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Item 1. Business

2024-02-23 compared with 2023-02-24 · 116 added, 108 removed, 255 unchanged (47% of the section changed)

ITEM 1—BUSINESS

Texas Roadhouse, Inc.

(collectively, the "Company,"

"we,"

"our"

and/or "us"

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

(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.

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

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

Our late founder, W.

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Since then, we have grown to three concepts with 741 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 casual dining restaurants as the local hometown favorite for a broad segment of consumers seeking high quality, affordable meals served with friendly, attentive service.

Our mission statement is "Legendary Food, Legendary 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 26, 2023, we owned and operated 635 restaurants and franchised an additional 58 domestic restaurants and 48 international 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.

Of the 635 restaurants we owned and operated at the end of 2023, we operated 582 as Texas Roadhouse restaurants, 45 as Bubba’s 33 restaurants and eight 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.

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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.

Bubba’s 33 is a moderately priced, full-service, casual dining 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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Jaggers is a fast-casual restaurant concept offering burgers, hand-breaded chicken tenders and chicken sandwiches served with scratch-made sauces.

In addition, we offer fresh salads that are tossed when ordered and served with homemade dressings.

In addition, we offer fresh salads that are made-to-order and served with homemade dressings.

Jaggers offers drive-thru, carry-out and dine-in service options.

We also offer delivery services at certain locations.

Our first Jaggers restaurant opened in December 2014 in Noblesville, Indiana.

Throughout this report, we use the term "restaurants"

to include Texas Roadhouse and Bubba’s 33, unless otherwise noted.

Throughout this report, we use the term "restaurants" to include Texas Roadhouse and Bubba’s 33, unless otherwise noted.

Segment Information

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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 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

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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.

In our full-service restaurants, 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.

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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.

Our fast-casual concept, Jaggers, offers both drive-thru and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room.

● Offering performance- based manager compensation.

We offer a performance-based compensation program to our individual restaurant managers and multi- restaurant operators, who are called "managing partners"

and "market partners,"

respectively.

As part of our effort to maintain a people-first culture, we offer a performance-based compensation program supported by competitive benefits and health programs to our individual restaurant managers and multi- restaurant operators, who are called "managing partners" and "market partners," respectively.

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.

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

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

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

● Focusing on dinner.

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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.

In analyzing each prospective site, our real estate team and 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.

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

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:

Our capital investment for new restaurants, which includes an estimate of pre-opening expense and a 10x initial base rent factor for those sites that are leased, varies significantly depending on a number of factors.

These factors include, but are not limited to:

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.

For 2023 and 2022, our average capital investment for Texas Roadhouse restaurants was $7.9 million and $6.9 million, respectively.

The increase in our 2023 average capital investment was primarily due to an increase in building and site work costs and an increase in liquor license costs.

We expect our average capital investment for restaurants to be opened in 2024 to remain flat at approximately $7.9 million.

For 2023 and 2022, our average capital investment for Bubba’s 33 restaurants was $8.2 million and $7.8 million, respectively.

The increase in our 2023 average capital investment was primarily due to an increase in pre-opening costs at one particular site.

We expect our average capital investment for restaurants to be opened in 2024 to be approximately $8.5 million.

Existing Restaurant Locations

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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 ® "

and "Rattlesnake Bites".

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.

Other menu items include specialty appetizers such as the "Cactus Blossom ® " and "Rattlesnake Bites".

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 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 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.

We provide a "12 & Under" menu for children that includes a selection of items, including a beverage.

At Jaggers restaurants, we offer fresh, authentic, scratch-made food including double stacked burgers, hand-breaded chicken sandwiches and chicken tenders, made-to-order fresh salads and hand-spun milkshakes.

We also provide a “12 & Under” menu for children that includes a selection of smaller-sized entrées, a side, a drink and a cookie.

Most of our full-service 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 and signature cocktails.

Managing partners are encouraged to tailor their beer selection to include regional and local brands.

Alcoholic beverages at all company restaurants accounted for 11.0% of restaurant sales in fiscal 2022.

In 2023, alcoholic beverages at all company restaurants accounted for 10.3% of restaurant sales.

We always strive to maintain a consistent menu at our restaurants.

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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.

This information is available for all concepts.

Food Quality and Safety.

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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.

The product coach team supports all of our full-service domestic restaurants.

Food safety and sanitation is of utmost importance to us.

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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.

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 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.

