Since 2000, the Louisville, Ky.-based firm has delivered earnings growth of double digits or better in all but one year. Even though many companies saw earnings and sales plunge in 2008, Texas Roadhouse's profit and revenue grew 2% and 20%, respectively.
In late February, the company beat expectations with fourth-quarter profit and sales that rose 12%. Modestly lower food costs and a small uptick in traffic boosted results. For all of 2012, profit grew 18% to $1.04 a share. Earnings per share have nearly doubled since 2008. Revenue climbed 14% to over $1.26 billion — the biggest in four years.
Along with its latest quarterly report, Texas Roadhouse raised its quarterly dividend by 33% to 12 cents a share from 9 cents. That's the biggest jump since the company first started paying quarterly dividends, in 2011. At the new annual rate of 48 cents a share, Texas Roadhouse's yield works out to 2.5%.TXRH is a Cabot Benjamin Graham Value Letter stock.
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