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Item 1. Business

2023-02-24 compared with 2022-02-25 · 149 added, 240 removed, 214 unchanged (65% of the section changed)

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Texas Roadhouse, Inc.

(the "Company") was incorporated under the laws of the state of Delaware in 2004.

(collectively, the "Company,"

"we,"

"our"

and/or "us"

) was incorporated under the laws of the state of Delaware in 2004.

The principal executive office is located in Louisville, Kentucky.

General Development of Business

The Company is a growing restaurant company operating predominately in the casual dining segment.

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Kent Taylor, started the business in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Indiana.

Since then, we have grown to 667 restaurants in 49 states and ten foreign countries.

Since then, we have grown to three concepts with 697 restaurants in 49 states and ten foreign countries.

Our mission statement is "Legendary Food, Legendary Service ® ."

Our operating strategy is designed to position each of our restaurants as the local hometown favorite for a broad segment of consumers seeking high quality, affordable meals served with friendly, attentive service.

Our operating strategy is designed to position each of our casual dining restaurants as the local hometown favorite for a broad segment of consumers seeking high quality, affordable meals served with friendly, attentive service.

As of December 27, 2022, we owned and operated 597 restaurants and franchised an additional 62 domestic restaurants and 38 international restaurants.

Narrative Description of Business

Of the 566 restaurants we owned and operated at the end of 2021, we operated 526 as Texas Roadhouse restaurants, 36 as Bubba’s 33 restaurants and four as Jaggers restaurants.

Restaurant Concepts

Of the 597 restaurants we owned and operated at the end of 2022, we operated 552 as Texas Roadhouse restaurants, 40 as Bubba’s 33 restaurants and five as Jaggers restaurants.

Texas Roadhouse is a moderately priced, full-service, casual dining restaurant concept offering an assortment of specially seasoned and aged steaks hand- cut daily on the premises and cooked to order over open grills.

In addition to steaks, we also offer our guests a selection of ribs, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches.

The majority of our entrées include two made-from-scratch side items, and we offer all our dine-in guests a free unlimited supply of roasted in-shell peanuts and fresh baked yeast rolls.

Bubba’s 33 is a family-friendly, sports restaurant concept featuring scratch-made food, ice cold beer and signature drinks.

The majority of our entrées include two made-from-scratch side items, and we offer all our dine-in guests free roasted in-shell peanuts and fresh baked yeast rolls.

Bubba’s 33 is a family-friendly restaurant concept featuring scratch-made food for all with a little rock 'n' roll, ice-cold beer and signature drinks.

Our menu features burgers, pizza and wings as well as a wide variety of appetizers, sandwiches and dinner entrées.

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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 (including our online store and royalty-based licensing arrangements) as separate operating segments.

We manage our restaurant and franchising operations by concept and as a result have identified Texas Roadhouse, Bubba’s 33, Jaggers and retail initiatives (including our online store and royalty-based licensing arrangements) as separate operating segments.

In addition, we have identified Texas Roadhouse and Bubba's 33 as reportable segments.

COVID-19 and Related Impacts

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 dining rooms while others have allowed to-go or curbside service only.

As of December 28, 2021, all of our domestic company and franchise locations were operating without restriction.

As of December 29, 2020, all of our domestic company and franchise locations were operating their dining rooms under various limited capacity restrictions or were limited to outdoor and/or to-go or curbside service only.

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 sales in our to-go program higher than 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 the pandemic impacts our business, results of operations, or financial condition will depend on future developments which are outside of our control.

This includes, without limitation, the efficacy and public acceptance of vaccination programs and/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.

As a result of a significant increase in sales, the lingering impact of the pandemic, and other supply constraints, we have experienced and expect to continue to experience commodity cost inflation and certain food and supply shortages.

The commodity cost inflation, which primarily relates to beef, is due to increased costs incurred by our vendors related to higher labor, transportation, packaging, and raw material costs.

To date, we have been able to properly manage any food or supply shortages but have experienced increased costs.

If our vendors are unable to fulfill their obligations under their contracts, we may encounter further shortages and/or higher costs to secure adequate supply and a possible loss of sales, any of which would harm our business.

In addition, as our dining rooms have returned to operating without restriction, our ability to attract and retain restaurant-level employees has become more challenging due to an increasingly competitive job market throughout the country.

We have also experienced periodic staffing shortages due to employees testing positive or having to quarantine due to exposure to the virus.

To the extent these challenges persist, we could continue to experience increased labor costs and/or decreased sales.

As a result of the pandemic, legislation referred to as the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was passed in 2020 to benefit companies that were significantly impacted by the pandemic.

This legislation allowed for the deferral of the social security portion of the employer portion of FICA payroll taxes from the date of enactment through the end of 2020.

In total, we deferred $47.3 million in payroll taxes, of which $24.3 million was repaid in 2021 and $23.0 million is required to be repaid by the end of 2022.

The amount due in 2022 is included in accrued wages and payroll taxes in our consolidated balance sheets.

The CARES Act also allowed for an Employee Retention Credit for companies severely impacted by the pandemic to encourage the retention of full-time employees.

This refundable payroll tax credit was available for any company that had fully or partially suspended operations due to government order or experienced a significant decline in gross receipts and had employees who were paid but did not actually work.

Since the onset of the pandemic, the Company has provided various forms of relief pay for hourly restaurant employees, a significant portion of which qualified for this tax credit.

For the years ended December 28, 2021 and December 29, 2020, we recorded $1.2 million and $7.0 million, respectively, related to this credit which is included as a reduction to labor expense in our consolidated statements of income and comprehensive income.

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 limited capacity or seating in dining rooms while others allowed to-go or curbside service only.

In 2022, all of our domestic company and franchise restaurants operated without restriction.

We also experienced and expect to continue to experience commodity inflation and certain food and supply shortages as well as a more competitive labor market.

To the extent these challenges persist, we will continue to experience increased costs.

Operating Strategy

The operating strategy that underlies the growth of our concepts is built on the following key components:

The operating strategy that underlies the growth of our restaurants is built on the following key components:

● Offering high quality, freshly prepared food.

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As part of our process, we have developed proprietary recipes to provide consistency in quality and taste throughout all restaurants.

We expect a management level employee to inspect every entrée before it leaves the kitchen to confirm it matches the guest’s order and meets our standards for quality, appearance and presentation.

In addition, we employ a team of product coaches whose function is to provide continual, hands- on training and education to our kitchen staff for the purpose of promoting consistent adherence to recipes, food preparation procedures, food safety standards, food appearance, freshness and portion size.

