's financial strategy. Congratulations, Michael. I am very proud of all you have done for Texas Roadhouse and I'm excited to see you continue to grow our investor relations program. Moving on to our quarterly results, our strong top line momentum continued in the third quarter with revenue topping $1.4 billion. Through the relentless efforts of the best operators in the business, we achieved our highest quarterly growth of the year in revenue same-store sales, and traffic. There's no doubt there is a healthy demand for our brands. Our people-first focus, value proposition, and operational excellence continue to be a winning formula to drive our long-term success. On the development front, we opened seven company-owned locations in the third quarter, including two Bubba's 33 restaurants and one Jagger's. We remain on track to open approximately 30 restaurants across the three brands in 2025. We have also acquired 20 franchise restaurants this year, including three purchased at the beginning of the fourth quarter. Our franchise partners opened two International Texas Roadhouse restaurants during the third quarter. We expect they will open one more franchise location in the fourth quarter. Looking ahead to 2026, we expect to open approximately 35 company-owned restaurants, including approximately 20 Texas Roadhouses, 10 Bubba's 33, and as many as five Jagger's. Additionally, as mentioned on last quarter's earnings call, we have an agreement in place to acquire our five remaining California franchise locations at the beginning of 2026. On the franchise side, Our partners are planning to open 10 new restaurants, including six international Texas roadhouses and four domestic daggers. Regarding consumer behavior in the third quarter, we are pleased with what we saw from our guests visiting our restaurants. As they continue to favor steaks in larger size entrees, in addition, we haven't seen any noticeable change in guest behavior since our 1.7% menu price increase at the beginning of the fourth quarter. The guest is also responding positively to our newer offerings on the beverage side. In addition to mocktails and our $5 all-day, everyday beverage specials, we are also having success with our regional approach to the beverage menu and offerings. For example, we are testing Dirty Sodas in Utah and Idaho, which have been well received by our guests. The regional approach allows us to be more receptive and responsive to local taste and potential trends. Our to-go business continues to show solid momentum. Our operators have done a great job focusing on speed and order accuracy. This focus has improved the overall guest experience, and as we become more efficient, our operators can take more orders per hour. Outside the four walls of our restaurants, We are also very excited about the retail segment of our business. Our retail strategy is about building guest awareness and engagement. Over the past several years, we have introduced mini rolls, buttery spreads, steak sauces, and dips. We are excited that between our gift cards and retail items, we have a presence in over 120,000 retail outlets across the country. We believe having our logo in the grocery store aisles helps keep Texas Roadhouse top of mind to our current and potential guests. Our success would not be possible without the partnership of our vendors. We just recently held our annual vendor partner summit. During this event, we met with many of our key suppliers. There were a number of takeaways around how we continue to work together to strengthen our partnership and ultimately better support our operators. Moving on to technology, approximately 95% of our restaurants are currently using a digital kitchen and upgraded guest management system. We expect the rollout of both systems to be completed by year end. As we look to next year, our operating philosophies remain unchanged despite the current inflationary environment. We will maintain our focus on driving top line through a combination of guest traffic growth and the expansion of our restaurant base. Will remain an industry leader in all and offering high level hospitality in everyday value to our guests and continue to invest in our roadies to ensure we remain an employer of choice. And finally, We will stay true to our mission, values, and purpose for the long-term health of the business. This is what has made us successful for over 30 years and what we believe best sets us up for further success going forward. Now, Keith will provide some thoughts.