Segment Information

6 Months Ended

Jun. 28, 2022

Segment Reporting [Abstract]

Segment Information

(12) Segment Information

We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers and our retail initiatives as separate operating segments. Our reportable segments are Texas Roadhouse and Bubba’s 33. The Texas Roadhouse reportable segment includes the results of our domestic company Texas Roadhouse restaurants and domestic and international franchise Texas Roadhouse restaurants. The Bubba's 33 reportable segment includes the results of our domestic company Bubba's 33 restaurants. Our remaining operating segments, which include the results of our domestic company Jaggers restaurants and the results of our retail initiatives, are included in Other. In addition, corporate-related segment assets, depreciation and amortization, and capital expenditures are also included in Other.

Management uses restaurant margin as the measure for assessing performance of our segments. Restaurant margin (in dollars and as a percentage of restaurant and other sales) represents restaurant and other sales less restaurant-level operating costs, including food and beverage costs, labor, rent and other operating costs. Restaurant margin also includes sales and operating costs related to our non-royalty based retail initiatives. Restaurant margin is used by our chief operating decision maker to evaluate restaurant-level operating efficiency and performance.

In calculating restaurant margin, we exclude certain non-restaurant-level costs that support operations, including pre-opening and general and administrative expenses, but do not have a direct impact on restaurant-level operational efficiency and performance. We also exclude depreciation and amortization expense, substantially all of which relates to restaurant-level assets, as it represents a non-cash charge for the investment in our restaurants. We also exclude impairment and closure expense as we believe this provides a clearer perspective of the Company’s ongoing operating performance and a more useful comparison to prior period results. Restaurant margin as presented may not be comparable to other similarly titled measures of other companies in our industry.

Restaurant and other sales for all operating segments are derived primarily from food and beverage sales. We do not rely on any major customer as a source of sales and the customers and assets of our reportable segments are located predominantly in the United States. There are no material transactions between reportable segments.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

	13 Weeks Ended June 28, 2022
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	960,153	$	54,612	$	3,292	$	1,018,057
Restaurant operating costs (excluding depreciation and amortization)		799,102		47,037		3,182		849,321
Restaurant margin	$	161,051	$	7,575	$	110	$	168,736
Depreciation and amortization	$	28,104	$	3,302	$	3,014	$	34,420
Capital expenditures		51,316		6,415		1,807		59,538
	13 Weeks Ended June 29, 2021
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	844,608	$	45,081	$	2,755	$	892,444
Restaurant operating costs (excluding depreciation and amortization)		695,381		36,539		2,293		734,213
Restaurant margin	$	149,227	$	8,542	$	462	$	158,231
Depreciation and amortization	$	26,240	$	3,150	$	2,260	$	31,650
Capital expenditures		38,750		6,219		1,433		46,402
	26 Weeks Ended June 28, 2022
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	1,886,882	$	105,837	$	6,310	$	1,999,029
Restaurant operating costs (excluding depreciation and amortization)		1,572,364		90,469		6,277		1,669,110
Restaurant margin	$	314,518	$	15,368	$	33	$	329,919
Depreciation and amortization	$	55,645	$	6,492	$	5,903	$	68,040
Capital expenditures		90,993		13,792		3,782		108,567
	26 Weeks Ended June 29, 2021
	Texas Roadhouse		Bubba's 33		Other		Total
Restaurant and other sales	$	1,601,205	$	80,766	$	5,396	$	1,687,367
Restaurant operating costs (excluding depreciation and amortization)		1,310,866		66,221		4,475		1,381,562
Restaurant margin	$	290,339	$	14,545	$	921	$	305,805
Depreciation and amortization	$	51,903	$	6,163	$	4,453	$	62,519
Capital expenditures		69,904		11,799		3,365		85,068

A reconciliation of restaurant margin to income from operations is presented below. We do not allocate interest expense, net and equity income from investments in unconsolidated affiliates to reportable segments.

	13 Weeks Ended				26 Weeks Ended
	June 28, 2022		June 29, 2021		June 28, 2022		June 29, 2021
Restaurant margin	$	168,736	$	158,231	$	329,919	$	305,805
Add:
Franchise royalties and fees		6,549		6,344		13,063		12,050
Less:
Pre-opening		5,323		6,319		9,614		10,587
Depreciation and amortization		34,420		31,650		68,040		62,519
Impairment and closure, net		411		17		(235)		521
General and administrative		49,213		36,861		89,507		73,573
Income from operations	$	85,918	$	89,728	$	176,056	$	170,655