At our Texas Roadhouse restaurants, we hand- cut all but one of our assortment of steaks and make our sides from scratch.

We expect a management level employee to inspect every entrée before it leaves the kitchen to confirm it matches the guest’s order and meets our standards for quality, portion size, appearance and presentation.

In addition, we employ a team of product coaches whose function is to provide continual, hands-on training and education to our kitchen staff for the purpose of promoting consistent adherence to recipes, food preparation procedures, food safety standards and overall food quality.

● Creating a fun and comfortable atmosphere with a focus on high quality service.

We believe the service quality and atmosphere we establish in our restaurants is a key component for fostering repeat business.

We focus on keeping our table-to- server ratios low to allow our servers to truly focus on their guests and serve their needs in a personal, individualized manner.

Our Texas Roadhouse restaurants feature a rustic southwestern lodge décor accentuated with hand- painted murals, neon signs, and southwestern prints, rugs and artifacts.

Additionally, our restaurants continuously play upbeat country hits.

Our Bubba’s 33 restaurants feature walls lined with televisions playing sporting events and music videos and are decorated with sports jerseys, neon signs and other local flair.

● Offering performance- based manager compensation.

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Each of these partners earns a base salary plus a performance bonus, which represents a percentage of each of their respective restaurant’s pre- tax income.

As a result of the pandemic and the impact on restaurant operating results, we guaranteed a portion of these performance bonuses in the periods that were the most significantly impacted.

By providing our partners with a significant stake in the success of our restaurants and underscoring our long-term commitment to them during the pandemic with guaranteed bonuses, we believe that we are able to attract and retain talented, experienced and highly motivated managing and market partners.

● Focusing on dinner.

In nearly all of our Texas Roadhouse restaurants, we limit our operating hours to dinner only during the weekdays with approximately one half of our restaurants offering lunch on Friday.

By focusing on dinner, our restaurant teams have to prepare for and manage only one shift per day during the week.

We believe this allows our restaurant teams to offer higher quality, more consistent food and service to our guests.

By providing our partners with a significant stake in the success of our restaurants, we believe that we are able to attract and retain talented, experienced and highly motivated managing and market partners.

● Offering attractive price points.

We offer our food and beverages at moderate price points that we believe are as low as or lower than those offered by many of our competitors in any given market.

When we evaluate menu pricing, we focus on remaining disciplined as we balance short-term pressures with long-term growth while always keeping our guest top of mind.

Prices are reviewed individually in each local market and are offered at moderate price points that we believe are as low as or lower than those offered by our competitors without sacrificing food quality.

Within each menu category, we offer a choice of several price points with the goal of fulfilling each guest’s budget and value expectations.

For example, at our Texas Roadhouse restaurants, our steak entrées, which include the choice of two side items, generally range from $11.99 for our 6-ounce Sirloin to $29.99 for our 23-ounce Porterhouse T- Bone.

The per guest average check for the Texas Roadhouse restaurants we owned and operated in 2021 was $19.68.

Per guest average check represents restaurant sales divided by the number of guests served.

We consider each sale of an entrée to be a single guest served.

Our per guest average check is higher as a result of our weekday dinner only focus.

At our Bubba’s 33 restaurants, our entrées range from $9.99 for our Classic Cheeseburger to $21.49 for our 16-inch Meaty Meaty pizza .

The per guest average check for the Bubba’s 33 restaurants we owned and operated in 2021 was $18.94.

● Creating a fun and comfortable atmosphere with a focus on high quality service.

We believe the service quality and atmosphere we establish in our restaurants is a key component for fostering repeat business.

We focus on keeping our table-to- server ratios low to allow our servers to truly focus on their guests and serve their needs in a personal, individualized manner.

Our Texas Roadhouse restaurants feature a rustic southwestern lodge décor accentuated with hand- painted murals, neon signs, and southwestern prints, rugs and artifacts.

Additionally, our restaurants continuously play upbeat country hits.

Our Bubba’s 33 restaurants feature walls lined with televisions playing sporting events and music videos and are decorated with sports jerseys, neon signs and other local flair.

Unit Prototype and Economics

Based on the results of our pricing evaluations, we will continue to take pricing actions as we feel are needed.

● Focusing on dinner.

In nearly all of our Texas Roadhouse restaurants, we limit our operating hours to dinner only during the weekdays with approximately one half of our restaurants offering lunch on Friday.

This focus on dinner allows our restaurant teams to prepare for and manage only one shift per day during the week and to prepare for the significant volumes of sales our restaurants generate.

Restaurant Development and Unit Economics

We consistently evaluate opportunities to develop restaurants in new and existing markets.

Our site selection process is critical to our growth strategy.

In analyzing each prospective site, our real estate team and our restaurant market partners devote significant time and resources to the evaluation of local market demographics, population density, household income levels and site- specific characteristics such as visibility, accessibility, traffic generators, proximity of other retail activities and competitors, traffic counts and parking.

We work actively with experienced real estate brokers in target markets to select high quality sites and to maintain and regularly update our database of potential sites.

We design our restaurant prototypes to provide a relaxed atmosphere for our guests, while also focusing on restaurant- level returns over time.

Our current prototypical Texas Roadhouse restaurants consist of a freestanding building with approximately 7,600 to 8,400 square feet of space constructed on sites of approximately 1.5 to 2.5 acres or retail pad sites, with seating of approximately 58 to 68 tables for a total of 270 to 325 guests, including 18 bar seats, and parking for approximately 180 vehicles either on-site or in combination with some form of off- site cross parking arrangement.

Our current prototypical Texas Roadhouse restaurant consists of a freestanding building with approximately 7,600 to 8,400 square feet with seating for approximately 270 to 325 guests and parking for approximately 180 vehicles either on-site or in combination with some form of off-site cross parking arrangement.

Our current prototypes are adaptable to in-line and end-cap locations and/or spaces within an enclosed mall or a shopping center.

Our current prototypical Bubba’s 33 restaurants consist of a freestanding building with approximately 7,200 to 8,800 square feet of space constructed on sites of approximately 1.5 to 2.5 acres or retail pad sites.

This includes seating of approximately 55 to 59 tables for a total of 270 to 330 guests, including 26 to 46 bar seats.

Some locations include patio seating with an additional 10 tables and up to 60 seats.

Our current prototypical Bubba’s 33 restaurant consists of a freestanding building with approximately 7,600 square feet with seating for approximately 270 to 330 guests.

Some locations include patio seating for approximately 60 guests.

