Texas Roadhouse Founder, CEO Kent Taylor Dies

Kent Taylor, the Founder and CEO of Texas Roadhouse Inc TXRH passed away, the company said in a Friday press release. His cause of death was not released in the statement.

What To Know: Taylor founded the Texas-themed restaurant chain in 1993. He came up with the concept while working as a bartender at TGI Fridays.

Texas Roadhouse is a classic textbook definition of a success story. He told Restaurant Business in a May 2020 interview that three of the chain's first five stores failed but he never gave up his vision.

"Survival mode was where I lived for quite a few years," he said.

When the COVID-19 pandemic hit, the CEO said he found himself "right back there again." During the pandemic, Taylor pivoted the company's focus to emphasize to-go orders and sold raw cuts of meat for consumers to cook at home.

Taylor donated $5 million of his own money to help support hourly wage workers impacted by the pandemic.

Related Link: Why Texas Roadhouse Could Be A Big Post-Shutdown Winner

Why It's Important: Shares of Texas Roadhouse are up nearly 60% over the past six months amid expectations for a major rebound in restaurant demand. The stock was lower by around 3% after the surprise announcement of Kent's passing.

Greg Moore, Lead Director, provided this statement on behalf of the Board of Directors:

"We are deeply saddened by the loss of Kent Taylor. He founded Texas Roadhouse and dedicated himself to building it into a legendary experience for "Roadies" and restaurant guests alike. During the pandemic, he gave up his entire compensation package to help support his frontline workers. This selfless act was no surprise to anyone who knew Kent and his strong belief in servant leadership. He was without a doubt, a people-first leader. His entrepreneurial spirit will live on in the company he built, the projects he supported and the lives he touched."

What's Next: Texas Roadhouse announced Jerry Morgan will assume the title of CEO, effective immediately.

Morgan joined Texas Roadhouse in 1997 as the Managing Partner of its first restaurant in Texas. He was appointed as President in 2020 and was part of the company's existing succession plan.

The stock was trading down about 2.5% to $93.63 Friday morning.