In addition, product coaches and certain food team members are required to obtain their Certified Professional-Food Safety designation from the National Environmental Health Association.

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

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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 domestic restaurants for the purpose of reinforcing service quality and consistency, teamwork, responsible alcohol service, staff attentiveness and guest interactions in the dining room.

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.

This training and education reinforces service quality, teamwork, responsible alcohol service, staff attentiveness and guest interactions in the dining room as well as the implementation of new technologies and process changes.

Guest Satisfaction.

Through the use of guest surveys, our websites, "texasroadhouse.com,"

"bubbas33.com,"

or "eatjaggers.com,"

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

Through the use of guest surveys, our various websites including "texasroadhouse.com," "bubbas33.com" or "eatjaggers.com," a toll- free guest response telephone line, emails, letters, social media and personal interaction in the restaurant, we receive valuable feedback from guests.

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.

We continue to evaluate and implement new processes and technologies 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.

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Guests may also view a display- baking area, where our fresh baked yeast rolls are prepared, and a meat cooler displaying fresh cut steaks.

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.

Once seated at a table, guests can enjoy free fresh baked yeast rolls along with roasted in- shell peanuts.

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.

Our fast-casual concept, Jaggers, offers both drive-thru and dining room service in a modern design featuring a contemporary exterior and a comfortable and inviting dining room.

Management Personnel.

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Managing partners are single restaurant operators who have primary responsibility for the day-to- day operations of the entire restaurant.

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

Operations managers support the managing partner in overall operations including oversight over the kitchen and service departments.

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

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Through regular visits to the restaurants, the market partners facilitate adherence to all aspects of our concepts, strategies and standards of quality.

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.

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 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.

The annual compensation of our managing partners and market partners includes 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.

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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.

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

Restaurant Franchise Arrangements

Franchise Restaurants.

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

As of December 26, 2023, we had 21 franchisees that operated 106 Texas Roadhouse and Jaggers restaurants in 20 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.

We are currently not

accepting new domestic Texas Roadhouse franchisees.

We are currently not accepting new domestic Texas Roadhouse franchisees.

Approximately 85% 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 based on a percentage of gross sales.

Our current form of domestic franchise agreement generally requires the franchisee to pay a franchise fee for each restaurant opened and royalties 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.

The amount of shares that a franchisee would receive is based on a formula that is included in the franchise agreement.

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.

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 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.

We have also entered into area development agreements for Jaggers, our fast-casual concept.

Currently, we have agreements in place that allow for the development and operation of restaurants in specific territories in Texas, Oklahoma, and North Carolina.

We opened our first two Jaggers franchise restaurants in 2023.

Our standard Texas Roadhouse and Jaggers domestic franchise agreements give us the right, but not the obligation, to compel a franchisee to transfer its interests to us based on pre-determined formulas included in our franchise agreements.

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.

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Management Services.

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.

We provide management services to certain domestic franchise restaurants, some in 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.

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Information Technology

All of our company restaurants utilize computerized management information systems, which are designed to improve operating efficiencies, provide restaurant and Support Center management with timely access to financial and operating data and reduce administrative time and expense.

operating data and reduce administrative time and expense.

With our current information systems, we have the ability to query, report and analyze this intelligent data on a daily, weekly, monthly, quarterly and year-to-date basis and beyond, on a company- wide, concept, regional, market or individual restaurant basis.

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.

Together, this enables us to closely monitor sales and operating expenses at each of our restaurants throughout all concepts.

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.

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.

In the course of business, we gather and maintain sensitive information from our guests, employees, partners and business operations.

To protect this information, we have created and implemented a detailed set of procedures that are informed by recognized national and international standards.

We have implemented extensive detective and preventative controls designed to ensure the appropriate level of protection for the confidentiality, integrity and availability of data stored on or transferred through our information technology resources.

Additionally, 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.

In addition to cash, 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.

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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.

We have also implemented texting systems which allows our dine-in guests to wait outside or in their cars and has 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.

Finally, we have started implementing digital display systems in our kitchens that increase kitchen efficiency, allow us to handle increased volumes and enhance the employee experience.

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

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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.

Our registered trademarks and service marks include, among others, our trade names and logos 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 multiple 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.

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

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.

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.

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

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 served alcoholic beverages to the intoxicated person.

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 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.

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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.

Under the ADA and related state laws, we must provide equivalent service to disabled persons and make reasonable accommodation for their employment.

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As a result, our quarterly operating results and comparable restaurant sales may fluctuate due to seasonality.