Parking is targeted for approximately 180 vehicles either on-site or in combination with some form of off-site cross parking arrangement.

In response to the pandemic, we made building modifications and/or expansions to a number of existing restaurants.

These changes were made to better accommodate the increase in our to-go sales and/or alternative dining arrangements.

We also installed booth partitions in all of our restaurants as an added safety measure for our guests.

As of December 28, 2021, we leased 418 properties and owned 148 properties.

For 2021, the average capital investment, including pre-opening expenses and a capitalized rent factor, for the 23 Texas Roadhouse company restaurants opened during the year was $5.7 million, broken down as follows:

Furniture and Equipment

Pre-opening costs

(1) Represents 10x’s initial base rent in the event the land is leased or the average cost for land acquisitions.

(2) Includes site work costs.

(3) Primarily liquor licensing costs, where applicable.

This cost varies based on the licensing requirements in each state.

For 2021, the average capital investment, including pre-opening expenses and a capitalized rent factor, for the five Bubba's 33 company restaurants opened during the year was $7.4 million, broken down as follows:

Furniture and Equipment

Pre-opening costs

(1) Represents 10x’s initial base rent in the event the land is leased or the average cost for land acquisitions.

(2) Includes site work costs.

For 2021 and 2020, our average capital investment for the Texas Roadhouse restaurants was $5.7 million and $6.3 million, respectively.

The decrease in our 2021 average capital investment was primarily due to lower land and building costs.

The higher land costs in 2020 were due to increased rent amounts at several sites.

The higher building costs in 2020 were due to higher material costs and construction delays related to the pandemic as well as sites located in more expensive areas.

We expect our average capital investment for restaurants to be opened in 2022 to be approximately $6.3 million due to increased supply costs.

Our average capital investment for the Bubba’s 33 restaurants opened in 2021 and 2020 was $7.4 million and $7.3 million, respectively.

The increase in our 2021 average capital investment for our Bubba’s 33 restaurants was primarily due to higher rent costs.

We expect our average capital investment for restaurants to be opened in 2022 to be approximately $7.3 million.

We remain focused on driving sales and managing restaurant investment costs in order to maintain our restaurant development in the future.

Our capital investment (including cash and non-cash costs) for new restaurants varies significantly depending on a number of factors including, but not limited to:

the square footage, layout, scope of required site work, geographical location, supply chain costs, type of construction labor (union or non-union), local permitting requirements, our ability to negotiate with landowners and/or landlords, cost of liquor and other licenses and hook-up fees.

Site Selection

We continue to refine our site selection process.

We work actively with experienced real estate brokers in target markets to select high quality sites and to maintain and regularly update our database of potential sites.

We typically require three to six months to locate, approve and control a restaurant site and typically six to 14 additional months to obtain necessary permits.

Upon receipt of permits, we require approximately five months to construct, equip and open a restaurant.

the concept, square footage, layout, scope of required site work, geographical location, supply chain costs, type of construction labor (union or non-union), local permitting requirements, our ability to negotiate with landowners and/or landlords, cost of liquor and other licenses and pre-opening expense.

For 2022 and 2021, our average capital investment for Texas Roadhouse restaurants, which includes a 10x initial base rent factor in the event the land is leased, was $6.9 million and $5.7 million, respectively.

The increase in our 2022 average capital investment was primarily due to a larger building prototype and higher supply costs.

We expect our average capital investment for restaurants to be opened in 2023 to remain flat at approximately $6.9 million with lower site costs offset by higher rent expense.

For 2022 and 2021, our average capital investment for Bubba’s 33 restaurants, which includes a 10x initial base rent factor in the event the land is leased, was $7.8 million and $7.4 million, respectively.

The increase in our 2022 average capital investment was primarily due to higher supply costs.

We expect our average capital investment for restaurants to be opened in 2023 to decrease to approximately $7.4 million due to lower site costs.

Existing Restaurant Locations

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Our restaurants offer a wide variety of menu items at attractive prices that are designed to appeal to a broad range of consumer tastes.

At Texas Roadhouse restaurants, our dinner entrée prices generally range from $9.99 to $29.99.

We offer a broad assortment of specially seasoned and aged steaks, all cooked over open grills and all but one hand- cut daily on the premises.

At Texas Roadhouse restaurants, we offer a broad assortment of specially seasoned and aged steaks, all cooked over open grills and all but one hand- cut daily on the premises.

We also offer our guests a selection of ribs, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of burgers, salads and sandwiches.

Entrée prices include unlimited peanuts, fresh baked yeast rolls and most include the choice of two made-from- scratch sides.

Entrée prices include roasted in-shell peanuts, fresh baked yeast rolls and most include the choice of two made-from- scratch sides.

Other menu items include specialty appetizers such as the "Cactus Blossom ® "

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We also provide a "12 & Under"

menu for children that includes a selection of smaller-sized entrées served with one side item and a beverage at prices generally between $4.99 and $9.99.

At Bubba’s 33 restaurants, our menu prices, excluding appetizers, generally range from $9.99 to $21.49.

We offer a broad assortment of wings, burgers, pizzas, salads and sandwiches.

In addition, we also offer our guests a selection of pasta, chicken, beef and seafood entrées.

menu for children that includes a selection of smaller-sized entrées served with one side item and a beverage.

At Bubba’s 33 restaurants, we offer a broad assortment of burgers, pizza and wings as well as a wide variety of appetizers, sandwiches and dinner entrées.

Our Bubba’s 33 restaurants also offer an extensive selection of draft beer and signature cocktails.

We provide a "12 & Under"

menu for children at our Bubba’s 33 restaurants that includes a selection of items, including a beverage, at prices generally between $4.49 and $6.99.

In addition, our full menu is available through our mobile apps or online which allows for to-go pickup.

menu for children that includes a selection of items, including a beverage.

Most of our restaurants feature a full bar that offers a selection of draft and bottled beer, major brands of liquor and wine as well as made in-house margaritas.

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To maintain our high levels of food quality and service, we generally remove one menu item for every new menu item introduced to facilitate our ability to execute high quality meals on a focused range of menu items.

During 2021, we began working with a third-party vendor to help customers identify known allergens in each of our menu items.

This information is currently available for Texas Roadhouse restaurants and we plan to implement it for Bubba’s 33 and Jaggers restaurants in 2022.

We work with a third-party vendor to manage an online tool to provide nutritional information as well as help customers identify known allergens in each of our menu items.

This information is currently available for all concepts.

Food Quality and Safety.

