UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2021

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to

Commission File Number 000-50972

Texas Roadhouse, Inc.

(Exact name of registrant specified in its charter)

Delaware	20-1083890
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification Number)

6040 Dutchmans Lane, Suite 200

Louisville, Kentucky 40205

(Address of principal executive offices) (Zip Code)

(502) 426-9984

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	TXRH	NASDAQ Global Select Market

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   ☒  No  ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   ☒  No  ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  ☒	Accelerated Filer  ☐	Non-accelerated Filer  ☐	Smaller Reporting Company  ☐
			Emerging Growth Company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☐  No  ☒.

The number of shares of common stock outstanding were 69,645,006 on October 27, 2021.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1 — Financial Statements (Unaudited) — Texas Roadhouse, Inc. and Subsidiaries	3
Condensed Consolidated Balance Sheets — September 28, 2021 and December 29, 2020	3
Condensed Consolidated Statements of Income and Comprehensive Income — For the 13 and 39 Weeks Ended September 28, 2021 and September 29, 2020	4
Condensed Consolidated Statement of Stockholders’ Equity — For the 13 and 39 Weeks Ended September 28, 2021 and September 29, 2020	5
Condensed Consolidated Statements of Cash Flows — For the 39 Weeks Ended September 28, 2021 and September 29, 2020	7
Notes to Condensed Consolidated Financial Statements	8
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3 — Quantitative and Qualitative Disclosures About Market Risk	30
Item 4 — Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1 — Legal Proceedings	32
Item 1A — Risk Factors	32
Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3 — Defaults Upon Senior Securities	32
Item 4 — Mine Safety Disclosures	33
Item 5 — Other Information	33
Item 6 — Exhibits	33
Signatures	34

2

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

	September 28, 2021		December 29, 2020
Assets
Current assets:
Cash and cash equivalents	$	436,563	$	363,155
Receivables, net of allowance for doubtful accounts of $14 at September 28, 2021 and $11 at December 29, 2020		52,346		98,418
Inventories, net		27,784		22,364
Prepaid income taxes		4,793		4,502
Prepaid expenses and other current assets		16,429		22,212
Total current assets		537,915		510,651
Property and equipment, net of accumulated depreciation of $842,686 at September 28, 2021 and $763,700 at December 29, 2020		1,139,661		1,088,623
Operating lease right-of-use assets, net		558,452		530,625
Goodwill		127,001		127,001
Intangible assets, net of accumulated amortization of $14,911 at September 28, 2021 and $14,341 at December 29, 2020		1,701		2,271
Other assets		77,823		65,990
Total assets	$	2,442,553	$	2,325,161
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of operating lease liabilities	$	21,327	$	19,271
Current maturities of long-term debt		—		50,000
Accounts payable		80,444		66,977
Deferred revenue-gift cards		160,670		232,812
Accrued wages and payroll taxes		43,862		51,982
Income taxes payable		5,228		2,859
Accrued taxes and licenses		33,451		24,751
Other accrued liabilities		98,872		57,666
Total current liabilities		443,854		506,318
Operating lease liabilities, net of current portion		603,964		572,171
Long-term debt		190,000		190,000
Restricted stock and other deposits		8,023		7,481
Deferred tax liabilities, net		2,370		2,802
Other liabilities		113,735		103,338
Total liabilities		1,361,946		1,382,110
Texas Roadhouse, Inc. and subsidiaries stockholders’ equity:
Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding)		—		—
Common stock ($0.001 par value, 100,000,000 shares authorized, 69,735,401 and 69,561,861 shares issued and outstanding at September 28, 2021 and December 29, 2020, respectively)		70		70
Additional paid-in-capital		146,898		145,626
Retained earnings		918,302		781,915
Accumulated other comprehensive loss		(96)		(106)
Total Texas Roadhouse, Inc. and subsidiaries stockholders’ equity		1,065,174		927,505
Noncontrolling interests		15,433		15,546
Total equity		1,080,607		943,051
Total liabilities and equity	$	2,442,553	$	2,325,161

See accompanying notes to condensed consolidated financial statements.

3

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

(unaudited)