Accordingly, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year and comparable restaurant sales for any particular future period may decrease.

Human Capital Management

At Texas Roadhouse, we take pride in being a people-first company.

As of December 26, 2023, we employed approximately 91,000 people.

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.

This included 845 executive and administrative personnel and 3,507 restaurant management personnel, while the remainder were full and part-time hourly restaurant personnel.

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.

To attract and retain talent, we strive to maintain our culture through shared core values, a performance-based compensation program supported by competitive benefits and health programs, and a diverse, inclusive and supportive workplace, with opportunities for our employees to grow and develop in their careers.

To attract and retain talent, we strive to maintain our people-first culture through shared core values, a performance-based compensation program supported by competitive benefits and health programs with opportunities for our employees to grow and develop in their careers.

Additionally, we believe that diversity and inclusion are vital parts of our culture and what truly makes us legendary.

We value and welcome employees of all walks of life to share their talents, 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.

The table below shows the gender and racial and ethnic diversity of our employees as of December 26, 2023:

December 26, 2023

People of Color (1)

Support Center

Restaurant Managers

Hourly Restaurant Employees

(1) Denotes employees at company restaurants and our Support Center that identify as American Indian/Alaskan Native, Asian, Black/African American, Hispanic/Latino, Native Hawaiian/Pacific Islander or two or more races.

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".

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.

We also believe that diversity and inclusion are vital parts of our culture.

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.

Performance-based Compensation and Benefits .

We support our employees by offering competitive wages and benefits for eligible employees.

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.

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

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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.

Personal Development.

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With thousands of leadership positions across our restaurants, we provide a pathway and training for thousands of individuals across the country to advance from entry-level jobs into management roles.

In addition, our geographic footprint often allows us to offer our restaurant team members relocation options at similar roles when personal circumstances require it.

In addition, our geographic footprint often allows us to offer our restaurant team members relocation options at similar roles due to personal circumstances.

Health and Safety.

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.

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

Andy’s Outreach .

Founded in 2005, Andy’s Outreach is a non-profit, tax-exempt organization whose mission is to provide financial support to employees of Texas Roadhouse and their families in times of severe hardship or crisis and in

cases of tragic or catastrophic need.

Andy’s Outreach is mainly funded by the support of Texas Roadhouse employees through payroll contributions, a domestic franchise store that is owned by Andy’s Outreach and other fundraising efforts.

Since its inception, Andy’s Outreach has assisted over 20,000 employees and distributed over $26 million.

Corporate Sustainability

Our corporate sustainability mission is to leave every community better than we found it by focusing on four pillars – food, community, employees and conservation.

As we test and roll out new programs, we continue to build champions who are invested in furthering our sustainability efforts.

Ongoing initiatives such as our meat cutter program, support of non-profits, employee development and focus on conservation, create steady progress for our overall corporate sustainability program and are integrated into our daily operations.

Additional information about our corporate sustainability mission is available through our website at www.texasroadhouse.com, under the corporate sustainability section.

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 practical 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 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 appointed or until resignation or removal, in accordance with their employment agreements, if applicable.

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

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

Chief Executive Officer

Chris Jacobsen

Chief Marketing Officer

Christopher C.

1 unchanged sentence

Chief Technology Officer

Interim Chief Financial Officer

Christopher Monroe

Chief Financial Officer

Chief Communications Officer

Morgan was appointed Chief Executive Officer in March 2021.

5 unchanged sentences

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 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.

Christopher C.

1 unchanged sentence

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.

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

Brands and KPMG.

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.

Prior to joining Texas

Roadhouse, Mr.

Mujica held senior management positions at The Home Depot and Arthur Andersen.

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.

Christopher Monroe.

Monroe was appointed Chief Financial Officer in June 2023 when he joined Texas Roadhouse.

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.

Monroe held various senior level financial positions, most recently as Senior Vice President of Finance and Treasurer, at Southwest Airlines.

Monroe has over 30 years of financial experience.

Doster was appointed Chief Communications Officer in November 2023.

Doster joined Texas Roadhouse in 2006 as the Director, then Senior Director and Vice President of Communications, a position he held from 2018 through his appointment as Chief Communications Officer.

Prior to joining Texas Roadhouse, Mr.

Doster held a senior management position at FSA Public Relations where he provided services for national clients including Jimmy John’s, Qdoba and Cameron Mitchell Restaurants.

Doster has over 30 years of media, public relations and industry 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