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At both Texas Roadhouse and Bubba’s 33 restaurants, we assign individual kitchen employees to the preparation of designated food items in order to focus on quality, consistency, speed and food safety.

Additionally, we expect a management level employee to inspect every entrée before it leaves the kitchen to confirm it matches the guest’s order and meets our standards for quality, appearance and presentation.

We employ a team of product coaches whose function is to provide continual, hands- on training and education to the kitchen staff in our restaurants for the purpose of reinforcing food quality, recipe consistency, food preparation procedures, food safety and sanitation standards, food appearance, freshness and portion size.

We employ a team of product coaches whose function is to provide continual, hands- on training and education to the kitchen staff in all of our restaurants for the purpose of reinforcing food quality, recipe consistency, food preparation procedures, food safety and sanitation standards, food appearance, freshness and portion size.

The product coach team supports substantially all domestic system-wide stores.

Food safety and sanitation is of utmost importance to us.

We currently utilize several programs to help facilitate adherence to proper food preparation procedures and food safety standards including our daily taste and temperature procedures.

We currently utilize several additional programs to help facilitate adherence to proper food preparation procedures and food safety standards including our daily taste and temperature procedures.

We have a food team whose function, in conjunction with our product coaches, is to develop, enforce and maintain programs designed to promote compliance with food safety guidelines.

As a requirement of our quality assurance process, primary food items are purchased from qualified vendors who are regularly audited by reputable, outside inspection services confirming that the vendor is compliant with United States Food and Drug Administration and United States Department of Agriculture guidelines.

We perform food safety and sanitation audits on our restaurants each year and these results are reviewed by various members of operations and management.

We perform regular food safety and sanitation audits on our restaurants and these results are reviewed by various members of operations and management.

To maximize adherence to food safety protocols, we have incorporated Hazard Analysis Critical Control Points principles and critical procedures (such as hand washing) in each recipe.

All restaurant managers are required to complete the American National Standards Institute Certified Food Manager

All restaurant managers are required to complete the American National Standards Institute Certified Food Manager training.

In addition, most of our product coaches and food team members have obtained or are in the process of obtaining their Certified Professional-Food Safety designation from the National Environmental Health Association.

We also implemented additional sanitation requirements in response to the pandemic.

This included adding a sanitation coordinator position responsible for cleaning high touch areas, adding hand sanitizer stations at each restaurant and supplying each restaurant with chemical sanitation sprayers.

We also participate in the Ecolab Science Certified Inspection program.

This program evaluates our restaurants on COVID-19 cleaning procedures as well as food safety, general cleanliness and safety procedures.

As of December 28, 2021, all of our domestic system-wide stores had been certified under this program.

Our purchasing philosophy is designed to supply fresh, quality products to the restaurants at competitive prices while maximizing operating efficiencies.

Our procurement philosophy is designed to supply fresh, quality products to the restaurants at competitive prices while maximizing operating efficiencies.

We negotiate directly with suppliers for substantially all food and beverage products to maximize quality and freshness and obtain competitive prices.

Food and supplies are ordered by and shipped directly to the domestic restaurants.

Food and supplies are ordered by and shipped directly to our domestic restaurants.

Most food products used in the operation of our restaurants are distributed to individual restaurants through an independent national distribution company.

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We believe that guest satisfaction and our ability to continually evaluate and improve the guest experience at each of our restaurants is important to our success.

We employ a team of service coaches whose function is to provide consistent, hands- on training and education to our managers and service staff in our restaurants for the purpose of reinforcing service quality and consistency, team work and staff attentiveness and manage interaction in the dining room.

The service coach team supports substantially all domestic system-wide stores.

We employ a team of service coaches whose function is to provide consistent, hands- on training and education to our managers and service staff in our domestic restaurants for the purpose of reinforcing service quality and consistency, teamwork, responsible alcohol service, staff attentiveness and guest interactions in the dining room.

Guest Satisfaction.

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a toll- free guest response telephone line, emails, letters, social media and personal interaction in the restaurant, we receive valuable feedback from guests.

Additionally, we employ an outside service to administer a "Secret Shopper"

program whereby trained individuals periodically dine and comprehensively evaluate the guest experience at each of our domestic restaurants.

Particular attention is given to food, beverage and service quality, cleanliness, staff attitude and teamwork, and manager visibility and interaction.

The resulting reports are used for follow up training and providing feedback to both staff and management.

We have implemented several programs to evaluate guest satisfaction, with particular attention given to food, beverage and service quality, cleanliness, staff attitude and teamwork, and manager visibility and interaction.

We continue to evaluate and implement processes relating to guest satisfaction, including reducing guest wait times, improving host interaction with the guest and improving the to-go experience for our guests.

The atmosphere of our restaurants is intended to appeal to broad segments of the population including children, families, couples, adults and business persons.

The atmosphere of our restaurants is intended to appeal to broad segments of the population.

Substantially all Texas Roadhouse restaurants are of our prototype design, reflecting a rustic southwestern lodge atmosphere.

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While waiting for a table, guests can enjoy complimentary roasted in-shell peanuts and upon being seated at a table, guests can enjoy fresh baked yeast rolls along with roasted in- shell peanuts.

As a result of the pandemic, our peanuts are currently served in individual bags and provided upon request.

Our Bubba’s 33 restaurants feature walls lined with televisions playing a variety of sports events and music videos and are decorated with sports jerseys, neon signs and other local flair.

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Operations managers support the managing partner in overall operations including both departments for kitchen and service.

Kitchen managers have primary responsibility for managing the kitchen staff and overall kitchen operations including food production, preparation, execution and quality standards.

Service managers have primary responsibility for managing the front of house staff and overall dining room, bar and to-go operations including service quality and the guest

Assistant managers support our managing partners, operations managers, kitchen and service managers.

Kitchen managers have primary responsibility for managing sections of the kitchen staff and certain kitchen operations including food production, preparation, execution and quality standards.

Service managers have primary responsibility for managing sections of the front of house staff and certain dining room, bar and to-go operations including service quality and the guest experience.

Assistant managers support our managing partners, operations managers and kitchen and service managers.

All managers are responsible for maintaining our standards of quality and performance.

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To further facilitate adherence to our standards of quality and to maximize uniform execution throughout the system, we employ product coaches and service coaches who regularly visit the restaurants to assist in training of both new and existing employees and to grade food and service quality.

The attentive service and high quality food, which results from each restaurant having a managing partner, at least two to three managers and the hands-on assistance of a product coach and a service coach, are critical to our success.

The attentive service and high quality food, which results from each restaurant having a managing partner, at least two to four managers and the hands-on assistance of a product coach and a service coach, are critical to our success.