	13 Weeks Ended				39 Weeks Ended
	September 28, 2021		September 29, 2020		September 28, 2021		September 29, 2020
Revenue:
Restaurant and other sales	$	862,757	$	626,429	$	2,550,124	$	1,747,145
Franchise royalties and fees		6,186		4,756		18,236		12,989
Total revenue		868,943		631,185		2,568,360		1,760,134
Costs and expenses:
Restaurant operating costs (excluding depreciation and amortization shown separately below):
Food and beverage		298,164		201,308		845,150		575,529
Labor		286,593		217,275		832,776		652,976
Rent		15,089		13,723		44,497		40,445
Other operating		127,769		102,978		386,754		296,615
Pre-opening		6,740		4,894		17,327		14,296
Depreciation and amortization		31,627		29,364		94,146		87,434
Impairment and closure, net		29		716		550		871
General and administrative		41,234		25,951		114,807		88,520
Total costs and expenses		807,245		596,209		2,336,007		1,756,686
Income from operations		61,698		34,976		232,353		3,448
Interest expense, net		604		1,502		3,039		2,601
Equity income (loss) from investments in unconsolidated affiliates		266		1		288		(597)
Income before taxes	$	61,360	$	33,475	$	229,602	$	250
Income tax expense (benefit)		7,144		3,072		31,031		(13,999)
Net income including noncontrolling interests		54,216		30,403	$	198,571	$	14,249
Less: Net income attributable to noncontrolling interests		1,610		1,173		6,335		2,543
Net income attributable to Texas Roadhouse, Inc. and subsidiaries	$	52,606	$	29,230	$	192,236	$	11,706
Other comprehensive income, net of tax:
Foreign currency translation adjustment, net of tax of $0, ($25), ($3) and ($16), respectively		—		74		10		47
Total comprehensive income	$	52,606	$	29,304	$	192,246	$	11,753
Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:
Basic	$	0.75	$	0.42	$	2.76	$	0.17
Diluted	$	0.75	$	0.42	$	2.74	$	0.17
Weighted average shares outstanding:
Basic		69,808		69,446		69,745		69,410
Diluted		70,146		69,898		70,148		69,830
Cash dividends declared per share	$	0.40	$	—	$	0.80	$	0.36

See accompanying notes to condensed consolidated financial statements.

4

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

	For the 13 Weeks Ended September 28, 2021
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, June 29, 2021	69,830,389	$	70	$	153,248	$	893,613	$	(96)	$	1,046,835	$	15,848	$	1,062,683
Net income	—		—		—		52,606		—		52,606		1,610		54,216
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(2,025)		(2,025)
Dividends declared ($0.40 per share)	—		—		—		(27,917)		—		(27,917)		—		(27,917)
Shares issued under share-based compensation plans including tax effects	94,971		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(28,925)		—		(2,647)		—		—		(2,647)		—		(2,647)
Repurchase of shares of common stock	(161,034)		—		(14,683)		—		—		(14,683)		—		(14,683)
Share-based compensation	—		—		10,980		—		—		10,980		—		10,980
Balance, September 28, 2021	69,735,401	$	70	$	146,898	$	918,302	$	(96)	$	1,065,174	$	15,433	$	1,080,607
	For the 13 Weeks Ended September 29, 2020
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, June 30, 2020	69,403,969	$	69	$	135,068	$	733,136	$	(252)	$	868,021	$	14,698	$	882,719
Net income	—		—		—		29,230		—		29,230		1,173		30,403
Other comprehensive income, net of tax	—		—		—		—		74		74		—		74
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(284)		(284)
Shares issued under share-based compensation plans including tax effects	113,453		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(34,900)		—		(1,989)		—		—		(1,989)		—		(1,989)
Share-based compensation	—		—		7,580		—		—		7,580		—		7,580
Balance, September 29, 2020	69,482,522	$	69	$	140,659	$	762,366	$	(178)	$	902,916	$	15,587	$	918,503

5

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

	For the 39 Weeks Ended September 28, 2021
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 29, 2020	69,561,861	$	70	$	145,626	$	781,915	$	(106)	$	927,505	$	15,546	$	943,051
Net income	—		—		—		192,236		—		192,236		6,335		198,571
Other comprehensive income, net of tax	—		—		—		—		10		10		—		10
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(6,448)		(6,448)
Dividends declared ($0.80 per share)	—		—		—		(55,849)		—		(55,849)		—		(55,849)
Shares issued under share-based compensation plans including tax effects	493,479		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(158,905)		—		(14,842)		—		—		(14,842)		—		(14,842)
Repurchase of shares of common stock	(161,034)		—		(14,683)		—		—		(14,683)		—		(14,683)
Share-based compensation	—		—		30,797		—		—		30,797		—		30,797
Balance, September 28, 2021	69,735,401	$	70	$	146,898	$	918,302	$	(96)	$	1,065,174	$	15,433	$	1,080,607
	For the 39 Weeks Ended September 29, 2020
								Accumulated		Total Texas
				Additional				Other		Roadhouse, Inc.
		Par		Paid-in-		Retained		Comprehensive		and		Noncontrolling
	Shares	Value		Capital		Earnings		Loss		Subsidiaries		Interests		Total
Balance, December 31, 2019	69,400,252	$	69	$	140,501	$	775,649	$	(225)	$	915,994	$	15,175	$	931,169
Net income	—		—		—		11,706		—		11,706		2,543		14,249
Other comprehensive income, net of tax	—		—		—		—		47		47		—		47
Distributions to noncontrolling interest holders	—		—		—		—		—		—		(2,131)		(2,131)
Dividends declared ($0.36 per share)	—		—		—		(24,989)		—		(24,989)		—		(24,989)
Shares issued under share-based compensation plans including tax effects	501,930		—		—		—		—		—		—		—
Indirect repurchase of shares for minimum tax withholdings	(167,251)		—		(9,291)		—		—		(9,291)		—		(9,291)
Repurchase of shares of common stock	(252,409)				(12,621)		—		—		(12,621)		—		(12,621)
Share-based compensation	—		—		22,070		—		—		22,070		—		22,070
Balance, September 29, 2020	69,482,522	$	69	$	140,659	$	762,366	$	(178)	$	902,916	$	15,587	$	918,503

