Texas Roadhouse, Inc.

Good evening and welcome to the Texas Roadhouse Second Quarter Earnings Conference Call. Today's call is being recorded. All participants are now in 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 Bailen, Vice President of Investor Relations for Texas Roadhouse. You may begin your conference.

Thank you, Holly, and good evening. By now, you should have access to our earnings release for the second quarter ended June 30th, 2026. It may also be found on our website at Texas Roadhouse Thank you. Thank you. Thank you. Thank you. 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 Mike Lenihan, 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're excited with our second quarter results as revenue approached $1.7 billion. We continued our top-line momentum with same-store sales increasing 6.2%, including 3% traffic growth. We're especially pleased that our second quarter average weekly sales exceeded $175,000 for the first time in our company's 33-year history. There's a lot to be proud of across our portfolio of restaurants. Each of our brands is at a different point in their journey, and I want to take some time to talk about the potential growth each brand has going forward. Texas Roadhouse ended the second quarter with 755 system-wide locations across the United States and 10 foreign countries. Average weekly sales at company restaurants were over $183,000. We are confident in our operators' ability to continue driving sales through traffic growth. The sales volume and consistent growth that our restaurants have delivered over the long term are a testament to the strength of the brand and the commitment of the best operators in the industry. This year, we expect to open approximately 20 Texas Roadhouse restaurants spread throughout the country. With the momentum in our existing location and a full pipeline of sites under development, the future continues to be incredibly bright for Texas Roadhouse. Bubba's 33 ended the quarter with 59 restaurants in 16 states. and just last week we celebrated the opening of our 60th location which is our first in the state of Iowa. Average weekly sales for the brand were over $129,000 in the second quarter and our recent openings continue to perform very well. Our expectation is to open at least 10 Bubba's 33 restaurants and maintain this low double-digit pace of openings for the next several years. Lastly, Jaggers also continues to perform well. In the quarter, weekly sales exceeded $76,000 and we opened our 11th company location. The remainder of this year's growth of the company side will be focused in our existing markets. We expect a total of four company openings this year. On the topic of development, we remain on track for approximately 35 company-owned openings this year. Nine of these occurred in the second quarter, including five Texas Roadhouses, three Bubba's 33s, and one Jagger's. As we mentioned last quarter, our openings this year are heavily weighted toward the end of the year. At this time, six are scheduled for the third quarter, The remainder of the 2026 openings are planned for the fourth quarter. On the franchise side, our partners opened one international Texas Roadhouse during the second quarter. We expect as many as five more international openings as well as two domestic Jagger's franchise openings in the second half of 2026. Moving on to menu pricing, We remain committed to maintaining our everyday value while also continuing to deliver on legendary food with high-level hospitality. Based on recently completed discussions with our operators, we will take a menu price increase of 1% at the beginning of the fourth quarter. We believe this level of pricing strikes an appropriate balance between helping to offset structural inflation and maintaining our everyday Thank you for joining us today. on one of those three days. And a handful of our restaurants really crushed it with single day sales exceeding $100,000 on one of those holidays. The trust that our guests show our restaurants on the most important dining occasions is one of our competitive advantages. This trust is earned in something we will not take for granted. Now, Mike will provide some thoughts. Thanks, Jerry.