Managing partners and market partners are required, as a condition of employment, to sign a multi-year employment agreement.

The annual compensation of our managing partners and market partners incudes a base salary plus a percentage of pre-tax income of the restaurant(s) they operate or supervise.

Managing partners and market partners are eligible to participate in our equity incentive plan and are required to make refundable deposits at the time of hire that reinforces an ownership mentality.

Generally, the deposits are refunded after five years of continuous service.

Training and Development.

All restaurant employees are required to complete varying degrees of training before and during employment.

Our comprehensive training program emphasizes our operating strategy, procedures and standards, including responsible alcohol service, and is typically conducted individually at our restaurants or in groups in Louisville, Kentucky.

As a result of the pandemic, this training was completed virtually in 2021 and resumed to in-person training in 2022.

Our managing and market partners are generally required to have significant experience in the full-service restaurant industry and are generally hired at a minimum of nine to 12 months before their placement in a new or existing restaurant to allow time to fully train in all aspects of restaurant operations.

Our managing and market partners are generally required to have significant experience in the full- service restaurant industry and are generally hired at a minimum of nine months before their placement in a new or existing restaurant to allow time to fully train in all aspects of restaurant operations.

All managing partners, kitchen and service managers and other management employees are required to complete an extensive training program of up to 20 weeks, which includes training for every position in the restaurant.

Trainees are validated at pre-determined points during their training by a market partner, managing partner, product coach and service coach.

A number of our restaurants have been certified as training centers by our training department.

This certification confirms that the training center adheres to established operating procedures and guidelines.

We have designated a number of our restaurants to be certified as training centers by our training department.

These stores are utilized to train our new and existing managers to ensure compliance with all operating procedures and guidelines.

Additionally, most restaurants are staffed with training coordinators responsible for ongoing daily training needs.

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Our marketing strategy aims to promote our brands while retaining a localized focus.

We strive to increase comparable restaurant sales by increasing the frequency of visits by our current guests and attracting new guests to our restaurants and also by communicating and promoting our brands’ food quality, the guest experience and value.

We strive to increase comparable restaurant sales by increasing the frequency of visits by our current guests and attracting new guests to our restaurants and also by communicating and promoting our concepts’ food quality, the guest experience and value.

We accomplish these objectives through three major initiatives.

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Our approach to media aligns with our focus on local store marketing and community involvement.

Additionally, we continue to look for ways through various strategic initiatives to drive awareness and guest engagement with our brands.

This includes the introduction of branded food and retail products that are available for purchase online or in select retailers.

These products include non-royalty based food and accessories as well licensing arrangements for certain alcoholic and non-alcoholic beverages.

Restaurant Franchise Arrangements

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As of December 27, 2022, we had 22 franchisees that operated 100 Texas Roadhouse restaurants in 21 states and ten foreign countries.

Domestically, franchise rights for our Texas Roadhouse restaurants are granted for specific restaurants only, as we have not granted any rights to develop a territory in the United States.

We are currently not accepting new domestic Texas Roadhouse franchisees.

Domestically, franchise rights for our Texas Roadhouse restaurants are granted for specific restaurants only, as we have not granted any rights to develop a territory.

We are currently not

accepting new domestic Texas Roadhouse franchisees.

Approximately 80% of our franchise restaurants are operated by ten franchisees and no franchisee operates more than 16 restaurants.

Our standard Texas Roadhouse domestic franchise agreement has a term of ten years with two renewal options for an additional five years each if certain conditions are satisfied.

Our current form of domestic franchise agreement generally requires the franchisee to pay a royalty fee of 4.0% of gross sales.

We may, at our discretion, waive or reduce the royalty fee on a temporary or permanent basis.

In 2021 and 2020, we waived royalties of $0.2 million and $0.4 million, respectively, for international franchisees in countries that were significantly impacted by the pandemic and also made royalty deferral arrangements for many of our domestic and international franchisees.

The majority of these royalty waivers and deferral arrangements were provided in the periods most significantly impacted by the pandemic.

"Gross sales"

means the total selling price of all services and products related to the restaurant.

Gross sales, without limitation, do not include:

● employee discounts or other discounts;

● tips or gratuities paid directly to employees by guests;

● any federal, state, municipal or other sales, value added or retailer’s excise taxes;

● adjustments for net returns on salable goods and discounts allowed to guests on sales.

Domestic Texas Roadhouse franchisees are currently required to pay 0.3% of gross sales to a national marketing fund for system- wide promotions and related marketing efforts.

We have the ability under our agreements to increase the required marketing fund contribution up to 2.5% of gross sales.

We may also charge a marketing fee of 0.5% of gross sales, which we may use for market research and to develop system- wide promotional and marketing materials.

A franchisee’s total required marketing contribution or spending will not be more than 3.0% of gross sales.

Our current form of domestic franchise agreement generally requires the franchisee to pay a royalty fee based on a percentage of gross sales.

In addition, domestic Texas Roadhouse franchisees are required to pay a percentage of gross sales to a national marketing fund for system-wide promotions and related efforts.

Our standard Texas Roadhouse domestic franchise agreement gives us the right, but not the obligation, to compel a franchisee to transfer its assets to us in exchange for shares of our stock, or to convert its equity interests into shares of our stock.

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We have entered into area development and franchise agreements for the development and operation of Texas Roadhouse restaurants in several foreign countries and one U.S.

We currently have signed franchise and/or development agreements in nine countries in the Middle East as well as Taiwan, the Philippines, Mexico, China, South Korea, Brazil and Puerto Rico.

As of December 28, 2021, we had 15 restaurants in five countries in the Middle East, five restaurants open in the Philippines, four in Taiwan, four in South Korea, two in Mexico and one in China for a total of 31 restaurants in ten foreign countries .

For the existing international agreements, the franchisee is generally required to pay us a franchise fee for each restaurant to be opened, royalties on the gross sales of each restaurant and a development fee for our grant of development rights in the named countries.

We anticipate that the specific business terms of any future franchise agreement for international restaurants might vary significantly from the standard terms of our domestic agreements and from the terms of existing international agreements, depending on the territory to be franchised and the extent of franchisor-provided services to each franchisee.

In 2021, we entered into our first area development agreements for Jaggers, our fast-casual concept.

For the existing international agreements, the franchisee is generally required to pay us a development fee for our grant of development rights in the named countries, a franchise fee for each restaurant to be opened and royalties on the sales of each restaurant.

In 2021, we entered into our first two area development agreements for Jaggers, our fast-casual concept.