6

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	39 Weeks Ended
	September 28, 2021		September 29, 2020
Cash flows from operating activities:
Net income including noncontrolling interests	$	198,571	$	14,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		94,146		87,434
Deferred income taxes		(435)		(15,572)
Loss on disposition of assets		2,312		2,107
Impairment and closure costs		512		799
Equity (income) loss from investments in unconsolidated affiliates		(288)		597
Distributions of income received from investments in unconsolidated affiliates		729		205
Provision for doubtful accounts		3		9
Share-based compensation expense		30,797		22,070
Changes in operating working capital:
Receivables		46,395		67,281
Inventories		(5,420)		378
Prepaid expenses and other current assets		5,311		5,045
Other assets		(11,553)		(6,185)
Accounts payable		13,667		(771)
Deferred revenue—gift cards		(72,142)		(62,788)
Accrued wages and payroll taxes		(8,120)		(4,874)
Prepaid income taxes and income taxes payable		2,078		(837)
Accrued taxes and licenses		8,700		(2,144)
Other accrued liabilities		27,252		504
Operating lease right-of-use assets and lease liabilities		5,797		3,519
Other liabilities		10,397		35,009
Net cash provided by operating activities		348,709		146,035
Cash flows from investing activities:
Capital expenditures—property and equipment		(139,001)		(117,521)
Proceeds from sale of property and equipment		—		32
Proceeds from sale leaseback transactions		5,588		2,167
Net cash used in investing activities		(133,413)		(115,322)
Cash flows from financing activities:
(Payments on) proceeds from revolving credit facility, net		(50,000)		240,000
Debt issuance costs		(708)		(641)
Distributions to noncontrolling interest holders		(6,448)		(2,131)
Proceeds from (payments on) restricted stock and other deposits, net		642		(283)
Indirect repurchase of shares for minimum tax withholdings		(14,842)		(9,291)
Repurchase of shares of common stock		(14,683)		(12,621)
Dividends paid to shareholders		(55,849)		(24,989)
Net cash (used in) provided by financing activities		(141,888)		190,044
Net increase in cash and cash equivalents		73,408		220,757
Cash and cash equivalents—beginning of period		363,155		107,879
Cash and cash equivalents—end of period	$	436,563	$	328,636
Supplemental disclosures of cash flow information:
Interest paid, net of amounts capitalized	$	2,632	$	1,654
Income taxes paid	$	29,388	$	2,419
Capital expenditures included in current liabilities	$	28,363	$	12,164

See accompanying notes to condensed consolidated financial statements.

7

Texas Roadhouse, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(tabular amounts in thousands, except share and per share data)

(unaudited)

(1)  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc. ("TRI"), our wholly-owned subsidiaries and subsidiaries in which we have a controlling interest (collectively the "Company," "we," "our" and/or "us") as of September 28, 2021 and December 29, 2020 and for the 13 and 39 weeks ended September 28, 2021 and September 29, 2020.

As of September 28, 2021, we owned and operated 555 restaurants and franchised an additional 99 restaurants in 49 states and ten foreign countries. Of the 555 company restaurants that were operating at September 28, 2021, 535 were wholly-owned and 20 were majority-owned. Of the 99 franchise restaurants, 69 were domestic restaurants and 30 were international restaurants.

As of September 29, 2020, we owned and operated 526 restaurants and franchised an additional 97 restaurants in 49 states and ten foreign countries. Of the 526 company restaurants that were operating at September 29, 2020, 506 were wholly-owned and 20 were majority-owned. Of the 97 franchise restaurants, 70 were domestic restaurants and 27 were international restaurants.

As of September 28, 2021 and September 29, 2020, we owned a 5.0% to 10.0% equity interest in 24 domestic franchise restaurants. Additionally, as of September 28, 2021 and September 29, 2020, we owned a 40% equity interest in two and four non-Texas Roadhouse restaurants, respectively, as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our unaudited condensed consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our unaudited condensed consolidated statements of income and comprehensive income under equity income (loss) from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the entities whose accounts have been consolidated have been eliminated.

