Texas Roadhouse Inc. (TXRH) recently announced that its chief executive officer (CEO) and president – G.J. Hart has resigned to pursue the same position at California Pizza Kitchen. Kent Taylor, who had served Texas Roadhouse as the CEO from May 2000 to October 2004, has stepped into the role. Prior to that, Taylor was the company’s president since its inception in 1993.
During his 10 years at Texas Roadhouse, Hart played a key role in developing the restaurant concept, mentoring the company’s growth in terms of revenue from $63 million to more than $1 billion. The company’s unit count and profitability also saw unparalleled growth under his leadership. Today, Texas Roadhouse owns, operates and franchises more than 350 casual dining restaurants across the country.
California Pizza Kitchen, which was on a CEO hunt since it was acquired by Golden Gate Capital in July 2011, should benefit greatly from Hart's induction.
At Texas Roadhouse, management is hopeful that Taylor’s familiarity with the company’s CEO responsibilities would help in adding value and driving growth and profitability ahead.
While making these managerial changes, Texas Roadhouse also named Scott M. Colosi as president and G. Price Cooper as the chief financial officer (CFO). Colosi and Cooper previously held the positions of CFO and vice president, respectively.
The managerial transformation is at its early stage, keeping us cautious until there is further evidence of successful execution. Texas Roadhouse currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are maintaining our long-term Neutral recommendation on the stock.
As a point of reference, one of the company’s peers, Papa John's International Inc.’s (PZZA) chief financial officer recently joined another restaurant company Benihana Inc. (BNHN).
BENIHANA INC (BNHN): Free Stock Analysis Report
PAPA JOHNS INTL (PZZA): Free Stock Analysis Report
TEXAS ROADHOUSE (TXRH): Free Stock Analysis Report
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