These agreements allow for the development and operation of restaurants in specific territories in Texas, Oklahoma, and North Carolina.

As part of these agreements, the franchisees are required to pay us a franchise fee for each restaurant to be opened, royalties on the gross sales of each restaurant and a development fee for our grant of development rights in the named territories.

No franchise agreements have been entered into and no corresponding restaurants have been opened yet related to these area development agreements.

its obligations to develop the territory or operate its restaurants in accordance with our standards and specifications.

As part of these agreements, the franchisees are required to pay us a development fee for our grant of development rights in the named territories, a franchise fee for each restaurant to be opened and royalties on the sales of each restaurant.

We expect our first Jaggers franchise restaurant to open in 2023.

Any of our area development or franchise agreements, whether domestic or international, may be terminated if the franchisee defaults in the performance of any of its obligations under the development or franchise agreement, including its obligations to develop the territory or operate its restaurants in accordance with our standards and specifications.

A franchise agreement may also be terminated if a franchisee becomes insolvent, fails to make its required payments, creates a threat to the public health or safety, ceases to operate the restaurant, or misuses our trademarks.

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Management Services.

We provide management services to 24 of the franchise restaurants in which we have an ownership interest and five additional domestic franchise restaurants in which we have no ownership interest.

Such management services may include accounting, operational supervision, human resources, training, and food, beverage and equipment consulting for which we receive monthly fees of up to 2.5% of gross sales.

We provide management services to certain domestic franchise restaurants, some of which we have an ownership interest and others in which we have no ownership interest.

Such management services may include accounting, operational supervision, human resources, training, and food, beverage and equipment consulting for which we receive monthly fees.

We also make available to these restaurants certain legal services, restaurant employees and employee benefits on a pass-through cost basis.

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Together, this enables us to closely monitor sales, food and beverage costs and labor and operating expenses at each of our restaurants.

We have a number of systems and reports that provide comparative information that enables both restaurant and Support Center management to supervise the financial and operational performance of our restaurants and to recognize and understand trends in the business.

Our accounting department uses a standard, integrated system to prepare monthly profit and loss statements, which provides a detailed analysis of sales and costs.

These monthly profit and loss statements are compared both to the restaurant- prepared reports and to prior periods.

We have a number

of systems and reports that provide comparative information that enables both restaurant and Support Center management to supervise the financial and operational performance of our restaurants and to recognize and understand trends in the business.

Restaurant hardware and software support for all of our restaurants is provided and coordinated from the restaurant Support Center in Louisville, Kentucky.

Currently, we utilize cable, digital subscriber lines (DSL) or T-1 technology at the restaurant level, which serves as a high- speed, secure communication link between the restaurants and our Support Center as well as our credit and gift card processors.

We guard against business interruption by maintaining a disaster recovery plan, which includes storing critical business information off-site, maintaining a redundant data center, testing the disaster recovery plan and providing on-site power backup.

We accept credit cards and gift cards as payment at our restaurants.

We have systems and processes in place that focus on the protection of our guests’ credit card information and other private information that we are required to protect, such as our employees’ personal information.

We guard against business interruption by maintaining a disaster recovery plan, which includes, among other things, storing critical business information off-site, maintaining a redundant data center, testing the disaster recovery plan and providing on-site power backup.

We accept credit cards, debit cards and gift cards as payment at our restaurants.

We have systems and processes in place that focus on the protection of our guests’ credit and debit card information and other private information that we are required to protect, such as our employees’ personal information.

Our systems have been carefully designed and configured to safeguard against data loss or compromise.

We submit our systems to regular audit and review, including the requirements of Payment Card Industry Data Security Standards.

We also periodically scan our networks to assess vulnerability.

We submit our systems to regular audit and review, ensuring compliance with the requirements of Payment Card Industry Data Security Standards and to assess vulnerability in our systems.

See Risk Factors in Item 1A of this Form 10-K for a discussion of risks associated with breaches of security related to confidential guest and/or employee information.

As a result of the significant increase in to-go and curbside service, we have made several digital enhancements to improve the guest experience and better support our increased volumes.

These enhancements include a new, fully customized digital experience that allows our guests to get on the waitlist or order pickup or curbside service.

We have made several digital enhancements to improve the guest experience and better support increased volumes at our restaurants.

These enhancements include a new, fully customized digital experience that allows our guests to get on the waitlist or place an order for pickup or curbside service.

The new digital experience also has added gift card and payment functionality.

We have also implemented texting systems which allow our dine-in guests to wait outside or in their cars and improved the to-go experience for our to-go guests.

Finally, we have implemented systems for touchless menus and contactless payments for enhanced guest safety.

We believe that our current systems and practice of implementing regular updates will position us well to support current needs and future growth.

We have also implemented texting systems which allow our dine-in guests to wait outside or in their cars and improved the to-go experience.

In addition, we have implemented systems that enable touchless menus and contactless payments, providing a smoother guest checkout experience and enhanced turnaround times.

We believe that our current systems and practice of implementing regular updates will position us well to support our current needs and future growth.

Information systems projects are prioritized based on strategic, financial, regulatory and other business advantage criteria.

Competition in the restaurant industry is intense.

We compete with well-established food service companies on the basis of taste, quality and price of the food offered, service, atmosphere, location, take-out and delivery options and overall dining experience.

Our competitors include a large and diverse group of restaurant chains and individual restaurants that range from independent local operators that have opened restaurants in various markets to well- capitalized national restaurant companies.

We also face competition from meal kit delivery services as well as the supermarket industry.

In addition, improving product offerings of fast casual and quick- service restaurants and better execution of off-premise sales, together with negative economic conditions could cause consumers to choose less expensive alternatives.

Although we believe that we compete favorably with respect to each of the above factors, other restaurants and retail establishments compete for the same casual dining guests, quality site locations and restaurant- level employees as we do.

We expect intense competition to continue in all of these areas.

In addition, improving product offerings of fast casual and quick- service restaurants and better execution of to-go sales, together with negative economic conditions could cause consumers to choose less expensive alternatives.

Although we believe that we compete favorably with respect to each of the above channels, other restaurants and retail establishments compete for the same casual dining guests, quality site locations and restaurant- level employees as we do.

We expect intense competition to continue across all aspects of the restaurant industry.

Our registered trademarks and service marks include, among others, our trade names and our logo and proprietary rights related to certain core menu offerings.

We have registered all of our significant marks for our restaurants with the United States Patent and Trademark Office.

We have registered or have registrations pending for our most significant trademarks and service marks in 45 foreign jurisdictions.