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to insurance reserves, leases and leasehold improvements, legal reserves, gift card breakage and third party fees and income taxes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, except that certain information and footnotes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the "SEC"). Operating results for the 13 and 39 weeks ended September 28, 2021 are not necessarily indicative of the results that may be expected for the year ending December 28, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 29, 2020.

Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate.

8

Risks and Uncertainties

The Company has been subject to risks and uncertainties as a result of the COVID-19 pandemic (the "pandemic"). These include federal, state and local restrictions on restaurants, some of which have limited capacity or seating in the dining rooms while others have allowed to-go or curbside service only. As of September 28, 2021, all of our domestic company and franchise locations were operating without restriction. As of September 29, 2020, nearly all of our domestic company and franchise restaurants were operating their dining rooms under various limited capacity restrictions.

As a result of these restrictions, we developed a hybrid operating model to accommodate our dining room restrictions together with enhanced to-go. We continue to see increased sales in our to-go program over pre-pandemic levels, even with dining rooms operating without restriction. We cannot predict how long we will continue to be impacted by the pandemic, the extent to which our dining rooms will have to close again or otherwise have limited seating, or if the increased sales in our to-go program will continue. The extent to which COVID-19 impacts our business, results of operations, or financial condition will depend on future developments which are outside of our control. This includes the efficacy and public acceptance of vaccination programs or testing mandates in curbing the spread of the virus, the introduction and spread of new variants of the virus, which may prove resistant to currently approved vaccines, and new or reinstated restrictions or regulations on our operations. In addition, significant items subject to estimates and assumptions including the carrying amount of property and equipment, goodwill, and lease related assets could be impacted.

(2) Recent Accounting Pronouncements

Income Taxes

(Accounting Standards Update 2019-12, "ASU 2019-12")

In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removed certain exceptions related to the approach for intraperiod tax allocations, the calculation of income taxes in interim periods, and the recognition of deferred taxes for investments. This guidance also simplified aspects of accounting for recognizing deferred taxes for taxable goodwill. We adopted ASU 2019-12 as of the beginning of our 2021 fiscal year. The adoption of this standard did not have a significant impact on our condensed consolidated financial statements.

Reference Rate Reform

(Accounting Standards Update 2020-04, "ASU 2020-04")

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting. These changes are intended to simplify the market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective upon issuance to modifications made as early as the beginning of the interim period through December 31, 2022. We are currently assessing the impact of this new standard on our condensed consolidated financial statements.

(3)   Long-term Debt

On May 4, 2021, we entered into an agreement to amend our revolving credit facility with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A. and PNC Bank, N.A. The amended revolving credit facility remains an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. The amendment also extended the maturity date to May 1, 2026.

9

Prior to the amendment, our original revolving credit facility had a borrowing capacity of up to $200.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. On May 11, 2020, we amended the original revolving credit facility to provide for an incremental revolving credit facility of up to $82.5 million. This amount reduced the additional $200.0 million that was available under the original revolving credit facility.

As of May 4, 2021, before the amendment, we had $190.0 million outstanding on the original revolving credit facility and $50.0 million outstanding on the incremental revolving credit facility. As part of the amendment, the $190.0 million remained outstanding on the amended revolving credit facility and the $50.0 million was repaid.

The terms of the amendment require us to pay interest on outstanding borrowings at LIBOR plus a margin of 0.875% to 1.875% and pay a commitment fee of 0.125% to 0.30% per year on any unused portion of the revolving credit facility, in each case depending on our leverage ratio. The amendment also provides an Alternate Base Rate that may be substituted for LIBOR.

As of September 28, 2021, we had $190.0 million outstanding on the amended revolving credit facility and $101.8 million of availability, net of $8.2 million of outstanding letters of credit. This outstanding amount is included as long-term debt on our unaudited condensed consolidated balance sheet.

As of December 29, 2020, we had $190.0 million outstanding on the original revolving credit facility which is included as long-term debt on our unaudited condensed consolidated balance sheet. In addition, we had $50.0 million outstanding on the incremental revolving credit facility which is included as current maturities of long-term debt on our unaudited condensed consolidated balance sheet.

The weighted-average interest rate for the $190.0 million outstanding as of September 28, 2021 was 0.96%. ​The weighted-average interest rate for the $240.0 million of combined borrowings as of December 29, 2020 was 1.98%.

The lenders’ obligation to extend credit pursuant to the revolving credit facility depends on us maintaining certain financial covenants. We were in compliance with all financial covenants as of September 28, 2021.

(4) Revenue

The following table disaggregates our revenue by major source (in thousands):

	13 weeks ended				39 weeks ended
	September 28, 2021		September 29, 2020		September 28, 2021		September 29, 2020
Restaurant and other sales	$	862,757	$	626,429	$	2,550,124	$	1,747,145
Franchise royalties		5,449		4,141