We have registered or have registrations pending for our most significant trademarks and service marks in multiple foreign jurisdictions.

To better protect our brands, we have also registered various Internet domain names.

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For a discussion of the risks and potential impact on our business of a failure by us to comply with applicable laws and regulations, see Item 1A, Risk Factors.

Each of our restaurants is subject to permitting and licensing requirements and regulations by a number of government authorities, which may include, among others, alcoholic beverage control, health and safety, sanitation, labor, zoning and public safety agencies in the state and/or municipality in which each restaurant is located.

labor, zoning and public safety agencies in the state and/or municipality in which each restaurant is located.

The development and operation of restaurants depends on selecting and acquiring suitable sites that satisfy our financial targets, which are subject to zoning, land use, environmental, traffic and other regulations.

In addition to domestic regulations, our international business exposes us to additional regulations, including antitrust and tax requirements, anti-boycott legislation, import/export and customs regulations and other international trade regulations, the USA Patriot Act and the Foreign Corrupt Practices Act.

We are subject to laws and regulations relating to the preparation and sale of food, including regulations regarding product safety, nutritional content and menu labeling.

Federal regulations under the Patient Protection and Affordable Care Act of 2010 require that we include calorie information on our menus and make additional nutritional information available at our restaurants and on our websites.

Future regulatory action may occur which could result in further changes in the federal nutritional disclosure requirements.

We are also subject to laws and regulations relating to the preparation and sale of food, including regulations regarding product safety, nutritional content and menu labeling.

In order to serve alcoholic beverages in our restaurants, we must comply with alcoholic beverage control regulations which require each of our restaurants to apply to a state authority, and, in certain locations, county or municipal authorities, for a license or permit to sell alcoholic beverages on the premises.

These licenses or permits must be renewed annually and may be revoked or suspended for cause at any time.

Alcoholic beverage control regulations affect numerous aspects of restaurant operations, including minimum age of patrons and employees, hours of operation, advertising, training, wholesale purchasing, inventory control and handling, storage and dispensing of alcoholic beverages.

State and local authorities in many jurisdictions routinely monitor compliance with alcoholic beverage laws.

The failure of a restaurant to obtain or retain these licenses or permits would have a material adverse effect on the restaurant’s operations.

We are also subject in certain states to "dram shop"

statutes, which generally provide a person injured by an intoxicated person the right to recover damages from an establishment that wrongfully served alcoholic beverages to the intoxicated person.

Consistent with industry standards, we carry liquor liability coverage as part of our

existing comprehensive general liability insurance as well as excess umbrella coverage.

Alcoholic beverages at all company restaurants accounted for 10.8% of restaurant sales in fiscal 2021.

statutes, which generally provide a person injured by an intoxicated person the right to recover damages from an establishment that served alcoholic beverages to the intoxicated person.

Consistent with industry standards, we focus on responsible alcohol service training and carry liquor liability coverage as part of our existing comprehensive general liability insurance as well as excess umbrella coverage.

Our restaurant operations are also subject to federal and state labor laws governing such matters as minimum and tipped wage requirements, overtime pay, health benefits, unemployment taxes, workers’ compensation, work eligibility requirements, working conditions, safety standards, and hiring and employment practices.

We have many restaurants located in states or municipalities where the minimum and/or tipped wage is greater than the federal minimum and/or tipped wage.

We anticipate that additional federal and state legislation significantly increasing minimum and/or tipped wage standards will be enacted in future periods and in other jurisdictions.

Further regulatory action may occur which could result in changes to healthcare eligibility, design and cost structure.

A significant number of our hourly restaurant personnel receive tips as part of their compensation and are paid at or above a minimum wage rate after giving effect to applicable tips.

We rely on our employees to accurately disclose the full amount of their tip income.

We base our FICA tax reporting on the disclosures provided to us by such tipped employees.

We base our FICA tax reporting on the disclosures provided to us by our tipped employees.

Our facilities must comply with the applicable requirements of the Americans with Disabilities Act of 1990 ("ADA") and related state accessibility statutes.

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In addition, when constructing or undertaking remodeling of our restaurants, we must make those facilities accessible.

As a result of the pandemic, certain state and local jurisdictions have enacted various health, safety and other regulations that have impacted our restaurants.

Compliance with these regulations, during the periods in which they were effective, led to decreased sales, increased costs, and operational complexity.

All capacity restrictions had lapsed by July 2021.

We are subject to laws relating to information security, privacy, cashless payments and consumer credit protection and fraud.

An increasing number of governments and industry groups worldwide have established data privacy laws and standards for the protection of personal information, including social security numbers, financial information (including credit card numbers), and health information.

Our business is also subject to minor seasonal fluctuations.

Our business is subject to seasonal fluctuations.

Historically, sales in most of our restaurants have been higher during the winter months of each year.

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As of December 27, 2022, we employed approximately 82,000 people.

These employees include 724 executive and administrative personnel and 2,833 restaurant management personnel, while the remainder were hourly restaurant personnel.

These employees included 784 executive and administrative personnel and 3,080 restaurant management personnel, while the remainder were hourly restaurant personnel.

Many of our hourly restaurant employees work part-time.

None of our employees are covered by a collective bargaining agreement.

We consider our employee relations to be good.

None of our employees are covered by a collective bargaining agreement and we consider our employee relations to be good.

Our business relies on our ability to attract and retain talented employees.

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Maintaining our Culture and Core Values.

In our restaurants and at our Support Center, we are committed to our shared “Core Values of Passion, Partnership, Integrity, and Fun…all with Purpose”.

In our restaurants and at our Support Center, we are committed to our shared "Core Values of Passion, Partnership, Integrity, and Fun…all with Purpose".

These Core Values form the foundation of who we are as a company and how we interact with respect, appreciation, and fairness towards one another every day.

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We value and welcome employees of all walks of life to share their gifts and strengths while working in our restaurants and the Support Center, as we strive to reflect the communities we are proud to serve.

As a result, we are committed to attracting, retaining, engaging and

developing a workforce that mirrors the diversity of our guests and is committed to upholding our shared values.

As a result, we are committed to attracting, retaining, engaging and developing a workforce that mirrors the diversity of our guests and is committed to upholding our shared values.

Performance-based Compensation and Benefits .

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We also offer a performance- based compensation program to our managing partners and market partners.

Each of these positions earns a base salary plus a performance bonus, which represents a percentage of each of their respective restaurant’s pre- tax income.

As a result of the pandemic and the impact on restaurant operating results, we guaranteed a portion of these performance bonuses in the periods that were the most significantly impacted.

Each of these positions earn a base salary plus a performance bonus, which represents a percentage of each of their respective restaurant’s pre- tax income.

In addition to salaries, these programs (which vary by employee level) include, among other items, bonuses, stock awards, retirement savings plans, healthcare and insurance benefits, health savings and flexible spending accounts, tuition reimbursement, paid time off, paid parental leave and various employee assistance programs.

As a result of the pandemic, we provided increased benefits to our employees in the form of enhanced sick pay and accrued vacation benefits and also provided a premium holiday on health insurance.

In addition to salaries, these programs (which vary by employee level) include, among other items, bonuses, stock awards, retirement savings plans with employer matching contributions, healthcare and insurance benefits, health savings and flexible spending accounts, tuition reimbursement, paid time off, paid parental leave and various employee assistance programs.

Personal Development.

We motivate and develop our employees by providing them with opportunities for increased responsibilities and advancement.

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Health and Safety.

The health and safety of our employees is a top priority.

In response to the pandemic, we implemented changes at our restaurants to help protect our employees and guests.

This included providing personal protective equipment for our employees, adding a sanitation coordinator position at each restaurant responsible for cleaning high touch areas, adding hand sanitizer stations at each restaurant, and supplying each restaurant with chemical sanitation sprayers.

In addition, we have allowed our Support Center employees to maintain a work schedule that allows for working remotely on a periodic or full-time basis depending on the prevalence of the virus.

For the employees that continue to work on-site in our Support Center, we have implemented additional measures to ensure their safety including enhanced sanitation efforts.

We believe we have been able to preserve our business continuity without sacrificing our commitment to keeping our employees safe during the pandemic.

The health and safety of our employees is a top priority and we are committed to providing a safe workplace, ensuring the safety and well-being of all team members while also ensuring that we are in compliance with all laws and regulations as well as internal policies.

This commitment includes the deployment of specific sanitary protocols and safety standards to our restaurants that focus on maintaining the health and safety of our employees.

Website Access to Reports

We make our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, available, free of charge on or through our Internet website, www.texasroadhouse.com, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").

We make our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports, filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, available, free of charge on or through our Internet website, www.texasroadhouse.com, as soon as reasonably practical after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC").

The SEC maintains an internet site at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

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Set forth below are the name, age, position and a brief account of the business experience of each of our executive officers.

Executive officers are appointed by our Board of Directors and serve until their successors are elected or until resignation or removal, in accordance with their employment agreements.

Executive officers are appointed by our Board of Directors and serve until their successors are appointed or until resignation or removal, in accordance with their employment agreements, if applicable.

There are no family relationships among any of our executive officers.

President and Chief Executive Officer

Chief Executive Officer

Chris Jacobsen

Chief Marketing Officer

Chief Financial Officer

Christopher C.

General Counsel and Corporate Secretary

Chief Learning and Culture Officer

Chief Information Officer

Morgan was appointed Chief Executive Officer in March 2021 and President in December 2020.

Chief Legal and Administrative Officer

Chief Technology Officer

Interim Chief Financial Officer

Morgan was appointed Chief Executive Officer in March 2021.

Morgan joined Texas Roadhouse in 1997, during which time he has held the positions of Managing Partner, Market Partner and Regional Market Partner.

Morgan also served as President from December 2020 to January 2023.

Morgan has more than 35 years of restaurant management experience with Texas Roadhouse, Bennigan’s Restaurants and Burger King.

Tobin was appointed President in January 2023.

Tobin joined Texas Roadhouse in 1996, during which time she has held the positions of Managing Partner, Market Partner, Vice President of Training and served as Chief Learning and Culture Officer from June 2021 through her appointment as President.

Tobin has more than 30 years of restaurant management experience.

Chris Jacobsen.

Jacobsen was appointed Chief Marketing Officer in February 2016.

Jacobsen joined Texas Roadhouse in January 2003 and has served as Vice President of Marketing since 2011.

Jacobsen joined Texas Roadhouse in January 2003 where he served as Vice President of Marketing until his appointment as Chief Marketing Officer.

Jacobsen has more than 30 years of restaurant marketing experience with Texas Roadhouse, Papa John’s International and Waffle House, Inc.

Robinson was appointed Chief Financial Officer in May 2018.

Robinson joined Texas Roadhouse in December 1998, during which time she has held the positions of Controller, Director of Financial Reporting and Vice President of Finance and Investor Relations.

Robinson has over 20 years of restaurant industry experience.

Christopher C.

Colson was appointed General Counsel in March 2021 and Corporate Secretary in August 2019.

Colson joined Texas Roadhouse in 2005, during which time he has held the positions of Senior Counsel, Associate General Counsel and Executive Director of the Global Development Group.

Colson was appointed Chief Legal and Administrative Officer in January 2023 and Corporate Secretary in August 2019.

Colson joined Texas Roadhouse in 2005, during which time he has held the positions of Senior Counsel, Associate General Counsel, Executive Director of the Global Development Group and General Counsel, a position he held from March 2021 through his appointment as Chief Legal and Administrative Officer.

Colson has over 20 years of restaurant industry experience with Texas Roadhouse, Frost Brown Todd LLC (serving as outside counsel to Texas Roadhouse), YUM!

and as assurance staff at KPMG LLP.

Tobin was appointed Chief Learning and Culture Officer in June 2021.

Tobin joined Texas Roadhouse in 1996, during which time she has held the positions of Managing Partner, Market Partner, and Vice President of Training.

Tobin has over 25 years of restaurant industry experience.

Mujica was designated as Chief Information Officer in June 2021.

Mujica joined Texas Roadhouse in January 2012 as Vice President of Information Technology and was subsequently promoted to Chief Information Officer.

Mujica was appointed Chief Technology Officer in January 2023.

Mujica joined Texas Roadhouse in January 2012 as Vice President of Information Technology and then Chief Information Officer, a position he held from March 2021 through his appointment as Chief Technology Officer.

Prior to joining Texas Roadhouse, Mr.

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Mujica has over 30 years of experience in both industry and consulting roles.

Humpich was appointed Interim Chief Financial Officer in January 2023.

Humpich joined Texas Roadhouse in 2005, during which time he has held the positions of Director of Internal Audit, Senior Director of Internal Audit and Vice President of Finance.

Prior to joining Texas Roadhouse, Mr.

Humpich held several accounting, finance and audit positions at Lexmark International and Ernst & Young, LLP.

Humpich has over 30 years of accounting and finance experience.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business